Petrobras (NYSE:PBR) reported that a shareholders’ agreement was signed to set up Logum Logística S.A., the company to be responsible for deploying an extensive multimodal logistics system for the transportation and storage of ethanol. It will be a private limited company, comprising ordinary registered shares with no face value, distributed to stakeholders as follows: Petrobras, 20%; Copersucar S.A., 20%; Cosan S.A. Indústria e Comércio, 20%; Odebrecht Transport Participações S.A., 20%; Camargo Correa Óleo e Gás S.A., 10%; Uniduto Logística S.A., 10%. The new company’s capital will initially be set at R$100 milhões.
Logum Logística S.A. will be responsible for constructing, developing and operating the system (logistics, loading, unloading, transport and storage, and operation of ports and waterways terminals), which will comprise multipipeline networks, waterways, highways and coastal shipping.
With investments of R$ 6 billion, the Multimodal Ethanol Logistics System will extend over some 1,300km and pass through 45 municipalities, linking the main ethanol-producing regions in the states of São Paulo, Minas Gerais, Goiás and Mato Grosso to the Paulínia Refinery (Replan) in São Paulo.
Part of this integrated system will consist of a long-distance pipeline between Jataí (GO) and Paulínia. Work on the first section between Ribeirão Preto and Paulínia was begun last November when the initial contracts were awarded, covering services, projects and facilities. This section will be integrated into the existing waterways transport system in the Tietê-Paraná basin. Carrier convoys made up of barges and pusher craft will be built and operated by Transpetro, which will also operate the system pipelines used by Logum Logística S.A.
The aim of combining pipelines and waterways is to rationalize ethanol transport and reduce costs. The integrated system will consist of a pipeline network extending as far as Barueri and Guarulhos, in Greater São Paulo, and Duque de Caxias in Rio de Janeiro state. From these terminals, ethanol will be transferred directly to fuel service stations using short-haul road transport.
To ensure that the ethanol reaches other markets in Brazil, the delivery system will include coastal port terminals in the states of São Paulo and Rio de Janeiro to facilitate coastal shipment. The system will also speed up the ethanol export process. At present, most of the ethanol produced is transported by road tanker to port facilities.
On completion, the project will have annual installed transport capacity of up to 21 million cubic meters of ethanol. More than 10 million direct and indirect jobs will be created and part of the labor force required will be recruited locally.
Most of the system will be constructed along existing pipeline routes. This will minimize environmental impact on local communities and native vegetation. In addition, the project will reduce traffic on major highways and in urban centers. Reducing the number of trucks in circulation will result in less wear and tear on highways, increased safety and speed, and a in pollution emissions.