Amaggi & LD Commodities Terminais Portuarios S.A.

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In December 2011, the Consorcio Crescimento, a partnership of the French company Louis Dreyfus Commodities Brasil S.A and the Brazilian company Amaggi Exportacao e Importacao Ltda, won in a competitive bidding the right to build, lease and operate a grain terminal at the Itaqui Port (state of Maranhao). The facility was set to have 125 thousand tons in storage capacity. The bidding criteria was the highest payment for the right to construct and operate the terminal. The port authority conducted the bidding for the construction of four new terminals and Glencore was one of the winners by offering US$ 8.6 million (BRL 20.2 million). There was no additional information on the other bidders. The four companies that won the bidding process established a partnership named Consorcio Tegram to undertake the construction works, but each were set to sign separate lease contracts and to operate their own terminal independently. The state government granted the companies 50% tax reduction. The sponsors created the project company Amaggi & LD Commodities Terminais Portuarios S.A. to lead the project. The 25-year contract was signed in February 2012. The investment in the construction of the terminal was estimated at US$ 58.4 million (BRL 137.5 million). Construction works commenced in November 2012, and operations were expected to commence by July 2014. By February 2014, construction works were in its final stages.