Brazil-Açu Superport, largest port infrastructure in Latin America, bets on Petrobras’ participation. Peter Wertheim provides the details.
According to a recent study by Booz & Company cited by Brazil’s National Petroleum, Gas and Biofuels Agency (ANP), there are either few or no Brazilian suppliers in about 80% of the equipment categories that will be procured for pre-salt development, particularly for high-technology equipment. In addition, significant opportunities exist for a wide variety of service providers focused on the maritime and energy sectors, such as subsea engineering, installation services, and vessel support services.
Due to the Brazilian Government’s strict local content policies, which are expected to become only more stringent over time, smart US companies are considering establishing production facilities in Brazil, either alone or in partnership with Brazilian companies. Many US companies are already on the ground, such as Baker & Hughes, FMC, and General Electric. This trend is creating additional opportunities for US companies all along the maritime and oil and gas supply chain, especially those engaged in design and engineering, materials fabrication, and vessel construction.
Brazil is investing heavily in new infrastructure, with a significant amount focused in the State of Rio de Janeiro. Rio State forecasts US$102 billion in investments from 2011 through 2013, in oil and gas, energy, shipbuilding, steel production, ports and roads, sports complexes and hotels. Environmental investment in the Rio State’s oil and energy sectors is forecast at $75 billion. Brazil is also investing heavily in a Superport at Açu, forecasted to handle 350 million tons a year.
Largest port investment
Brazilian billionaire Eike Batista founded LLX, the logistics division of EBX Group, in March 2007 to provide Brazil with integrated infrastructure and logistics facilities, mainly in the port sector. LLX’s ventures are strategically located and are designed to handle the largest vessels, using the latest port technology.
The company is currently building the Açu Superport in São João da Barra, Rio de Janeiro. It is the largest port infrastructure investment in Latin America, claim LLX officials say.
Recently the project got a boost when Maria das Graças Foster, president and CEO of Petrobras, and Marcus Berto, president of LLX, confirmed that negotiations are advanced for Petrobras to install itself in Açu, and use the port as a basis for offshore support for petroleum platforms.
According to the executives, this is the first step, which will be expanded in the future for offloading and warehousing petroleum. Berto says that the negotiations offer a strategic advantage for LLX and Petrobras. The Superport has been under construction for the last six years.
Açu Superport details
With two terminals - one offshore and one onshore, the Açu Superport is a private, mixed-use port complex being built on the northern Rio de Janeiro coastline, near the area responsible for 85% of Brazil’s oil and gas production. It will have 17 km of piers, with up to 47 mooring berths.
LLX officials say that the port is an innovative project boasting modern engineering, construction, and operating practices. The port will be comparable with the most modern and efficient ports in the world, such as those in Asia and Europe. It is being prepared to receive large vessels such as Capesize and Very Large Crude Carriers (VLCCs), which carry up to 320,000 tons of cargo, and Chinamax carrying up to 400,000 tons, Berto told OE.
About $2.5 billion will be invested of which one billion is being provided by LLX Minas-Rio (responsible for implementing the iron ore port terminal) and $1.5 billion by LLX Açu (responsible for handling other cargo such as steel products, petroleum, coal, granite, slag, pig iron, and liquid and solid bulk). LLX says that $500 million will be invested in 2013.
Occupying a total area of 90sq km, construction began on the port in October 2007. Since that date, $2 billion has been invested in Açu, LLX officials say.
The port will have two terminal complexes: TX1, an offshore terminal with a depth of 3km (to be expanded to 26m), a three-kilometer access bridge, a tugboat pier, nine oil and iron-ore piers, an approach channel, and turning basin. Of these, two iron ore piers, the tugboat pier, approach channel, and turning basin are complete. TX1 will be able to handle up to 100 million tonnes of iron ore a year and 1.2MMbo/d. The other terminal, TX2, is an onshore terminal being built around a 6.5kmlong, 300m-wide approach channel. TX2 will boast a wharf line of over 13km, where liquid and solid bulk, coal, pig iron, slag, and granite will be handled, in addition to steel products.
The port has been designed to handle 350 million tons a year of exports and imports, especially oil, which ranks it among the largest port complexes in the world. The Açu Superport is forecast to become operational in 2013.
Industrial Complex
The port will boast an adjacent industrial district, in addition to a stockpile yard for the products being handled.
This industrial complex will house offshore industries, a metalworking cluster, a bulk liquid storage base, a shipbuilding yard of OSX (EBX Group’s offshore and shipbuilding equipment and services division), an oil treatment and storage facility, a thermal power generation facility of MPX (an energy company of EBX Group), logistics yard, iron-ore pelletizing plants, cement mills, IT firms, and steel mills, among others.
The project also embraces cargo consolidation and distribution centers, facilities for vessels supporting offshore activities, and clusters for processing ornamental rocks, coatings, and ceramics.
Oil facilities
Located just 150 km from Campos Basin, the port will also meet the logistics and supply requirements of the oil and gas production and exploration activities in Campos, Santos, and Espírito Santo Basins, Berto says. The venture is strategically positioned to handle and treat oil, provide support to offshore E&P operations, and house metalworking cluster dedicated to the oil and gas industry.
