BRAZIL (News release) -- Klabin started construction on its new terminal on the quay of the Port of Paranaguá in Brazil. In this phase, the project is expected to create 180 new jobs. Once the terminal starts commercial operations, it will require around 170 direct and indirect employees.

"This location on a primary site will further streamline our pulp and pulp byproduct operations. It represents an important investment in the state's port infrastructure that will create new jobs and generate income for the coastal region," said the CEO of the state-owned port company, Luiz Fernando Garcia.

In addition to acquiring equipment and operational systems, a two-kilometer rail branch and a 21,860-sq.m warehouse will be built. The investments, which is estimated to total R$130 million, are slated for 2022.

The concession to operate area PAR01, with 27,530 sq.m, was won by Klabin in an auction held in August 2019. The signing of the concession contract, in early 2020, effectively ended two decades without any new concessions granted at the Port of Paranaguá. The concession contract is for 25 years and may be renewed for another 45 years.

In its first year of operations, the company expects to move 1.4 million tons through the port. Once the second phase of expansion of the Klabin Unit in Ortigueira (Puma II Project) is concluded, which is slated for 2023, the company expects to move 2.2 million tons per year through Paranaguá.