A new US-funded Brazilian shipyard start-up is looking to China for technology.
The planned Brasil Basin Drydock Co (BBDC) yard in the state of Paraiba, around 120 kilometres (75 miles) from Recife in the north-east of the country, will use the high-pressure water dry-docking methods developed at Zhoushan IMC-Yongyue Shipyard and Engineering Co (IMC-YY) from the start.
The BBDC yard will contract IMC-YY to manage it on a 10-year renewable contract, but IMC-YY is not expected to have an equity investment in the Brazilian facility.
The yard enjoys the support of Vale, the Brazilian mining giant and dry bulk chartering powerhouse. Its facilities will be similar to those of IMC-YY, but its largest dock — at 450 metres — will be big enough to receive Valemaxes.
The project goes live in 2022, McQuilling Services commercial director David Saginaw said. He hopes the greenfield yard’s first repair job takes place then, with a full operational start in 2023.
Years of planning
Saginaw's company, a sister of New York-headquartered tanker brokers McQuilling Partners, has spent several years planning and raising funds for the yard, to be part of the partially state-funded Cabedelo Harbour Development Initiative.
Thanks to its strategic position in north-east Brazil and its modern facilities, Saginaw is telling potential investors that he expects the yard to make a 25% to 26% return on investment.
The project is targeting a $200m equity raise. It has a $570m loan in place from Brazil's Merchant Marine Fund, funded by the Brazilian Development Bank, and is seeking another $200m in mezzanine finance.
Saginaw said McQuilling will have a small equity investment in the yard. But, in general, it is targeting international financial investors with experience on the ground.
“We are targeting investors already familiar and comfortable with Brazil,” Saginaw said.
