Port of Sepetiba Terminal de Conteineres (Tecon 1)

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Cia Siderurgica Nacional (CSN) and CSN Aceros S.A., a subsidiary of CSN, won the auction on September 3, 1998, for operating the Container Terminal No. 1 of the Sepetiba Port in the state of Rio de Janeiro, Brazil. CSN was the only company to submit a proposal for the bid. The concession is for a term of 25 years that can be renewed for an equal period of time. The acquisition was made for the minimum price of R$ 92.965 million. The down payment was made on September 9, 1998, in the amount of US$ 33 million (R$ 39 million). The balance will be paid in 276 monthly installments of R$ 576,000 each. This amount includes 10% annual interest and instalments are restated against inflation using IGPM (Brazilian General Market Prices Index). The concessionaire commited to a minimum annual throughput of 600.000 TEU by 2003. A newly constituted special purpose company, which is 20% owned by CSN and 80% owned by CSN Aceros, will sign the lease contract until December 10, 1998, with the concessor Companhia Docas do Rio de Janeiro - CDRJ. The total direct and indirect interest of CSN in such enterprise is 50%. The remaining 50% is owned by CVRD Group. In 2000, the IFC approved a US$ 51 million financing package to the project: US$ 27 million in direct loan, US$ 6 million in equity and US$ 18 million in syndication. The funds will be direct to a US$ 139.6 million program to complete the container and general cargo terminal. The project reached final financial completion in August 2001. As of December 2003, CSN was the sole shareholder of the Sepetiba Tecom SA. In 2008, CSN started investing US$ 166 million in the expansion of the terminal. In 2002, the investments undertaken by Port of Sepetiba Tecon 1 amounted US$ 0.4 million (R$ 1.4 million). Until 2003, the sum of anual investments of Port Sepetiba Tecon Terminal was US$ 57 million.