Summary of Proposed Investment
Project Number
8502
Company Name
Tecon Rio Grande S/A.
Date SPI Disclosed
Apr 20, 1998
Country
Brazil
Industry
Infrastructure
Status
Completed
Sector
Port and Harbor Operations
Department
Gbl Infrastructure & Natural Resources
Environmental Category
B - Limited
Previous Events
Approved : May 29, 1998
Signed : Dec 14, 1998
Invested : Aug 2, 1999
Project Description
Summary Of Project Information (SPI)
| Project Name | Brazil-Tecon Rio Grande Container Terminal (Tecon) |
| Region | Latin America and the Caribbean |
| Sector |
Projected Board DateMay 20, 1998
Company NameTecon Rio Grande S.A.
Technical Partner and/or Major Shareholders
TRG’s shareholders consist of: Wilport Operadores Portuárias S.A., a port services company owned by Wilson, a Brazilian maritime Group; Serveng-Civilsan S.A., a Brazilian construction company; and Stevedoring Services of America, a US-based international port operator.
Project Cost Including proposed IFC investment
The project cost is estimated to be US$69.5 million including civil works, equipment, contingencies, and financing fees. IFC''s proposed investment would include an A Loan of up to US$7.5 million, a B Loan of up to US$26.5 million, and a C Loan of up to US$5 million.
Location of project and Description of site
The project is located on the western bank of the Rio Grande river, about 5 kms north of the Atlantic ocean and 7 kms south of the city of Rio Grande. The leased area comprises 67 hectares, of which 20 hectares have been developed for container handling, and 750 meters of river frontage including an existing 300-meter quay. In addition to road access, the terminal is served directly by rail although the rail spur is not currently in use. The new container berths would be built as contiguous extensions of the existing berth.
Description of Company and Purpose of Project
TRG has been established exclusively to operate Tecon. The purpose of the project is to expand Tecon’s handling capacity from 80,000 moves to 200,000 moves per year and to improve the overall efficiency and quality of the terminal’s services. IFC would be arranging long-term financing for the project including possibly mobilizing debt from international sources. Tecon is one of the first privately-operted ports in Brazil. Accordingly, IFC’s support of the project is expected to have an important demonstration impact on the port sector.
Environmental Category and Issues
This is an environmental review category B project. Environmental issues associated with the project include: dredging and land reclamation, vegetation protection and revegetation programs, control of stormwater run-off and protection of water resources, liquid effluents, including bilge waste effluent, solid waste management, handling and storage of dangerous cargoes, fire prevention and emergency response, and employee health and safety.
Maintenance dredging is conducted by the Rio Grande Port Authorities, including the main channel and the area in front of Tecon’s existing berth. Tecon has made arrangements with the port to take surplus dredged material resulting from the expansion project. Tecon will establish a vegetated green belt to esthetically integrate the area modified by the terminal with the surrounding scenery and to provide a noise and dust barrier. Tecon will also preserve and maintain an 80-year-old grove of eucalyptus trees along the main access avenue. For the expansion project, Tecon will collect stormwater runoff from all areas of the site and install oil/water separation equipment to meet the World Bank guideline of 10 mg/l. Tecon Rio Grande uses an approved septic drain system for sanitary wastes, which will be modified or expanded as appropriate. Waste water from the cleaning and washing of ship holds is not accepted at the Tecon terminal. Solid waste is collected and disposed of through the Rio Grande municipality.
As part of the expansion project the terminal will have a dedicated area and all necessary procedures and equipment for dangerous cargo. Tecon has an emergency response procedure in place and will update its response plan for the new activities and configurations brought about as part of the expansion. Tecon has a formal plan for medical control and occupational health of its employees as required by Brazilian regulations. Safety training is provided for all employees, and in-house training is provided in fire fighting techniques and equipment.
The is from the Public Information Center.
| Date SPI sent to PIC | April 20, 1998 |
“This Summary of Project Information is prepared and distributed to the public in advance of consideration of the proposed transaction by the Corporation’s Board of Directors. It is provided for the purpose of enhancing the transparency of IFC’s activities and should not be construed as presuming the outcome of IFC Board consideration.”
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).
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