Brazil ethanol giant to rely on railway

Brazil's Cosan, the country's largest independent sugar and ethanol producer, has announced an agreement with Brazilian logistics operator America Latina Logistica to transport the biofuel by train to the port of Santos.

Under the contract, 3.6 million liters (950,000 gallons) of sugar-based ethanol will be shipped per month to Brazil's main maritime port, Cosan said in a statement.

The biofuel will be transported from Bauru, in the interior of Sao Paulo state, to the Alcohol Export Terminal of Santos - about 79 kilometers (49 miles) from Sao Paulo - via tank trains composed of 15 wagons, each with a 60-100-cubic meter (2,115-3,525-cubic foot) capacity.

Cosan's director of integrated logistics, Carlos Martins, said the partnership will cut costs at a time when growing foreign demand for Brazilian ethanol has caused logistical bottlenecks.

Meanwhile, ALL's superintendent of liquids, Eduardo Fares, highlighted the importance for the company - Brazil's largest rail operator - of making inroads in the biofuels transport segment.

Cosan said studies were carried out to compare the quality of the ethanol produced in the factories with the product that arrived at the Santos port before going ahead with the deal. EFE

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