Terminal XXXIX (IDBI-12974-01)

Countries
  • Brazil
Where the impacts of the investment may be experienced.
Specific Location
Santos
Whenever identified, the area within countries where the impacts of the investment may be experienced. Exact locations of projects may not be identified fully or at all in project documents. Please review updated project documents and community-led assessments.
Financial Institutions
  • IDB Invest (IDBI)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Proposed
Bank Risk Rating
B
Risk rating varies among banks and may refer only to the particular investment and not to the risk for the project as a whole. Projects marked 'U' have an 'Unknown' risk rating at the time of disclosure.
Voting Date
Jan 19, 2021
The estimate day the bank will vote on a proposed investment. The decision dates may change, so review updated project documents or contact the EWS team.
Borrower
Terminal XXXIX de Santos S.A.
The holder of the loan, grant, or other investment.
Sectors
  • Infrastructure
  • Transport
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Loan
The categories of the bank investment: loan, grant, etc.
Investment Amount (USD)
$ 173.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please review updated project documents for more information.
Project Cost (USD)
$ 173.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please see updated project documentation for more information.
Bank Documents
Primary Source

Original disclosure @ IDBI website

Updated in EWS Nov 16, 2020

Disclosed by Bank Dec 20, 2020

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Project Description
<div class="block"><br /> <div class="intro-frame block-wysiwyg"><br /> <div><br /> <p class="text-align-justify">The project consists in a 10-years senior loan, with up to 3-years grace period, for the financing of the port terminal facilities expansion of Terminal XXXIX de Santos S.A. (&ldquo;T39&rdquo;) located at the Port of Santos in the state of S&atilde;o Paulo, Brazil. Founded in 2001, T39 is owned in equal parts by Caramuru Alimentos S.A. (&ldquo;Caramuru&rdquo;) and Rumo S.A. (&ldquo;Rumo&rdquo;) (Rumo and Caramuru together, the &ldquo;Sponsors&rdquo;), representing a highly strategic asset for both Sponsors, who will also be participating as co-obligors of the transaction. Caramuru exports 90% of its products through T39, while Rumo transported most of its grain through T39.</p> <br /> <p class="text-align-justify">The terminal expansion plan has the main objective of easing the flow of growing exports from Caramuru and other third parties, by increasing its warehousing capacity from 135,000 tons to 247,000 tons. After completing the project, T39 will be single largest grains terminal in Santos, with strong competitive advantages in terms of land infrastructure, berthing conditions, and logistics business integration. T39 will increase its volume handling from 2.5 million tons per year, to around 7.5 million tons per year, an important contribution to accommodate the increasing demand for export cargo handling in the Santos port. Rumo is Brazil&rsquo;s largest logistics operator in terms of transported volume. It provides rail transport, port handling, and warehousing services. Rumo operates the largest railroad network in Brazil, consisting of five concessions with approximately 13,500 kilometers of lines, 1,200 locomotives and 33,000 wagons, as well as distribution centers and storage facilities.</p> <br /> <p class="text-align-justify">Caramuru is a leading Brazilian grain processing company which engages in the processing, refining, and marketing of soybean related products, biodiesel, corn, and sunflower products in Brazil. It is among the top Brazilian exporters of soy.</p> </div> </div> </div>
People Affected By This Project

Under IDB Invest's Environmental and Social Sustainability Policy ("PSAS"), the Project was classified as a Category B transaction as it presents low to medium risks and impacts, which may be mitigated using the measures available and feasible within the context of the proposed transaction. The main risks and impacts identified during the construction (civil works) are related to: (i) occupational safety (e.g. work at height or in confined spaces), (ii) occupational health (measure to contain COVID-19), and (iii) generation of solid waste, effluents and hazardous materials. During the operational phase, the main risks and impacts will be of the nature of those currently existing (occupational safety, air emissions -GHG and pollutants- dust emissions; generation of solid waste, effluents, and hazardous materials). These potential environmental and social risks are limited and moderately significant and low in number, localized, highly reversible and speedily addressed through mitigation measures.

The Environmental and Social Due Diligence (ESDD) was carried out virtually (remotely) in a first phase during May and June 2020 due to the travelling and social distancing restrictions imposed because of the coronavirus pandemic (COVID-19). Later, an in-person inspection was carried out of T39's facilities at the SOP in July 2020 (site visit) by a local independent E&S consulting firm. The ESDD included videoconference interviews with the Company's main representatives, a review of E&S and occupational health and safety (OHS) and physical assets' information furnished by T39, including: (i) a neighborhood impact study ("EIV"), an Air Dispersion Assessment ("AAE"); (ii) an integrated management system; (iii) HR procedures and policies; (iv) outsourced personnel management procedures; (v) an environmental management procedure (e.g. solid waste and hazardous materials); and (vi) certificates, licenses and certifications, among others, under Brazilian regulatory requirements and international best practices.

The Performance Standards (PS) applicable to the Project are: PS1: Assessment and Management of Environmental and Social Risks and Impacts; PS2: Labor and Working Conditions; PS3: Resource Efficiency and Pollution Prevention; and PS4: Community Health, Safety, and Security.

Investment Description
  • IDB Invest (IDBI)

Loan & Guarantee

Private Actors
Contact Information
<div class="item">Team Leader:<br /> <div>Guedes Kafrune, Maher Alexandre</div> </div>