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EIG’s Port in Brazil Signs Second Customer Contract Since June

Monday, 20 July 2015 | 06:38
Prumo Logistica SA, the developer of the Acu port in Rio de Janeiro, is signing its second contract since early June as it speeds up operations under new owners EIG Global Energy Partners LLC.

Votorantim Metais SA has agreed to use the port to export bauxite, Eduardo Parente, chief executive officer of Rio de Janeiro-based Prumo, said Friday. The three-year contract will allow Votorantim to ship 300,000 metric tons a year and import petroleum coke at the terminal for solid bulks, containers and cargo, Parente said. He declined to provide financial terms of the deal.

“We will have with this another cargo terminal working to serve the region, on top of our dedicated operations,” Parente said in a telephone interview from Rio. “We are looking for other contracts too.”

Prumo shares have more than doubled in the past three months as the company leaves behind years of delays and cost overruns under founder Eike Batista. The former billionaire began to set up the Acu port project in Rio state in 2007 before surrendering control of the company to EIG in late 2013 amid capital shortages to finish his projects. The Washington-based private-equity fund now owns about 74 percent of Prumo.

A spokesman for Votorantim, Brazil’s top zinc producer, declined to comment in an e-mailed reply to questions about the contract.

On June 3, Prumo said it signed a 20-year contract with BG Group Plc to ship as much as 200,000 barrels of oil a day from Acu, which began operations in October.

Prumo expects the new terminal will have the capacity to ship as much as 2 million tons of bauxite a year “in the near future,” Parente said. The company expects to start its container operations next year at Acu, he said.
Source: Bloomberg
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