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CialPort S.A. is seeking USD 5-7 million to finance its development project in Colombia.

The privately-owned company is aiming to develop the first modern coal, bulk goods and bunker fuel-focused port facility to be located in the Pacific port city of Buenaventura, Colombia.

CialPort said the process of raising capital to complete the project would be in two stages. The first step would be to secure approximately USD 5-7 million in equity and /or debt. This would cover the cost of taking the port from its current state to the initial development and construction stage and would also include legal and operational costs, feasibility, licensing, engineering, free-zone status and port concession approval.

"This will position the project as a debt-free opportunistic investment for any company, either indigenous or foreign and increase the value of the CialPort project," the Colombian firm said.

CialPort said the most recent valuation of the port was completed in 2007 and that the property was valued at approximately USD 11 million. Current 2013 valuations show an increase in value of approximately 30%, the privately-owned firm said.

Following the initial USD 5-7 million fundraising, CialPort said that the next step would be to secure approximately USD 184 million in debt and equity, and for the port to become fully operational within 36 months thereafter.

CialPort said that long-term funding would be secured with local and international financial institutions and that the target debt to equity ration would be 70% / 30%.

A financial overview has been provided below.

Phase 1: Current value: USD$ 14.3mm.
Phase 2: Completion USD$ 5-7mm: USD$ 75mm (based on assessed value of approved concession).
Phase 3: Completion 184mm+ : USD$ 500mm+ (estimated value).

Once completed, CialPort will offer docks for medium sized vessels, a free trade zone, coal loading and unloading, coal/bulk handling infrastructure, coal stockyard and blending facilities, fuel, bunkering, port and shipping services, logistics and related activities for international commerce.

The modern coal handling infrastructure will aim to solve the current problem of a lack of loading facilities in the region. The port will also set out to provide producers, exporters and shipping lines with efficient and more cost effective access to strategic Pacific trade routes. The company will also call for the port to be designated as a free trade zone, thus further promoting growth and development.

CialPort owns an area of 154,000 metres located along the main key highway into Buenaventura. The harbour will be dredged with dockage for several deep sea vessels. The initial plans are for a port loading area of 3,500 meters (700 linear mts x5 width) to handle multiple vessels, with further area for expansion and growth. CialPort will provide handling, control and distribution of goods managed from a single physical center.

In a statement made in 2011, Fernando Durango, CialPort spokesman, described the reason for developing the project at the Pacific coast port: “Buenaventura is the busiest port in Colombia. We have experience in Buenaventura and we have had great success with previous port projects in the area. Unfortunately, every port facility in the area is focused on container traffic, there is severe overcrowding, congestion and those port facilities handle only a very small amount of coal and bulk good business. They completely lack proper loading and handling facilities and they have no dedicated on-site areas for coal or bulk storage. It is common knowledge amongst shipping, transportation and logistics operators that for coal and bulk goods the current facilities are completely inadequate. CialPort addressed each area of concern and will be THE solution.

"CialPort will change the future for the Colombian coal and bulk goods market and allow access to key Pacific and Asian seaborne trade routes.”