Port of Suape Container Terminal

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In May 5, 2001, the government of Pernambuco State, Brazil, awarded the Port of Suape Container Terminal through a concession to the Philippine-based International Container Terminal Services (ICTSI). The 30-year concession to manage, operate and develop the Suape Container Terminal required ICTSI to make total investments of US$60 million throughout the period. The company was obligated to pay the Suape Port Authority an initial fee of approximately US$3.5 million, an annual fixed fee of approximately US$1.55 million, and variable fees of US$25, US$7.50 and US$15 per full, empty and transshipped twenty-foot-equivalent unit (TEU) of cargo. ICTSI subsequently formed Tecon Suape, SA (TSSA) to be the terminal's operating company. The Port of Suape is located in an industrial zone in the State of Pernambuco. The project company is expected to build, develop and operate the container terminal at the Port of Suape. The first phase of investments was estimated at US$15 million. The IFC advised the Pernambuco government on the container terminal sale. Operations began in April of 2002. In November 2008, the company started the construction works to expand its container storage area from 230 to 300 thousand square meters. The works were completed by mid-2009 and involved an investment of US$ 10 million (BRL 20 million). Between 2001 and 2009, the sponsor invested US$ 76 million (BRL 152 million) in the terminal, and expected to direct another US$ 40 million over the 2010-2011 period to expand the terminal capacity to 1 million containers per year. In 2012, another US$ 51.2 million (BRL 100 million) was directed to expanding the terminal capacity from 450 thousand TEUs to 750 thousand TEUs.