The initial capital outlay of $34.5 million is expected to be contributed by the three firms. The joint venture firm, Uniduto Logistica, will be responsible for the initial viability and technical studies of the project and will also be working towards the project’s environmental clearance, according to the news source.
Uniduto Logistica will also work on the investment outlay for the project before proceeding to the construction stage. Each of the three shareholders will have reserved capacity on the pipeline, equivalent to their respective stakes in the project. They will also have priority over future clients, reports Reuters.
Reuters noted that this pipeline seeks to address the issue of transportation of ethanol from the Brazilian countryside to the ports, thereby reducing the costs borne by the firms to export the fuel.
