Logum Logistica Continues to Expand Ethanol Pipeline System in Brazil

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Researched by Industrial Info Resources (Cordoba, Argentina)--Logum Logistica (Rio de Janeiro, Brazil) is continuing work on its grassroot ethanol pipeline system. The company already has constructed two ethanol terminals and related pump stations, connected by a 129-mile pipeline, in Sao Paulo state. Now, Logum aims to expand its business to the city of Uberaba, in Minas Gerais state.

Logum began work on the first exclusively Brazilian ethanol pipeline, between the cities of Ribeirao Preto and Paulinia, in mid-2013. The cities each feature a storage terminal.

By the end of 2013, the company began the installation of an 85-mile, 20-inch-diameter pipeline between Ribeirao Preto in Sao Paulo, and Uberaba in Minas Gerais. In Uberaba, a new storage terminal with four 211,888-cubic-foot fixed roof tanks and related pump stations with a 314 million-standard-cubic-foot-per-day ethanol transmission capacity are under construction. The total investment value of the whole project is about $180 million.

Logum granted Consorio Etanol (Sao Paulo, Brazil), an association between Camargo Correa (Sao Paulo, Brazil) and Odebrecht (Salvador, Brazil), the engineering, procurement and construction contract for the pipeline, terminal and pump station projects.

Logum Logistica is a joint venture between Camargo Correa S.A. (10%), Copersucar S.A. (20%), Raizen S.A. (20%), Odebrecht S.A. (20%), Petrobras (NYSE:PBR) (Rio de Janeiro, Brazil) (20%) and Uniduto Logistica S.A. (20%). The Brazilian Development State Bank BNDES (Rio de Janeiro, Brazil) is financing the project.

These new projects are part of a broader ethanol transport logistics plan for new terminals, pipelines and pump stations. The plan will allow Brazil to reduce ethanol transportation costs within its borders.

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