Cargo terminal operator and Cargill rival Santos-Brasil S.A. announces has the green light to conduct viability studies for a R$9 billion expansion project at the Port of Santos, it announced yesterday.
I mention it because I am continuing to build evil dossiers on Brazilian companies and map the business terrain. Some people collect stamps. Solid information on the subject is hard to come by, so you have to try to develop it yourself, in your own bumbling way. See, for example,
Among the goods moving through the expanded port will be the sugar and ethanol produced by the likes of Cosan. As Itaú Europa noted in its Brazil Weekly Report for April 11, 2008:
Cosan and Rezende Barbosa, the holding company of the Nova America group, announced the creation of Rumo Logística, a company focused on sugar and grain logistics. Rumo will have a static storage capacity of 435 million tons and annual shipment capacity of 8.5 million tons of sugar or grain. It will be located at the Port of Santos, in the state of São Paulo.
The Inter-American Development Bank has already prepared a prefeasbility report on the project.
The recovery of Santos — nearby Cubetão was once the most polluted place on earth, and clearing the city of organized crime will someday prove to have been quite a story as well, I will wager — might be worth a book someday.
I thought I remembered Santos-Brasil also recently closing a deal to lease and expand a port in Southern Brazil, but just try to search through the corporate actions databases of the Bovespa and the CVM to jog your memory. Frustrating experience.
Infraero, the state-owned airport authority, is said to be contemplating an expansion of the Santos airport. Meanwhile, Business News Americas reported (week of April 4):
Brazil’s government withdrew eight state-run port companies from the national privatization docket (PND), according to a decree published by President Luiz Inácio Lula da Silva in the official gazette Diário Oficial da União. Among the companies withdrawn was Codesp, authority at the country’s busiest port, Santos. The decision was made to accelerate bidding processes for other projects in the sector.
I call reading that the state government here in São Paulo wants to renegotiate the state’s stake in port operations with the federal government — part of the fiscal maneuvers in anticipation of those Santos Basin oil royalties, among other things, probably. Vague recollection, however. Do not bet the farm.
The most recent announcement (Source: CVM)
Considerando o expressivo crescimento do comércio exterior brasileiro nos últimos anos, a previsão de que tal crescimento se mantenha em níveis elevados e o conhecimento técnico e de gestão da Santos-Brasil S.A., subsidiária integral da SBPar, na área portuária, a SBPar solicitou à Companhia Docas do Estado de São Paulo – CODESP, Autoridade Portuária do Porto Organizado de Santos, autorização para realizar os estudos necessários para a aferição da viabilidade do aproveitamento de áreas situadas na margem esquerda do estuário de Santos para exploração de atividade portuária.
Given the substantial growth in Brazilian foreign trade in recent years, the prospect that this rate of growth will continue, and the technical and managerial expertise of Santos-Brasil S.A., a wholly owned subsidiary of SBPar, in the ports sector, SBPar has asked CODESP (the Companhia Docas do Estado de São Paulo), the Santos port authority, for authorization to conduct the studies necessary to determining the commercial viability of areas situated on the left bank of the Santos estuary for port operations.