Latinports Newsletter September-December 2012

September-December 2012Year 4, No. 3

Annual Seminar of Latinports in Chile Convened Ports of the Continent

Brazil: Controversy for Crucial Package of Measures for the Port Sector

Chairman of the Executive Committee of Latinports at Harvard Club New York

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MSC Inés, the Largest Ship Arriving to Latin America

CONTENTSSeptember

December

2012

News Of Latin American Ports

Mail

ANNUAL SEMINAR OF LATINPORTS The III Annual Seminar of Latinports Convened Ports of the Continent in Viña del Mar, Chile

Declaration of Valparaiso

Editorial

Coverz, 9,100 TEU Capacity and 14 Feet Draft, the Largest Vessel that has come to Latin America (Oct 2012)

DesignJulian [email protected]

New Members- Empresa Portuaria Valparaiso

Distinctions - Liebherr and Incatep

- The Chairman of the Executive Committee of Latinports at the Harvard Club New York: Brazil Infrastructure Investment Forum- Interview of Mundo Marítimo to the Executive Director of the Association: Latinports Reconfirmed its Commitment to Combine Public and Private Efforts

CHAIRMAN AND EXECUTIVE DIRECTION - The New Mexican Government Intends to Convert Lázaro Cárdenas in the Hub for the Americas. - Panama: Fourth Country in the World in Port Infrastructure - Port of Cartagena Receives for the Sixth Time the Award as Best Port of the Caribbean

- Brazil: Controversy for Crucial Package of Measures for the Port Sector

- The Largest Container Ship of the World Enters the Europe-Asia Route. - Trade Volumes are Slowing Down. - Increase in Freight Tariffs May Affect Contract Negotiations for 2013.- Hapag-Lloyd and Hamburg Süd Analyze Possible Merger.- Somber Future for the Naval Construction Industry in 2013.- Grupo Empresas Navieras of Chile Start Investments for US$515 Million in Fleet of Ships.

- Pacific Brazilian-Peru Route Brings Businesses and Devastation - South America needs Infrastructure Projects for US$116,000 Million for a Better Integration - The Three Largest Terminals of Latin America will Enter in Operation in Brazil in 2013. - Open the Doors! Editorial of the Editor of the Law of Ports of Colombia in the Book Colombian Port Law.

LOGISTICS, COMPETITIVENESS AND PORTS IN LATIN AMERICA

MARITIME TRANSPORTATION AND PORTS

LATIN AMERICA AND THE WORLD- “China Effect” Revives Mexico and Shadows Brazil- Positive Position of ECLAC- Advancements of Latin America Could Transport it to its Development in the Next Decade.

WATERWAYS IN LATIN AMERICA- Navigation Recovery Starts in the Magdalena River of Colombia.- New Brazilian Waterway will Reduce One Billion Dollars in Grains Freight Costs.

http://www.miroamarillo.com

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September - December 2012CONTENTSEditorialFor third consecutive year we successfully developed, on this occasion in Chile, our Annual Public-Private Seminar, where representatives of the main ports of the region analyzed the outcome of the industry. The host Minister of Transportation, in his opening speech, established what would be the event: “It is with great pride that while the world is going through a major crisis, Latin America not only has overcome this crisis but continues to grow”, he stated, and under this premise work was developed until accomplishing the Declaration of Valparaiso and the conclusions of the event, of which you may find details in the following pages. An event worth mentioning is the package of port measures that the President of Brazil launched the beginning of December, implying important changes in the model of concessions and multimillionaire investments for the years to come, on which topic we shall extend further on. As was said in Chile by the president elect of Latinports, Arturo López, “the first stage of the opening of ports has been met and now we are entering the second stage which is the modification of laws to adapt them to the present situation of the industry, and for which the public-private view of Latinports may be of great help”.

Also worth mentioning is that while the world shipping industry (and thus that of shipyards), is undergoing an unprecedented crisis that has forced it to desperately increase freights, to stop equipment, postpone investments and study mergers in order to survive, the Group Empresas Navieras de Chile and its subsidiary Compañía Sud Americana de Vapores, are starting an important expansion plan of their fleet, convinced of the potential of the region.

