Dubai: DP World, the world's fourth biggest container terminal operator, is to operate Brazil's largest private multi-modal seaport after joining hands with Brazilian conglomerate Odebrecht to invest in the project.

DP World and Odebrecht together acquired a majority stake in Embraport. Phase one development of the project is valued at around $500 million (Dh1.83 billion).

When asked by Gulf News how much DP World has invested towards the $500 million, officials said that information is not being released.

The investment fund FI-FGTS of Caixa Economica Federal will maintain its shareholding acquired earlier. Coimex Group, leader of the project since its inception, reduces its stake, but remains involved with the project.

Embraport (Brazilian Port Terminal Company) is being built next to Porto de Santos, an existing port facility in Santos, a city in Sao Paulo state. Porto de Santos is Brazil's largest container port, with 90 per cent of its cargo destined for the local Sao Paulo market.

There are already rail and road connections to the project site.

The $500 million first phase of the terminal development is scheduled to be finished in 2012, with a capacity of around one million 20-foot equivalent container units (TEUs) and will be operated by DP World - its first project in Brazil.

Once complete, the project will be able to ship more than 1.5 million TEUs and about two billion litres of ethanol.

Marcelo Odebrecht, chief executive of Brazil's largest services exporter Odebrecht, said the project will give rise to new opportunities for business, especially as his company's operations are a major contributor to the economy.

Odebrecht companies will also increase the potential captive cargo that can be handled through the terminal.

In 2008, more than 12,000 containers and 160,000 items were exported, generating an income of over $1.4 billion in foreign exchange for Brazil, said Odebrecht.

"It is a great opportunity to strengthen Odebrecht's relationship with DP World besides the current construction of DP World's container terminals in Callao, Peru and the terminal at Doraleh, Djibouti, Africa, officially opened in February this year.

"Embraport's operation will bring opportunities for other Odebrecht companies, such as Braskem, which operates in the chemicals and petrochemicals sectors and ETH which operates in the sector of sugar and ethanol, as both will use the port for disposal of their products," Odebrecht said.

Brazilian conglomerate Coimex Group will also lend its expertise in foreign trade and logistics. Since the global financial downturn, DP World has had to put projects on hold and cut back staff.

DP World's first half results showed that revenue was down to $1.38 billion, compared with $1.59 billion for the same period in 2008. Throughput at terminals majority-owned by DP World declined 10 per cent, to 12.3 million TEUs.

However, Mohammad Sharaf, chief executive of DP World, said that their balance sheet remains robust.

"With concessions often for as long as 30 years, our business is a long term one and we invest accordingly. While revenues have declined, as was inevitable with the downturn, we have a strong balance sheet and are able to make the most of the opportunities that a downturn also brings," added Sharaf.

DP World is one of the largest marine terminal operators in the world, with 49 terminals and 13 new developments across 32 countries, as of August 2009. Three terminals are already in Latin America.

The majority of terminals is in the Asia Pacific and Europe and Russia regions.

"In addition to the new Embraport project, we are also currently building a terminal in Callao, Peru which is due to open early next year. So you can see that we believe Latin America is an important market with considerable potential.

"With Embraport, importantly, the majority of the cargo is destined for or originating from the region around the new development," Sharaf told Gulf News.

DP World has new developments planned in Abu Dhabi, China, France, India, Pakistan, Senegal and Vietnam to name a handful.

In 2008, DP World handled more than 46.8 million TEUs across its portfolio which stretches from the Americas to Asia, an increase of eight per cent on 2007.

Total capacity is expected to rocket to around 95 TEU over the next decade.