HDB

completed

Hidrovias was established in November 2010 to become a fully-integrated logistics provider focused on inland waterway transportation of commodities in South America. Its operations are divided into two main zones: "North" and "South," as detailed below. In 2013 IFC (and the Inter-American Development Bank) financed the acquisition, operation, and maintenance of a push boat and barge fleet for the transport of iron ore for the Brazilian mining company Vale from Corumbá, Brazil, down the Paraguay-Paraná river system for export. The IFC is considering a partnership with HDB which could include financing of some form.North Operations The North operations, which are expected to start in 2016, will consist of an integrated logistics system for transporting commodities on behalf of trading companies in the Northern Mato Grosso region of Brazil. This system will be based on private terminals, which the company is developing on land it owns in Barcarena, Itaituba and Marabá municipalities (Pará State), and barge operations on the Amazonas River and its tributaries and on the Tocantins River. HDB has initiated the construction of a new terminal in Vila do Conde (Barcarena) for transshipment to ocean-going vessels. Once construction is completed (early 2016), this port, which covers an area of 52 ha, will have a depth of 18 m and a capacity to transport 8.2 million tons/year of grains and 1.8 million tons/year of other products by 2022. The company has also advanced in the licensing of an inland terminal in Miritituba (Itaituba), which covers an area of about 11.5 ha and which will have a capacity to transport over 4 million tons/year of soy by 2017. In addition, Hidrovias has also bought a site in Marabá, covering an area of 33 ha, also for an inland terminal (project not developed yet). The inland transshipment terminals will receive dry bulk commodities (such as iron ore, plates, coils, and agricultural produce) arriving by road and by rail (from the North-South and Carajás rail corridors) and transport them via barges to the Vila do Conde port terminal for export. The same system will be used to import fertilizers HDB’s clients are responsible for transporting their cargo to the terminals by road or by railway. South Operations The South operations involve an already-functioning system of barges and push boats with operations extending from midwestern Brazil through Paraguay, Argentina, and Uruguay and a future terminal for ocean-going vessels in Montevideo (Obrinel terminal) for the transportation of grains (2 million tons/year) and wood chips (500,000 tons/year). For its operations in Uruguay, HDB partners with local operators through joint ventures. The South operations are anchored by a 25-year-long contract with Vale for the transport of iron ore, mentioned above. These operations are complemented by contracts transporting grains and other commodities, including wood pulp for UPM (1.2 million tons/year).A floating dry dock, currently being built in China, will be positioned in Paraguay, enabling the company to avoid hiring third-parties for most repairs. Also, Hidrovias is planning to acquire or rent an area of about 5-10 hectares near Asunción for changing crews (operations upriver to Corumbá and downriver to Argentina have to be conducted by different teams) and for maintenance, provisioning, and other administrative and operational functions. Two areas were being considering for this site at the time of appraisal.