Other Logistics

VLI and ALE collaborate on landmark biofuel rail transport

Aug, 23, 2023 Posted by Gabriel Malheiros

Week 202335

In a first-of-its-kind collaborative endeavor, VLI and fuel distributor ALE have successfully concluded a transport operation with biofuels via rail from Porto Nacional to São Luís through the North-South Railroad. The operation involved 545 cubic meters of anhydrous ethanol, earmarked for supplying ALE’s network of stations in Maranhão.

This breakthrough was made possible through the collaborative effort of both companies, who jointly designed the solution. Previously, transporting this type of cargo required an average of three trucks for what would be each loaded wagon. These trucks covered a distance exceeding 1,300 km to reach the destination. ALE, a longstanding VLI client, frequently undertakes the reverse journey by rail, conveying fuel from São Luís to Porto Nacional.

VLI’s Commercial Manager of Fuels, João Carlos Apolônio de Souza, highlights the co-creation of a solution with the client to enhance safety, efficiency, and sustainability in cargo handling. He emphasizes that the return flow optimizes the utilization of wagons, which would have otherwise traveled empty on the journey back to São Luís. This innovative approach contributes to a better carbon emission equation per ton transported within the integrated system of the two companies. Additionally, rail transportation offers enhanced energy efficiency compared to road transport, which was the previous mode of conveyance.

ALE’s Logistics Strategy Manager, Elmer Vinhote, called the initiative an experimental endeavor to assess operational viability. The successful outcome paves the way for further collaboration with VLI to explore and expand this modality. Vinhote highlights the intent to establish new projects in partnership with VLI, aimed at delivering logistical innovations and value to both companies and consumers.

This collaborative spirit aligns with the broader vision of both companies. Operated by VLI, the north section of the North-South Railway serves as an efficient conduit for transporting agribusiness products from the Matopiba region to the port system of São Luís, along with cargo such as pulp and fuel for the domestic market. In 2022, VLI managed around 15 million tons in the FNS, reflecting an 18% increase from the preceding year. This growth underscores VLI’s commitment to operational stability and planning, ensuring secure and efficient cargo transport while accommodating the expansion of Brazilian production.

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