LLX (Açu Superport Project)


With a population of just over 30,000 people and a total area of some 459 square kilometres, São João da Barra may not be as recognisable as some of Brazil’s other municipalities, however it is the location of one of the country’s most exciting developments, the Açu Superport, the largest port infrastructure investment project in all of Latin America.

With two terminals, one offshore and one onshore, the Açu Superport is a private, mixed-use port complex that will eventually boast 17 kilometres of piers and up to 47 mooring berths. It is being built on the northern Rio de Janeiro coastline, near the area responsible for 85 percent of Brazil's oil and gas production.

Being an innovative project boasting modern engineering, construction and operating practices, the Açu Superport will be comparable with the most modern and efficient ports in the world. It is being prepared to receive large vessels such as Capesize and Very Large Crude Carriers (VLCCs), which carry up to 320,000 tonnes of cargo, and Chinamax vessels carrying up to 400,000 tonnes.

The principle company behind this extensive development is LLX, a logistics company of EBX Group that was founded in March 2007 with a mission 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, thus resulting in efficient and low-cost operations.

A total of R$4 billion will be invested in Açu Superport, of which R$1 billion is being provided by LLX Minas-Rio (responsible for implementing the iron ore port terminal) and R$3 billion by LLX Açu (responsible for handling other cargo such as steel products, petroleum, coal, granite, slag, pig iron and liquid and solid bulk).

Building of the Açu Superport began back in October 2007. Occupying a total area of 90 square kilometres, the complex will have an initial depth of 21 metres, which will be expanded to 26 metres, and the capacity to receive large vessels. At present only seven percent of Brazil's ports have the capacity to receive capesize ships.

Upon completion the Açu Superport will have two terminal complexes. The first, TX1 is an offshore terminal with a depth of 21 meters, a three kilometre access bridge, a tugboat pier, nine oil and iron-ore piers, approach channel and turning basin. Of these, two iron ore piers, the tugboat pier, approach channel and turning basin are completed. Once operational TX1 will be able to handle up to 100 million metric tonnes of iron ore a year and 1.2 million barrels of oil a day.

The other terminal, TX2, is an onshore terminal being built around a 6.5 kilometre long, 300-metre-wide approach channel. TX2 will boast a wharf line of over 13 kilometres, where liquid and solid bulk, coal, pig iron, slag and granite will be handled, in addition to steel products.

In total the Açu Superport has been designed to handle 350 million tonnes a year of exports and imports, especially oil, which ranks it amongst the three largest port complexes in the world. The Açu Superport is forecast to come into operation in the second half of 2013.

One of the things about the Superport that is and will be so crucial to its future success is the fact that it has been designed to meet the logistical and supply requirements of the oil and gas production and exploration activities that exist within the Campos Basin. It is here that approximately 85 percent of Brazil’s total oil and gas production originates.

The complex has been strategically positioned to handle and treat oil, provide support to offshore exploration and production operations, and to house a metalworking cluster dedicated to the oil and gas industry. Furthermore, the Açu Superport will have an Oil Treatment Facility (OTF), which is now licensed for 1.2 million barrels a day. The OFT will lower the water and salt content in the oil by using centrifugation and decantation. The operation enhances the quality and the commercial value of the product.

Because of its privileged location close to the main oil-producing basins of Brazil, the Açu Superport is extremely attractive for companies operating in the oil and gas sector, such as OSX, which operates in the offshore oil and natural gas equipment and services industry. The Açu Superport may also be connected to gas pipelines, especially the pipeline of Santos Basin, to supply natural gas to steelworks, the thermal power plant of MPX and other industries located in the Industrial Complex.

LLX has also invested some R$200 million towards running more than 150 social and environmental programs in São João da Barra. The initiatives include the professional qualification program, conducted in partnership with SENAI and the municipal government of São João da Barra, where courses are also provided to residents. In the two stages implemented to date some 600 people received bricklayer, welder, carpentry, mechanics, forklift operator, hydraulics, storekeeper, steel fixer and administrative assistant training.

A series of initiatives for the fishing community are also being implemented. These include a dentists surgery and IT laboratory in the fishing community, the refurbishment of the fishing offices in Barra do Açu, the refurbishment of schools, the donation of equipment to legalise fishing boats, donation of a head office for the fishermen's village, diagnosis of education levels and delivery of navigation kits, with buoys, lifejackets and flags.

On the environmental front, LLX is developing programs aiming to recover and preserve the environment in the region where its ventures are installed. One such program is the Biodiversity Conservation Program, which helps develop applied research for the handling and protection of coastal ecosystems. The program entails initiatives for environmental recovery, area protection and environmental education, in addition to studies conducted by the company itself and supporting scientific research carried out by a number of institutions. One of the program's flagships is the creation of the Caruara Private Natural Heritage Reserve (RPPN), the largest private reserve in the country, occupying 3,845 hectares.

LLX also invests in initiatives to bolster family-based farming. The initiatives include the arrangement with the municipal government of São João da Barra and the State Agriculture, Fisheries and Supplies Department of Rio de Janeiro to help small rural producers and associations by building greenhouses in the fifth district of São João da Barra. The program uses sustainable practices for greenhouse cultivation, adding value to products and rural properties and enabling year-round harvests, in addition to boosting producer income.

In partnership with Companhia de Desenvolvimento Industrial do Estado do Rio de Janeiro (CODIN) and the municipal government of São João da Barra, LLX is building Vila da Terra, a rural housing settlement in São João da Barra. It is here that 90 areas in the location are being allocated to families losing their homes due to the creation by CODIN of the Industrial district of São João da Barra in the municipality. Relocation to Vila da Terra is being offered to families who are resident in the area and own less than ten hectares of land.

At present more than 7,000 people are working on the port’s construction, 50 percent of whom live in either Campos or São João da Barra. Once operational the port and the industrial complex are expected to generate as many as 50,000 jobs, while at the same time attracting investment of around R$100 billion to the region.

www.llx.com.br

Written by Will Daynes, research by Abi Abagun