2. Have the Company’s container terminal already signed the anticipated contract renewal? What is the final year of the 2nd period of each contract?

  • Rio Grande Container Terminal: Tecon Rio Grande S.A. lease agreement was signed with Rio Grande Port Authority (“SUPRG”) on 3 February 1997 for a period of 25 years renewable for a further 25 years. In view of the compliance with the contractual requirements and advanced investments in the expansion works of the terminal, construction of a third berth of docking and of the annual volume handled together with other considerations, Rio Grande Container Terminal was granted the right to renew the lease as set forth in the first amendment to the lease agreement signed on 7 March 2006. The extension of the contract is assured, provided that the Federal Government renews the delegation of the Port of Rio Grande to SUPRG, thus maintaining the management at a state level.

 

  • Salvador Container Terminal: Tecon Salvador S.A. lease agreement was signed with Bahia Port Authority (“CODEBA”) on 14 March 2000 for a period of 25 years renewable for a further 25 years. On 16 November 2016 Salvador Container Terminal signed the second amendment to the lease agreement which extended the lease term for an additional period of 25 years until March 2050, and established the Company’s commitment to carry out maintenance and expansion investments until the end of the lease.

In April 2020 we completed the civil works to extend the principal quay to 800 meters in length, allowing the simultaneous berthing of two super-post-Panamax ships, facilitating access to the port and the largest economy in the north-east of Brazil. In May 2020 we received three STS quay cranes and three RTG yard cranes as planned in the expansion project, as well as two RTGs to replace older equipment. Operations on the new berth are expected to start in the second half of 2020, after installing the new STSs.

Illustrative image of the Salvador terminal after completion of the 1st Stage of the expansion:

 

Illustrative image of the Salvador terminal after completion of the 2nd Stage of the expansion: