CMPort completes its acquisition on Brazil's 2nd largest port

Feb 26, 2018

China Merchants Port Holdings Company Limited („CMPort‟ or the „Company‟) is pleased to announce, on 23rd February 2018, the Company's transaction regarding the acquisition of Port of Paranaguá (TCP) in Brazil is completed. The acquisition is the biggest merger and acquisition port project in Brazil and Latin America. It is not only the first investment of CMPort in Latin America, but also the first holding oversea brown field project. Since then, TCP has officially become a subsidiary of CMPort, which is a gesture of the Company's overseas port layout expansion from Asia, Africa, Europe and North America to Latin America, achieving a full coverage in five continents and taking an important step towards becoming a world's leading comprehensive port service provider. TCP is the 2nd largest container terminal in Brazil, with existing designed capacity of 1.5million TEUs and 2.4million TEUs in the future(construction completed on 2019). TCP is also the biggest export terminal for reefers, one out of ten container in Brazil is loaded in TCP.

22nd February, the signing of the letter of intent transaction agreement of TCP was held in the Senate of Brazil, Dr. Bai Jingtao, Managing Director of CMPort, signed TCP's letter of intent transaction agreement on behalf of CMPort, both sides agreed to try their best to complete the transaction on 23rd February. This significant moment was under the witness of Mr. Li Jinzhang, Chinese ambassador to Brazil, Mr. Willington Fagundes, Senator of Brazil Federal Council and President of National Federation of Stowage, Mr. Mauricio Quintella, Minister of Transportation Ports and Civil Aviation, Mr. Richardo Barros, Minister of Health, Mr. Marcelo Roque, Mayor of Paranaguá City, Dr. Hu Jianhua, Vice Chairman of CMPort and the Executive Vice President of China Merchants Group Limited ("CMG"), Mr. Luiz Antonio Rodrigues Alves, CEO of TCP and more than 50 fellow Chinese and Brazilian guests. The event has attracted several Chinese central media and Brazil local media to come to interview.

While giving a speech at the ceremony, Mr. Li Jinzhang saids,“Today's ceremony definitely represents the perfect opening of Sino-Brazil economic and trade cooperation in 2018. Chairman Xi Jingping once mentioned, CMG is a good enterprise, its investment in Brazil will definitely inject new motivations to both countries in terms of economic and trade. We believes under the support and intense coordination between China and Brazil, TCP will have a brighter future.”

Dr. Hu Jianhua emphasized, “China and Brazil are traditional trading partners with long established friendship, both countries have vast territory and abundant resources. In 2017, China is the largest destination for Brazil's exports and imports, the two countries have close international economic and trade relationship, I am confident of long-term investment and cooperation in Brazil.”

Hu also said, “CMG is a pioneer in the field of China's industry and commerce, and also the important promoter of overseas strategy under the "Belt and Road" Initiative. CMG has invested 52 ports in 20 countries and regions, it is now actively promoting the "Port-Park-City" development "Shekou model" with Port as the linkage, to enhance synergy and interaction development between industry and city. With TCP as the starting point, CMG will continuously promote the commercial and trade cooperation between the BRICS countries, especially in the fields such as Brazil's integrated logistics, traffic infrastructure and logistic parks , in order to look for more opportunities on investment, development and operation.”

Dr. Bai Jingtao said, “CMPort is China‟s largest and the world‟s leading container port developer, investor and operator. As of 31st December, 2017, CMPort surpassed 100 million TEUs milestone in 2017. In which, our overseas projects such as Colombo International Container Terminal (CICT) in Sri Lanka and Port de Djibouti S.A. in Djibouti have all become benchmarking companies recognized by local governments and people. They achieved not only sound economic benefits but also social benefits, creating employment and inland tax revenue . We will also endeavour to make TCP a win-win cooperation model.”

Upon the completion of the TCP, with the strong support of the Brazilian government, CMPort will take TCP as a new starting point and join hands with Brazilian partners, working unremittingly to achieve win-win and to create a glorious future with mutually beneficial cooperation between China and Brazil.

About TCP:

During the 2017 BRICs Summit held on 4th September 2017,CMPort entered into the share purchase agreement with the selling shareholders of TCP, in which, CMPort will acquire 90% stake of Port of Paranaguá in Brazil , with the purchase price of R$2,891,250,227.92 (equivalent to approximately HK$7,228million).The project represents a breakthrough of CMPort to implement the "Belt and Road" Initiative in the region. The transaction will also enhance the Sino-Brazil economic and comprehensive strategic partnership.

TCP is located in the southeast coast of Paraná of Brazil, it is the second largest container terminal in Brazil and is 280 kilometers away from the largest port in Santos. TCP serves the economic hinterland in the most important coastal area of Southeast Brazil, in which the area contributes 45% of the population as well as 47.6% of the GDP in Brazil. Moreover, TCP is the only port in Brazil with direct railway transportation. It has 3 container berths with a capacity of 1.5million TEUs and is expected to increase to 2.4million TEUs after further expansion. The special concession right of TCP will be completed in year 2048.

Source from : CNSS