China to announce billion dollar investment in Port of São Luís through CCCC

Brazil’s largest trading partner, China will announce a billion dollar investment in the Port of São Luís through China Communications Construction Company (ACC). The report comes from Reuters, which received the information from two sources with direct knowledge on the matter, on condition of anonymity.

The announcement will be made at the Brics summit, which brings together Brazil, Russia, India, China, and South Africa.

One source pointed out that the funds announced will be part of the largest foreign direct investment project announced for the country this year.

The cornerstone of the Port of São Luís was laid in March last year. At the time, China’s state agency Xinhua reported that CCCC led the project with a 51% equity stake in the venture, alongside Brazilian WPR, construction group WTorre, and the manager Lyon Capital.

In its website, WTorre informs that the Port of São Luís is a private mixed use terminal. With a 1.5m m² retro area, the project serves the central, northern, and northeastern areas of Brazil, interconnected by the Norte–Sul/Carajás Railway.

The second source stated that the investments will not stop there, with resources also being disclosed for the rail modal.

Earlier Wednesday (11/13), Economy Minister Paulo Guedes said the Jair Bolsonaro administration is seeking greater levels of integration with China, involving not only trade negotiations but also investments.

Speaking at a seminar on the role of the New Development Bank (NDB), Brics’ bank, Guedes even said that Brazil was talking to China about the possibility of a free trade area. Although questioned for more details on the topic, he only indicated to reporters that the intention was to deepen relations with the Asian country.

According to Reuters, Brazil wants, on the one hand, to expand the number of products that make up its export list to China, which is now heavily concentrated in soybeans, oil, and iron ore. The government aims to expand the market for the entire Brazilian food complex, especially animal proteins.

On the other hand, the country is also seeking talks with China to increasingly contemplate the investments front amid the need for the financing of infrastructure projects.

“You had a giant in the trade agenda, but less investment flow, (now) investment flow is also increasing,” said the first source.

Source: Reuters

Sharing is caring!