On the other hand we are pleased to announce that in view of the impulse being given to waterways in the principal countries of South America (Brazil, Argentina and Colombia), so necessary for our countries foreign trade, we have decided starting with this issue to include a special section for this important node of transportation and river terminals that we are sure will be of great interest for our readers. “If logistics through waterways did not exist, it had to be invented”, stated in a recent forum consultant Jan Wilen Koeman, designer and responsible at the time of the master plan of the Port of Rotterdam.

This and much more are indications that a promising year 2013 awaits us. Happy New Year!

[email protected]

www.latinports.org

Julian PalacioExecutive Director

mailto:jpalacio%40latinports.org?subject=

http://www.latinports.org

September - December 2012


III ANNUAL SEMINAR OF LATINPORTS CONVENED PORTS OF THE

CONTINENT IN VIÑA DEL MAR, CHILE

Pedro Pablo ErrázurizMinister of Transportation

Under this title and its subtitle “Representatives of the Main Ports of the Region Analyzed the Future of the Industry”, Mundo Marítimo of Chile highlighted the annual event of Latinports, informing that “important persons of the port activities of Latin America shared its experiences, achievements and challenges”. This is a good extract of what happened.

Developing our great annual event in Chile was especially significant as we remember this country as the one that started port decentralization and privatization in Latin America, an example successfully followed by most of the countries of the region. Besides, this country stands out for its permanent innovation in all sectors, which results have made it a leader in logistics and competitiveness in the region, as recently highlighted by the World Bank and the Institute of Competitiveness Aden.

Thus, with the presence of the Minister of Transportation and Telecommunications of Chile, Pedro Pablo Errázuriz, on November 26 and 27 was held at the grand Hotel Sheraton Miramar of Viña del Mar, the important annual event of Latinports in commemoration of 100 years of the port of Valparaiso, focused on a topic of great relevance as is Ports and Logistics Platforms for Foreign Trade. Minister Errázuriz said it gave him great pride to see that while the world was undergoing a great crisis, Latin America was not only overcoming it but continued to grow, and the president elect of Latinports, Arturo López, considered that the first stage of the opening of ports had been fulfilled and the second stage was now the modification of laws to adapt them to the present condition of the industry, in reference to the importance of the public-private associations in which Latinports could be of great help.


Arturo LópezPresident Elect of Latinports

With the remarkable sponsorship of Empresa Portuaria Valparaíso and the concessionaire Terminal Pacífico Sur, important matters were dealt with as is the economic leadership of Latin America, the repercussions of the extensions of the Panama Canal regarding the size of vessels that will be arriving to the region, the multimodal logistics platforms, and the required integration of the port with the city (in particular the project Puerto Maravilla: Rio de Janeiro 2016). These matters, masterfully developed by outstanding international experts, served as the frame for the presentation of the experiences and perspectives of some of the most important containers terminals of the region such as Valparaíso, Santos, Buenos Aires and Cartagena. Conferences in general may be consulted, in power point and video, in the link of the event of our webpage www.latinports.org

“It is with great pride that while the world is living a very large crisis, Latin America has not only overcome this crisis but continues to grow”. This sentence of the Minister of Transportation of Chile, Pedro Pablo Errázuriz, was reconfirmed in detail by ECLAC and served as the frame for the III Annual Latin American Public Private Seminar, making ports and countries aware of the necessity to benefit in the best way possible of the potential of the region, making laws flexible in such a way they adapt to present situation by means of a public-private joint work.

The event focused on this topic, highlighting the great perspectives that open to the ports of the region with the extension of the Panama Canal, which opening is foreseen for 2015, as well as the resulting requirements to receive ever larger ships (currently ships arriving have 9,100 TEU capacity).

Also worth mentioning is the effort of the governments to improve in a substantial manner internal transportation and port connectivity, a field in which the region is way behind compared to developed countries, which reduces foreign trade competitiveness.

On the other hand, port operators must not be limited to the business as was first conceived but to expand its field of action through distribution logistics, in order to make connectivity more efficient and reduce internal transportation costs, as is now being successfully done by some large operators in the region.

