PROJECT

Projects

Environmental & Social Review Summary

Project Number

9944

Company Name

Sepetiba Tecon S/A

Date ESRS Disclosed

Feb 5, 2010

Country

Brazil

Region

Latin America and the Caribbean

Last Updated Date

Jan 2, 2017

Environmental Category

B - Limited

Status

Completed

Previous Events

Approved : Jun 8, 2000
Signed : Aug 31, 2001
Invested : Oct 31, 2001

Sector

Port and Harbor Operations

Industry

Infrastructure

Department

Regional Industry INF LAC & EUR

Project Description

- 2 -
International Finance Corporation
A Member of the World Bank Group
Environmental Review Summary (ERS)


Project Name Brazil - Sepetiba Tecon S.A.

Region Latin America and the Caribbean

Sector Infrastructure

Project No. 9944


1. This project involves the development and improvement of a partially completed container and bulk steel products terminal in the Port of Sepetiba, located on Sepetiba Bay in the municipality of Itaguai in the State of Rio de Janeiro. Sepetiba Tecon (ST) acquired the rights to own and operate the facility under a 25-year concession awarded in 1998 by the Port Authority of Sepetiba (CDRJ). The planned capacity of the terminal is 300,000 container moves per year, as well as 500 000 tonnes per year of general cargo. IFC’s investment will help ST finance the construction of a third container berth, additional container yard paving, construction of offices and warehouses, installation of computer and communications systems, and acquisition of container handling equipment. Per the terms of the Concession Agreement, the Port Authority has completed construction of two container berths, storage yard area paving, and rail link. In addition, the Port Authority is responsible for the dredging of access to the container berths (and the berths themselves), and providing electrical power connections to the existing grid. Water is supplied from the existing municipal system. Container operations are expected to begin in mid-2000, and all improvements should be completed within three years. General cargo – steel products operations -- have already begun. As many as 500 people will be employed when the facility reaches full operation.

2. This is a category B project, according to IFC’s environmental review procedure because a limited number of specific environmental 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 information submitted by the project sponsor. The following potential environmental, safety and health impacts of the project were analyzed:

· site contamination from past uses;
· nearby environmentally-protected areas;
· dredging;
· stormwater management;
· sewage treatment
· oil/hazardous materials storage and handling;
· hazardous cargo management;
· solid and liquid waste management;
· fire prevention and emergency response;
· employee health and safety and training programs; and
· EHS organization and management.

The Company has presented plans to address these impacts to ensure that the proposed project will, upon implementation of the specific measures listed in the attached Environmental Action Plan, comply with applicable Brazilian laws and regulations and World Bank/IFC requirements. The information about how these potential impacts will be addressed by ST is summarized in the paragraphs that follow.

3. Site Contamination from Past Uses. On a separate property in the vicinity of the Terminal area is an abandoned waste disposal site originally used by a former zinc manufacturing operation (CMII). The controlling governmental environmental authority (FEEMA) is currently overseeing the clean-up of this waste site, which is believed to have caused extensive contamination of the sediments of Sepetiba Bay with zinc, lead and cadium (see dredging discussion below). Currently, CMII collects and treats surface drainage from the site to prevent further Bay contamination. In the future, FEEMA may require CMII to undertake further clean-up activities, such as capping of the site, or even excavation of the waste material. It is not known whether soil or groundwater on or under the ST property is affected by the leaching of this contamination, but FEEMA does not or would not consider CDRJ or ST in any way responsible for this condition.

4. Environmentally-Protected Areas. There are two types of environmentall-protected areas in the general vicinity of the Terminal – Atlantic Rainforest on the Madeira Island hill immediately north; and marine marshland to the east. Neither of these areas are being,or will be, impacted by ST project activities, or by any remaining CDRJ construction activities.

5. Dredging. Construction of the Terminal container berths by CDRJ has required (and, in the case of ST, will continue to require) dredging of the Bay’s sediment deposits. (ST expects approximately 100,000 cu. m. of dredging will be needed to complete constuction of the third berth.) As a result of historical waste disposal practices in the area of the Port, particularly those associated with CMII’s zinc manufacturing activities (see above), the top 30 to 60 cm layer of sediment has become contaminated with the heavy metals Zn, Pb, and Cd. CDRJ follows a dredging program whereby, as dredge spoil is removed, contaminated materials are segregated and separately disposed in an area 10 to 20 miles offshore designated by FEEMA for this purpose. FEEMA selected the disposal site based on the recommendation of aquatic impact studies. Deeper layers of uncontaminated sediment are disposed within the Bay according to FEEMA requirements.

