McQuilling Partners Group Announces Cooperation Agreement with Vale on Ship Repair Business in Brazil

Following our announcement on 2 September, 2014 regarding cooperation with Syndarma, the McQuilling Partners Group is pleased to announce the signing of a cooperation agreement with Vale, S.A, one of the largest mining companies in the world with substantial involvement and expertise in global marine transportation logistics.

The cooperation will support the implementation of the largest ship repair facility in South America. The project, called Brasil Basin Drydock Company (BBDC), has the objective to build a ship repair yard in the northeast of Brazil capable of drydocking any vessel in the world merchant fleet, including the Valemax fleet of ore carriers. The facility, to be called Empresa de Docagens Pedra do Ingá (EDPI), will be located in the municipality of Lucena, just north of the port of Cabedelo in the state of Paraíba. McQuilling and Promon Engenharia, Ltda are founding partners of the BBDC project.

In the agreement, Vale, S.A. and the partners of the BBDC undertake to cooperate in order to support the progress of this endeavor through its implementation. Support may be in the form of advising the partners of the BBDC on yard layout, outfitting and equipment to best support ship repairs. Dialogue with Vale, S.A. can provide information to the BBDC on ship owner requirements for ship repairs, and useful information to aid in the development of the yard and other activities that may encourage the timely implementation of the project.

The new yard represents a US$ 700 million investment in infrastructure to serve the maintenance and repair needs of the world merchant fleet, in close proximity to major shipping lanes in the south Atlantic basin. Two large drydocks and one ship hydrolift/transfer facility will focus on the drydocking and repair needs of merchant vessels in Brazilian coastal trades; those importing and exporting to/from Brazil; and vessels passing through the south Atlantic basin, enroute to other ports. A substantial portion of this market is comprised of bulk carriers.

Celso P. Souza, project manager for the BBDC, voiced his support for the cooperation agreement with the mining giant: “We look forward to those insights on global bulk shipping and ship repair, which we think will be fully elaborated by a direct dialogue with Vale. We believe the EDPI ship repair yard will benefit considerably from a direct cooperation with Vale.”

“Vale stands apart as a unique entity for us, well-established in Brazil, and with a reach well beyond the borders of Brazil. Direct cooperation with Vale recognizes the importance of their global perspective with regard to repair requirements of both proprietary vessels and third party vessels calling at Vale installations.” said David Saginaw, Commercial Director of McQuilling Services, “We value highly the opportunity that cooperation with both Syndarma and Vale, S.A. brings to this project.”
Source: McQuilling Services