Conclusions of the event were entered in the Declaration of Valparaiso, which we transcribe below:

Multimodality and Logistics

Port-City Relationship and Sustainability

DECLARATION OF VALPARAISO 2012



INTERVIEW OF MUNDO MARÍTIMO TO THE EXECUTIVE DIRECTOR OF THE ASSOCIATION:

CHAIRMAN OF THE EXECUTIVE COMMITTEE OF LATINPORTS AT THE HARVARD

CLUB OF NEW YORK

Wonder Port Rio de Janeiro 2016 and Port of Valparaiso are an example of the harmonious relationship between city and port, with large dividends for both and for the welfare of the community in general. Ports must work on sustainability to make this relationship even more harmonious.

The Chairman of the Executive Committee of Latinports and of the Management Councils of Terminals of Santos Brasil and Multiterminais, Richard Klien, referred at the Harvard Club of New York to the success of port privatization in Brazil and the growth of its foreign trade, even higher than China’s, emphasizing that the key to success for port efficiency is investment.

Also worth noting is the vision of the Chilean government of a long-term (50-year) planning in matter of transportation infrastructure and ports, above the immediate interests.

Situation in Particular


LATINPORTS RECONFIRMED ITS COMMITMENT TO COMBINE PUBLIC AND PRIVATE EFFORTS

The executive director of Latinports, Julián Palacio, after congratulating the excellent level of the lectures presented during the event – that gathered important persons from the industry of the principal ports of Latin America – emphasized and renewed the purpose of the association of adding up the efforts of both public and private sectors towards the development of the port industry of the continent, an issue summarized in the slogan: “Governments and private sector working together for port logistics development of the region”. This was done during the closing ceremony that took place at Hotel Sheraton of Ciudad Jardín on 26-27 of November.

In reference to fulfillment of this objective, Julián Palacio stressed that Latinports “is the only association worldwide where the public and private sector are working”, emphasizing that both sectors may not be divorced, “we are working in the same business and have to make it hand in hand”, he stated, and likewise stressed the brief but successful route of the association: “We have now three years of age and have developed important things, beginning with the fact that we were born with 15 ports, basically from Brazil, Mexico and Colombia,

and at present we are more than 45 ports in 12 countries”, he stated.

It is worth stating that the host of this version of the seminar was the Port of Valparaiso, which added to the meetings already held in Brasilia, which coincided with 50 years of its foundation; and Cartagena, where 20 years of the Law of Ports of Colombia were commemorated. Also, the development of the historic event in the Chilean port emphasized the commemoration of its 100 years. Regarding the latter, Julián Palacio remembered that “Chile was the country of the region that first decided to allow private initiative in the port industry, which resulted in its excellent development”.

Altogether with the above, Julián Palacio mentioned some of the elements that will be included in the Declaration of Valparaiso, a document that – as usual at the end of the development of each seminar – will gather the conclusions and objectives to be followed by the members of Latinports. This, altogether with the analysis set forth during both days of the seminar. In this sense, Palacio emphasized as the main concern expressed by several of the participants to improve logistics available within port structures.In this matter, the executive director of Latinports stated that: “I always say nothing is more frustrating than a very efficient port with a poor connectivity, thus little favor is being done to foreign trade of a country, because everything is being lost within

Logistics Chain: Basic Concern of the In dustry


“CHINA EFFECT” REVIVES MEXICO AND SHADOWS BRAZIL

another part of the logistics chain. I believe emphasis must be done and we must work hand in hand with the governments to encourage all these projects we have seen that are really big”, he stated referring to the challenges of ports such as Santos, Buenos Aires, Cartagena, and Valparaiso, among many of those that expressed their challenges.

Within this scope, Julián Palacio declared himself greatly surprised on how the works being developed within the area of logistics support of the Port

According the information of Reuters América Latina, Mexico is starting to displace Brazil as the king of the Latin American markets for the same reason it had been relegated to a second place within the region: China. While the Mexican economy gains in competitiveness and grows slowly but firmly by the hand of the demand of the United States, where it is starting to steal market from China, Brazil decelerates because of the lower appetite of Peking for raw materials, and for this reason foreign portfolio investors continue increasing their exposure to Mexico and reducing their stakes for Brazil, which is vulnerable to the risk of a deeper eventual fall of the Chinese economic rhythm.

