Joint Venture Partner(s) wanted to exploit an interesting and potentially lucrative marine venture on the northeast coast of Brazil.
Background:
Capt. Donald R. Reid, owner of AndeTUR Turismo Ltda. (the travel agency that operates this website), worked several years for the Brazilian government agency - CDI/RN (Compania de Desenvolvimento Industrial do Rio Grande do Norte) in Natal. The basis of this work was to research the potential of operating a commercial fishery for tuna, swordfish, and other pelagic species along this coast. The results of the research program, which concluded the results obtained years earlier by Dr. Phillip Conolley ( started in 1976-77 ), showed that indeed there was sufficient stock to sustain a commercial operation.
Capt. Reid registered a Brazilian fishing company in 1982 (Caçadores do Mar), and obtained documents from the Brazilian navy as a professional fisherman. In order to hold his commercial fishing permits, he built a small fishing vessel in 1990-91 which operated out of Natal until last year when it was distroyed in a storm.
These licenses and permits allow Caçadores do Mar to lease, purchase, or operate a foreign flag vessel or vessels in a local fishing operation under a type of joint-venture.
There are a few simple rules that apply:
For a fishing vessel ........
The operator must be a Brazilian national or "a legal entity registered and resident in Brazil". Capt. Reid is an American citizen, legally resident in Brazil .. Caçadores do Mar, however, is "a legal entity registered and resident in Brazil".
The "lease" contract must be for a minimum of one year, and must terminate in three years.
The vessel must be crewed by at least 80% Brazilians, properly licensed by the Brazilian navy. The captain may be a foreign national (American for instance), but to act as captain he must have a maritime license that qualifies him to operate the vessel in the proposed service.
The vessel can be no older than 5 years old, unless (by special permission) it can be proved that the vessel is in extremely good condition and has equipment on board specialized for the proposed fishery. Enough spares and replacement equipment must be carried to sustain the vessel for at least a year.
Capt. Reid worked in the United States as captain in the offshore oil industry for several years. He retired from this in the summer of 1999 and plans return to Brazil. That date .. or before .. is the target date for this project.
What is required?
An individual (or company) that either owns a suitable vessel or vessels (one vessel would work .. two working together would be a more practical operation) that would be interested in working in an operation in Brazil. The joint venture partner must be in a position to either market quality exportable product himself, or have a responsible interested seafood buyer that can and will receive and market the product. (All of the quality product will be exported from Brazil .. by catch will be marketed locally)
Operation of the project.
Capt. Reid will operate one vessel as captain; if a second vessel is involved .. either the partner or a designated captain will operate that vessel.
The vessels will be based at Natal, Rio Grande do Norte, Brazil. They will be leased to and operated by the Brazilian fishing company Caçadores do Mar, who will act as the local agent, contract the Brazilian fishermen, and arrange for local packing for export product and by catch sales. The local agent will receive 5% of the gross product sales for administrative costs.
Both the Captain and crew members will be paid by 'shares' locally (of both vessels if more than one). Note that in Brazil each and every voyage has an actual contract drawn between the Captain and the fishermen stating their shares. As in the states, food, fuel, and consumables are charged to the 'crew's share' ... lube, paint, and equipment maintainance are charged to the 'boat's share'.
In the actual 'lease contract' a specific lease payment will be established. When shipments of product are received and paid for stateside, the partner (or his representative) will deduct that payment, and any advances (if any), and transfer the balance back to Brazil. A reserve fund will be maintained for maintainance costs on the vessels, and the joint venture partners will decide privately how they want to split the balance. (And where and how they want these funds banked).
The first deciding point will come at the end of the first year of operations .. as to whether the operation is successfull or not . If everything is going smoothly, the joint-venture will continue for the next two years.
At the end of the third year, however, major decissions must be made. The idea behind the government allowing an operation such as this is so that the local operator can lease or purchase equipment (the vessels) that he might not otherwise be able to. In order to continue operation after the third year, the vessel or vessels must be sold to the Brazilian company. If the owner (partner) is happy with the operation .. it could be by owner-finance, or it could be banked. If the owner wants the interest and feels confident enough by that time, the operation would simply continue, except instead of deducting 'lease payments', the owner would be deducting principal and interest until the boat(s) are paid off. Or the owner might elect to actually invest a part into the Brazilian company ...
Personal Statement from Captain Reid:
This proposal is very viable to me .. I had planned to retire to Brazil this next year in any case. Our tourist business is growing, and hopefully will be self sustaining by the time we return. We plan to live in a 'small bed and breakfast hotel' that we are presently working on. But I'm a 'seaman' .. 30 years .. and I can't really feel comfortable unless working at sea or with boats.
This is a very serious business venture for me .. and I'm looking for a serious partner that will hold up his end of the deal. The boat or boats must be first class .. no junk. Properly fished, this can be a very lucrative operation.
Second venture:
Requires a passenger boat to be used for diving charter, day charter, and possible trips to the Island of Fernando de Noronha. Like the fishing vessels above .. this vessel has to have 'class'. I have some special thoughts about this boat.
