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IFC Provides $80 Million to Finance Expansion of Port of Salvador Expansion in Northeast Brazil


In Washington, D.C.:
Adriana Gomez

Phone: (202)-458-5204

E-mail:
AGomez@ifc.org

Zibu Sibanda

Phone: 202-473-0605

Email:
zsibanda@ifc.org


Washington, D.C./São Paulo, Brazil September 21, 2011—IFC, a member of the World Bank Group, provided $80 million for the expansion of the Tecon Salvador container terminal in the Port of Salvador in Northeast Brazil to address capacity constraints and prepare for an expected trade increase.

IFC structured and arranged the $80 million long-term financing package for Tecon Salvador S.A, the terminal operator. IFC is providing $30 million from its own account and mobilizing $50 million from DnB Nor Bank and Cordiant through its syndication program. Tecon Salvador is a subsidiary of Wilson, Sons, one of Brazil’s largest providers of integrated port and maritime logistics and supply chain solutions.


"Expansion work started last year and is progressing according to schedule," said Felipe Gutterres, Wilson, Sons' chief financial officer. "Containerized trade in Brazil is expected to continue to grow at very healthy rates and Tecon Salvador will be in a good position to take advantage of this growth.”


The expansion will double the terminal’s capacity and includes quay reinforcement, retro-area paving, dredging, and the purchase of new equipment. Once the expansion is completed in March 2012, the terminal will have two quays of 377 meters and 210 meters respectively, and a total area of 118,000 square meters. Tecon Salvador now operates at capacity, having handled 262,000 TEUs—or twenty-foot equivalent units—in 2010. Current capacity constraints at the port mean goods produced in Bahia must be exported from the port of Santos,  about 2,000 kilometers south of the Salvador terminal.


“IFC’s support to Wilson, Sons to expand the Tecon Salvador container terminal is part of IFC’s strategy to help Brazil's Northeast increase its logistic efficiency and support the country’s competitiveness,” said Gabriel Goldschmidt, IFC’s Infrastructure Manager for Latin America and the Caribbean.


In addition to facilitating the region’s exports, the project will generate 300 jobs during the construction phase and 185 new permanent jobs after completion. The company currently employs 521 workers. The main products handled in the terminal are petrochemicals, rubber, tires, cellulose, fruits, and auto parts. Europe, the United States, and China are the destinations for most exports.


About IFC

IFC, a member of the World Bank Group, is the largest global development institution focused exclusively on the private sector. We help developing countries achieve sustainable growth by financing investment, providing advisory services to businesses and governments, and mobilizing capital in the international financial markets. In fiscal 2011, amid economic uncertainty across the globe, we helped our clients create jobs, strengthen environmental performance, and contribute to their local communities—all while driving our investments to an all-time high of nearly $19 billion. For more information, visit
www.ifc.org

About Tecon Salvador

Tecon Salvador is a subsidiary of Wilson, Sons, one of Brazil’s largest providers of integrated port and maritime logistics and supply chain solutions. With a business track record of over 170 years, Wilson, Sons has developed an extensive national network and provides a comprehensive set of services related to domestic and international trade, as well as to the oil and gas industry. Its principal operating activities are divided into the following lines of business: port terminals, towagelogistics, shipping agency, offshore, and shipyards. For more information, visit:
http://www.wilsonsons.com.br/terminais/tecon_salvador.asp

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