Cedro Participações Wins Historic Auction for Strategic Port of Itaguaí Expansion
With an investment of BRL 3.7 billion, the company becomes the first 100% Brazilian mining company to verticalize its operations
MINAS GERAIS, Brazil, Dec. 20, 2024 /PRNewswire/ -- Cedro Participações has won the auction for the ITG-02 area at the Port of Itaguaí (RJ), held on Wednesday, December 18, at B3's stock market headquarters in São Paulo. The approximately 350,000-square-meter site will house a terminal for the storage and handling of solid mineral bulk goods, with an estimated capacity of 20 million tons per year.
The company plans to invest BRL 3.7 billion in the construction of infrastructure for the port complex, with construction scheduled to begin in 2027 and operations in 2029. Strategically located between facilities operated by Vale and CSN, the terminal will have direct access to the MRS rail network.
With this initiative, Cedro Participações will become the first fully privately-owned Brazilian iron ore mining company to verticalize its operations and secure direct access to maritime exports. This development is expected to significantly boost production capacity and exports across Brazil's mining sector.
"The terminal aligns perfectly with Cedro's growth and sustainability strategy, as well as the broader objectives of the industry," said Lucas Kallas, Chairman of Cedro Participações Board, which also controls Cedro Mineração.
Currently, small and medium-sized mining companies depend on ports owned by larger players to ship their production. As major companies expand their capacities, smaller operators face limitations due to insufficient storage space at existing ports. Cedro predicts a logistical bottleneck in production exports within the next five years.
"We will achieve greater efficiency and competitiveness while fostering social and economic development in the Quadrilátero Ferrífero region of Minas Gerais and along the Rio de Janeiro coast," added Kallas. "This investment benefits not only smaller companies but also the industry leaders, opening new avenues for export growth."
Fabiano Carvalho, Vice President of Trade Strategy and Projects, highlighted the broader economic impact: "Acquiring this port will create new business opportunities, expand operational reach, and encourage the development of future projects. This infrastructure will unlock logistical potential between Minas Gerais and Rio de Janeiro."
Board Member José Carlos Martins reflected on the historical importance of the auction win: "Two hundred and seventeen years after the opening of Brazil's ports, we are witnessing a historic moment. Cedro is proud to have secured this concession, and we are confident that this investment will make a significant contribution to the economies of Rio de Janeiro and Minas Gerais."
Brazil's Minister of Ports and Airports, Silvio Serafim da Costa Filho, described the auction as the largest in history, given the magnitude of the investment. "This auction for bulk cargo at the Port of Itaguaí is crucial for Brazil's mining sector. The BRL 3.7 billion investment is strategically important for the development of Rio de Janeiro and the country as a whole."
Commitment to Infrastructure
Earlier this year, Cedro Participações announced plans to build a railroad branch to facilitate the transport of iron ore from the Serra Azul region in the Quadrilátero Ferrífero. The new port terminal will complement these efforts, offering export capacity for both Cedro and third parties.
The auction, the largest port auction under the current federal administration, marks a key milestone for Portos Rio, the authority managing public ports in Rio de Janeiro. Francisco Martins, President of Portos Rio, emphasized the significance of the project: "This terminal will not only increase the capacity of the Port of Itaguaí but will also drive socio-economic growth in the region, create thousands of jobs, and boost tax revenue."
According to the project's Technical, Economic, and Environmental Feasibility Study (EVTEA), the terminal will create approximately 2,800 direct and indirect jobs during construction, with an equal number during operations. Over the 35-year contract, the project is expected to generate up to BRL 1.2 billion in municipal tax revenue (ISS).
Eduardo Couto, Vice President of Legal and Institutional Affairs at Cedro Participações and Board Member of Sindiextra, highlighted the sector's long-standing need for this infrastructure: "This project represents economic and social progress, executed with environmental responsibility."
Aligned with Cedro's ESG principles, the new terminal will adhere to rigorous eco-efficiency standards, including sustainable resource use and emission controls. "This is the Cedro way of doing business," said Kallas. "We are developing a project that will enhance competitiveness across the sector while upholding strict environmental and social responsibility standards."
SOURCE Cedro Participações
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