Marubeni, the Japanese owners of the Brazilian port terminal operator Terlogs, is reported to have put the grain export facility up for sale.
It originally bought a 25% stake in Terlogs Terminal Marítimo in 2005, buying out the other shareholders six years later, paying US$60M for the outstanding equity.
The terminal, which is situated in the Port of São Francisco do Sul, is the largest grain facility in Santa Catarina state, but has recently come under strong competition from other terminals in the south of the country.
In February this year, Marubeni issued a statement in which it expressed concern about what it perceived as the loss of competitiveness at the Terlogs terminal. Its solution was to ask the port authority to undertake modernisation work so that Terlogs could compete on a level playing field with rival ports such as Paranaguá and Rio Grande.
In 2012, São Francisco do Sul accounted for 25% of the volume of export soya exported, which fell to just 14% last year.
To improve this situation, Terlogs put forward a number of suggestions as to how things could be improved. These included privatisation or the concession of terminals in the main export corridor, including the immediate privatisation of the operation and maintenance of shipping equipment; upgrades to the port’s rail links; and the doubling of capacity on 30 km of linking roads.