Equity firm buys 50% stake in Paranagua terminal
Global private equity firm Advent International last week said it has acquired a 50 percent stake in Terminal de Cont'ineres de Paranagua S/A (TCP), Brazil's third-largest container terminal.
The three existing local shareholders in the Paranagua terminal will retain ownership in the company, Advent said, without specifying their percentage stakes. The value of the transaction and other financial terms were not disclosed.
'Advent’s investment, which is subject to regulatory approval, will enable TCP to pursue an aggressive expansion plan aimed at increasing its terminal capacity by approximately 70 percent through the construction of a third berth and purchase of new equipment,' the company said. 'Grup Maritim TCB, a port terminal owner and operator, which currently supports TCP's operations, will continue to provide advisory services to the company in this new phase of its development.'
Opened in 1998, TCP operates the container terminal at the Port of Paranagua, Brazil's second-busiest port. The terminal handled roughly 675,000 TEUs in 2010.
'Brazil's container market has grown more than 10 percent per year over the past 12 years and is expected to continue expanding at attractive rates in line with the projected increase in the country’s imports and exports,' Advent said. 'In the first nine months of 2010, Brazil transported 4.1 million TEUs, representing a growth of 14.2 percent compared with the same period of 2009. In the third quarter of 2010, Brazil transported a record 1.5 million TEUs.'
Work on the third berth is expected to start this year, while Advent said the transaction would also allow for the terminal to purchase new equipment, including three new post-Panamax ship-to-shore cranes and container yard cranes. The terminal's capacity is expected to increase from 700,000 TEUs per year to more than 1.2 million TEUs annually.