Convicon Container Terminal

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In September 2003, Transnav Ltda. signed a 15 year concession contract with the Port Authority of Vila do Conde to expand and operate a container terminal at the Port of Vila do Conde in the city of Baracena, state of Para. The contract was extendable for an additional 15 years upon expiration. The port was originally built in 1985 by the federal government as to increase cargo-handling capacity in northern Brazil. Investment in the port was to total R$ 105 million with the port authority investing R$ 40 million (US $12.9) and the remaining R$ 65 million (US $21) by the private sector. In 2005, Para Empreendimentos Financeiros SA. took over the leas of Transnav Ltda. and Conteineres de Vila do Conde SA (“CONVICON”) was formed as the project company and 100% subsidiary of Para Empreendimentos Financeiros SA. As of the end of 2009, Santos Brasil indicated that an additional US$ 15 million (BRL 30 million) would be invested in the facility between 2010 and 2012, which would allow the capacity to increase from the current 120 thousand TEUs per year to 500 TEUs per year. In March 2008, Nara Valley Participacoes, subsidiary of Santos Brasil Participacoes SA, one of Brazil’s largest container operators, purchased a 75% share in Para Empreendimentos Financeiros SA for US $25 million. The remaining 25% was held by Paulo Roberto Brandao, one of the controlling shareholders of Para Empreendimentos Financeiros SA. One factor which attracted Santos Brasil was that Para produced around 21% of Brazil’s total beef output. The port had the capacity to handle 250,000 TEU and expansion plans were set to further expand the capacity of the facility by another 250,000 TEU through the creation of two new births. Converted from local currency using IMF market rate, period average for 2003.