American trader Archer Daniels Midland said Tuesday that he started work on expanding its grain terminal and the grain tank in the Brazilian port of Santos.

The leadership of ADM said that the expansion will increase the capacity of road grain through the terminal to 8 million tons from the current 6 million tonnes a year.

Expansion and modernization is also expected to help reduce particulate emissions of grain dust into the atmosphere around the terminal, which caused complaints from local businesses and residents.

The expansion project, expected to be completed in 2017.

The company also continues to expand its export terminal in Barcarena (pará state), production capacity will be increased to 6 million tons annually.

ADM recently sold its stake in the terminal competitor to the commodity business, Glencore. The Barcarena terminal is part of a trend of big grain traders on opening export routes through the Northern corridor of Brazil, to avoid problems with the logistics of grain observed in the transport of raw materials through the main southern ports.

ADM opened the concession of the terminal in Santos in 1997 and in 2015 renewed the concession to operate the terminal in the port until 2037.

Source: Thomson Reuters