Washington, D.C., October 19, 2001—The
International Finance Corporation, the private sector arm of the World
Bank Group, will invest US$40.0 million in the Sepetiba Tecon container
terminal in the Rio de Janeiro state, which will help improve the international
competitiveness of the entire port sector in the Southeast container market
This project marks IFC’s third investment in Brazil’s port sector since
the government passed legislation increasing the private sector’s participation
in port operations. It also comes at a time when financing for infrastructure
projects in Brazil from international investors is scarce.
The project involves the completion of an existing container and steel
products terminal located in the Bay of Sepetiba, 75 km southwest of Rio
de Janeiro, and is part of the government’s “Avanca Brasil” program
2000-2003. The terminal will operate under a 25-year lease which
was awarded in 1998 as the result of a public tender from the Port Authority
of Rio de Janeiro. The project also includes the purchase of up to
seven cranes and the construction of buildings and a rail connection. An
annual capacity of 140,000 container moves and 500,000 tons of steel cargo
is expected by the end of 2001, gradually increasing to about 350,000 container
moves and 720,000 tons of steel cargo by the end of 2005.
The cost of the project is estimated to be up to $140 million. IFC
is providing an A Loan of $27.0 million phased in line with demand, a B
Loan of $8.0 million, and a C Loan of $5.0 million. The first disbursement
of funds is expected to take place within the next few weeks. The
participant in the B Loan is Transamerica.
Declan Duff, IFC’s Director of the Infrastructure department said that
“this investment supports the government’s efforts to improve the efficiency
in Brazil’s port operations, by increasing container capacity and productivity.”
Mr. Duff added that IFC’s investment “is expected to play an important
catalytic role in reducing port handling costs in Southeast Brazil, thus
helping improve the competitiveness of Brazil’s private sector.”
Humberto Freitas, Manager Director of Sepetiba Tecon S.A, “said that Sepetiba
Tecon will have one of the lowest cost structures of any new facility in
Brazil and will provide shipping lines with world-class levels of efficiency
The sponsors of the project are Companhia Siderúrgica Nacional (CSN), a
major Brazilian integrated steel producer, and Companhia Vale do Rio Doce
(CVRD), a major Brazilian mining company.
IFC’s mission is to promote sustainable private sector investment in developing
countries, helping to reduce poverty and improve people's lives. IFC
finances private sector investments in the developing world, mobilizes
capital in the international financial markets, and provides technical
assistance and advice to governments and businesses. Since its founding
in 1956, IFC has committed more than $31 billion of its own funds and arranged
$20 billion in syndications for 2,636 companies in 140 developing countries.
IFC’s committed portfolio at the end of FY01 was $14.3 billion.