ADM is making moves to improve return on investment through an asset-light approach. The group has announced that it is selling a 50% stake in its export grain terminal in Barcarena in Northern Brazil to Glencore, plc. Following the sale, ADM and Glencore will form a joint venture that will jointly own and operate the terminal. The venture has planned upgrades to quadruple the facility’s capacity from its current 1.5 million tons to 6 million tons, and to enable the facility to handle Panamax vessels, which will increase the terminal’s utilization. As agriculture production expands at a significant pace in both northern and western Brazil, this upgraded terminal will be increasingly critical to both Brazil’s ag sector and buyers in global markets including Asia and Europe.
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