Ports and Terminals

Wilson Sons achieves remarkable growth in powdered milk cabotage operations

Sep, 25, 2023 Posted by Gabriel Malheiros

Week 202339

Rio Grande, Brazil – Wilson Sons has seen significant growth in powdered milk cabotage operations to the Northeast Region from January to August 2023 through Tecon Rio Grande. In comparison to the same period last year, the Rio Grande-based terminal more than quadrupled the volume transported along the Brazilian coast, recording a 339% increase in shipments from Rio Grande to the ports of Salvador in Bahia, Ipojuca, and Suape, both in Pernambuco. In terms of figures, such performance translates to 527 containers, 407 more than the previous year. This equates to 1054 TEUs (twenty-foot equivalent units) and 14,334 tons shipped, respectively, 814 and 11,194 more than in the first eight months of 2022.

The primary reason for the increased shipments of powdered milk to this region is the cost reduction achieved through cabotage, coupled with the sustainability factor of this mode of transport. CCGL chose to transport powdered milk via this method due to its lower CO2 emissions than road transport. “It is a more sustainable form of logistical operation, with lower costs, providing greater competitiveness for our brand in the market,” emphasized Luiz Felipe, logistics coordinator at the dairy unit. Other factors cited by CCGL as determinants for choosing this service were security, a lower risk of damage, and the possibility of better demand planning.

Tecon Rio Grande is the main gateway in and out of Rio Grande do Sul to the world and has become fundamental for the state’s economic development over its more than 26 years of existence. Currently, it has over 3,000 customers, including importers and exporters, and receives the main long-haul lines that call Brazil, offering weekly services for all the world’s trades from 13 shipowner clients.

For Paulo Bertinetti, CEO of Tecon Rio Grande, the significant increase in powdered milk cabotage is another advantage of the terminal’s logistical structure. “Rio Grande do Sul is one of the largest milk producers in Brazil and has enormous business expansion potential. At a time when in-state producers are opening new fronts in northeastern Brazil, as in this case, Tecon Rio Grande is prepared and fully capable of supporting this logistical operation efficiently, safely, and sustainably,” he noted.

Sustainability is one of the strategic pillars of Wilson Sons. Last May, a contract was signed for Tecon Rio Grande to have its energy supplied 100% from renewable sources to reduce carbon dioxide emissions into the atmosphere. With this, it acquired the IREC (International Renewable Energy Certificates) certification for the three-year-period 2024/25/26, which can be used for reporting indirect emissions from energy consumption in the GHG Protocol Program, the most widely used international methodology for quantifying greenhouse gas emissions.

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