January-April 2012Year 4, No. 1

Latinports Mobile: A New Tool

Brazil, Sixth Economy of the World and Mexico After Seventh Place; Chile, Peru and Colombia: Emerging Economies in the Region

Will Latin America be the leader of the Recovery of World Economy?

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CONTENTSJanuaryApril

2012

Upcoming Events

Latin American Port News

Mail

Shall Latin America be the leader of the Recovery of World Economy?

China’s footprint in Latin America: Help or Threat?

Constitutive Treaty of the Alliance of the Pacific: Mexico, Colombia, Peru and Chile

World Shipping Crisis: Hamburg Süd Unifies Services in South America with MSC and Maersk Increases Freights

Empresa Portuaria Nacional de Nicaragua, APM Terminals Moín of Costa Rica and PortMagdalena of Colombia Enter Latinports

Brazil, Sixth World Economy, and Mexico after Seventh Position;Chile, Peru and Colombia: Emerging Economies in the Region

Obituary: Paul Richard Klien, Sep.30.1914 – Mar.06.2012

Latinports Mobile: A New Tool

Editorial

CoverLatinports Mobile in iPad, designed by Miroamarillo Studio of Canada.

DesignJulian Pinedawww.miroamarillo.comstudio@miroamarillo.com

Conference of the Executive Director of Latinports at the Andean & Central American Infrastructure Summit in Bogotá

January-April 2012CONTENTSJanuaryApril

2012

EditorialIt is with the deepest regret that we register the death last March 6, of the illustrious Brazilian businessman by adoption, Paul Richard Klien, at the age of 96, father of the chairman of our executive committee, Richard Klien. His legacy shall be an example for the present and future generations, precisely when Brazil, country in which he greatly believed, has now reached the place as the sixth economy of the world, displacing Great Britain, as was released by coincidence the same day of his departure, by the London-based Center for Economics and Business Research (CEBR).

As a memorial tribute to Paul Richard Klien, we highlight in this issue the surprising recovery of Brazil and Latin America, in general, and the great perspectives of the region, as recognized by organizations as important as the World Trade Organization, the World Economic Forum, the World Bank, the International Monetary Fund, the Inter-American Development Bank, the Economic Commission for Latin America and the Caribbean – ECLAC, and the Latin American-Asia Pacific Investment Forum, as well as well-known private entities specialized in regional and global level markets such as Business News Americas, Goldman Sachs, Bulltick Capital Markets and Bloomberg Markets Magazine, and prestigious economic magazines as Time, among others. This, despite little planning and even yet the still scarce government support to the private sector in many cases, has been seen as one of the principal barriers for the development of infrastructure initiatives, where ports and internal transportation logistics have to play a major role.

This is the time of Latin America and we must know how to take advantage of this. Living up with what happens in the region and disclosing it to the world, we are pleased in this issue to present Latinports Mobile (motif of our cover), a development of Miroamarillo Studio of Canada, through which the association wishes to offer the port community all information possible on our sector and the activities related to Latin America. Through this state-of-the-art technology, web applications and a new webpage, Latinports pretends to involve the port sector in general by providing updated information in the most practical way possible, being able to consult in mobile devices (iPhone, iPad, etc.) permanently updated information. In this way, Latinports becomes the only port association worldwide offering this service.

Until the next!

jpalacio@latinports.org

www.latinports.org

Julian PalacioExecutive Director

January-April 2012

OBITUARY: PAUL RICHARD KLIEN

30.09.1914 - 06.03.2012

Paul Richard, father of the President of the Executive Committee of Latinports Richard Klien, Believed in the immortality of the soul.He hoped that, in the transition, we did not let sadness invade our hearts! He asked that in the cremation ceremony, occurred only among his relatives,Was read the poem LIFE of his friend Gilbert Carpenter.

I do not die.,

I only pass the portal of a new and brighter view,A broader, sweeter vision of eternity,

Beyond earth´s sorrows, pain and fear.,So do not grieve for me but let me go,

And make your last farewell, joy for my joy.I only wake to see my dearest wish fulfilled---

The blessed good revealed. I ll wait your coming;Do not haste to leave your tasks till done,

Send from your life the perfume of good deedsInto a world of sin and selfishness.

Then, when you reach that last great foe called death—That last obstruction to be overcome—

You ll meet it with a courage high and true;Backed by your faith in God, your trust and love.,

Then, as the mist before the sun melts and is gone;That great deceiver, death—which only hides

From timid hearts God´s heaven here and now—Will also melt away, and you will find

My love, your joy—an endless heaven divine.

January-April 2012

By means of this leading technology, latinports.org is pleased to present its new webpage, designed by the specialized company Miroamarillo of Canada, www.miroamarillo.com

Compatible with our mobile devices, the new page, pioneer of the organized port environment worldwide, is designed to provide to all its users updated information on the port industry of the region, and the most remarkable global issues. All these advantages are at your disposal in three languages (Spanish, Portuguese and English) and may be seen in your iPad by only connecting to the Internet.As we are aware that technology continues to advance, our following step shall be to provide as soon as possible this same information on your mobile phones (iPhone, Android, Samsung, Blackberry). Our objective is that the community may participate more actively in the course of their activity and may centralize in the future all information in a blog, with forums, discussion groups and virtual business tables, for associates to benefit the most of the leading technology we offer.

You may find the following information in the new page:-Special reports with the most recognized figures of the port industry.-Short news on the industry and other news related to Latinports.-A list of recent and future events with links to the most representative lectures to keep you updated.-List of Latinports members including basic data and physical location, and a link with detailed information to refer you to the company of your interest.-Contact list and information on Latin American port authorities.-Historical relation of our informative bulletins, which may be consulted directly.-And more….

Your participation and comments will be essential for this project in order to continue growing and offering more and better updated information.

Welcome to this new era.

LATINPORTS MOBILE: A NEW TOOL

January-April 2012

According to emol.economia, which at the beginning of March published its last data on economic growth, states that Brazil has officially become the sixth economy of the world, relegating the United Kingdom to the seventh place, as was officially confirmed by the Center for Economics and Business Research (CEBR). The London-based CEBR predicted last December upon publication of the annual table of countries according to the size of their economies, that Brazil would unseat the United Kingdom regarding volume of its Gross Domestic Product (GDP), which has now been confirmed. “According to figures given and informed today and applying current prices and a medium rate of exchange, Brazil is confirmed as the sixth economy and the United Kingdom moves to the seventh place”, was declared to EFE by Tim Ohlenburg, chief economist of this center, which is now preparing its next table to publish in a few months time.

According to the CEBR list of December, which must now be updated with the data of each country in relation to 2011, Brazil would come after the United States, China, Japan, Germany and France, in that order. The Government of Brazil informed that Brazilian economy grew 2.7% in 2011, generating a total GDP of US$2,469 billions. This amount may be compared to the British GDP of 2011, coded in US$2,42 billions. “this is a natural movement as Brazil has a considerable population, large natural resources and a strong industry; it is a country destined to continue growing”, stated Ohlenburg.

Despite the growth of Brazil in 2011, it was much lower than that entered previous year of 7.5%, which reflects an increase in costs and lack of competitiveness of some sectors of the Brazilian economy. On the other hand, the British economy, weakened as of the credit crisis of 2008, continues slowing down as a result of the public expense cuts applied by the Government to reduce deficit and by the impact of the sovereign debt crisis in the euro zone. In 2011, the British Gross Domestic Product only grew 0.8%, although the last quarter showed a contraction of 0.2%.

BRAZIL, SIXTH ECONOMY OF THE WORLD AND MEXICO AFTER THE SEVENTH PLACE;

CHILE, PERU AND COLOMBIA: EMERGING ECONOMIES IN THE REGION

January-April 2012

Mexico will be the Seventh Highest Economy of the World in 2020: Goldman & Sachs

Mexico will become the seventh largest economy of the world in 2020 and will contribute 7.8% to the global Gross Domestic Product, higher than Russia and India, was affirmed by the Director of Investment Funds of Goldman Sachs, Jim O’Neill, at a meeting with British investors, in accordance with the report of CNN Expansion, and in reference to the business forum ‘Mexico Week’ held in London last 12 March.

