Boston, MA 09/15/2014 (wallstreetpr) – Recently, the operator of Açu Port in Rio de Janeiro announced that General Electric Company (NYSE:GE)’s Brazilian unit called off the agreement for constructing industrial facility at the port. Prumo Logistica Global, the logistics firm created by Eike Batista for port operations, said that GE Oil and Gas do Brasil retracted its hand from this project of property leasing and facility building.
GE’s Other Unit Comes for Action
Meanwhile, The Wall Street Journal reported that General Electric Company (NYSE:GE)’s other unit is negotiating with Prumo in order to lease an important plot of this land in the Açu Port. The Chief Executive Officer of Prumo Logistica Global, Eduardo Parente did not however, reveal about this unit or it’s purpose to join Prumo.
Future Investment Opportunities to be explored in Açu Port by GE
GE, on the other hand, wrote in reply to The Wall Street Journal’s email that Açu Port was one of the most beneficial and strategic ports of Brazil and that General Electric Company (NYSE:GE) shall explore future opportunities to invest in the venture further. What kind of future investments is General Electric Company (NYSE:GE) talking about, was not disclosed right now.
The Details of Cancelled Contract
The contract which has been called off, could have allowed General Electric Company (NYSE:GE) to monetize approximately 3 million Brazilian reais or $1.28 million annually for Prumo from 2015 onward. This contract was signed two years ago, in November 2012. During that time, Prumo Logistica Global was named LLX Logistica.
Prumo: Contracts Lost and Found
The Brazilian firm, Prumo has also rescinded the contract with Eneva, its corporate sibling in the past. This happened after Eneva (earlier called MPX Energia) failed to obey the terms of agreement.
However, the amount of money lost from the aforementioned contracts shall be compensated well, and in fact, more than that, through a contract signed with Edison Chouest, the U.S. based marine transportation company, in order to lease the port’s land.
