Odebrecht’s logistics arm is rumoured to be buying a stake in the sugar terminal of the Port of Suape, situated in Brazil’s north- eastern state of Pernambuco. The concession for the terminal, whose construction is due to start in September, is held by Agrovia, which has the British company ED&F Man and various investment funds as current shareholders.
The original concession contract was signed in April 2012 and commits Agrovia to investing at least $50 million in the realization of the terminal, which will have storage for 160,000 tonnes of sugar in dedicated facilities. Around $20 million of the total investment is set aside for infrastructure works and $30 million for equipment. The facilities, which will be located to the rear of Quay 5, will be accessed via a 325 metre long berth and total operating area will amount to 72,000m2.
According to the Pernambuco state government, demand in 2015 should reach 540,00 tonnes, with the new terminal absorbing much of the 2014/15 sugar harvest.