The creator of the BRIC (Brazil, Russia, India and China) economy concept affirmed why Mexico was not included in this block of emerging countries a decade ago, and it is because it was not growing at the rhythm of China or Brazil. “During the last ten years the BRIC economies have contributed one third to the growth of the global Gross Domestic Product and represent one fourth of world economy”, according to Goldman Sachs, but the attention is changing towards the growth markets. The executive states this year Mexico will grow 3.6%, at the same rhythm as Brazil, and in 2013 its economy is expected to grow 3.8%.In the forum organized by the Mexican Chamber of Commerce in Great Britain and its counterpart in Mexico, was said that China will continue

contributing half of the world Gross Domestic Product in the next decade, but there are eight more countries –including Mexico– that will contribute to global growth. He explained there are 15 variables to measure growth, among which are the laws, corruption, political stability, fiscal deficit, education, investment, Internet, mobile phones, computers and economic opening, among others. However, he recognized that Mexico must continue promoting reforms to the energetic sector as there is “a perception that the way in which oil has been used has not been so beneficial” for the country. Regarding insecurity matters, O’Neill stated that Mexico must work to improve its image as the tendency is “to attract attention implying that (crime and insecurity) are dominating every aspect of everyday life”.On February 16, the National Statistics and Geographic Institute (INEGI, in Spanish) informed that the Mexican economy grew 3.9% during 2011, a figure lower to the increase of 5.5% entered in 2010. The 3.9% rate is lower since Mexico came out of a deep recession in mid 2009, and was thus affected by a consumer deceleration and a fall of agricultural activity.

January-April 2012

Peru and Chile are considered the third and fourth emerging economies with the greatest projection worldwide, after China and Thailand, according to a ranking prepared by the magazine Bloomberg Markets, was informed by Gestión (Management). Peru has grown an average of 5.7% per year during the last decade, and will benefit of an increase in consumer expense in South America, stated the executive president of the American company San Mateo, Mark Mobius, according to Semana Económica. The leader of the ranking of the most promising emerging markets was China, followed by Thailand, which attracts investors with its agricultural wealth and labor workforce. The document was prepared based on investment factors, growth forecasts of the Gross Domestic Product (GDP) and the facility to make business in these nations.

Today the world is understanding that Colombia is one of the most dynamic democracies, also with a very dynamic economy, stated President Juan Manuel Santos to Time, publication that qualified him as the Latin American leader to follow and the country he directs as a model. During his presidency, Santos has tried to position Colombia as a key international player and as a regional leader, and the cover of Time magazine becomes a further step in that direction.The publication inquires if Santos is the new leader of the region, as upon Lula da Silva leaving power there seems not to be any other Latin American leader that is occupying this role as is being done by the Colombian President (however, Time states that Dilma Rousseff may also assume that position).

Peru and Chile Among the Most Promising Emerging Economies

President of Colombia, Cover of Time in April:

January-April 2012Mayo - Agosto 2011

January-April 2012

This entire optimistic panorama has caused Colombia to be internationally perceived as an emerging high level economy, according to a study of the Center of Economic Studies of the National Association of Colombian Entrepreneurs (ANDI, in Spanish), published in the January-February magazine of the association. The study says that during the last years in Colombia important changes have occurred in economic, political and social issues, changes the country may show with conclusive figures:In the last ten years, the country moved from a GDP of less than US$100,000 million to almost US$335,000 millions; the GDP per capita increased from US$2,000 million to more than US$7,000 million; foreign trade increased fourfold reaching figures that this year will be more than US$110,000 million; Direct Foreign Investment increased from US$1,800 million to levels at present close to US$14,000 million; and the macroeconomic environment is characterized by indicators close to international parameters.

Some examples showing this situation are: recognition of international markets as a relatively low-risk economy, which resulted in the recovery of the investment grade of the three great risk rating companies, after having lost it for more than a decade; its position within the region with Brazil, Chile, Peru and Mexico as a leading economy; and

classification of the country in the group CIVETS (Colombia, Indonesia, Vietnam, Egypt, Turkey and South Africa), the group of emerging countries with the best recent performance and the best perspectives in the years to come.

Based on statistics of the World Trade Organization for the 70 economies representing 90% of world trade, exports increased almost 20% between January and October 2011, compared to the same period of previous year, worth mentioning the growths of India (50%) and Colombia (42%).

January-April 2012

WILL LATIN AMERICA BE THE LEADER OF THE RECOVERY OF WORLD ECONOMY?

Latin America Surprises the World: IDB

“Since the last Summit of the Americas held almost three years ago in Trinidad and Tobago, Latin America has surprised the world because of its rapid upturn after the global recession”, wrote the president of the Inter-American Development Bank – IDB, in newspaper El Tiempo, on the occasion of the Summit of the Americas that was being held in Cartagena in mid-April, with the attendance of almost all the presidents of the continent. He continues saying: “We have not only grown more than industrialized countries but have also reduced poverty to a historical minimum. Today we are, altogether with Asia, a motor of world economic recovery. Beyond high prices and sustained demand of our principal exports of commodities, the good performance of our countries is also the result of two decades of difficult reforms and a cautious macroeconomic management. Therefore, Latin America is seen as a region with an extraordinary perspective of progress”.The president of the IDB also wrote that “if our recent economic average growth is maintained, in

less than one generation we will have a middle class of 500 million persons, equal to today’s European Union population”, adding that “whoever wants to position in this market must start today to prepare their strategic plans” but that “our government may not face by themselves popular demands without risking fiscal discipline” and for this reason “the private sector must be part of the response, entering alliances with the public sector”.

Luis Alberto Moreno, President of IDB

Inter-American Development Bank

January-April 2012

IMF: Latin American Outlook is Promising

Latin America continues its path of sustained economic growth, but the authorities of the region have an ever more difficult task to prevent overheating and overcome the effects of the European crisis, stated the International Monetary Fund – IMF in mid-April, quoted by Reuters.

The IMF projection for Latin America will grow 3.7 percent this year and 4.1 percent in 2013, figures representing a slight increase compared to January estimates, that showed expansions of 3.6 and 3.9 percent for those years. The region would expand to rates doubling those foreseen by developed economies, even in case of a moderate growth in the rhythm of 4.5 percent seen in 2011, according to estimates of the IMF. These projections show that the region has been capable of navigating through risk among waves of aversion as a result of the European crisis and the strong flow of capitals that put pressure on their currencies. “This combination of policies and resistance facing the fluctuations in global confidence make this outlook promising”, said the Fund in its Global Economic Outlook.

However, the institution said that sharp turns in financial markets are complicating the work of authorities that must “remain alert to possible negative currents from Europe and the increasing currents of capital flows”.

Shortly before, in February, experts of the 2nd Forum of Investors of Latin America and Asia-Pacific highlighted in Hong Kong that “economic diversification and rapid growth of the middle class in Latin America drove development without depending on external economies”. This event was attended by directors of Latin American and Asian investment companies to establish businesses, as informed by the agency EFE. Brazil, followed by Chile and Colombia, is leader of this economic development that will accelerate as of the second semester of 2012, experts predict.

On the other hand, according to the executive director of emerging markets of CIBC World Markets, John Welch, Latin America is perfectly positioned for the next 10 years as a result of its good macroeconomic policies and a considerable growth of the middle class. We are at a part of the cycle where internal demand is more important than external demand, which allows being more independent of external flows, explained Welch. Diversification of its industries has enabled Latin America to better survive the economic crisis and take advantage of the global economic slowdown by increasing its exports, explained lecturers during the first session of this Latin-Asian forum. However, the low savings index of Latin countries is yet one of the outstanding accounts of the region, stated Welch.

January-April 2012

For the World Economic Forum, Latin America is an Oasis of Stability

The Region has Many Strengths but is not Immune: World Bank

Latin America was identified as an “oasis” of stability, growth and opportunities during the World Economic Forum in Davos (Switzerland), compared to the general uncertainty because of the financial and economic crisis faced by Europe and the United States. Unlike previous years, investors and businessmen today look first to emerging countries than to great world powers. Proof of this is that in the gathering of the most important and powerful at Davos, Latin America stood out as an investment magnet and a business center.

From the perspective of Lars Moller, World Bank economist consulted by Dinero.com, the truth is that the region has many strengths to face external shocks, but worth mentioning is that the region is not immune to a possible global economic crisis and its heterogeneity must be taken into account. The following is the explanation:During the last decade, the Latin American and Caribbean – LAC – regions have been improving

its immunologic system, which has made the region much more resistant to external shocks than in the past. This was the legacy of a silent revolution in macro-financial policies, in particular the monetary policy, but also the financial and fiscal supervision policies. These measures caused the traditional factors of external amplifying shocks (currencies, weak fiscal processes and/or fragile banking systems) to absorb shocks through flexible and credible currencies, solid public finance and a capitalized banking system with liquidity. All this as a whole with a decrease in currency mismatches, and thanks to the integration with safer international financial markets, has enabled the region to develop monetary, fiscal and credit counter-cyclic policies during the global crisis, allowing it to leave the crisis without deteriorating balance sheets and bouncing since then in a quick and strong manner. However, if the situation in Europe strongly deteriorates, LAC countries may suffer adverse effects and possibly present vulnerabilities that until now were latent.

