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| Santa Marta International Terminal Company, S.A. |
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| Summary of Proposed Investment |
| This Summary of Proposed Investment is prepared and distributed to the public in advance of the IFC Board of Directors’ consideration of the proposed transaction. Its purpose is to enhance the transparency of IFC’s activities, and this document should not be construed as presuming the outcome of the Board decision. Board dates are estimates only. |
| Project number | 28544 |
| Company name | Santa Marta International Terminal Company, S.A. |
| Country |
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| Sector | Port and Harbor Operations |
| Environmental category | B |
| Department | Reg Ind, Infra & Nat Res, CAF/CLA |
| Status | Active |
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| Date SPI disclosed | November 5, 2009 |
| Projected board date | December 20, 2009 |
| Previous Events | Invested: May 20, 2010
Signed: April 12, 2010
Approved: March 18, 2010 |
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| View Environmental & Social Review Summary (ESRS), click here |
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| Overview |
Sponsor/Cost/Location |
Development Impact |
Contacts |
Attachments |
| Project description |
| The Project involves the refurbishment and operation by Santa Marta International Terminal Company, S.A. (“SMITCO”) of a container terminal inside the Port of Santa Marta, which is located on the Caribbean coast and is Colombia’s third largest port. The Project includes (i) the refurbishment of 2 berths with a combined total length of 322 meters; (ii) the installation of two Post-Panamax Ship-to-Shore cranes, four Rubber Tired Gantries Cranes, and other terminal handing equipment to complement an existing mobile harbor crane; and (iii) the demolition of existing buildings and expansion of the container yard from 4 hectares to 8 hectares. Upon completion, the terminal’s container handling capacity will increase from 120,000 twenty foot equivalent container units (“TEUs”) to 300,000 TEUs. |
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| Project sponsor and major shareholders of project company |
| SMITCO is approximately 51% owned by Sociedad Portuaria de Santa Marta (“SPRSM”) and approximately 49% owned by an indirect subsidiary of Carrix Inc. Carrix is a privately held U.S. company and is one of the largest container terminal operators and cargo handling companies in the world. SPRSM operates the Port of Santa Marta under a concession ending in 2033 and is owned by private investors, the State of Magdalena, the Municipality of Santa Marta and the Ministry of Transportation |
| Total project cost and amount and nature of IFC's investment |
| The total project cost is estimated to be $50 million. The proposed IFC investment is an up to $15.8 million A loan. |
| Location of project and description of site |
| The Terminal is located in the Port of Santa Marta, in the Caribbean coast of Colombia; 1,139 km north of Bogota. |
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| Anticipated development impact of the project |
| The Project will strengthen the Colombian port sector by increasing competition in the market and encouraging other terminal operators in Colombia to improve the efficiency of their own terminal facilities, thereby supporting increased trade in the region. In addition, the Project will help reduce the cost of transportation thereby benefitting shippers, shipping lines, and consumers. Finally, the Terminal will create approximately100 direct and 500 indirect jobs and generate direct economic benefits for the Government of Colombia through tax, concession and land lease payments. |
| IFC's expected development contribution |
| IFC will provide long-term financing at a maturity appropriate for the Project but which is unavailable in the commercial market. IFC will also mobilize additional resources by leading the financing effort through close cooperation with Corporación Andina de Fomento, which is expected to provide a parallel loan. In addition, the Project will have an important demonstration effect for private investment in fiscally-constrained Colombia; thereby encouraging foreign investments and private sector participation in other ports and infrastructure sectors such as roads and airports. |
| Environmental and social issues - Category B |
| This is a Category B project according to IFC’s Environmental and Social Review Procedures. The Project will be located within the existing Port of Santa Marta in SPRSM’s existing facilities and will not modify the Port’s current footprint. The nature of container handling and storage operations and the construction activities included in the Project are such that impacts and emissions are expected to be minimal. No dredging will be required. Any environmental, health and safety issues linked to the Project can be appropriately managed using accepted good engineering practices. |
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| For inquiries about the project, contact: |
Jaime Sasso Perkins
Santa Marta International Terminal Company S.A.
Carrera 1a, No 10 A 12
Santa Marta, Colombia
Phone: (57) (5) 432 8115
Website: http://www.smitco.com.co |
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| For inquiries and comments about IFC, contact: |
General IFC Inquiries
IFC Corporate Relations
2121 Pennsylvania Avenue, NW
Washington DC 20433
Telephone: 202-473-3800
Fax: 202-974-4384
E Mail: Webmaster |
| Local access of project documentation |
Jaime Sasso Perkins
Santa Marta International Terminal Company S.A.
Carrera 1a, No 10 A 12
Santa Marta, Colombia
Phone: (57) (5) 432 8115 |
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