On October 24th, the Port of Rotterdam’s CEO, Allard Castelein, and the Governor of Ceara, Camilo Santana, signed an investment agreement in regards to the former’s involvement in the development of the Brazilian state’s Port of Pecem.
Terms of Agreement
The terms agreed upon were that the Port Authority would inject a sum of EUR 75 million into Pecem’s port-industrial complex thereby getting a 30 percent share in the venture. Moreover, the Port of Rotterdam Authority will have a voice in investment as well as other strategic decisions in addition to having a representative in Pecem’s Executive, Supervisory, and Management Boards.
When Shall These Additions Be Made Official?
Both partners have expressed their need to conclude their partnership agreement before the end of the year. Rotterdam Authority’s CEO, Allard Castelein, expressed that, “Our involvement in the developmental plans of Pecém is a valuable opportunity. Pecem has clear potential for growth, while its strategic location makes allows it to be at the ideal position to facilitate its growth into Northeast Brazil’s premier industrial and logistics hub. Consequently, this creates new avenues for intercontinental trade flows in addition to further European investments.”
Pecem is set to be a Hub for North East Brazil
Pecem has enjoyed an average growth rate of 22 percent over the past decade. This has seen to the port develop at an incredible rate. Its post-industrial complex serves as a hub to many logistic and industrial facilities, such as power plants, wind turbine manufacturers, a container terminal, and a steel mill. Moreover, the majority of the necessary infrastructure required to facilitate the post-industrial complex, such as berths, breakwaters, and more, are already existent; which only adds to Pecem’s appeal.
Investing in Outside Partners
The state of Ceara has embarked on a campaign to invest in various international partnerships. The aim of these mergers is to further develop the region into a hub of global alliances for Northeast Brazil. For instance, Fraport – the German Company – controls the airport of Fortazela, while as of May 2018, French airline – Air France/KLM – partnered with GOL to establish a connection to Fortazela. Additionally, the state is setting underwater data cables to facilitate communications between Northeast Brazil, the USA, and Africa. The latest merger with Rotterdam Authority will allow Pecem to become the premier maritime hub in Northeast Brazil.
The Strategic Partnership with the Port of Rotterdam
The governor of the state of Ceara, Camilo Santana, commented on the partnership saying, “We are celebrating the union between the state of Ceará and the Port of Rotterdam. I am convinced that this merger will benefit the people of Ceara in terms of investment and employment opportunities.
–Jacques Piccard, Managing Director of Davenport Laroche. Hong Kong-based Investment Firm