Besides the good policies during the last decades, the relatively successful performance during the crisis of 2008/09, LAC was assisted by the fact that trade patterns of a number of countries of the region has slightly displaced towards emerging market economies (China in particular and Brazil in the region), thus reducing direct exposure to the epicenters of the crisis. Also, because of the facts that demand of basic exported products by LAC countries remained high as a result of high Chinese demand, despite the global crisis. “Finally, I would like to add that although Latin America did well in the last crisis, initial conditions of today are different to those of 2007/08 and the growth motor of China may not be in condition to offer a counterweight to the recession in Europe or the slowness in the United States as was done in 2008/09”, emphasized Lars Moller of the World Bank.

January-April 2012

For Alberto Bernal, Research Director of Bulltick Capital Markets, the financial sector of the region had much more strict rules when the 2008 crisis broke out: banks of the region had a base of very stable deposits, and leverage was relatively low. Therefore, banks did not have to go out to sell their overdue portfolio for their capitalization in the short term (they did not have to implement the “fire sales” as had to be done by the banks of Wall Street during 2008 and 2009).

The region has implemented pension reforms for some time now, which changed the structure of the system from one based on inter-generational generosity to a system based on individual capitalization. This is important for long-term fiscal stability and reduces the risk that debt markets may start to attack regional assets (as is being done against European countries).The experience is showing that systems with fixed exchange rates increase the virulence of the financial crisis within the respective real economies. Latin America has, with little exceptions, systems of a variable type of exchange, fact that helped to safeguard the fall of international trade through material depreciations of the exchange rate.

Experts of the Economic Commission for Latin America and the Caribbean (ECLAC) state that Latin America is today in a privileged situation amidst the crisis faced by some European countries. Especially worth noting was the control of public finance and the sustainability of the debt, regional assets that must be maintained. “Quality of public finances has improved in Latin America, public debt has been drastically reduced and its profile and composition is more balanced; fiscal income and average tax rate increased, the decrease in payment of interests has generated important fiscal spaces, and social public expense has been maintained”, stated the Executive Secretary of ECLAC.

Latin America was Prepared for the Crisis: Bulltick Capital Markets

Latin America is Today in a Privileged Situation: ECLAC

January-April 2012

With world economy moving at a slow pace, retail companies are turning on their radars to detect where opportunities are and the GPS is directed to Latin America. According to information of Euromonitor International, quoted by Clarín of Buenos Aires, in 2011 real sales growth in the region was 4%, the highest worldwide. Surveying shows that Latin America is expanding at a greater rhythm than Asia Pacific, the previous retail trading Mecca, and is now “the new motor of growth for global retail”. There exist three combining factors: rising economic activity, more persons parting from poverty and integrating to the middle class, and greater and better access to credit in some markets, as is assumed by Euromonitor. The expense per capita in the area of retail trade was US$1,700 in 2011, whereas in Asia Pacific this indicator was US$900. In Eastern Europe expense is higher, US$2,300, but the differential jump is given in Western Europe and the United States, where each person disburses an average of US$6,000 a year.

Euromonitor forecasts point out that the retail sales will increase this side of the world between 3.5 and 4% per year, from here to 2016. “Brazil and Mexico are responsible of the greater majority of these new sales through new channels such as pharmacy chains and wholesalers”, says Jon Wright, executive of Euromonitor.

Despite cuts to projections of growth of Latin American economies for 2012 as a result of the turmoil of the global crisis, the infrastructure sector of the region has a positive perspective for this year, as shown by the 2012 Survey on Infrastructure of BNamericas, developed for experts and executives of the industry between November and December 2011. A consensus is evident regarding the fact that levels of risk-return in Latin America for infrastructure investments promise being more attractive or, at least, equal to other emerging markets in 2012. This optimistic perception is also nourished by the confidence of the majority of those surveyed that the deterioration of the international economic environment will not affect the infrastructure projects of the region. But concerns also exist. The lack of planning and government support was mentioned as one of the main barriers for developing infrastructure initiatives, a deficit more evident among surveyed individuals from Mexico, who are also the most pessimistic in relation to the possible impact of the global crisis. According to the survey, countries with greater investment opportunities are: Brazil, Colombia, Chile, Peru and Mexico.

Latin America is the New Paradise for Retail Sales: Euromonitor

A Positive Perspective for the Infrastructure Sector of the Region:Executive Summary of 2012 Survey of Business News Americas

January-April 2012

THE FOOTPRINT OF CHINA IN LATIN AMERICA: HELP OR THREAT?

Since Deng Xiaoping formulated its policy of the “four modernizations” in 1978, China is known to the world as “the motor of the economy” because of the sustained growth it has maintained over the last 30 years. The fact is these four modernizations – agriculture, industry, technology and defense – were the result of “a considerable increase in developing productive forces and, in the mid-term, the economy that obliged migration of peasants to the city to control the growth of its population”. So was stated by the academician of the University Francisco de Victoria of Spain, Gloria Claudio, who added that China has been overcoming for several years the Gross Domestic Product (GDP) of the great powers, having reached 11.4% per year, a percentage that represents the fifth consecutive figure of those countries that have surpassed 10% and the highest of the world in the last 20 years. A scenario that was also described in detail in her article “China, 30 years of economic growth”. It seems some believe this growth does not stop, as according to the study Power Transitions: Strategies for the 21 Countries, of the University of Claremont (United States), the economic expansion of China will firmly continue during the years to come and will displace United States as the first world power in the first half of this century for Latin America

and the Caribbean, as it is considered the second most important business partner of the region. For Enrique Dussel, professor of Universidad Autónoma of Mexico (UNAM), the presence of China in Latin America will increase ever more as “the region has strong economic foundations that have maintained it unaffected in current crisis. Besides, worth noting is the high and increasing commercial deficit of the region with China that amounted to 50,000 million dollars in 2008, caused by imports”. The academic added that transnational Chinese companies have demonstrated diverse strategies to enter and remain in the Latin American market. “In the first place, the central Chinese government is constantly diversifying its reserves in energy and commodities for the future, and in second place, thanks to treaties and agreements signed by the region with China, the Asian country has accomplished important investments without limitations, as has been done in Brazil, Peru and Mexico”, emphasized Dussel.

However, the boom of the commercial exchanges between countries of the region and China has not been equal for all. Venezuela and Central America have been affected by imports of manufactured products and are not being displaced from the

January-April 2012

The demand for Latin American commodities by China will help the region to overcome the effects of the global crisis although it yet implies great risks despite last advancements in Europe, stated the authorities of the International Monetary Fund the beginning of March in a seminar on macroeconomic policies in Punta del Este, Uruguay, reported the agency Reuters.

China, and its voracious appetite for agriculture commodities and metals exported by the region, has contributed so that Latin America may better resist than on other occasions the present turbulences in

market of the United States. In a communication, the coeditor of the book “China in the 21st Century: Economy, policy and society with an emerging power”, José Luis León-Manríquez, said that “China has occupied some empty spots left by the United States, as Washington is more concerned with other matters, such as the war against terrorism, its interventions in Afghanistan and Iraq, the nucleation of North Korea and Iran, and the need to rebuild the Atlantic Alliance”. León-Manríquez added that although the presence of China in Latin America does not seem to come from a political strategy seeking to displace the United States as regional power, it is also foreseeable that while the energetic sources continue lacking and the world’s oil reserves decrease, rivalry between the first and second crude oil consumer will increase. This battlefield is not only Latin American, but also of the Middle East, Russia, Africa, the Caspian and any other place with oil.

