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Brazilian port terminal operator CLI and its diversification technique

Brazilian port terminal operator CLI and its diversification strategy

Brazilian infrastructure linked to its grain manufacturing and export exercise is anticipated to proceed attracting very vital investments, because the nation is a worldwide powerhouse within the sector and that’s not going to alter in the long run, no matter any home or worldwide challenges. 

In opposition to the backdrop of this development, port terminal operator Corredor Logistica e Infraestrutura (CLI) is increasing its portfolio of property and has welcomed a significant worldwide investor into its capital, Australia-based monetary firm Macquarie.

This week, CLI introduced the acquisition of an 80% stake in Elevações Portuarias, which operates grain terminals T16 and T19 at Santos port in São Paulo state and is managed by native logistics big firm Rumo. After the conclusion of the 1.4bn-real (US$259mn) deal, Rumo will retain a 20% stake. 

On the similar time, Macquarie is injecting 500mn reais into CLI, assuming a 50% curiosity within the firm, whereas Brazilian funding fund IG4 Capital Investimentos will management the opposite 50%. 

BNamericas talks with Helcio Tokeshi, CEO of CLI and a managing companion at IG4 Capital, to seek out out extra concerning the alternatives relating to the infrastructure wanted to serve this phase.

BNamericas: How does CLI presently function?

Tokeshi: We’re working in Itaqui port in Maranhão state, the place we’re a part of the Tegram consortium, which already operates one of many largest grain terminals within the nation.

By this consortium, we’re the one impartial operator that has no ties to buying and selling corporations or to rail or highway operators.

At this port we have now a warehouse with a grain storage capability of 120,000 tonnes and our enterprise is to make sure that the cargo is unloaded from the truck and goes to the ship as shortly and effectively as potential.

As we’re an organization with no ties to buying and selling corporations, we’re in a position to promote very fast turnover of products and this generates effectivity good points for our prospects. Our differential is that we’re a pure participant on this sector; we do not perform any buying and selling capabilities, we do not purchase grain, we do not schedule vans or ships.

Our obsessive focus is on the standard of service in what we all know find out how to do, which is the so-called lifting service.

BNamericas: How did this extremely targeted exercise assist you to to develop your actions and purchase two Rumo terminals in Santos port?

Tokeshi: Our enterprise mannequin introduced us nearer to Rumo and we had been in a position to present them the benefit of our enterprise mannequin. With CLI taking management of the terminals, Rumo can focus solely on working the phase it is aware of finest, which is the rail phase.

BNamericas: Are there plans to put money into different terminals?

Tokeshi: We need to use our enterprise mannequin to assist buying and selling corporations. We’re already in talks with some buying and selling corporations which have their very own terminals to assist them.

Our mannequin of being a port operator targeted on cargo lifting is new in Brazil, however it already exists in different areas of the world.

We invested within the terminals in Santos as a result of it made sense in our diversification technique, as there are many ports the place grains are exported from the nation.

BNamericas: Do you solely plan to work in port terminals linked to grain?

Tokeshi: We need to help nationwide agribusiness. Our focus is on grains and sugar. Brazil has structural benefits in these segments, with growing productiveness.

BNamericas: The funding to be made within the terminal at Santos port represents Macquarie’s entrance into the corporate. What would be the shareholder construction now?

Tokeshi: Macquarie will make a capital injection of 500mn reais and is assuming a 50% stake within the firm. The opposite 50% belongs to IG4 Capital.

BNamericas: How a lot will you put money into these two terminals in Santos?

Tokeshi: The present leasing settlement that expires in 2035 consists of an funding dedication of 600mn reais. We’ll make this funding properly earlier than the expiration of the contract.

Nothing will change for our present prospects or for the purchasers of the terminals in Santos that we’re buying. There will not be any form of noise within the contracts.

BNamericas: How has inflation in costs affected your small business and the way have you ever mitigated that?

Tokeshi: On the time of creating capex, we had already observed the strain in prices, primarily associated to metal and cement. However our service contracts include value adjustment clause in step with inflation, so we’re not involved about that.

BNamericas: What’s the notion of buyers relating to the infrastructure sector in Brazil?

Tokeshi: We take a look at very long-term property, of 20, 30 years. Lengthy-term buyers in infrastructure take a look at the initiatives, on the sectors associated to those initiatives. Subsequently, if there are good initiatives, there can be buyers.

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