Ransa Comercial S. A.

completed

Ransa Comercial S. A. (Ransa or the company) is an integrated logistics service company based in Lima, which specializes in handling, storage, and distribution of grains, frozen food, and other general cargoes as well as providing services such as in-bond warehouses, shipping agency, stevedoring services, and trucking. Ransa is the market leader in the distribution and storage business in Peru. It is a 100% subsidiary of the Romero Group. In 1999 IFC approved a $10 million loan (IFC/R99-116) for Ransa’s expansion and improvement of operating efficiency; as of December 31, 2004, $6.25 million remains outstanding to IFC. Ransa’s consolidated USD revenue has grown at an average of 15.2% p.a. from 2000 to 2003, storage volume has increased by 7.8% p.a. for the same period. To accommodate this growth Ransa has been leasing space from Minka, a sister company operating wholesale and retail space in Lima. Minka has given notice to Ransa that it will terminate the lease in 2004. As a result of the lease termination, and to accommodate future growth, Ransa has now decided to embark on a capacity expansion project consisting mainly of the following components: - the construction of a 13,500-m² warehouse for general merchandise, - the construction of a 15,000-m² warehouse for distribution, and - the acquisition of a 86,600-m² plot. In addition the project includes investments in MIS, other capital expenditures, and debt refinancing.