Environmental Review Summary
Project Number
11179
Company Name
Global Materials Services Venezuela, C.A. / ACBL Riverside Terminals C.A.
Date ERS Disclosed
Nov 28, 2001
Country
Venezuela, Republica Bolivariana de
Region
Latin America and the Caribbean
Environmental Category
B - Limited
Status
Completed
Previous Events
Approved : Feb 15, 2002
Signed : Mar 25, 2002
Invested : Jun 10, 2002
Sector
Port and Harbor Operations
Industry
other
Department
Regional Industry INF LAC & EUR
Project Description
The project consists of the construction and operation of two private river port terminals in Ciudad Guayana, Venezuela, on the Orinoco River. The first project is a bauxite unloading facility. This facility is being developed by, and will be operated by, GMS de Venezuela, C.A. (GMSV), a joint venture between subsidiaries of Global Materials Services LLC, and American Commercial Lines International LLC, and selected Venezuelan and American investors. The second project is a riverside general cargo terminal, which is being developed by ACBL de Venezuela, C.A. (ACBLV), owned by American Commercial Lines International LLC.
The two river ports will be located in close proximity to an industrial zone with a concentration of mining and mineral industries. The new terminals will help to relieve the port congestion problems in the area by providing efficient cargo handling services in this important region of Venezuela. Because the project is on an international waterway as defined in IFC policy OP 7.50 (the Orinoco River forms the boundary between Venezuela and Colombia upstream from the project area), the IFC Executive Director representing Colombia (the other riparian country) has been notified as per the policy.
The project sponsors are ACBL de Venezuela, C.A. (ACBLV) and Global Materials Services LLC (GMS). ACBLV is the majority owned subsidiary of American Commercial Lines International, operating in Venezuela. The company was formed in Ciudad Guayana in 1993 and is the largest inland barge transportation company on the Orinoco River. An integrated company for alumina production, CVG Bauxilum (CVGB), is its largest client, for which ACBLV annually transports about 2.6 million tons of bauxite from El Jobal to Ciudad Guayana with a fleet of 108 barges and 6 tug boats. ACBLV also rents marine equipment and provides vessel repairs and maintenance at its dry dock facility. ACBLV has all necessary environmental permits, programs and procedures in place for its current operations, and/or are planning and engineering the features and systems necessary to ensure appropriate environmental performance for the two new terminals. GMS is an international terminal and warehousing company with 26 terminal and warehouse locations in the United States, The Netherlands, Canada and Venezuela. The company has seen dramatic growth since its formation in 1981: handling millions of tons of material annually for its diverse international customer base. The terminal operations include more than two million square feet of warehouse space, more than $80 million in assets and a workforce exceeding 400 associates. The GMS organization operates in a safety conscious environment with all necessary permits, programs and procedures in place for all of its current operations and the planning and engineering for the systems being installed in the new terminal is in place.
Bauxite Unloading Terminal
The floating barge unloading terminal involves the use of two specialized equilibrium cranes mounted on barges placed at the end of a dock owned by CVGB. Under a five year renewable contract between GMSV and CVGB, the company will handle the unloading of all the bauxite of CVGB which is transported by barges from its mine in El Jobal, Venezuela. The new terminal will replace the current system of barge unloading performed at CVGB’s dock. The current system of bauxite unloading has several limitations including lack of necessary unloading equipment and interference of barge unloading with ship loading/unloading as CVGB’s dock is used by ships as well as barges. The new terminal is estimated to have a bauxite handling capacity of 5.7 million tons annually. No dredging is required for construction or operation. The terminal will be operated by GMSV under a 5-year take-or-pay contract (granted by CVGB) for unloading a minimum amount of 4.6 million tons of bauxite annually. Operations are scheduled to commence in May 2002 and the terminal will operate during the May to December navigation season.
Riverside Terminal
In January 2000, ACBLV obtained a long-term lease and purchase option on 24.9 hectares of land on the bank of Orinoco River from the Venezuelan government entity Corporación Venezolana de Guayana (CVG) to construct a private port facility for public use. The proposed investment includes purchase of equipment and development of barge and ship unloading facilities for bulk (capacity 850,000 tons/year), break bulk (540,000 tons/year), and containerized cargo (9,000 container units/year). No dredging is required for construction or operation; some waterfront construction will be performed. ACBLV has already made an initial investment in the terminal, which commenced operations about two years ago. Once completed, the terminal will provide dependable ship loading/unloading facility with warehousing and logistics for the surrounding industrial zone.
