October 20, 2008

 

Bunge acquires 50 percent stake in Vietnamese port operator
 
 

Bunge Asia, the Asian operating arm of Bunge Limited has announced the acquisition of a 50 percent stake in the owner/operator of Phu My Port.

 

The investment will expand Bunge's presence in the growing Vietnamese market of agricultural commodities.

 

The transaction involves the acquisition of SSI Logistics, the French subsidiary of France's state-owned SSI/EMC Group. SSI Logistics owns a 50 percent stake in Baria Serece, the owner/operator of Phu My Port. The port is located on the Thi Vai River, approximately 70 km from Ho Chi Minh City and near a large number of commercial feed mill operations. It is the only commercial dry bulk port in Vietnam capable of receiving large Panamax-class ships.

 

In 2004, Bunge secured exclusive access to the port for shipments of agricultural commodities. Acquiring an ownership stake will enable Bunge to invest alongside its partners to expand the operation's capacity and traffic. Bunge is planning to add new storage facilities and more efficient discharging equipment that would increase capacity significantly in the next several years. Bunge is also developing plans to construct a soy processing plant within the site as well.

 

Vietnam, with a rising per capita income, is a fast-growing market for soymeal and other agricultural commodities. Market forecasts average import volumes of soymeal, corn and wheat to increase about 10 percent per year over the next five years.

 

Bunge Limited is a global agribusiness and food company headquartered in White Plains, New York, US.

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