Trafigura Group is teaming up with IFM Global Infrastructure Fund for a new bulker terminals joint venture.
The fund will invest an undisclosed sum in Trafigura's wholly owned subsidiary Impala Terminals.
The 50/50 venture will own and operate a network of concentrates terminal infrastructure in Mexico, Spain and Peru.
These play a key role in the movement of copper, lead and zinc in the global market.
"The joint venture will also include fluvial operations in Paraguay and a Swiss-based operation which provides global freight forwarding and multimodal transportation services in the African copperbelt for Trafigura and third-party clients," Trafigura said.
The joint venture will also explore strategically growing the platform over time, including expanding the network with assets owned by Trafigura that are currently not included in the transaction.
“IFM Investors are an excellent global fund management company to partner with,” said Jeremy Weir, executive chairman and CEO of Trafigura.
“They have a great depth of experience in investing in infrastructure projects and a successful track record of investing alongside other companies in our sector.
"Impala Terminals has a strong competitive position with the potential to expand in existing and new markets and through handling increased volumes from Trafigura and third parties. This was a good point to bring in a strong partner, while allowing Trafigura to re-invest the funds raised into new projects that will support our trade flows."
Citigroup served as financial advisor to Trafigura.
New Mexican project
Last week, TradeWinds reported that Trafigura and Infraestructura Energetica Nova (IEnova) are to develop a refined petroleum product terminal in Manzanillo on the Pacific coast of Mexico, catering to the country’s booming oil demand.
According to Trafigura, the 1.48-million-barrel terminal will include an investment of approximately $200m and is expected to begin operations by the end of 2020.
The Swiss trading giant will own 49% of the terminal. IEnova, a subsidiary of Sempra Energy, will hold the remaining stake.
As part of the pact Trafigura has signed up for 740,000 barrels of storage capacity in the terminal on a long term basis.
