DP World, Odebrecht to operate Embraport in Brazil

Global marine terminal operator DP World and Brazilian company Odebrecht announce they have entered into a partnership to acquire a majority stake at Empresa Brasileira de Terminais Portuários (Embraport), one of the largest Brazilian private multi-modal port terminals in the city of Santos.

It is the first time that DP World and Odebrecht Investiments in Infrastructure have formed such a partnership. The investment fund FI-FGTS of Caixa Econômica Federal will maintain its shareholding acquired earlier. Coimex Group, leader of the project since its inception, reduces its shareholding, but remains a key member of the partnership.

Embraport (Brazilian Port Terminals Company) is being built adjacent to Porto de Santos, an existing port facility in the city of Santos, São Paulo State. Porto de Santos is the largest Brazilian container port, with 90% of its cargo destined for the local São Paulo market. There is an excellent road and rail connectivity to the project site.

The first phase of the project is scheduled to be concluded in 2012 with around 1 million TEU (twenty foot equivalent container units) capacity and it will be operated by DP World. The fully developed project will have capacity of more than 1.5 million TEU and about 2 billion litres of ethanol. Phase-I is expected to be about a $500m terminal development.

DP World will provide its extensive experience in the development and operation of multi-purpose port facilities, while Odebrecht will contribute with its significant experience in constructing marine terminals and management infrastructure projects.

In addition, Odebrecht companies will increase the potential captive cargo, both cabotage and export, that can be handled through the project facility. Coimex Group plays an important role in the project for its expertise in foreign trade and logistics.

"It is a great opportunity to strengthen Odebrecht's relationship with DP World besides the current construction of DP World's container terminals in Callao, Peru and the terminal at Doraleh, Djibouti, Africa officially opened in February this year," said Odebrecht CEO Marcelo Odebrecht.

Publication: Andina - English Newswire
Provider: Andina
August 30, 2009