Pecem Port signed a major agreement with the Port of Rotterdam Authority in October as part of Ceará state’s strategic plans. Under the agreement, Pecem Port joins the Dutch port’s worldwide network. In return, the Port of Rotterdam obtains 30% of the Ceará port’s share. The objective is to ensure that Pecem Port becomes the future logistics and commercial hub in Northeast Brazil.
The Port of Rotterdam, one of the largest in the world, has been in negotiations with the largest port in Ceará throughout 2018. Authorities from the Ceará regional government and the Port signed the definitive agreement after finalising arrangements in autumn.
New agreement
The Port of Rotterdam Authority has been acting in an advisory capacity for Pecem Port for several years. The latest agreement gives the Dutch port 30% of shares in their Ceará counterpart and awards it a decision-making role. The Port of Rotterdam will be taking an active part in strategy and investment decisions as well as in management.
In return for almost a third of Pecem Port shares, the Port of Rotterdam is investing around €75 million. The funds will be allocated to further expansión of Pecem. The ultimate objective is to convert the port into “the future logistics and commercial hub of Northeast Brazil,” said Allard Castelein, CEO at the Port of Rotterdam Authority.
The growth of Ceará, currently one of the most dynamic state economies in Brazil, was one of the points that most appealed to the Dutch port. “We’re very pleased to have come across the opportunity and finalise this agreement with Ceará,” said Paul Smits, CFO. He also underlined the strategic importance of Ceará, an important gateway from Brazil to the rest of the world.
Pecem Port growth
The Port has experienced growth of over 22% during the last ten years. The Dutch representatives are confident that it has the “possibility and ambition” to grow still further. They predict a 45 million tonne throughput by 2030.
Pecem currently includes an export processing zone (ZPE), a container terminal, a large steel works and installations for manufacturing wind energy turbines. The significant proportion of essential port infrastructure such as breakwaters and berths is already in place. This was another point that appealed to the Dutch investors.
As part of the agreement, Pecem Port joins the worldwide network of ports associated with the Port of Rotterdam. This network aims to expand business interests across the globe with the main focus on Brazil, the Middle East, China, India and Southeast Asia.
(Sources: Ceará government, Port Strategy)
