The owner of a Sepetiba container terminal in Brazil plans to pick the top three bidders in the first week of February and request firm offers after receiving 10 non-binding proposals.
Advent International, a Boston-based private equity firm, is the likely favorite to win the bid for Tecon Sepetiba in the state of Rio de Janiero several sources told JOC.com. PSA International, Brazilian operator Wilson, Sons; Logz Logistics Brazil and Chilean company SudAmericana Agencia Aereas e Maritmos have submitted bids, Companhia Siderúrgica Nacional, the owner of Tecon Sepetiba, told Brazilian newspaper Valor Economico. Hutchison Port Holdings and private-equity firm Brookfield Infrastructure Partners are also believed to have bid on the terminal.
Desperate to sell all of its non-core assets due to cheap Chinese steel imports depressing its domestic and international sales, CSN is asking for up 1.5 billion reais ($366.3 million) for the terminal. Sepetiba Tecon’s deep draft of 14.5 meters (47.6 feet) has much potential as an east coast of South America hub. The port — covering 400.000 square meters (4.3 million square feet) and 70 kilometers (43.5 miles) from downtown Rio de Janeiro — has a containerized rail link to the MRS Logistica network and access to the hinterland of Sao Paulo, Belo Horizonte and Rio, which contributes 70 percent of Brazil’s GDP.
Tecon Sepetiba's container traffic grew 8.5 percent year-over-year to 228,000 twenty-foot-equivalent units, according to provisional figures from the terminal.
Advent International bought a controlling stake in the Terminal de Contenedores do Paranagua, in the state of Parana, in 2011. Since then it has become the second biggest container terminal in Brazil after Tecon Santos, having handled about 890,000 TEUs last year.
“Initially they thought about selling between 20 percent and 30 percent of the company, but that changed in about July of last year when they realized that most serious companies would be looking for at least a 50 percent stake. Just recently they have come to the point of view that a total buyout is possible, if the price is was high enough,” a Brazilian importer who uses Sepetiba Tecon and has worked closely with its management for several years told JOC.com.
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