The port will have an oil treatment facility (OTF), which is now licensed for 1.2MMb/d. The OTF will enhance the quality and the commercial value of the product by lowering the water and salt content in the oil through centrifuge and decantation.
The port may also be connected to gas pipelines, especially from the Santos Basin, to supply natural gas to steelworks, the MPX thermal power plant, and other industries located in the industrial complex.
Commercial
LLX is engaged in negotiations with companies from various sectors wishing to set up or handle cargo at the port. NOV, who acquired NKT Flexibles, is installing a flexible-pipe production plant. At an advanced stage of production, the plant is located on the right bank of TX2 and will have a production capacity of 250km of flexible pipe a year, in addition to a material testing and storage facility. The company envisions an investment of $200 million with the creation of 400 direct jobs. This plant is forecast to come into operation in 2013, Berto adds.
LLX also signed an agreement with Technip Brasil for the installation of a flexible-pipe production plant. With production forecast to begin in 2013, this plant will be built at TX2. In February 2013, InterMoor was awarded a construction license for a plant offering specialized services and logistical support. That plant is forecast to come into operation at the end of 2013 and will be located on the right bank of TX2. It will provide a range of services to meet the specific needs of its clients, including Petrobras, Shell, and OGX, as well as other oil and gas companies operating in Brazil. The plant will have a 90m wharf line and total area of 52,302sq m. OGX is the oil and gas division of EBX and has the largest offshore acreage after Petrobras.
OSX is building the Açu shipbuilding yard, UCN Açu, which is set to become the largest shipyard in the Americas. With a processing capacity of 180,000 tonnes per year, expandable to 400,000 tonnes per year, the shipyard is a joint venture with Hyundai Heavy Industries. OSX has the largest portfolio of orders in the world with 60 offshore units worth a total of $31 billion. Some 4500 people are currently working on UCN construction, which is forecast to come into operation at the start of 2013.
LLX has also signed a contract with GE do Brasil (GE) for the construction of a plant in the metalworking cluster. The plant will occupy an area of 322,498sq m, primarily to serve the oil and gas, and power generation sectors. The contract has a term of 30 years and is renewable for a period of up to 30 years. Construction of the production plant is still subject to the licenses and permits normally required.
ASCO Brasil Participações Ltda., a company of ASCO Group, will provide logistics services to oil exploration and production companies and their suppliers. “This arrangement means Açu Superport will offer comprehensive and integrated logistical solutions of international standard, with state-of-the art technology, able to satisfy the highest requirements for efficiency, safety, and environmental protection of the oil and gas industry; 1,400 jobs are expected to be created in the logistics services sector ,” Berto says.
NFX (Navigation Fuels X), a company to import, export, sell, and distribute marine fuels under the BP Marine brand, elected Açu Superport as the best location to build its terminal. It will be located in TXl and will have the entire infrastructure necessary to distribute marine fuel. This fuel center will meet the requirements of ships of a range of sizes and activities, such as PSVs (platform supply vessels), cabotage, and long distance vessels, providing them with marine gas oil and intermediate fuel oil.
Anglo American will also ship iron ore through Açu Superport. The port is initially forecasted to handle 26.5 million tons of iron ore a year, from the second half of 2014. The iron ore will be transported from Anglo American’s mine in Minas Gerais to the port, down a 252km slurry pipeline currently being laid by Anglo. Wärtsilä Brasil signed a contract for the construction of a facility to assemble and produce generating sets and propulsion products. Occupying 29,300sq m in the TX2 channel (onshore terminal), the facility will also offer solutions and services for the marine propulsion and energy sectors. The contract has a term of 30 years and is renewable for a further 30 years.
Accessing the port
Açu Superport has been included in two railway lines under the Logistics Investment Program, announced by the federal government on August 15. One of the railway sections connects Uruaçu (GO) to Campos dos Goytacazes, in northern Rio de Janeiro just 43 km from the port. The railway will also cross Brasília (DF), Corinto, Conceição do Mato Dentro and Ipatinga (all in Minas Gerais state). This section will make it possible to connect Açu Superport to Brazil’s central western region, in addition to part of the southeast, creating a new route for exporting several products, primarily grain and iron ore.
The other section will connect Vitória (Espirito Santo state) to Rio de Janeiro (Rio de Janeiro state), crossing Campos dos Goytacazes. A railway line is projected in this section that will connect the port to the Brazilian railway network, thereby connecting the venture to the southeast and south of Brazil.
The port will also be served by Brazil’s main highways, such as BR 116 (Rodovia Presidente Dutra), BR 101, and BR 040 (Rio - Juiz de Fora). A 400m-wide, 43kmlong logistics corridor will be built to access the Açu Superport. This will consist of four highway lanes, two railroad lines, and three transmission lines (135kV, 345kV, and 500kV). The logistics corridor has been designed to transport 200 million tons a year, with up to 100,000 vehicles a day in circulation.
Over 8000 people are currently working on the port’s construction, 50% of whom live in Campos or São João da Barra.
When the port and industrial complex are operational, it is expected that roughly 50,000 jobs will be created. The port is also expected to attract investments of some $50 billion to the region, Berto says. OE
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