Other countries that have benefited from the presence of China in the region are Chile, Brazil, Argentina and Peru, thanks to the positive commercial balances and the increase of direct investment. In the column of opinion “Towards a greater proximity China-Chile”, the director of the Institute of Latin American Studies and professor of international economy at the University of International Business & Economics (China), Zhao Xuemei, said that in the case of Chile, the accelerated growth of exchange of products is because of four principal reasons: mutual complementariness of exchanged products; the importance of the economic opening; the coincidence in the application of strategies to diversify external markets by both countries; and a very stable relationship of both nations in the political environment. Xuemei added that between China and Chile exists a mutual need of products such as fishmeal, agro-feed, forestry and wine sales that are considered very important for the economic growth of China. “In the meantime, Chinese exports to the South American country

concentrate basically in the sector of manufactured goods, such as electrical appliances and computers, among others. In this scenario, the bilateral commerce presents favorable results for both parties, with the consequent economic and commercial approach”, she stated. The footprint left until now by the Asian giant in different Latin American countries is clear and ever more notorious; and despite today its growth projection with the global economic crisis is the lowest in eight years according to the report presented by its own Prime Minister, Wen Jiabao, China will continue looking at the region as one of its principal future commercial partners.

Chinese Demand will Help Latin America to Overcome the Crisis

January-April 2012

the developed world. “China will continue being a fundamental element in the demand of our products; news are encouraging”, said the IMF director for the Western Hemisphere, Nicolás Eyzaguirre, in a press conference. However, the official recommended to the region not to overlook the entry of foreign capital, as it is a latent threat in times in which the United States and Europe maintain their interest rates low and a wave of capitals arrives to Latin America seeking high returns.

Also, the region must be vigilant in the face of the forecasts that anticipate a deceleration of Chinese economy. In this line, the deputy manager of the IMF, Min Zhu, said that if the situation in Europe should worsen and Peking does not adopt the necessary fiscal measures, growth of Chinese economy could go back up to four percentage points. Instead, if the necessary measures are applied on time, this deceleration would significantly shorten to one percentage point, he explained.

According to Educamericas, the rise of China as commercial power has caused concern in view of the fact it may become a threat to exports from other countries. Several studies have found that actually there could be adverse effects, mainly for Mexico and Central America. However, there could also be positive effects resulting both from the high growth of China, with annual average rates higher than 9%, as to the fact that it concentrates one fifth of the world population, which causes this market to really represent a commercial opportunity.

A study developed by the Center of Economic Studies of El Colegio of Mexico for the School of Economics of the University of Chile, analyzed the effect of China through different channels: as a market, as a competitor, and as a supplier. As a market, results obtained show that all groups of Latin American countries are elastic in presenting for their exports the entry-demand of China equal or higher to those of the remaining regions of the groups of countries being considered, with the exception of the countries of East Asia. This implies it is not possible to speak of “lost opportunities” in the Chinese market for Latin America.

This analysis allowed evaluating how China became a serious competitor for Latin American exports. Opposite to that expected according to the emphasis of certain press on a “Chinese threat”, on the aggregate it was not found that the imports of Latin American commercial partners made from China have displaced the imports they do from Latin America. Upon analyzing the effect of China as supplier, only a positive effect was found for the exports of countries from the South Cone: an increase of imports from China is associated with an increase of exports to third party markets. This analysis was done in an aggregate level and as such significantly permits to consider general balance effects. For example, a country may lose markets in certain sectors because of the larger Chinese presence as competitor, but may win markets in other sectors both because of economic integration and to the presence of inputs and capital goods at lower costs.

A Chinese Threat to Latin American International Trade?

January-April 2012

January-April 2012

TREATY CONSTITUTING THE ALLIANCE OF THE PACIFIC:

MEXICO, COLOMBIA, PERU AND CHILE

Chile, Mexico, Peru and Colombia have given the final push to the Alliance of the Pacific, having accomplished during an unprecedented virtual summit of its presidents last March 5th, an agreement on the treaty constituting this initiative for regional integration, informed the Diario Financiero DF of Chile. “We have realized the fundamental points in order to sign the treaty that brings to life the Alliance of the Pacific”, stated Colombian president, Juan Manuel Santos, who was the leader of the videoconference from the Executive Headquarters in Bogotá. Santos and his colleagues of Mexico, Felipe Calderón; Chile, Sebastián Piñera, and Peru, Ollanta Humala, have virtually met to put an end to the procedures towards establishing the Alliance of the Pacific, an initiative in which their countries have been working since 2011. The appointment, the third of this mechanism of integration in the making, also had as observers the presidents of Panama, Ricardo Martinelli, and Costa Rica, Laura Chinchilla.

During a videoconference of just one and a half hours, the four presidents arrived at an agreement on “three fundamental points” for the establishment of the Alliance of the Pacific that had been identified

last December 4 during a Summit in the Mexican city of Mérida. There, Piñera, Calderón, Humala and Santos agreed to give preference to matters on the movement of persons, businesses, migration facilitation, commerce and integration, and services and capitals that were left in the hands of “technical groups”.

The Alliance of the Pacific is a proposal of a commercial block, an initiative of the former president of Peru, Alan García, who at first extended the invitation to his counterparts of Chile, Colombia, Mexico and Panama with the purpose of deepening in the integration between these economies and defining joint actions for commercial bonds with Asia Pacific, based on the existing bilateral trade agreements between the member states. The intention of this alliance is to encourage regional integration, and also a greater growth, development and competitiveness of the economies of their countries, and at the same time to progressively advance towards the objective of accomplishing the free circulation of goods, services, capitals and people.

Presidents Martinelli of Panama, Piñera of Chile, Calderón of México, Santos of Colombia and Humala of Peru

January-April 2012

(Predictor of the World Financial Crisis in 2008)

ACONCAGUA BIOCEANIC CORRIDOR (CHILE-ARGENTINA): VIABILITY TO BE DETERMINED IN SEPTEMBER

Segunda online of Chile informed last March that Presidents of Chile, Sebastián Piñera, and Argentina, Cristina Fernández, agreed to continue the evaluation process of the technical studies required in relation to the project of the Aconcagua Bioceanic Corridor and its 52-km railway tunnel between the Andes and Mendoza, thus having given instructions to the binational entity analyzing these documents to determine, within a 6-month term ending next September, the feasibility to develop works. Likewise, they announced that to speed up the process, the binational entity shall start preparing a base proposal for a call to bid for companies interested in the project.

iThe above is part of the Joint Declaration signed by both presidents during the official state visit to Chile of the President of Argentina, the central objective being strongly advancing in the projects of physical and commercial integration between both nations.

“The Aconcagua Bioceanic Corridor and its railway tunnel at low altitude have given a crucial step towards realizing the announcement done by the presidents of Chile and Argentina. Expected objectives have been accomplished, which encourages with greater force to expect the call for bid for the binational works”, expressed Hugo Eurnekian, vice-president of the Argentinean company Corporación América, that altogether with Empresas Navieras of Chile, Mitsubishi Corporation of Japan, Geodata of Italy and Contreras Hermanos of Argentina, have proceeded with the project entering a private investment of more than US$3 billion. Eurnekian added that “President Fernández gave great support to the low altitude tunnel”, in reference to the speech of the President last night at a dinner in her honor, where she stated that “the dream of our Liberators San Martín and O’Higgins will come true when we will be joined together by the physical integration of the tunnel under the mountain range, thus leaving in the past the old paradigm of Argentina in the Atlantic and Chile in the Pacific”.

January-April 2012

WORLD SHIPPING CRISIS: HAMBURG SÜD UNIFIES SERVICES IN

SOUTH AMERICA WITH MSC AND MAERSK INCREASES FREIGHTS

As of January, Hamburg Süd unified with the Mediterranean Shipping Company MSC its services in the route Mediterranean Sea-East Coast of South America, thus both companies now have eight vessels with a capacity of 5,900 TEUs (seven of MSC and one of Hamburg Süd). The restructuring of these lines was necessary, according to Hamburg Süd, because of existing market conditions, affected greatly by a greater offer of sea transportation in relation to demand and to the consequent reduction in freights. Let us remember that last November, as a result of the world crisis, CMA had already associated with CMA-CGM for two years on their traffic between Asia, Northern Europe, South Africa and the South American routes, effective as of this month of March.

On the other hand, Maersk, the principal shipping line of the world holding 16% of the market is reducing its fleet in 9% and increasing freights (in Brazil, for example, average increase is of 30% for different destinations such as Europe, Asia, Middle East and the United States, which will most surely occur with the other Latin American routes). The increases are the result of its tariff restructuring policy seeking for a profitable business after a year 2011 in which the company entered losses for US$602 million in its global operations. “2012 will be a critical year for world navigation” stated to Valor the general director of Maersk in Brazil, Peter Gyde, who also added that currently at world level almost 6% of container vessels are standing and that in the beginning of 2011 this percentage was almost 12%. Fleet reduction by Maersk will be facilitated by an agreement of shared vessels with the French container company CMA CGM, both companies merging a number of their services, some of them in Latin America.