During the first seven months of the year, the Stock Exchange of Sao Paulo received a net flow of foreign investment of 2,900 million dollars, which was overcome by the 3,400 millions that entered the Mexican market, according to the central banks of both countries. Last year, the balance had been quite different: Brazil had captured 7,100 million dollars, whereas Mexico had to absorb the exit of 6,200 millions. And in 2010, the stock market of Sao Paulo had seduced the trifle of 37,700 million compared to the modest 640 million of its Mexican counterpart. “The foreign investor, with no heart and no emotion, (…) always goes where the best economic opportunity lies and suddenly Brazil does not seem

of Valparaiso have expressly called the attention of other countries such as Brazil. It must be remembered that the sixth economic power of the world has multimillionaire projects in port infrastructure, mainly to be developed in Santos and Rio de Janeiro, encouraged by nearby challenges as the development of the Soccer World Cup in 2014 and the Olympic Games in 2016. This interest, according to Palacio, clearly shows that things are being well done in the Chilean port, mentioning its logistics chain as “an example for all Latin America”.


http://www.atpaltamira.com.mx/


Since China joined the World Trade Organization (WTO) in 2001, Brazil triggered its growth mounted on what seemed an insatiable demand from the Asian power for its raw materials, while the Mexican industries fought in the United States against cheap Chinese products but, with a new government that promises reforms to accelerate growth, Mexico expects to consolidate a favorable trend in times when the fall of Brazil coincides with the lower expansion rate of the second economy of the world. “The pendulum has oscillated back in favor of Mexico”, stated Claudio Brocado, administrator of funds for Batterymarch Financial Management Inc., that helps to supervise 5,900 million dollars invested in shares of emerging countries. “It had oscillated too much in the opposite direction”, he described.

as the best opportunity”, stated Luis Maizel, who supervises the 7,000 million dollars invested by the funds of Legg Mason Capital Management.

Brazil grew at rates that almost doubled those of Mexico during the last decade and even obtained the place as the greatest Latin American economy in 2005, thus becoming the spoiled country of the markets; but Mexico is starting to shine, and not only because of the clouds over Brazil. While the economy is routed to expand more than the Brazilian for second consecutive year – something that did not happen since 1999 – its industries competitiveness is growing. The gap in labor costs compared to China fell to 7 percent in 2011 from 238 percent in 2002, according to Moody’s, and its links to the United States, that is now leaving the crisis better than other developed countries, becomes a less vulnerable option than the global storm. That is why its products are regaining space on U.S. racks and market participation that had fallen 9.5 percent in 2005 because of China, has now moved to 13 percent.

However, many expect that the largest Latin American economy recovers in the next quarters as a result of the collection of government measures to reactivate growth and by the surge of investments in infrastructure for the Soccer World Cup of 2014 and the Olympic Games of 2016. Data from EPFR Global that monitors the activities of the investment funds showed that by mid-September Brazil had in three months the greatest flow of shares entering

the market after the approval in China of an infrastructure plan for 150,000 million dollars to reactivate its activity.

Barclays assures that besides the proximity with the United States, Mexico has the increasing specialization advantage in sectors of great added value such as vehicles and telecommunications equipment, which has helped makers to recover grounds with China. Large products may take

Out of the Shadow


between four and five weeks to arrive to the United States from China, but the Canadian Bombardier Inc, for example, may send a truck in a Learjet 85, almost finished, from its plant in the Mexican state of Querétaro and assembled in Kansas in only two days, according to the quality director of the Mexican affiliate, Norman Thompson.

China’s growth of more than 7 percent per year still has great advantage over the United States and Mexico, but reduced to almost half since the crisis and will probably continue within these levels as Peking seeks a less explosive but more sustainable expansion rate. And China cut its demand for primary products: shipment of Brazilian mineral ore and oil to its Asian partner, two of the main products it sells, fell 21 and 13 percent, respectively, during this year compared to the same period of 2011. “Flows are now driven by the perception that the Brazilian wagon is very subject to China that is now decelerating and changing its orientation in a way it reduces its intensity for raw materials and energy”, stated Frances Hudson, strategist of Standard Life, that has approximately 260 billion dollars in assets invested worldwide.

