14 october 2014

BPC improves logistics in Brazil: contract with Rocha signed

Belarusian Potash Company herewith informs its partners on having signed a contract with Rocha Terminais Portuarios e Logistica, targeting cargo storing and handling in the Brazilian port of Paranagua, as well as on having leased customs warehouses in Brazil.

Rocha is one of the most experienced companies in the global market of port and logistical services, being operational for 120 years now, maintaining high standards in dealing with its customers. The scope of business of the company is storage management and dry cargo handling, both in containers and bulk. The company warehouse capacity in Brazil is over 400 thousand tons.

This contract aims to improve shipments logistics and service for small and medium size businesses in the region and enables Belarusian Potash Company to supply products to buyers in the shortest possible time, fulfilling among others urgent orders and supplying products from customs warehouses. 

Konstantin Deduk: «New warehouses taken on lease are state-of-art facilities and feature up-to-date infrastructure. Currently the use of these warehouses is one of the most efficient methods of solving problems related to ports congestion and the increase in fees for vessel demurrage. It should be noted that the port of Paranagua handles about 40% of all the fertilizer import bound to Brazil. The load on the port is extremely high, in particular in the peak season. By having signed a lease contract for customs warehouses in this port, Belarusian Potash Company has gained a significant competitive advantage. In addition, given that the product from the customs warehouse may be transported to another state without extra duties a competitive advantage doubles.

Operations within this contract have already started: the discharge of the shipload of 25 tons of granular MOP has been completed. BPC plans regular shipments to the port of Paranagua in order to ensure the availability of sufficient volumes in warehouses and the product shipment in the most efficient way. Therefore, due to the joint effort of BPC and Rocha both logistical infrastructure and operations related to the shipment of potash to Brazil will be essentially upgraded.

It is noteworthy that modern Belarusian Potash Company has proved itself as a reliable business partner and a disciplined player in the market. Moreover, based on the result of H1 2014 the company has become supplier number, having gained approx. 30% of the market share in Brazil.