CGG Trading

active

In December 2011, the Brazilian company CGG Trading S.A. won in a competitive bidding the right to build, lease and operate a grain terminal at the Itaqui Port (state of Maranhão). 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$ 10.8 million (BRL 25.5 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 25-year contract was signed in February 2012. CGG's investment was estimated at US$ 58.4 million (BRL 137.5 million) in the construction of the terminal. 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.