At the height of its success, Batista’s LLX was developing
the Açu superport in Rio de Janeiro state. Acu was expected become the world’s
third largest port - with size estimates at over twice the size of Manhattan - designed
to handle 350m metric tons annually and also serve as an export hub for
Batista’s oil and commodities subsidiaries. However the global economy took its
toll on Batista’s business and progress slowed. Now that EIG has bought a
majority stake in LLX, progress should pick up in the building of the port.
Despite setbacks including labor strikes, the port is
expected to open by the end of this year. Açu will consist of two large
terminals, TX1 and TX2, with a combined 47 berths and 17-kilometer pier. The
port will also have a large industrial complex. Offshore terminal TX1 will
handle bulk commodities such as iron ore, oil and gas. Onshore terminal TX2
will handle offshore support equipment, project cargo and steel.
LLX has agreements with companies Anglo American Plc and
Batista’s OSX Brasil SA to utilize the port. Other companies that plan to begin
projects at the port include General Electric Company and offshore engineering
company, Technip SA. MPX plans to build coal and gas-fired power plants at the
port and OGX Petroleos e Gas Participações SA is planning oil storage and
processing facility.
When plans to build the port were announced several years ago,
Brazil was experiencing an export boom which resulted in China becoming its
largest trade partner. The need for Acu was great as backlogs at other ports
such as Santos was an everyday occurrence. Today, backlogs continue but mostly
because of ongoing poor infrastructure such as roads leading to ports. China
remains the country’s largest trade partner. In fact, for the first half of
2013, exports to China increased 9.0% compared to same period in 2012. Top
export commodities were soy beans, iron ore, oil and wood pulp and cellulose.
When it opens, Acu could become a strong competitor to the
country’s largest port, Santos. This will prove beneficial for shippers and
perhaps provide more competitive rates.
