Hong Kong-based China Merchants Group (CMG) subsidiary China Merchants Port Holdings Company (CMPort) has completed the acquisition of 90% of a share in Brazil’s Paranaguá Container Terminal (TCP) for HK$7.23bn ($923m).

The deal is based on a share purchase agreement that was previously signed between the two entities in September last year, as well as a letter of intent (LoI) to close the sale that was signed earlier this month.

The transaction represents CMPort’s first investment in Latin America.

"CMG has so far invested in 52 ports in 20 countries and regions, actively promoting the ‘Port-Park-City’ development ‘Shekou model’ with port as the linkage."

TCP became a subsidiary of CMPort following the acquisition and is expected to ensure the company’s expansion within an overseas port network that spans five continents.

CMPort vice-chairman Dr Hu Jianhua said: “CMG is a pioneer in the field of China’s industry and commerce, and also the important promoter of ‘Go Abroad Strategy’ under the ‘Belt and Road’ Initiative.

“CMG has so far invested in 52 ports in 20 countries and regions, actively promoting the ‘Port-Park-City’ development ‘Shekou model’ with port as the linkage, to enhance synergy and interaction between industry and city.

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“With TCP as the starting point, CMG will continuously promote the commercial and trade cooperation between the BRICS countries, especially in the fields such as Brazil’s integrated logistics, transportation related infrastructure and logistic parks, in order to look for more opportunities on investment, development and operation.”

TCP is situated on the south-east coast of Paraná State of Brazil.

It is equipped with three container berths featuring a combined capacity of 1.5 million twenty-foot equivalent units (TEUs).

The terminal is expected to increase its capacity to 2.4 million TEUs following further expansion works.

The site’s concession is currently scheduled to expire by 2048.