CMB ports entered into a share purchase agreement with the selling shareholders of TCP, the Brazilian port operator of paranagua, to acquire a 90% stake in tcpat a price of r $2,891,250,227.92 (equivalent to approximately hk $7.228 billion) during the third brics summit held on 4 September 2017. This transaction represents a new breakthrough in the implementation of the "One Belt And One Road" initiative by the company in Latin America and will effectively promote china-brazil economic and trade relations and the comprehensive strategic cooperative partnership between the two countries.
TCP is located in parana state on the southeast coast of Brazil. It is the second largest container terminal in Brazil, about 280 kilometers away from santos port, Brazil's largest port. TCP's economic hinterland covers Brazil's most important coastal region in the southeast, home to 45% of the country's population and 47.6% of GDP. TCP land railway is the only port directly connected by rail in southern Brazil. The terminal currently has three container berths, with an annual designed capacity of 1.5 million teu and an expanded capacity of 2.4 million teu.
On February 23, 2018, the acquisition of Brazil's paranagua port project was successfully completed. This project is in line with our strategic deployment of "breakthrough in America". TCP terminal is the breakthrough point for China merchants port to enter Brazil and layout in Latin America. With the help of the existing professional management team of TCP, our company is expected to further integrate and expand other port assets in the region and give full play to synergies.
TCP is the only container terminal in the state of parana. The hinterland covers the most affluent area of southeast Brazil, and covers the eastern part of Argentina and Uruguay. The favorable geographical position creates the conditions for the development and collaboration of other businesses related to shipping and trade in the future.
At the same time, Brazil's import and export of freight containerization potential is huge, and the volume of trade with Asia is steadily growing, creating good conditions for the continued growth of terminal business.