China Communications Construction Co Ltd is close to a deal to invest in and construct a grain handling port in Santa Catarina, the latest move to facilitate grain trade between China and Brazil.
That's according to a memorandum of understanding recently agreed between CCCC and Brazil's Anessa fund, the port's current controlling shareholder.
The two sides are expected to sign a purchase agreement on Dec 31. The value of the transaction and other financial terms were not disclosed.
The port, called Terminal Graneleiro da Babitonga, is located in city of Sao Francisco do Sul. The city sits on the northern end of the Island of Sao Francisco at the entrance to Babitonga Bay.
According to CCCC's announcement, it is the company's first investment in Brazil's grain handling port.
The project was jointly developed by CCCC's unit in South America and Brazil's Anessa fund. The Chinese company will take charge of the port's operations.
Located in the populous southeastern part of Brazil, the Saint Cartarina coast is home to Brazil's major grain production base. The project will also improve the logistics for grain products in southern Brazil and create a lot of job opportunities for local people.