Funds focused to invest in Brazil had an average return of 6.74 percent during the first eight months of the year, compared to an average of 8.17 percent of those focused on Mexico, according to data from Lipper, a company of Thomson Reuters. Foreign investors are also diving into the markets of bonds and Euan Munro, who supervises a portfolio of 27,300 million dollars, stated he is protecting his portfolio against Chinese risks and leveling it with a larger exposure to the United States by maintaining Mexican bonds. “We look to emerging markets against high return junk bonds and favor Mexico within the emerging markets for its valuation and fundamentals”, stated Munro.

The strategy of the Brazilian President, Dilma Rousseff, is partly addressed to reinforce domestic consumption with imposing exemptions and an aggressive policy to reduce interest rates and revive credit, but from the financial investor point of view, the composition of the main stock index of Brazil,

Bovespa, this does not help for almost 40 percent is linked to raw material producing companies. On the contrary, in Mexico, two thirds of the leader stock index CPI is formed by securities linked to consumers such as telecommunications, retailers and beverages. For Claudio Brocado, administrator of funds for Battery March Financial Management, this is partly explained because the CPI index has increased almost 9 percent this year and is routed to a level record compared to 7 percent of the earnings of Bovespa. “The Mexican index is more to the defensive”, he stated, in reference to the stocks that provide dividends in a constant manner and report stable profits. “Composition of the index has favored Mexico in relation to its relative performance”.

Unfavorable Exposure


POSITIVE POSITION OF ECLAC

When deceleration winds started blowing in Latin America, as a result of the slowdown in global economy, more than one analyst was questioned how the region would react with the surf. ECLAC provided its reply during a press conference held at its office in Santiago de Chile. According to this organization, growth of the Gross Domestic Product of the countries of the area will be only 3.2 percent in 2012, a figure unfavorably compared to the 4.3 percent of last year and 6.1 percent for 2010. However, the halt may be less worrying than it seems, once certain realities are considered.

To begin with, the international context has changed as a result of the European crisis, the mediocre performance of the United States and the slowdown of China. These three elements have hit more or less the different Latin American nations, as it is difficult to talk of a uniform impact. Because of this, it is difficult to generalize and better to move to analysts case by case. For example, it is inevitable to

Below is the editorial of the director of the economic publication Portafolio of Colombia, Ricardo Avila, on October 2012:

pass up the situation of Brazil that is not having a good moment and its economy has a weight equal to more than one third of the regional GDP. According to ECLAC, the South American giant shall only advance 1.6 percent that will serve as ballast for the results of the entire zone. Likewise, Argentina is facing problems because of policies promoted by the government of Cristina Fernández that have weakened domestic confidence and shown a growth of only 2 percent because of the strong draught that affected the soybean crop in this country.

However, in the rest of Latin America, perspectives are fairly good, with the exception of some Caribbean islands. In other words, dynamics may not be spectacular, but things are relatively good. This affirmation may be verified by the evolution of urban unemployment that continues to fall to levels of a 6.8 percent average. Most employed population is the best guarantee for poverty rates to decrease again, after having reached a historical minimum last year, and for internal consumption to maintain relatively vigorous. On the other hand, inflation is under control, while fiscal indicators are solid, which are the envy at other latitudes. The balance of international reserves has also increased, and at the same time public debt is not a reason of concern. Thus, the region may rest assured regarding how it has evolved in the midst of very complex global circumstances.

Upon saying the above, eyes must be kept open. In its diagnosis, ECLAC insists that dangers from outside are real and expressed in the low dynamics of international trade. But in case of a sudden deterioration of the requirements of the countries


It had been established that the expression in process of development is no longer being used for Latin American countries. The fact is that political, economic and social advancements within the region, according to some economists, could take us to development the next decade.

Figures support us. Latin America currently represents 8% of world population and 9% of world GDP, and has a rent per capita doubling the average of emerging countries. Latin America is catching up with several economies that were ahead for a long time, thanks, among other factors, to the executive talent within this region.

The Latin executives have a series of competences that make them stand out compared to the

Europeans, Asians and Anglo-Saxons. They are efficient and academically well trained professionals, with deep-rooted expectations for a better future, proper of a culture that challenges time, as it seeks to attain development.

