Rio Cubatao Terminal

cancelled

Cosipa owns a private port located in its plant in Cubatao. The company was state-owned until 1993, when it was privatized (most of its shares are held by Usiminas). In 1995, the company was authorized to operate one of the terminals in its port as a public use facility. Cosipa invested US$ 15 million in order to set up a port terminal in Cubatao (Sao Paulo) that was inaugurated in November 1996. The terminal was called Rio-Cubatao. By August 1997, Cosipa started to operate its cargo terminal in Cubatao, Sao Paulo state, with its own hired employees, replacing the labor force appointed by the docks trade union (the decision was made in order to improve the competitiveness of steel exports and lowering the local ports cargo handling costs estimated at US$ 16 per ton). The joint venture between Exolgan, controlled by International Trade Logistics SA and operator of Buenos Aires Dock Sud, and bonded warehouse specialist Armazens Gerais Columbia was awarded a 3-year management contract by steel giant Cosipa for its Rio Cubatao facilities in September 1997 and has invested US$ 8 million in handling equipment from Mannesmann Demag and Belotti since taking over operation. Container handling operations are ongoing on a small scale, but the group announced expansion plans incurring investment of US$ 120 million for which finance has not yet been secured. Port congestion and terminal privatisation wrangling have been avoided by the use of a greenfield site 30 km outside Santos. In a three-month period, the terminal has already managed to attract the likes of CSAV and TMM with rates at least 20% lower than Santos rivals. The Rio Cubatao terminal operation, which is said to handle 7,000 TEU a month, will now be expanded into a two-berth operation with three gantry cranes and a 250,000 TEU capacity. In 2005, Usiminas announced the end of the partnership with the referred joint-venture, though the last contract signed indicated that Rio Cubatao would remain the operator until 2008. Usiminas decision came as a consequence of its decision to expand its export operations in the port.