January-April 2012

In March issue the editor of Container Management, Geoff Adams, stated that “once more, the shipping lines are looking to reduce capacity as some markets are slipping away”, and he quoted Neil Dekker, author of the quarterly Container Forecaster of Drewry, who last November predicted in this publication that an excess capacity in key routes would cause that some containers shipping lines would not cover costs.In confirmation of the latter, the NOL Group announced in February a net loss of US$478 million for 2011, thus causing that the executive director of the Group, Ng Yat Chung describe the performance of containers transportation as disappointing. “Excess capacity and higher fuel costs have negatively affected the entire containers transportation industry. We are urgently resolving costs and all the other factors under our control to improve our performance,” he said, adding that despite recent improvements in freight rates, results are still uncertain because of global economy. The company recognized that the containers transportation industry continues facing an excess capacity and that if these conditions should continue, financial performance will continue being weak.

The last and ambitious plan to rescue the Eurozone and rescue Greece has been received by many with caution, instead of seeing it as the “start-up” needed by European economy to return once again to a real growth, which increases the possibility of a return travel for the stability of the region, which could be seen by the commerce of Asia-Europe routes operating below average during a considerable time. Adding the spectrum of the first ten Triple-E (18,000 TEU capacity) vessels that will enter the horizon in the year 2013-14, one could ask if rebalancing offer over demand will be enough and see if the lines liberate from the worst, or if this is just the beginning of more in the future. This is what Dekker had to say in November: “The largest sea transporters are looking for scale economies with the ever bigger super post-Panamax vessels, but in doing this, the industry has a great risk of introducing too much capacity at the same time and ruining the already fragile balance between supply and demand”.

Editorial of Container Management on the Difficulties of Shipping Lines

January-April 2012

Upgrading port terminals is the challenge assumed by the government of Nicaragua since January 10, 2007, convinced it will emerge in front of its strongest competitors of the Central American region. More information in www.epn.gob.ni

The president of EPN, Virgilio Silva vsilva@epn.gob.ni presented the Monkey Point port project in the Caribbean, at the Andean Infrastructure Summit held the end of March in Bogotá.

CWith an investment of almost US$1,000 millions and a 33-year concession that started last year when the government of Costa Rica awarded the construction and operation of the Terminal of Containers Moín – TCM, the Dutch multinational APM Terminals will build in Limón, Costa Rican Caribbean, a breakwater of 2.2 km to counteract weather conditions that prevent the normal operation of a modern port. Dredging will also be done by APM Terminals and the access channel now 10.5 meters deep will be 18 meters deep, which

EMPRESA PORTUARIA NACIONAL OF NICARAGUA, APM TERMINALS MOÍN

OF COSTA RICA AND PORTMAGDALENA OF COLOMBIA ENTER LATINPORTS

will enable receiving much larger vessels, with a capacity of up to 8,500 containers, generating scale economies and reducing costs. TCM will have 1,500 meters of dock and 5 berths with 9 gantry cranes. Works will start in 2013 and the first stage must be in operation in 2014. More information in www.apmterminalsmoin.com

The general manager of APM Terminal Moín is Captain Paul Gallie Paul.Gallie@apmterminals.com

This new corporate member of Latinports is a waterway and sea terminal, of the Free Zone (Zona Franca) group of Barranquilla, providing services to offshore vessels, specialized in handling liquid bulk cargos, especially chemical products and petroleum by-products. Located 20 km from the mouth of the Magdalena River, it has a natural shelter facilitating navigation and port operations. At present it moves approximately one million tons of cargo. More information in www.portmagdalena.com.co

Manager of Portmagdalena is Patricia Montoya, pmontoya@portmagdalena.com.co

January-April 2012

CONFERENCE OF THE EXECUTIVE DIRECTOR OF LATINPORTS AT THE ANDEAN & CENTRAL

AMERICAN INFRASTRUCTURE SUMMIT

Enero - Abril 2012

UPCOMING EVENTS

Altogether with the general director of Corporación Autónoma Regional del Río Grande de la Magdalena, Cormagdalena, the executive director of Latinports, Julián Palacio, on March 29 in Bogotá made a presentation on the Advances of the Navigation Project in the Magdalena River, a follow-up of the first specialized seminar of Latinports held in September of last year on this matter.

It was really satisfactory for Cormagdalena and Latinports being able to announce that the joint effort of the Colombian government and the Latin

American Association of Ports and Terminals began to bear fruit: what in the September seminar was only expectations, in March became a reality with the announcement of the President of the Republic, Juan Manuel Santos, of the availability of resources for the amount of US$400 million to realize the most ambitious infrastructure project in the history of Colombia: navigation from and to the center of the country.

May 21- 25 Riu Plaza Hotel, Panama

Maritime Week Americas 2012 will take place in Panama, one of the largest maritime centers worldwide, now the core of some of the most interesting changes impacting world navigation industries, ports and bunkering.

The executive director of Latinports, Julián Palacio, will participate with a conference called: Economy of Post-Panamax Vessels: Will the Largest Survive? (The Effect in Latin America), and will act as moderator of the Regional Port Round Table Session: Challenges in an Uncertain World.

For more information on this event please click on www.maritimeweekamericas.com or contact events@petrospot.com

January-April 2012

CWA-Expo Carga is the platform where 18 thousand experts of the foreign trade and cargo transportation sectors converge to enter businesses between America, Europe, Asia and the rest of the world. This event gathers: 8. Private initiative 9. Chambers and Associations 10. Governmental Agencies For more Information click in www.expo-carga.com or directly contact Verónica Velásquez vvelasquez@gfidaltex.com Telephone 52(55) 54425760 Ext. 188

Context and international containers transportation trends may be seen in this forum, and also strategies and challenges in the face of the free trade agreements – FTA, emphasizing on national reality, and the different points of the logistics chain, such as port activity, management and security in internal transportation, and development of containers yards, among other topics, as vital axis of a good containers logistics.

For more information please communicate with forocontenedores@andi.com.co

June 5-7, 2012World Trade Center, Mexico, D.F. PORTS AND CONTAINERS FORUM –

LOGISTICS AND COMPETITIVENESS

National Association of Colombian Entrepreneurs - ANDI

July 5-6, 2012AR Hotel, Bogotá

January-April 2012

Latin American Port NewsArgentina

Arabs Plan to Invest US$300 Million in the Port of Buenos Aires

According to Infobae.com, investors of the United Arab Emirates entered into an agreement during the visit to Buenos Aires in March, jointly with a delegation of entrepreneurs. The president of the Directory of Dubai Ports World, Sultan Bin Sulayem, was part of the delegation headed by the Minister of Foreign Affairs, Sheikh Abdullah bin Zayed Al Nahyan. When the agreement works begin, a thousand jobs will be generated, which will enable having a state-of-the-art infrastructure for 2015.

The port modernization project was prepared by Terminales Río de la Plata (TRP) – Argentinean operator of the Dubai Port World network – altogether with the General Port Management, the Secretary’s Office of Transportation, and the Ministry of Planning. The new project will enable providing Argentinean foreign trade with scale economies for sea transportation, preventing transshipments in other ports of the East coast of South America, which causes delays and cost overruns in the chain of value.

Terminales Río de la Plata (TRP) is located in Puerto Nuevo, Buenos Aires, and has the concession of the port operation. With an operative area of 430,000 m2, fully adapted and refurbished, TRP operates 24 hours/day, 362 days/year. In 2011 US$25 million were invested in the Cruise Terminal Benito Quinquela Martín, opened in 2011.

Dubai Port World is one of the principal port operators worldwide, with 45 containers terminals in 29 countries.

The Argentinean Chamber of Shipping Lines and Assemblers, CAENA, in Spanish, quoted by Infobae.com, announced that the sector will seek to potentiate support to offshore operations, hoping to increase the presence of its own vessels and ships destined to sea and/or waterway transportation for liquid, liquefied gases and solid cargos.