6. Stormwater Management. ST’s non-contaminated stormwater drainage system is designed to handle 25-year storm flows. These stormwaters are discharged directly to the Bay.

7. Sewage Treatment. To manage the sanitary wastewaters generated by the 600+ employees at the Terminal, ST will construct a series of small collection and treatment systems that will achieve pollution removal efficiencies sufficient to meet FEEMA and World Bank requirements prior to Bay discharge.

8. Oil/Hazardous Materials Storage and Handling. Hazardous materials are only an incidental part of the Terminal’s operations – diesel oil and gasoline are stored on-site and used as fuel. Small amounts of paints, solvents and petroleum lubricants will be used for maintenance and repair activities; and batteries are used to operate certain equipment (forklifts, etc.). Accordingly, ST will establish designated, dedicated storage areas with adequate containment and spill control features for all of these materials. Paints, solvents, batteries, and lubricants will be stored in designated areas within the maintenance and repair shop building. Diesel oil will be stored in a concrete-diked and floored tank farm. Gasoline will be stored in an underground tank provided with appropriate containment and leak detection. The operation of both of these fueling activities will be subcontracted to a reputable, internationally experienced third party.

9 Hazardous Cargo Management. A small amount of the containerized cargo handled at the Terminal may be considered to be hazardous under the International Maritime Code (IMC). This material includes flammable gases, poisons, flammable liquids, corrosives, reactive and spontaneously combustible substances, oxidizing substances, etc. Containerized hazardous cargo will be stored by material class in segregated areas within the container storage yard with good access to containment resources and emergency response equipment. The majority of containers with dangerous cargoes will be handled as full containers, and the inventory will be monitored continuously.

10. Solid and Liquid Waste Management. Wastes managed at the Terminal will consist primarily of waste oil, domestic waste, and container washwaters. Waste oil will be stored in a tank provided with secondary containment, and will be recycled to an off-site facility. Domestic solid waste is collected by the local, Itaguai sanitation authorities, and disposed off-site at the local landfill. Wastewaters generated during container washing activities are separately collected and treated in an oil/water separator. Waste oils removed from the treated washwaters are managed with the other waste oils. ST will not manage any ship-generated wastes, nor will ships serviced by ST be allowed to discharge their wastes while berthed. ST understands that these wastes may be handled, per IMO requirements, by a private marine pollution control concession contract to be awarded in the future by the Port Authority, but, nevertheless, are not the responsibility of ST.

11. Fire Protection and Emergency Response. ST will have procedures, trained personnel, and equipment in place for responding to emergencies, including fire, chemical spills and mishaps, accidental release of petroleum products, and medical emergencies. Activities will be coordinated with the local Fire Department and the CDRJ. ST will develop a Terminal Emergency Action Plan which provides:

· Procedures for plan review and periodic training of employees and schedules for drills;
· Spill recordkeeping requirements;
· Description of the emergency response organization;
· Description of hazardous material cargo segregation program;
· Documentation and reporting requirements (including notification requirements and contacts, incident reports and post incident reviews);
· Emergency equipment inventory;
· Resource and agency directory ; and
· Internal and external communications plan.

12. Employee Health and Safety. ST has implemented programs to ensure the health and safety of all employees, and an individual has been assigned responsibility for managing these matters. Personnel are issued appropriate Personal Protective Equipment (PPE), are briefed on its mandatory use, and are regularly monitored to ensure it is used properly. Safety rules and guidelines are established and are regularly communicated to employees through training programs. All new employees will receive a basic safety and security presentation and regular training is conducted for first aid and CPR, fire fighting, and emergency response.

13. EHS Organization and Management. The terms of the Concession Agreement with CDRJ require ST to become certified within two years to ISO 14001, the international standard for environmental management systems and a mechanism for achieving improvements in environmental performance. ST has established a team with a senior individual responsible for overall environmental performance and for managing this certification process, and prepare a detailed schedule for achieving ISO 14001 certification within the time allowed by the Agreement.

14. Accordingly, IFC concludes that the proposed project will meet the applicable World Bank/IFC environmental and social policies and the environmental, health and safety guidelines and Brazilian requirements upon successful implementation of the measures listed in the attached Environmental Action Plan.

15. 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 by ST covering: (i) the status of implementation of any measures contained in the Environmental Action Plan; and (ii) ongoing performance of project-specific environmental, health and safety activities as reflected in the results of periodic and quantitative sampling and measuring programs; and
· Conducting periodic site supervision visits.

Environmental and Social Mitigation Measures

Broad Community Support