Ports operator Dubai Ports World (DP World) has teamed up with Brazilian engineering and constructions services firm Odebrecht to buy a port terminal in Brazil’s São Paulo State.
The companies have acquired a majority stake in Empresa Brasileira de Terminais Portuários (Embraport), the biggest private multi-modal port terminal in the city of Santos.
DP World and Odebrecht will work alongside port and distribution logistics group Coimex, a minority shareholder in Embraport, in the building and operation of a new port facility at Santos. The new Embraport will be located adjacent to the existing Porto de Santos, which handles 90 percent of the cargo destined for São Paulo, and will utilise the existing road and rail links to the site.
The first phase of the development of the new port is already underway, and is set to be concluded in 2012, whereupon it will come under the operation of DP World. This first phase will be able to handle a capacity of 1 million twenty foot equivalent container units (TEU) and will cost around $500 million to develop. The entire project will have an ultimate capacity of 1.5 million TEU in addition to 2 billion litres of ethanol.
Caixa Econômica Federal’s FI-FGTS fund is also a minority shareholder in Embraport.
São Paulo State is the most populous state in Brazil with over 40 million inhabitants. Its capital, São Paulo, is the largest city in South America.