CAENA commits to work in several lines of action with the intention of potentiating the national maritime business: on one hand it will try to underpin the signing of a Merchant Navy Law

National Shipping Lines Investments for US$50 Million

January-April 2012

BrazilContainer scanner is still controversial

Latin American Port Newsof origin. This has generated great controversial within the sector. In Brazil, according to article contents, shippers consider that the measure will lockup foreign trade and have disastrous impacts on costs and times of operation. On the other hand, port terminals and exporters consider this supervision will make commercial exchange more transparent. This article informs that Santos Brasil, the “largest container terminal of the country”, invested US$11,2 million in the acquisition of five supervision equipment. According to Mauro Salgado, director of Santos Brasil, the company is already prepared for changes and investment will speed up cargo verification processes. “We are not forecasting negative impacts for the operation”, he stated. The same viewpoint is shared by the general manager for logistics of the Curimbaba Group, Fabrizio De Paulis. “It increases security of exported cargo. I do not believe this procedure will cause delays.”

However, previously the president of Maersk Line for Latin America and the Caribbean stated that “in the practice, the implementation of this law is not possible as supervision may not be physically done. Every two years the United States has been postponing the limit date. Now the date is 2014, and we do not believe it may be a fact prior to 2016, 2018”. However, Sérgio Salomão, of Abratec considers that “the American law was an inspiration of the Treasury, but requirement will be of a general character, both for exports and for imports, and not only for the United States”. Finally, the article says that the inspection of a container entering the terminal is not a full security guarantee, as until it is loaded onto the ship it may be, in theory, manipulated. “At the Special Secretary of Ports, SEP, (in Spanish), we defended the traceability of the container and the cargo

that combines the joint criteria attained between assemblers and shippers unions, and on the other hand, to contribute to consolidate a foreseeable system that will multiply the presence of the Argentinean flag at the Paraguay-Paraná Waterway.

“This sustained effort points out to the expansion of employment sources already produced by the sector. At today’s values, and a sustained growth, partner companies of CAENA generate more than 2,000 direct jobs for embarked Argentinean crew members. The average monthly gross salary is approximately US$5,000, positioning the industry as one of the most buoyant sectors and these workers among some of the best paid of the country”, stated a communication of the entity. This sector also generates approximately 20,000 indirect jobs related to naval workshops, suppliers, maritime agencies and other entries.

An article of the newspaper Valor published the end of April, entitled ‘Container Scanner is still Controversial’ highlights the determination of the government of the United States to enforce 100% of sea import containers to be scanned at the ports

January-April 2012

Investments in the sector:

Priority for Waterways:

Approximately US$16 billion in investments are being entered or planned by the Brazilian port sector, as announced by the general director in charge of the National Water Transportation Agency, Antaq, Tiago Lima, during his participation in the Intermodal fair held in Sao Paulo in mid-April. Projects correspond to the construction of port terminals (US$10,5 billion investments for new private ports and US$5,5 million for public ports terminals). Newspaper Tribuna added an important news based on current context: Brazil has 34 public ports and 129 private ports, emphasis in the article being placed on public ports and informing that most investments on these

Noticias Portuarias Latinoamericanasfrom its origin to its destination”, states the partner-director of the consultant firm Agência Porto, Fabrizio Pierdomenico, who was Port Planning and Development Secretary of SEP. He believes that despite having to assume an additional cost all countries exporting to the United States, Brazil has yet another “but”. “It continues being unequal for Brazil because of our tax load. Our concern is who will have to pay the costs of the investments undertaken by the terminals”, he states. “It is evident that the terminal will review the costs”, says Salomão from Abratec.

facilities shall be applied to the southeastern region that will receive US$2,5 billions; the northeastern sector will receive US$1 billion; the north sector US$0.8 billion. Santos will receive US$1,85 billion, with the implementation of the terminals of Embraport and Brasil Terminal Portuaria BTP, which will start operations next year.

The Secretary of National Transportation Policies of the Ministry of Transportation, Marcelo Perrupato, defended a pact supporting the waterway mode, covering the entire country. According to Perrupato, the increase in navigation “should be addressed as a national priority” by the Brazilian society as a whole, as was informed by Tribuna. He also commented that the federal government is looking to balance the national transportation matrix, mentioning that the National Logistics and Transportation Plan is determined that in 2025, 33% of Brazilian cargo will be transported by road, 32% by railroad, and 29% by waterway. The remaining (6%) would be for other type of transportation.

Marcelo Perrupato

January-April 2012

New Manaus Terminal is expected to Start Operations in 2014:

President of the Republic Announces Investment in the Cuban Port of Mariel

Noticias Portuarias Latinoamericanas

Valor, on a special publication on the Free Zone of Manaus emphasized its momentum on the growth of the city that moved from 250,000 inhabitants in 1997 (when the free zone was created) to 2.2 million at present within its metropolitan area. Today, the Industrial Pole of Manaus on the Amazon River, a little more than 1,000 kilometers from its mouth, hosts more than 600 companies and more than 5,000 commercial users, becoming the economic and cultural center of the Northern Region of Brazil.

In the case of the port, currently insufficient, its relief will come as of mid-2014, when the construction of a new cargo terminal must be completed, at a cost of US$230 million and to be operated by concession to private enterprise, doubling the capacity of the two existing terminals.

Prior to the visit that President Dilma Rousseff would do to Cuba on January 31, the different Brazilian newspapers informed that the central point of her visit was to announce the financing of the BNDES for the extension of the port of Mariel, jornais relataram que o ponto central da visita é o anúncio de financiamento do BNDES. The Chamber of Foreign Commerce, CAMEX, approved liberating the amount of US$230 million to finance works, project that will include a total of US$600 million. This value is equal only to the Brazilian part of the works of the port, and in this region Cubans pretend to install an industrial pole. According to Valor, Mariel is the highest Brazilian commitment in Cuba. Investment in this project to export goods and services represents 70% of the entire funding in the last 15 years of the BNDES in operations with Cuba as final destination.

January-April 2012

According to Tribuna, Log-In with 25% of the market in the area, projects a growth of at least 10% per year in the next four years. In the five years it has been working in cabotage, the company has had an average growth of 27% per year in movement of containers and large-size clients were conquered by the advantages represented by the modality, such as maritime transportation security for product integrity. Log-In has 11 vessels: eight container ships and three bulk carriers.

million in 2011 to 8 million in 2013”, explaining the increase in capacity will be the result of a series of extensions, purchase of last generation equipment, and the entry in operation of new private projects such as Embraport, DP World and Brasil Terminal Portuario BTP, the latter controlled by Europe Terminal that, according to Serra, will start operations in October 2012. The president of CODESP recalled that current port operators such as Santos Brasil, Libra and Tecondi, made important investments that will result in an additional growth increase.

Cabotage Companies are Reliant on Sector Growth

Noticias Portuarias Latinoamericanas

Article of Brasil Econômico on transportation and logistics highlights the containers segment quoting a comment of the former secretary of policies of the Ministry of Transportation, and current executive director of Agência T1, José Augusto Valente, according to which “the false discussion existing in the country that public ports are saturated and are locking the growth of economy, is being buried by reality”. According to the specialist, since 2003 there have been logistics and port blackouts that are never confirmed; “on the contrary, ports will double their containers capacity in the next four years”, affirms Valente, thus emphasizing a crucial point to revert negativism in various matters on the sector. The article tells that Brazilian foreign trade increased almost fourfold in eight years (2002 to 2010) and that containers moved from 2 million in 2002 to 4.5 million last year, commenting that these numbers show that port logistics has supported the expansion of economy and foreign trade, although better productivity and service indicators would be desirable.

On the other hand, Estado published an interview with the president of Companhia Docas do Estado de Sao Paulo, CODESP, José Roberto Serra, according to who “Santos, the major port of Latin America, will double its capacity in 2013, mobilizing the same amount of containers than all other Brazilian ports together, moving from 3.2

Ports will Double Their Containers Capacity in the Next Four Years

January-April 2012

Terminal Pacífico Sur (TPS) and Empresa Portuaria Valparaíso (EPV) signed on January 9 the modification of the contract that will enable starting extension works at Site 3, one of the measures considered in the port’s Plan of Expansion, enabling to maintain its competitiveness in the years to come. The project of extension of Site 3 that will become the first extension of the berth front of Valparaíso in more than 80 years, includes an extension of 120 meters and the structural reinforcement of sites 4 and 5, leading these to an antiseismic condition. Execution of works will allow serving two Post-Panamax ships simultaneously and accompanying the growth of shipping lines or attract others, opening job positions for this activity, and thus maintaining competitiveness of the Port of Valparaiso.

