IFC requires that this document is made available through the World Bank InfoShop and to the locally affected community no less than 30 days prior to project consideration by the IFC Board of Directors. The Summary of Project Information (SPI) also provides details of where the ERS has been made available to the locally affected community. The SPI must be sent to World Bank InfoShop no less than 30 days prior to project consideration by the IFC Board of Directors.

This is a Category B project according to IFC’s Procedure for Environmental and Social Review of Projects because a limited number of specific environmental and social impacts may result which can be avoided or mitigated by adhering to generally recognized performance standards, guidelines or design criteria. The review of this project consisted of appraising technical and environmental/social information submitted by the project sponsor. IFC's original appraisal in 1998 analyzed potential environmental, health and safety issues associated with dredging and land reclamation, protection of coastal resources, control of storm water run-off and protection of water resources, liquid effluents, solid waste management, handling and storage of dangerous cargoes, fire prevention and emergency response, and general employee safety. The appraisal for the current project confirmed the effectiveness of the company's ongoing environmental management as evidenced by its compliance status and improvements that have been implemented. The appraisal also reviewed the potential environmental impacts of expanding the Terminal under the current project and the mitigation proposed, and confirmed that the project will meet Government of Brazil requirements, and World Bank Group policies and guidelines.

The sponsor has presented plans to address these impacts to ensure that the proposed project will upon implementation of the specific agreed measures, comply with the environmental and social requirements - the host country laws and regulations and the World Bank/IFC environment and social policies and the environmental, health and safety guidelines. The information about how these potential impacts will be addressed by the sponsor/project is summarized in the paragraphs that follow. - Environmental Compliance of Existing Operations Ongoing reviews of the company’s annual environmental performance have found that TRG operates in compliance with Brazilian regulations and with World Bank Group guidelines. The company's environmental Annual Monitoring Report (AMR) is prepared by an independent environmental auditor. - Expansion For the expansion project, which is an alongshore extension of the existing facilities, TRG will construct the new berth and reclaim land along the shoreline behind it. The expansion will take place in areas largely cleared of native vegetation or otherwise affected by the existing operations. Dredging of the area in front of TRG’s existing and new berths will be conducted by SUPRG, that also conducts all maintenance dredging. Existing systems for collection of storm water runoff will be extended to the expansion area, and additional oil/water separation equipment will be installed, as required to meet Brazilian regulations and World Bank Group guidelines. Firefighting, sanitary sewage, and solid waste management facilities will also be expanded and/or extended to the new area as required. Existing operational requirements for ships calling at the Terminal will be unchanged. - Hazardous Cargo Operational procedures in the Terminal have been updated related to the obtaining of the operation environmental license issued by FEPAM (State environmental authority) and the start up of the Special Cargo building where TRG has upgraded and improved its capabilities in managing hazardous materials. A computer system is used to track the location of hazardous cargos in the Terminal, which are normally separated from each other. Hazardous cargoes are now stored in a designated area, which is served by an appropriate drainage and collection system to contain leaks and spills, and fenced to prevent unauthorized access. All leaks are collected by vacuum truck, packaged in sealed containers and sent to the cargo consignee. TRG has also developed and is implementing a formal Emergency Action Plan (EAP) as requested by IBAMA (Federal environmental authority). TRG has revised its risk maps (regarding presence of chemical or physical aggressive agents, inflammables, noise, illumination, etc.) to accommodate the new project facilities. - Employee Health and Safety Training and Related Issues As part of employee orientation, every new worker, in his/her first day of activity, is trained about the TRG health and safety regulations. The company has established periodic medical tracking for all workers. Workers employed by contractors are instructed about TRG health and safety rules before starting their activities and are periodically trained during their activities at the Terminal. There were no significant accidents, fires or emergencies at the Terminal reported during 2002 and 2003. TRG provides regular training programs on safety-related issues for employees and contractors. TRG obtained renewal for its ISO 9002 quality management system in July 2002. - Community Emergency Response System TRG has taken a proactive role in coordinating with the regional authorities on the Mutual Help Plan of the city of Rio Grande by providing technical expertise and support in emergency response capabilities for the larger area. This was evidenced by the company's assistance in containing a Petrobras shipboard oil spill in March 2001. - Local Community Development TRG's expanding business volume contributes to the community in the form of local purchases and increased employment. The company currently has a staff of 608 people, and its operations provide an example of sound labor relations in an industry historically characterized by a high degree of adversarial labor-management relations. TRG also provides continuing support to educational institutions, hospitals, parks and museums in the city of Rio Grande.

This ERS contains the full environmental and social documentation prepared for the project.

Based on review of available information regarding potential environmental and social impacts and the company's management systems in place to mitigate and manage those impacts, TRG's operations and expansion project meet Government of Brazil requirements, and World Bank Group policies and guidelines.

IFC will evaluate the project's compliance with the applicable environmental and social requirements during the lifetime of the project by reviewing the annual monitoring reports (AMRs) prepared for the project covering ongoing performance of project-specific environmental, health and safety activities. Periodic site supervision visits will also be conducted.