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The Empresa de Docagens Pedra do Ingá (EDPI) Ship Repair Yard Project in Brazil Receives Preliminary Environmental License

July 15, 2016

(New York – 15 July, 2016) – The preliminary environmental license was issued to the Brasil Basin Drydock Company (BBDC) yesterday, accomplishing a major milestone in the implementation of the Empresa de Docagens Pedra do Ingá (EDPI) ship repair yard facility, to be located in the municipality of Lucena, in the northeastern Brazilian state of Paraíba.

In October 2015, the BBDC applied for the license from SUDEMA, the state environmental agency with authority in the region, who then issued the Terms of Reference for which the environmental impact analysis report was to be produced.  This report, called the EIA/RIMA for “Estudo de Impacto Ambiental/Relatório de Impacto Ambiental” (Study of Environmental Impacts/Report of Environmental Impacts), was carried out by Real Consultoria e Soluções Ltda. and submitted to SUDEMA in April of 2016.  A public hearing regarding the project was held in Lucena in June and the remaining approvals for the project were obtained in early July.  The issuance of the preliminary license to the BBDC confirms feasibility of the project from an environmental perspective and marks an important transition for the EDPI ship repair yard from implementation planning to execution.

“The EDPI project team in Paraíba, Rio de Janeiro and New York are delighted with this result,” BBDC Project Manager for the EDPI facility development, Celso P. Souza, said from Rio de Janeiro, and noted, “We have achieved an important objective of the project, but recognize that there is still a lot to do.  We are now working towards satisfying the requirements of the installation license and beginning the next stage of engineering and basic design, with a targeted start of construction in 2017.”

Dave Saginaw, the Commercial Director of McQuilling Services, LLC, New York, and the Project Director of the Brasil Basin Drydock Company (BBDC) said “The preliminary license was key for us.  While we always believed we would get it, based on the initial environmental studies that we conducted, we wanted to have it in hand to begin the primary funding stage in earnest.  We have been speaking with regional players for project financing with good results and are now intensifying discussions with interested equity investors, both in Brazil and internationally.  We are moving forward on several existing discussions with potential strategic partners who have interest in the project.  We are confident that the project - as well as the overall situation in Brazil - has turned a critical corner and that we will be able to support a 2017 construction start, with first repairs beginning in 2019.”

About the BBDC EDPI Ship Repair Yard

The Empresa de Docagens Pedra do Ingá (EDPI) facility will be located inside the harbor near the Port of Cabedelo in the municipality of Lucena in the state of Paraíba, and is ideally positioned near to major shipping lanes in the Atlantic Basin.  The 660,000 square meter facility will be purpose-built for ship repairs, and its two graving docks and hydrolift facilities will be capable of drydocking any ship in the world merchant fleet.  Conceptual discussions about the new ship repair facility began in 2010, with initial funding for feasibility analyses carried out in 2012.  Promon Engenharia Ltda. joined the project in 2013 and additional funding was secured in 2015 from a major international shipowner.  Operations are planned to commence in 2019.

For more information on the BBDC EDPI facility, please visit www.EDPIshiprepair.com or contact Dave Saginaw (david.j.saginaw@mcquilling.com) or Celso Souza (celso.p.souza@mcquilling.com).

McQuilling Partners is a privately-owned marine services company, providing transportation services to clients in the shipping, commodity and financial services industries. McQuilling operates from offices located in New York, Singapore, Athens, Caracas, Dubai, Houston, Lima, Mexico City, Mumbai, New Delhi, Rio de Janeiro.