On the other hand, although differentiating elements exist, Latin America has a similar culture and history. We share the same language and an idiosyncrasy that makes us friendly, family lovers, homogeneous in religious beliefs and feeling proud of our traditions and customs.

If we further add up our growing potential, we may affirm it is the time for Latin America. The growth of our population takes us through a virtuous circle, on one hand fighting poverty with the generation of

Considering it of great interest, we transcribe below an article of Christian Duarte, president of the Group

Transearch – Mandomedio of Chile, published by Educaméricas the end of December:

ADVANCEMENTS OF LATIN AMERICA COULD TRANSPORT IT TO ITS DEVELOPMENT

IN THE NEXT DECADE.

located either on the other side of the Atlantic or the Pacific, maintaining good conditions will be a titanic task. This warning bell must be listened by all Latin American countries. As has been the constant as of the end of 2008, the great factor of uncertainty is again happening in the rest of the world. But if nothing catastrophic occurs, in 2013 there should be an upturn that would take regional growth to

4 percent, an acceptable figure considering the difficulties seen in other continents, and that this time have abstained from passing a large collection account.


We have the responsibility and the great challenge that Latin America will continue the path of growth. Today, despite political differences that have caused some countries to recur to international courts, at the level of businessmen a cooperation environment of working together has maintained for the development of the entire region; because the walls that separate governments are much smaller when starting and developing businesses.

new jobs, attracting foreign investment, growing in infrastructures and improving distribution networks.

Today, regional companies have their own engine. They are multi-Latin. It is not new that our companies are growing towards other countries of the region because we are interested in investing in ourselves, above all in the face of a depressed Europe, and a United States fighting with China for economic leadership.

Measures Announced: Folha summarized well the principal provisional measures announced by President Dilma Rousseff and the Minister of Ports Leônidas Cristino. Besides the opening of the proprietary (private ports for private services) and the rebidding of approximately 50 port terminals with expired contracts (leased prior to the Law of Ports of 1993), measures were the following: concession of five public ports, of which three are new (Manaus, Ilhéus and Vitória) and two existing ones (Imbituba and Ilhéus); tenders at public ports through bidding criteria that will weigh the best tariff and higher cargo movement; creation of Conaporto that will gather all public agents working at ports in only one location (police, customs and sanitary supervision, among others); and the creation of a centralized dredging system with a ten-year term (an institute will study a permanent system); the National Water Transportation Agency, Antaq, and river ports, will move to the Secretary’s Office of Ports; and breaking down the monopoly of the Navy to train

and register practical pilots: a national committee formed by technicians will make rules flexible in order to increase the number of ship stevedores and debureaucratize work to reduce costs. The government package expects to attract about US$27 billion in private investments for the next five years (until 2017), investing out of this amount US$16 billion between 2013 and 2015. To attract private interests, the government will guarantee public financing of the port system projects to reach US$17 billion, of which US$3.5 billion will be for access works to ports.

BRAZIL: CONTROVERSY FOR CRUCIAL PACKAGE OF MEASURES

FOR THE PORT SECTOR


Richard Klien Chairman of Latinports

Divided Opinions of Entrepreneurs: The Brazilian Association of Containers Terminals, Abratec, shows its concerns with these measures: “While the constitutional principle is in force that the port is a public service activity in the country, this is illegal”, stated Sérgio Salomão, president of Abratec. In preparation for the package, this association presented a study identifying the possibility to invest US$5 billion in the new terminals until 2021, but in relation to what Salomão considers as disloyal competition, “these investments are at risk”.

However, for the president of the Brazilian Association of Private Terminals, ABTP, Wilen Manteli, the announcement of the president had good news as is the requirement of eliminating its own cargo in private terminals for private use, an opinion shared by Pedro Brito, director of the state organization National Water Transportation Agency, Antaq: “Differentiating between own and third-party cargo has ended”, he said. However, Manteli disagreed with the rebidding of port terminals with expired contracts and said he hoped contents of this provisional measure is modified as, in case there were more proposals, “where will the terminal be built if the land belongs to the first investor?” For this reason he added that “congress has to honor the Law of Ports that he himself approved in 1993, after two years of discussions”, and concluded saying that “if congress does not welcome these arguments, we will go to court, as this would be harmful for everyone, even for the government that will not see expected investments”.

