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Fibria to Invest R$ 700 Million in Pulp Logistics Services with DP World Santos in Brazil

Embraport - DP World Santos DP World Santos port operations for Fibria will start upon the completion of new warehouse and other harbor-logistic structures, which is expected towards the end of 2020.

Jan. 30, 2018 - Fibria Celulose S.A. announced that its Board of Directors has approved the hiring of Empresa Brasileira de Terminais Portuários S.A. (Embraport) for future logistic operations services for the handling of pulp, with a “take-or-pay condition.” Embraport, which is now known as DP World Santos, will build a facility at its port dedicated to warehousing, handling and shipping of pulp.

Embraport was owned by DP World (the world's fourth largest ports operator,) and Odebrecht TransPort. In early December 2017, DP World bought Odebrecht's 66.67% stake in Embraport and rebranded the port operation DP World Santos.

Embraport, one of the largest private port terminals in Brazil on the left bank of Santos Port, has an annual capacity of 1.2 million TEU (twenty-foot equivalent units).

Fibria will make an estimated total investment of R$ 700 million over three years — R$ 215 million in 2018, R$ 375 million in 2019, and the remaining R$ 110 million in 2020.

DP World Santos port operations for Fibria will start upon the completion of new warehouse and other harbor-logistic structures, which is expected towards the end of 2020.

The agreement calls for DP World Santos to provide Fibria and its subsidiaries port services up to 2039. The deal could be extended up to 2042, and is contingent upon DP World Santos renewing its port authorization.

In a press release, Fibria said, “This operation represents a relevant progress of Fibria in its long-term strategy in logistic, which, together with the current structure of pulp outflow used by the company in the left bank, pursue higher efficiency on the exportations via Santos.

“Once more, the company achieves a innovation milestone, as it is the first pulp and paper company in Brazil to facilitate a logistic operation in breakbulk ships at the attractive left bank of Santos.”

Fibria is a world leader in eucalyptus pulp production with an annual pulp production capacity of 5.3 million tons. The Brazilian company has industrial units in the cities of Aracruz (Espirito Santo), Jacarei (Sao Paulo) and Tres Lagoas (Mato Grosso do Sul), and in Eunapolis (Bahia), where it operates the Veracel plant through a joint venture with Stora Enso. With the start-up of the Horizonte 2 project, Fibria's production capacity will be 7.25 million tons. To learn more, please visit: www.fibria.com.br.

SOURCE: Fibria