It is considered that once engineering studies and maneuvering simulation have been concluded, and after receiving the approvals and corresponding permits from the corresponding authorities, works will start the first quarter of 2013 and will last about 18 months. The general manager of TPS, Francesco Schiaffino, stated “this initiative shows our commitment to maintain the competitiveness of the Port of Valparaiso through the execution of a creative and ambitious project”. The executive added that “our challenge is that this Terminal continues being a key player for the city, the region and the country, as we are convinced that Valparaiso has all the conditions for a long-term and sustainable projection, as a modern, large scale port pole”. On the other hand, the general manager of EPV, Harald Jaeger, expressed that “we are satisfied with the signing of this modification to the contract with TPS, as the works at Terminal 1, which will further include the next tender for Terminal 2, will enable Valparaiso to have two highly competitive terminals

Tribuna highlights that in the past years a reactivation is being tested, including the arrival of the actors to the market, but, to grow even more, besides the 13% participation in the country’s cargo movement, “a push is required” according to the text. Cabotage was already strong in Brazil but it weakened in the 70s and 80s because of lack of investment and the intolerance to delays in time of high inflation.

Log-In will launch on July 1st a cabotage transportation service integrating two regions: Northeast and Southeast in North Brazil. The intention of the company is having a vessel with 1,700 TEU capacity that will basically serve better electrical appliances to the area of Manaus and that may increase the route in 10,000 TEU. The company will focus on ports of the Northeast as Suape, Santos, and Rio de Janeiro. According to the Minister of Ports, Leonidas Cristino, the new version of the National Plan of Port Logistics will encourage cabotage navigation.

The Terminal Pacífico Sur of Valparaíso and Empresa Portuaria Valparaíso, sign an extension agreement

Noticias Portuarias Latinoamericanas

Chile

January-April 2012

Noticias Portuarias Latinoamericanas

Minister of Transportation Committed with the Support to the Project of the Magdalena Waterway:

The Magdalena River Must be Assumed as the Great Supplier and the Axis for the Development of Massive Transportation to and from the Interior of the Country: he Minister of Transportation, Germán Cardona,

committed his support to a project for the navigability of 256 km of the Magdalena waterway addressed to transport goods from the central region of the country to the coast. The initiative of US$400 million is being executed by the Corporación Autónoma Regional del Río Grande de la Magdalena (Cormagdalena) and is also supported by President Juan Manuel Santos, as informed by the Ministry of Transportation. “It is time for the Magdalena River”, stated Cardona. “The possibility exists to materialize the idea of seeing in this river artery the best way to transport heavy products from the center of the country to the Caribbean”.

for Chilean foreign trade, and fully satisfy the projected regional demand for the next years”. The extension of the concession will last until December 31, 2029.

Until now, almost US$21 million have been invested in the preliminary works for the project. The National Institute of Roads, INVÍAS, in Spanish, stated it will manage and assign all the necessary financing to improve traffic connectivity with the Magdalena waterway. The river that extends 900 km, at present has only 700 navigable kilometers and improving the waterway will be the quickest way to transport oil to the Caribbean coast and would also help to eliminate approximately 1,200 heavy load trucks from the roads of the country.

Minister Germán Cardona and the director of Cormagdalena, Augusto García, as well as the executive director of Latinports, Julián Palacio, referred to this matter during the Andean Infrastructure Summit that took place in Bogotá the end of March.

The regional investment agency, ProBarranquilla, informed that the National Association of Entrepreneurs –ANDI, proposed the definition and execution of a Plan of Development that will make of Barranquilla the Region-City it is called to be,

Colombia

January-April 2012

Barranquilla Prepares for the Implementation of the FTA with the United States: Waterway Ports of the United States and Europe Present their Experiences

Noticias Portuarias Latinoamericanastaking advantage of the new circumstances of the eleven free trade agreements entered into or about to be entered into by Colombia, and the new Law of Royalties that allows executing zonal infrastructure projects to integrate specific territories, linking them to those new international markets. The proposal includes the generation of communication corridors where efficient road infrastructure converges, excellent cargo terminals, very good operation conditions of the airport, and a greater development of the port area, in such a way the city may offer optimal levels of logistics services, generate employment and economic growth, accomplish a greater development, and may better sell its industrial possibilities. The initiative was presented by transportation and road engineer, Edgar Higuera, executive director of the Chamber of Great Users of Logistics Services of ANDI, during a meeting promoted by ProBarranquilla and the Metropolitan Area of Barranquilla with the elected mayors of the city districts and entrepreneurs of the sector.

The expert bases on the fact that today Barranquilla is the largest and most developed city of the Great Caribbean Basin, not only in relation to Colombia but also of the countries that form it, as it has more industrial areas, more universities, more areas of production, a river that connects it with the interior of the country, a basic infrastructure, and a great airport. However, in terms of logistics, Barranquilla also has bottlenecks that affect its competitiveness. Studies of ANDI show that between 20% and 30% of the logistics costs are generated at the sea terminals and especially in what is known as the overcosts of the ‘last mile’. Higuera added that Barranquilla has to necessarily look to the Magdalena River, explaining that the river must be assumed as the great supplier and the axis for the development of massive transportation from and to the interior

of the country, but also as a city of excellent urban reference, thus generating a parallel plan of development enabling to clearly see that Barranquilla is a city-port with a majestic river artery integrated around a great park.

At the main waterway-sea port of Colombia, located at the mouth of the Magdalena River, the week before last of April several events were held on the Free Trade Agreement with the United States, to be implemented on May 15 of this year, where possibilities for Barranquilla were discussed, one of the main cities of Colombia.The United States was represented by Houston and New Orleans, and Europe by Rotterdam, Le Havre and Hamburg, all located at the mouth of the most important rivers of their corresponding countries. The executive director of Latinports, Julian Palacio, made a presentation titled “Rehabilitation of the Magdalena Waterway: a Response to the FTA implementation, showing that only with the

January-April 2012

Noticias Portuarias Latinoamericanas

In the last report of the Unit for Infrastructure Services of the Economic Commission for Latin America and the Caribbean (ECLAC), the port of Cartagena, formed by Sociedad Portuaria Regional, Contecar and Muelles El Bosque), with a movement of 1,853,342 TEUs, was placed fifth among the 100 best ports of Latin America and the Caribbean, having displaced Buenos Aires. The two first places were for Panama (Colon and Balboa), the third for Santos, Brazil, and the fourth place for Kingston, Jamaica. Cartagena is followed by Buenos Aires, Manzanillo (Mexico), Callao, Guayaquil and Freeport (Bahamas).

Americas Gateway Development Corporation (Amega) will start the phase of proposals of its project for a transshipment terminal of US$1,100 million in Costa Rica, stated to BNamericas its general director, Aubrey de Young. The project denominated Megaterminal Transbordo Atlántico (MTA) consists in a deep water terminal for transshipment of containers that will be located in Moín, on the Caribbean coast of Costa Rica.

Amega has the exclusive right to be the leader of the project from the stage of proposals up to a public tender for a 30-year concession to build and operate the port. The proposal phase includes detailed technical, environmental, commercial and financial

rehabilitation of the waterway from the center of the country, as announced by the president of the republic, Barranquilla will become the capital of the FTA, as was baptized by the minister of commerce on this same occasion.

Despite the ports of the region have grown 11% in 2011, its global participation scarcely maintains in 7%. Asia moves more than 50% of containers transported by sea worldwide and China, in particular, represents 29% of world trade with 164 million TEUs last year.

Cartagena Displaces Buenos Aires from the Fifth Place in Containers Traffic

Amega Starts the Phase of Proposals for the Transshipment Terminal of Moín

Costa Rica

January-April 2012

CubaNoticias Portuarias Latinoamericanas

According to the agency Reuters, during a visit of President Dilma Rousseff to Cuba on January 31st, she said that Brazil may make a great contribution to revive fragile Cuban economy, and in reference to the Port of Mariel, 45 km from Havana, she added that “we participate not only in the construction of the port, but also in bringing a cooperation I consider strategic for Brazil and Cuba”. Modernization works of a containers terminal being built in the port of Mariel with Brazilian funding are being done by the Brazilian company Odebrecht and must conclude in January 2013, with works including special development areas with industries to export and supply the Cuban market.

President of Brazil Inspects Works at the Port of Mariel:

studies. “The final schedule of this stage indicates a period of 12 months, but we expect that with the help of the government will be able to bring forward this term. Amega will announce important agreements in the next few weeks, said De Young.

The transfer terminal will have the capacity to move 2 million TEU per year with a 1-km dock, a 19m access channel to the port of Moín, and berthing for three container vessels of approximately 14,000 TEUs. The MTA project will be located next to a container terminal that is being built by APM Terminals, although apparently the two terminals will not be in direct competition as the Amega terminal will serve a different market and will undertake cargo transshipment of up to 14,000 TEU from larger container vessels to those currently serving or to any future ships.

