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Brazil's special ports department SEP has approved a terminal concession extension contract between São Paulo port authority Codesp and Santos port terminal operator Ageo Terminais e Armazéns Gerais (AGEO).
Approved by ports minister César Borges, the contract was signed on Thursday in the presence of officials from SEP, Codesp, Ageo and waterway regulator Antaq (pictured).
AGEO, subsidiary of port terminal operator and warehousing company EBT, previously had a 50mn-real (US$18.8mn) investment commitment until 2017. The extension calls for another 187mn reais in new investments aimed at expanding handling capacity. The group now holds the concession until 2041.
Starting in 2018, the bulk liquid terminal should be handling at least 635Mt/y, some 40% above the 450Mt or so to be handled this year.
"We have achieved our goal, as the government is concerned about making room for new investments [in the sector]," minister Borges said.
The AGEO terminal is expected to work hand in hand with the upcoming 480mn-real Santorini terminal being planned by EBT.
Approximately 20 port terminal extension requests have been submitted for concession contracts not up for expiration yet. The process involves forwarding an approved investment plan to Antaq, which will evaluate technical and environmental viability studies. If given the green light, requests are sent to SEP for final approval.
The extension requests currently being evaluated contemplate some 10bn reais in port terminal investments.
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