Brazil’s Pecém Port Launches $135M Tender for Major Terminal Expansion

The government of Ceará signed an international tender notice on Wednesday (23) for the expansion of the Multi-Utility Terminal (TMUT) at the Port of Pecém. This project is part of the Green Pecém initiative and involves a $135 million (R$ 675 million) investment from the World Bank, the Climate Investment Fund (CIF), and the Pecém Industrial and Port Complex Development Company (CIPP S/A), which operates the port. The construction contract is expected to last 40 months.

Ceará Governor Elmano de Freitas, Secretary of Economic Development Salmito Filho, Pecém Complex President Hugo Figueirêdo, and Vice-President Rebeca do Carmo were present at the signing ceremony.

“This is a major investment to expand our port’s capacity as we prepare for the increased cargo flow anticipated with the completion of the Transnordestina railway, expected by late 2026 or early 2027. We’re also gearing up the Port of Pecém for the emerging green hydrogen industry that we are working to develop here in Ceará,” stated Governor Elmano de Freitas. “This initiative further advances our strategic vision to make the Port of Pecém a world-class renewable energy logistics hub.”

Governor Elmano also emphasized the project’s importance for Ceará’s economic growth and job creation. “This investment fuels greater economic growth in the state, creating more jobs and increasing opportunities for Ceará-based companies to sell their products. This ultimately boosts opportunities for our people,” he added.

Terminal Expansion

The tender covers the construction of a new berth at TMUT (berth 11) to meet rising port activity and support the green hydrogen value chain at the Pecém Complex. Pecém Complex President Hugo Figueirêdo highlighted the terminal’s expansion as crucial for handling the port’s upcoming demands.

“This tender, launched today (23), will effectively add a new berth to our Multi-Utility Terminal to receive additional vessels and, more importantly, support the increased cargo volumes expected soon. This is the first and most important expansion project for the Port, being launched through this international bidding process,” said Figueirêdo. “We expect work to begin in the second half of next year and be completed by 2028. This will allow us to handle all projected cargo growth from these significant investments underway in Ceará.”

In the medium term, Pecém’s throughput is expected to grow by 48%. “In the short term, from 2026 to 2028, average cargo volumes should increase by nearly 10%, driven by demand for green hydrogen production and the need to import electrolyzers, as well as solar and wind equipment for renewable energy. Post-2028, following Pecém’s connection to the Transnordestina railway, cargo throughput is forecasted to rise 48% by 2028 and reach up to 140% by 2040,” he detailed.

The Selection Process

The tender will begin with an initial selection (pre-qualification under World Bank bidding rules), shortlisting three to six companies or consortia, who will then receive the bidding documents. This next phase will involve the submission of technical and financial proposals, with a 30% weighting for technical merit and 70% for pricing.

According to Pecém Complex management, applicants must present at least two similar projects successfully completed since January 1, 2014. Additionally, they must demonstrate prior experience in design and construction, with at least two contracts, each valued at a minimum of $80 million. Social and environmental requirements are also essential, including workforce management, promotion of women in leadership roles, and an Environmental Basic Plan (PBA).

Source: Ceará Government

Original text: https://www.ceara.gov.br/2024/10/23/com-investimento-de-r-106-milhoes-governo-assina-aviso-de-licitacao-para-obra-de-ampliacao-do-terminal-de-multiplas-utilidades-do-porto-do-pecem/

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