Dubai’s DP Buys into Brazil Port

Dubai-based marine terminal operator DP World has teamed up with Brazil’s Odebrecht to acquire a majority stake in Empresa Brasileira de Terminais Portuarios (Embraport), a new port being built next to Santos. The first $500m phase of the project in Sao Paulo state is scheduled to be concluded in 2012 with capacity to handle around 1m TEU and be operated by DP. At full development, Embraport is scheduled to have capacity of more than 1.5m TEU and about 2bn liters of ethanol, DP says, adding that road and rail links are already built. DP and Odebrecht do not reveal the price or size of the stake they are taking in Embraport, which they claim will be the largest Brazilian private multi-modal port terminal in the city of Santos. “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,” says DP World CEO Mohammed Sharaf in a statement releases Sunday. The FI-FGTS investment fund of Caixa Economica Federal will maintain its participation, while Coimex Group, leader of the project since inception, cuts its stake, but remains a key member of the partnership. DP says Porto de Santos is the largest Brazilian container port, with 90% of its cargo destined for the Sao Paulo market. Odebrecht will increase the potential captive cargo, both cabotage and export, that can be handled through the project, while Coimex will aid with foreign trade and logistics. The deal – which Gulf-based press say is a first for DP in Brazil – marks the first such partnership for DP and Odebrecht Investiments. They have previously worked together on port construction, including container terminals in Callao, Peru and the terminal at Doraleh, Djibouti. DP last week announced a drop in H1 Ebitda to $535m from $652m in H108 amid a 10% drop in overall volume.