For the chairman of the executive committee of Latinports, Richard Klien (chairman of the management councils of the important containers terminals of Santos Brasil and MultiRío), “since decision was made to revoke the Law of Ports, there will be modifications in all the articles to the Provisional Measure and a serious discussion in congress; without a strong hand to coordinate procedures, the risk exists of having a blackout at ports”.

Port Workers on the Defensive: The measure did not please port workers according to the president of the National Port Federation, Eduardo Guerra, quoted by Tribuna. The trade unionist suggests that changes in the legislation may generate great impacts in the working system of ports, as in the case of port management concessions. “With this, the government is opening privatizing port management, which represents a regression”, he said. Another concern of the unionist is the permit so that private initiative builds new ports other than the organized ports to move third party cargo. “Besides taking cargo from public ports, this measure may generate precariousness of work as these terminals may hire workers not registered in the Ogmo (Manpower Management Organization) and therefore, without a series of rights guaranteed by the law”. According to


Tribuna, port unions of Santos will decide in a joint general meeting in January the approval of a general stoppage in all Brazilian ports, to be done February 16-17, in order to achieve revoking the provisional measure.

Ports Package Attracts Investments for more than US$10 million: Valor informed that large groups have already presented 23 new projects to the government to be implemented in the years 2016-2017, according to estimates of Palacio de Planalto (the Presidential Palace). “Public calls” are about to come out where the government will inform the market on the existence of the projects, opening

Making a brief recount of the needs within the port environment, the new Minister of Communications and Transportation, Gerardo Ruiz, mentioned the importance of making viable projects as the second containers terminal of the Port of Lázaro Cárdenas, an issue yet to be solved by courts, thus affirming this will be the flagship of his administration before the Secretary’s Office of Communications and Transportation (SCT). He assured these facilities will give Lázaro Cárdenas the possibility to compete with great strength for the arrival of goods from the East

and to become a “great hub center” to distribute its cargo to different locations in the Americas.

“This will be the first work started by this administration. I expect to start these works, which are in conditions to be initiated with a very important investment of approximately one billion dollars”, stated the Minister.

In an interview with T21, the executive director of the Association of Terminals and Port Operators ATOP, Jaime Aguilar, showed his approval on the appointment of the new Minister and assured he is a person of recognized capacity, experience and knowledgeable of the situation, which ascertains that “the relationship to be started with the new director of SCT will result in a greater development for the port sector of our country”.

them to competition. Calls will have 30-day duration, and during this time any company may offer an alternative project.

Provisional Measure will be Discussed in the February Congress: The mixed committee of representatives and senators that will analyze the Provisional Ports Measure issued by President Dilma Rousseff, will be installed after the parliamentary recess in February 2013.

NEW MEXICAN GOVERNMENT INTENDS TO CONVERT LÁZARO CÁRDENAS IN THE HUB FOR

THE AMERICAS.


After the announcement of starting civil works in the month of December and the support of the new federal authorities to the project, the director for Latin America of APM Terminals, J.D. Nielsen, stated to T21 that TEC II of Lázaro Cárdenas in México will become an added value to the businesses. He commented that his plan includes offering the facilities to all interested shipping companies, as well as the possibility of providing facilities to freight forwarders and customs agents. “APM Terminals is proud of being at Lázaro Cárdenas and we are looking forward to become an added value for the businesses of the port and the city, and also for the state of Michoacán in Mexico”, stated Nielsen.

Upon asking why APM Terminals chose the Port of Lázaro Cárdenas for a new containers terminal, the executive stated it was basically because of its geographic location placing it closer to the “huge” market of Mexico City, over any other port in the Pacific coast. “The port has an excellent water depth, which allows handling large size containers ships. There is no congestion at the port and clients will profit of a more efficient handling of its cargo. There is an excellent railway connection directly to the market of Mexico City, and finally, the port is well directed and managed by the port administration”, stated Nielsen.

