OREANDA-NEWS. March 23, 2011. IFC, a member of the World Bank Group, is providing financing for a new container terminal in the Port of Santos, Brazil’s main port and the largest in Latin America, that will help address congestion and strengthen Brazil’s port sector, which is critical for competitiveness.

IFC structured the financing and is providing a long-term loan of USD 97 million to Brasil Terminal Portuario S.A., or BTP, the company that will develop and operate the new container terminal.  IFC also mobilized USD 582 million for the USD 908 million project through its syndication program from the following commercial banks:  BNP Paribas, Credit Agricole, DnB Nor Bank, ING Capital, KFW Ipex Bank and Banco Santander.  The financing represents IFC’s largest syndication and port investment globally.

BTP is owned jointly by Terminal Investment Limited and APM Terminals BV, two of the world’s leading container terminal operators. “This investment is another milestone in our rapidly expanding portfolio,” said Tom Van Eynde, CFO of Terminal Investment Limited.  “It helps increase our group’s geographic diversity, while furthering our objective to be globally present on all major anchor points of trading routes. IFC, together with our relationship banks, is helping us achieve this challenging project.”

Some 90 percent of Brazil’s international trade is handled through ports.  The new terminal will help address capacity constraints and will remediate an existing landfill at the project site. BTP will employ around 3,000 workers during construction and is expected to create about 1,500 direct jobs and 9,000 indirect jobs during operations.

“IFC’s financing for the new terminal supports Brazil’s efforts to improve port infrastructure, a cornerstone for the country’s sustainable growth and competitiveness,” said Paolo Martelli, IFC Director for Latin America and the Caribbean.  “This project also incorporates the highest level of financial, technical, and environmental expertise.”  

Soren Sjostrand Jakobsen, Head of Project Implementation for APM Terminals, said, “This exciting project will provide much-needed capacity in the Port of Santos and offer shipping lines a level of service second-to-none in the port.  The funding process with IFC and the syndication banks has been smooth, quick, and to the full satisfaction of the shareholders.”

BTP will spend about USD 105 million to clean up the landfill at the project site, providing a significant environmental benefit to the area.  The company will also create an educational center and a small nature preserve where the community can learn about the marine and estuarine environment.