China Merchants Ports Group Limited (hereinafter referred to as "China Merchants Ports") recently signed an investment agreement with Brazil's MPort company for the expansion project of the Paranagua Container Terminal.

The investment for this expansion project exceeds 1.5 billion reais (approximately $280 million) and will be gradually implemented over the next few years, primarily focusing on enhancing the warehousing and cargo handling capabilities of the Paranagua Container Terminal (TCP).

Alex Ávila, the Secretary of National Ports in Brazil, stated: "Through this expansion, the Paranagua Container Terminal will consolidate its position as one of Brazil's largest and most important terminals, which is of significant importance for promoting regional economic development."

Xu Song, CEO of China Merchants Ports, expressed increasing confidence in the Brazilian market and looks forward to further investments.

In 2017, China Merchants Ports signed a 90% equity acquisition agreement with the Paranagua Container Terminal and completed the acquisition of the Paranagua Port project in 2018. This move marked a significant breakthrough for China Merchants Ports in the Brazilian market, successfully entering the Brazilian market and expanding its business footprint in Latin America.

Throughout this year, China Merchants Ports has taken a series of actions to expand its presence in the South American market. On February 28th, China Merchants Ports signed a share purchase agreement with Brazil's Prumo company and its subsidiary API, conditionally acquiring 70% of the shares of the VAST crude oil terminal project in the Port of Açu in Rio de Janeiro state, Brazil. The total consideration for this transaction includes $448 million paid upon completion, subsequent milestone payments of $56 million, and additional consideration based on company performance in the future.

After the signing of the share purchase agreement, the completion of the transaction is subject to mutually agreed closing conditions, including obtaining approvals from relevant government authorities and regulatory agencies, among others, followed by the actual closing. Upon completion, VAST will become a subsidiary of China Merchants Ports, consolidated and managed by China Merchants Ports; Prumo will continue to hold a 30% stake in VAST.

This acquisition further expands China Merchants Ports' port business layout in the Latin American region, building upon the foundation laid by the acquisition of the Brazilian TCP Container Terminal in 2017.