A large barge and several smaller barges will be linked to comprise a floating dock system that would be able to handle barges as well as ocean going vessels. On the landside, part of the property will be filled for roads, open storage, administration buildings, and warehouses. A local freight company is expected to lease part of the property to develop a container yard and container stripping/stuffing facility.
The two river ports will be located in close proximity to an industrial zone with a concentration of mining and mineral industries. The new terminals will help to relieve the port congestion problems in the area by providing efficient cargo handling services in this important region of Venezuela. Because the project is on an international waterway as defined in IFC policy OP 7.50 (the Orinoco River forms the boundary between Venezuela and Colombia upstream from the project area), the IFC Executive Director representing Colombia (the other riparian country) has been notified as per the policy.
The project sponsors are ACBL de Venezuela, C.A. (ACBLV) and Global Materials Services LLC (GMS). ACBLV is the majority owned subsidiary of American Commercial Lines International, operating in Venezuela. The company was formed in Ciudad Guayana in 1993 and is the largest inland barge transportation company on the Orinoco River. An integrated company for alumina production, CVG Bauxilum (CVGB), is its largest client, for which ACBLV annually transports about 2.6 million tons of bauxite from El Jobal to Ciudad Guayana with a fleet of 108 barges and 6 tug boats. ACBLV also rents marine equipment and provides vessel repairs and maintenance at its dry dock facility. ACBLV has all necessary environmental permits, programs and procedures in place for its current operations, and/or are planning and engineering the features and systems necessary to ensure appropriate environmental performance for the two new terminals. GMS is an international terminal and warehousing company with 26 terminal and warehouse locations in the United States, The Netherlands, Canada and Venezuela. The company has seen dramatic growth since its formation in 1981: handling millions of tons of material annually for its diverse international customer base. The terminal operations include more than two million square feet of warehouse space, more than $80 million in assets and a workforce exceeding 400 associates. The GMS organization operates in a safety conscious environment with all necessary permits, programs and procedures in place for all of its current operations and the planning and engineering for the systems being installed in the new terminal is in place.
Bauxite Unloading Terminal
The floating barge unloading terminal involves the use of two specialized equilibrium cranes mounted on barges placed at the end of a dock owned by CVGB. Under a five year renewable contract between GMSV and CVGB, the company will handle the unloading of all the bauxite of CVGB which is transported by barges from its mine in El Jobal, Venezuela. The new terminal will replace the current system of barge unloading performed at CVGB’s dock. The current system of bauxite unloading has several limitations including lack of necessary unloading equipment and interference of barge unloading with ship loading/unloading as CVGB’s dock is used by ships as well as barges. The new terminal is estimated to have a bauxite handling capacity of 5.7 million tons annually. No dredging is required for construction or operation. The terminal will be operated by GMSV under a 5-year take-or-pay contract (granted by CVGB) for unloading a minimum amount of 4.6 million tons of bauxite annually. Operations are scheduled to commence in May 2002 and the terminal will operate during the May to December navigation season.
Riverside Terminal
In January 2000, ACBLV obtained a long-term lease and purchase option on 24.9 hectares of land on the bank of Orinoco River from the Venezuelan government entity Corporación Venezolana de Guayana (CVG) to construct a private port facility for public use. The proposed investment includes purchase of equipment and development of barge and ship unloading facilities for bulk (capacity 850,000 tons/year), break bulk (540,000 tons/year), and containerized cargo (9,000 container units/year). No dredging is required for construction or operation; some waterfront construction will be performed. ACBLV has already made an initial investment in the terminal, which commenced operations about two years ago. Once completed, the terminal will provide dependable ship loading/unloading facility with warehousing and logistics for the surrounding industrial zone.
A large barge and several smaller barges will be linked to comprise a floating dock system that would be able to handle barges as well as ocean going vessels. On the landside, part of the property will be filled for roads, open storage, administration buildings, and warehouses. A local freight company is expected to lease part of the property to develop a container yard and container stripping/stuffing facility.
Environmental and Social
Conclusion & Monitoring
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