TRG EXPANSION

completed

Tecon Rio Grande S.A. (TRG or the company) was awarded a 25-year lease through a public tender in 1997 to expand and operate the container terminal (the “Terminal”) in the port of Rio Grande, Rio Grande do Sul, Brazil. The Terminal was the second Brazilian container facility to be privatized and is currently the second largest container terminal in Brazil, accounting for approximately 12% of the country's total container movement. The proposed project is the expansion of the Terminal, and comprises civil works associated with building a third berth of 250 meters and improvements in the container stacking area, together with purchase of additional equipment, including two additional Post-Panamax gantry cranes, three rubber tired gantry cranes and seven trucks. The expansion will increase the annual capacity of the Terminal from 300,000 container-moves to about 525,000 container-moves, easing capacity constraints and allowing TRG to capture unmet demand for the Terminal’s services. This project would be the second one to be financed by IFC. In December 1998, IFC financing supported the purchase of four cranes, a 300-meter extension of an existing quay, and repair and upgrading of existing facilities.