The logistic system for transporting ethanol is part of the Brazilian Government’s Growth Acceleration Programme and comprises 1,330 km of pipelines with a transportation capacity of 20.8 MMcm/a as well as ten ethanol storage terminals.
The system will link the main ethanol producing regions in the states of SÌ£o Paulo and GoiÌÁs, TriÌ¢ngulo Mineiro, south and southeast of Mato Grosso do Sul and northern ParanÌÁ to consumption centres in Greater SÌ£o Paulo and Rio de Janeiro, as well as ports of Ilha D’Ìgua (in Rio de Janeiro) and Caraguatatuba (in SÌ£o Paulo), for export and/or shipment of ethanol to other consumption centres in the country.
The bridge loan will finance the first stage of the project – which covers stretches in RibeirÌ£o Preto to PaulÌ_nia, Uberaba to RibeirÌ£o Preto, and Anhembi to PaulÌ_nia – and the terminals in RibeirÌ£o Preto, Uberaba, Anhembi, and Ara̤atuba.
The investment will provide a quicker and more reliable means of transport, with lower costs and less pollution compared to highway transport, which is currently the most common form of transport of this product.
In addition, optimising the flow and product storage in regions closer to consumption centres will help reduce market volatility by providing a more regular supply and price stability. The project will also contribute to consolidating Brazil in the international market for producing and marketing ethanol.