Boskalis Acquires EUR 200 Million Port Contract in Brazil

Royal Boskalis Westminster N.V. (Boskalis) has won a contract for the construction of a new port terminal TX2 at Superporto do Açu. The Açu Superport industrial complex in the north of Rio de Janeiro state is the largest port-industry enterprise in Latin America and is expected to become one of the largest port complexes in the world. TX2 will accommodate the largest shipyard of Latin America and will be constructed by OSX Construção Naval S.A..

The contract, worth approximately € 200 million, was awarded to Boskalis by LLX Açu Operações Portuárias S.A. and Construção Naval S.A., controlled respectively by LLX LogísticaS.A. and OSX Brasil S.A.. Both companies belong to the EBX group owned by Brazilian entrepreneur Eike Batista. Work on the project is expected to commence shortly and last for a total of two years.

The scope of the work includes the dredging of an access and inner channel, turning basin and harbor basin as well as land reclamation work. Boskalis will also construct the revetments at the entrance of the harbor. The total dredged volume will amount in excess of 43 million cubic meters, part of which will be used to reclaim land for the construction of the port facilities.

Boskalis will deploy a jumbo cutter suction dredger, two large trailing suction hopper dredgers, a clamshell dredger and supporting marine equipment as well as dry excavation equipment.

Boskalis’ recent strategy update identified Brazil as one of the company’s focus regions.

Underlying growth factors in Brazil include the strong increase in exports of agricultural products and iron ore and major oil and gas discoveries which are fueling strong development of the Brazilian oil and gas industry. Ports need to be expanded and constructed, additional oil and gas infrastructure is required and the demand for related services will continue to grow. Over the past few years Boskalis has successfully completed numerous marine infrastructure projects in Brazil. Furthermore, Boskalis has a strong local presence as a leading provider of harbor and terminal towage activities, offering services in six Brazilian ports through Rebras.

These developments present significant opportunities for Boskalis to contribute to the further development of port and oil and gas infrastructure and the provision of maritime services.

The Boskalis strategy is designed to benefit from the key macro-economic drivers that are fueling global demand in our selected markets: global trade, increasing energy consumption, expanding population pressures and the challenges of changing climate conditions. This port project reinforces the requirement for infrastructure to accommodate future trade volumes.

Royal Boskalis Westminster N.V. is a leading global services provider operating in the dredging, maritime infrastructure and maritime services sectors. The company provides creative and innovative all-round solutions to infrastructural challenges in the maritime, coastal and delta regions of the world including the construction and maintenance of ports and waterways, land reclamation, coastal defense and riverbank protection. Boskalis offers a wide variety of marine services through SMIT and also has strategic partnerships in the Middle East (Archirodon) and in offshore services (Lamnalco). The company holds important home market positions in and outside of Europe. Boskalis has a versatile fleet of over 1,100 units and operates in around 65 countries across six continents. Including its share in partnerships, Boskalis has approximately 14,000 employees.

[mappress]

Source: Boskalis, August 1, 2011