SMIT expansion into Brazil

Rotterdam, 15 December 2005

SMIT takes another step in its strategy to expand its harbour towage activities by acquiring 50% of Rebras, Rebocadores do Brasil S.A.. Rebras already owns three 55 tons BP ASD harbour tugs which are chartered out on bare boat basis.

The company, to be renamed SMIT Rebocadores do Brasil S.A., aims to operate a minimum of twenty tugs in the range 45 to 65 tons bollard pull. The company has a commitment from a Brazilian Shipyard for building twelve 45 tons BP and six 65 tons BP tugs  to be locally financed.
Delivery of the first new tugs is planned in the course of 2007. Further tugs will be delivered in accordance with the business plan developed.

Brazil is recognised by SMIT as a fast growing market for harbour towage services. The market requires modern, state of the art tugs with larger capacity than presently available.

SMIT’s CEO, Ben Vree, says: “We focus mainly on strategic crossroads in shipping routes, which allows us to provide our customers with a global harbour towage network. We aim to offer identical services to our customers worldwide and therefore we seek for expansion that adds value, particularly in growth markets like Brazil. A number of our key customers have indicated that they would welcome a prominent role for SMIT in the Brazilian harbour towage market. SMIT is committed to offer its customers services on a global basis which certainly includes Brazil.”

The transaction is intended to be completed by the end of January 2006.