PROJECT

Projects

Summary of Proposed Investment

Project Number

8238

Company Name

Bulk Services Corporation

Date SPI Disclosed

May 13, 1997

Country

Brazil

Industry

Agribusiness and Forestry

Status

Completed

Sector

Storage (Including Agricultural Products)

Department

Regional Industry MAS LAC & EUR

Environmental Category

B - Limited

Previous Events

Approved : Aug 1, 1997
Signed : Oct 10, 1997
Invested : Nov 5, 1997

Project Description

Summary Of Project Information (SPI)

Project NameBrazil-Bulk Services Corporation (BSC)
RegionLatin America and the Caribbean
Sector
Project No008238
Projected Board DateJuly 8, 1997
Company NameBulk Services Corporation
Technical Partner and/or Major Shareholders

A project to establish an integrated transport system dedicated to the transport of frozen concentrate of orange juice (FCOJ), from Brazil to Europe. Bulk Services Corporation is a special purpose company (SPC)established by three joint-venture partners. Cambuhy Citrus Comercial e Exportadora Ltda. ("Cambuhy"), an IFC client, is the primary sponsor for this venture, and a subsidiary of Brazil Warrant, a holding company owned by the Moreira Salles Group. In 1994, IFC provided a loan of US$30 million to Cambuhy MC, a 50/50 owned FCOJ processing plant by Cambuhy and Montecitrus (the second Sponsor), to fund the doubling of its capacity from 44,000 tons to 88,000 tons per annum. Montecitrus was founded in 1983 as a limited partnership of citrus growers in Monte Azul Paulista, in the state of São Paulo. This partnership is the single largest orange producer in the world. Montecitrus expects to produce over 30 million boxes of oranges by the 1997/98 crop when the new bearing trees will come to production. CTM Citrus S/A (the third sponsor) is a FCOJ processing company owned jointly by Montecitrus and Latinpart Investmentos Ltda. ("Latinpart"). Latinpart was established to acquire participation in consumer good firms in Brazil. Latinpart was first established as Superpac Comércio e Participações by Mr. Luiz Cezar Fernandes in 1991, a major shareholder of Banco Pactual, a well-known Brazilian commercial bank. At present Latinpart controls Indústrias Têxteis Barberó S.A. (TEBA), a textile firm specialized in linen fabrics, Overdesigns Comércio e Indústria Ltda., which holds franchise rights of Fiorucci, and CTM Citrus S.A.

Project Cost Including proposed IFC investment

The project cost is estimated at US$55 million. IFC’s investment would consist of an A-loan of US$14 million and a B-Loan of US$7.5 million.

Location of project and Description of site

The specialized FCOJ bulk carrier ship will shuttle between a shipping terminal to be located in the Port of Santos (Brazil) and shipping terminal to be located in the port of Antwerp (Belgium).

Description of Company and Purpose of Project

The Project is to set up an integrated storage and maritime shipping system dedicated to the transport of frozen concentrated orange juice ("FCOJ"). The Project comprises (i) a US$11 million shipping terminal with 22,000 ton of storage capacity to be located in Santos, Brazil, (ii) a US$11 million unloading terminal of FCOJ storage capacity of 24,200 ton to be located in Antwerp, (iii) a US$26 million dedicated FCOJ bulk vessel with a minimum capacity of 13,200 ton; and (iv) working capital requirements estimated at US$7 million.

Environmental Category and Issues

This is a category B project according to IFC''s environmental review procedure. Environmental, occupational health and safety issues associated with this project include: terminal site selection; terminal construction, including dredging; air emissions, wastewater and solid waste handling; spill prevention and protection of marine resources; fire protection and emergency response; and general employee health and safety, including training. The sponsor has provided information to describe how the project will address these issues and meet local and World Bank policies and guidelines.


The is from the Public Information Center.
Date SPI sent to PIC May 13, 1997

For Additional Information contact: Corporate Relations Unit -
telephone: (202) 473-7711
facsimile: (202) 974-4384
Environmental documents for this project are available at http://www.ifc.org and from the World Bank InfoShop (http://www.worldbank.org/html/pic/aboutinfo.html).

Sponsor / Cost / Location