DP World to build, operate Embraport at Santos, near Sao Paulo

GLOBAL marine terminal operator DP World and Brazilian company Odebrecht have joined to acquire Empresa Brasileira de Terminais Portuari (Embraport), the largest Brazilian private multimodal terminal at Santos 50 miles from Sao Paulo.

The investment fund FI-FGTS of Caixa Economica Federal will maintain its shareholding. On the other hand the Coimex Group, leader of the project since its inception, will reduce its shareholding, but will remain a key member of the partnership.

Embraport (Brazilian Port Terminals Company) is being built adjacent to Porto de Santos, an existing port facility in Santos, Sao Paulo State.

The first phase of the project is scheduled to be completed in 2012 with around one million TEU capacity and it will be operated by DP World. The fully developed project will have capacity of more than 1.5 million TEU. Phase one is estimated to require an investment of about US$500 million to develop the terminal.

DP World will develop and operate the terminal while Odebrecht will construct the marine terminal and manage the infrastructure. The Coimex Group will contribute to the project its expertise in foreign trade and logistics.

"This is an unparalleled opportunity to enter Latin America's largest economy and establish a strong position on the east coast, building on the network we already have in the region to expand our offering to our customers," said DP World CEO Mohammed Sharaf.

"With strong origin and destination cargo, Embraport fits our business model well and we believe our international experience and expertise will contribute positively to the local economy by generating efficiencies in the supply chain," he said.

(Source: www.schednet.com)