China Merchants Port Holdings will purchase a 90 percent stake in TCP Participações S.A, the operator of the port of Paranaguá – Brazil’s second largest container terminal, for 2.89 billion Brazilian reals (US$920 million). The deal is China Merchants Port’s second major investment in three months.
TCP Participações S.A is not only China Merchants Port’s cornerstone to enter Brazil, but also the future hub of the rising commodity and goods trade flow between Brazil and China.- Managing Director, China Merchants Port
Latin America accounts for 13 percent of global container shipping trade volume and TCP Participações S.A is the second largest container terminal in Brazil. The port of Paranaguá has an annual capacity of 1.5 million TEU, which is set to rise to 2.4 million TEU a year on completion of its expansion plan, expected to be finished in 2019.
China Merchants Port operates ports in mainland China and Hong Kong, as well as internationally in locations including Sri Lanka, Djibouti and the United States. The new investment is part of its expansion into Latin America.