The transshipment terminal is also attractive for other Central American countries, according to De Young. “Our project is really a strategic regional contribution, because it will not only handle national cargo but locates other countries in a place from where they can have access to the world”, stated the executive.

Costa Rican Vice-president, Luis Lieberman, has affirmed that the government wishes the bid for the project be opened and granted prior to presidential elections of 2014.

January-April 2012

El Salvador

Noticias Portuarias Latinoamericanas

EcuadorPort of Manta opens Concession Tender:

Autonomous Executive Port Commission Foresees Receiving Offers in November for the Concession of Port La Unión

On April 30 the Port Authority of Manta APM declared starting the process for the “Management concession of public port services to be provided for infrastructure and facilities at the multi-purpose deep water terminal of the Port of Manta”. According to the APM, general conditions for these specifications are available on the port’s webpage and may be downloaded prior registration and payment of the not reimbursable amount of US$10,000. Further on, APM will organize visits to the port and will prepare an Information Room where only interested parties that have acquired the bid documents will have access and who have also entered into the Commitment of Confidentiality.

The national port operator of El Salvador, the Autonomous Executive Port Commission, CEPA, expects to receive offers for the concession of the Port of La Unión in November of this year, said the manager of concessions of the authority, Rolando Díaz during the Andean & Central American Infrastructure Summit held in Bogotá the end of March.

The International Financial Corporation, CFI, started working in January with consulting firms to prepare bases for the concession tender that could extend for up to 30 years. The US infrastructure consulting firm Moffatt & Nichol is developing technical and engineering analysis.

CEPA expects to publish the tender bases in August, thus offers will be received in November and the contract would be awarded in December. Once entering into the contract, which may probably occur in January of next year, the new concessionaire may start to operate almost at once, which is one of the principal advantages of the project, stated Díaz. “Definitely an interest exists. It is a continuous process to approach potential interested parties. As the process and preparation of bases advance, the opinion of the market must be seen”, stated the executive who also added that CEPA has received expressions of interest from operators such as APM Terminals, the Spanish Containers Terminal of Barcelona, the operator of the Colombian port of Cartagena, SPRC, and the Chileans SAAM and Ultramar. Interested parties will have to demonstrate having a liquid capital of minimum US$40 million and port operation experience moving at least 600,000 TEU per year.

January-April 2012

Noticias Portuarias Latinoamericanas

Interoceanic Corridor Seeks Investors:

Law Enacted for Public-Private Associations

The port of La Unión had a cost of US$183 million and its construction by the consortium Toa-Jan De Nul was completed in June 2008. The multipurpose port specializes in handling containers, with a capacity of 850,000 TEU in its first stage and 1,7 million TEU after the second and third development stages.

The company Corredor Interoceánico de Guatemala S.A. seeks investors for fuel transportation between the two oceans, each with an extension of 336 km. In addition to the interoceanic corridor that will cost US$7,800 million (50% more than the extension of the Panama Canal), which is a response to the trransportation demand originating in Asia (particularly China) will require the constuction of two megaports, one on each ocean. In mid-April Project directors were in Bogotá for this purpose, as was informed by the Colombian newspaper, La República.

On January 15, the President of Mexico, Felipe Calderon, enacted the Law of Public-Private Associations (PPA), which has as central objective to multiply infrastructure investment, through the association between public and private sectors, law presented since 2009 to the Congress for its analysis. The president assured that the PPA law and the modifications related to the infrastructure construction and provision of public services, will provide greater security and legal certainty to the private players that want to participate in complex infrastructure projects that expedite the response to the need of the country’s infrastructure, and also a greater efficiency in the use of public resources.

The administration of President Calderón presented to Congress a package of reforms of diverse legal orders to promote Mexican economic growth and development encouraging the increment of infrastructure investment to historical levels. The government is currently investing 5% of the Gross Domestic Product in matters of infrastructure, compared to the 3% entered in 2000.

Guatemala

México

January-April 2012

Noticias Portuarias Latinoamericanas

Perú

Record in Port Investments in the Last Six Years:

Callao Consolidated as Leader Port of the South American Pacific in 2011

APM Terminals Callao Doubles Productivity

Ports of Mexico have received an investment of more than US$3,000 million since President Felipe Calderón entered office in 2006. Total investment, including both public and private funds, is the highest that has been materialized during any government in the last 25 years, stated Calderón in February.

The port of Callao consolidated as leader port of the South American Pacific having moved 1,6 million containers in 2011, exceeding in 20% the 1,3 million containers of 2010, as informed by the Economic Commission for Latin America and the Caribbean (ECLAC). Thus, according to the Maritime Bulletin of ECLAC, the main Peruvian port exceeded the port of Guayaquil that moved 1,4 million containers last year and positioned in the second place. The third and fourth place were for the Chilean ports of Valparaiso and San Antonio with 973,000 and 854,000 containers moved, respectively, followed by Buenaventura of Colombia that moved 748,000 containers.

According to Container Management of the end of February, in the seven months since assuming control of the North Terminal on a 30-year concession joint venture between APM Terminals (APMT) and Peru’s Central Portuaria, the facility, now operating as ‘APM Terminals Callao’, has seen productivity more than doubled to 26.5 moves per hour per crane, while gate turnaround time has decreased by 49% to 28 minutes.

January-April 2012

Noticias Portuarias LatinoamericanasSuccessfully Completed Binational Pilot Test for Multimodal Road – River Traffic

According to the agency Andina, a pilot test of international community customs traffic Peru-Ecuador-Peru was successfully completed having achieved the reduction of fuel transportation from 20 to 6 days to its final destination, was informed by the Andean Community (CAN), a test promoted by the General Secretary of the entity. This test that was done upon request of a private enterprise, involved the transportation of 60,000 gallons of biodiesel to a mining camp through a different route than the traditional one. The route started in the city of Talara (Piura), passing by Huaquillas (Ecuadorian-Peruvian border), Cuenca and Puerto Morona in the Ecuadorian forest, and arriving at the town of Sargento Puño, in the Peruvian forest. Coordinations were done with customs of Peru and Ecuador for the approval of the operation of Community Customs Traffic and the qualification of roads, border crossings and passes.

Test allowed verifying that while fuel supply of the camp by waterway from the city of Iquitos (Loreto) lasted 20 days having to travel 753 kilometers, the use of the new route, combining roads and waterways, reduced costs and time to six days at most. The General Secretary of CAN, Adalid Contreras, stated this experience of Community Customs Traffic is a concrete example of the use of the community customs norm, where boundaries are broken and people are integrated, saving time and economic resources. A similar experience has already been done between Colombia – Ecuador – Colombia, using the land custom offices of Ipiales (Colombia) and Tulcán and San Miguel (Ecuador), and then the Putumayo River taking goods to Leticia (Colombia).

January-April 2012

Mail

I wish to congratulate you for the great effort done by Latinports.

Franc PignaGeneral Director Aegir Ports Property Advisors

USA

Congratulations for the excellent presentation of the bulletin and for featuring us in it.

Fernando RevecoDevelopment and Project Manager Ultramar Group

Chile

I attended your conference on investments in ports in Latin America last December in London and our company is interested in having more Information on containers ports.

Harald SperleinKfW IPEX-Bank GmbH

Frankfurt, Germany

It was a great privilege to meet you all along this port route and even more to learn from the events you have promoted in Latin America. Thanks for the permanent support to the challenges of our sector.

Fernando FialhFormer Executive Director National Water Transportation Agency

Brazil

January-April 2012

We are interested in port projects developed in Latin America. We have a program that promotes world investment expansion of Korean shipping lines and we see a great opportunity in your region.

Hye KyeongInternational Logistics Research DepartmentKorea Maritime Institute

Seoul, Korea

Thanks for the information; very complete

Leonardo DelgadoGeneral ManagerAlmacenes Generales de Depósito del Banco Popular (Bonded Warehouses of Banco Popular)Alpopular

Bogotá, Colombia

We will share with all our affiliates this material of great interest to our guild.

Antonio FelflePresident Port Association of Barranquilla

Colombia

I read the last bulletin of Latinports and found it really interesting and varied, with a great amount of valuable port Information.

Mauricio EstebanManagerSoluciones Financieras, Solfin

Bogotá

A very good document. Congratulations

Carmen MartínSuperintendent of Logistics & Ports

MPX Colombia

January-April 2012

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