Some years ago, Maersk affiliate had announced investments for a logistics cluster at the port of Panama that finally did not materialize; therefore, the

TEC II project at Lázaro Cárdenas may fill the mega investment that had been thought of. However, J.D. Nielsen rejected this idea and said that TEC II is basically addressed to the market of Mexico, “but we will also be capable of offering a transshipment service to and from other markets of Central and South America”.

Plans of APM Terminals

The Port of Lázaro Cárdenas is the largest Mexican seaport and one of the largest seaports in the Pacific Ocean Basin, with an annual traffic capacity of around 25 million tonnes of cargo and 2,200,000 TEUs.

The Port of Lázaro Cárdenas


it to be one of the most competitive of the Central American region.

The movement of containers in Panamanian ports closed 2012 with a 5% increase arriving at 7 million TEU, an increase much lower to that of 2012 because of a workers stoppage that considerably reduced a growth forecast higher than 18%. Of this total, the Port of Balboa, managed by Panama Ports Company, moved 2.6 million TEU, that is, 1.2% more than previous year. Cristóbal moved 740 thousand TEU. Furthermore, Manzanillo International Terminal (MIT) received 1.7 million TEU, 10% more; the Port of Colon Container Terminal (CCT) moved 513,000 TEU, Bocas Fruit, almost 30,000 and Panama International Terminal (PSA), 53,000 TEU. According to Enel Camargo, of the Maritime Chamber of Panama, the maritime trade market has 180 companies dedicated to maritime activities, “which represent 20% of the gross domestic product, and is the one with the highest growth in national economy”.

Based on information of Mundo Marítimo of the end of September, quoting the paper La Prensa, efforts of the sector have positioned Panama as the fourth country of the world for its port infrastructure quality. This was stated in the Global Competitiveness Report for 2012-2013, prepared annually by the World Economic Forum. In this issue, Panama moved up one place since last year, when it was in the fifth place of the world, indicating a continuous institutional development curve in movement of containers. In fact, the report of the World Economic Forum mentions that port sector as one of the main elements for the efficiency model of Panamanian economy, which has taken

According to Mundo Marítimo, the Colombian Port of Cartagena received for sixth time the distinction as the Best Port of the Caribbean granted by the Caribbean Shipping Association (CSA) for its achievement in 2011 in the fields of infrastructure, cargo increase, reliability and efficiency, among others, during the forty-second Annual Congress of the organization being held this week in San Juan, Puerto Rico.

PANAMA: FOURTH COUNTRY IN THE WORLD IN PORT INFRASTRUCTURE

PORT OF CARTAGENA RECEIVES FOR SIXTH TIME THE AWARD AS BEST PORT OF THE CARIBBEAN


Chile, seeking for businesses. Brazil needed an exit to export its products to the Asian markets in the Pacific and was the main sponsor of the Interoceanic. The non-governmental organization of journalism, Connectas, traveled almost 700 km of the Interoceanic to see the changes this route had brought for the environment and the lives of persons.

The distinction, granted by the vote of all CSA associates – formed by ports and shipping companies – is granted in the category of “Container Terminal” and includes other specific areas in which the port fully showed satisfactory results, as improvement of physical and industrial security and advances in infrastructure. Such advances allow facing with great autonomy the commercial challenges resulting from the trade agreements of Colombia with other nations, and also the flow of the large size ships that will arrive at its docks after the completion of the expansion of the Panama Canal in April 2015.

Acknowledgement by CSA was made public at the capital of Puerto Rico and add up to those previously received by the Port of Cartagena in Bridgetown, Barbados, in 2005; Panama City in 2006; Santo Domingo, Dominican Republic, in 2007; Paramaribo, Surinam, in 2009, and Kingston, Jamaica, in 2010.

Estado of Brazil informed of the Interoceanic South highway 5,400 km long that connects the Peruvian Pacific and the Brazilian Atlantic, opened a year ago. This brought forth great wealth and development opportunities, but also great environmental and social challenges. The road opened in the triple border of Brazil, Peru and Bolivia an extended area of forests and thousands of persons are arriving to live there, besides a great number of investors from China, Russia, France, Mexico and

CSA was created in 1971 to facilitate in an efficient manner maritime industry development in the Caribbean and its members are twelve shipping associations and more than a hundred individual entities, including port authorities, terminal operators, and maritime agents, shipping lines, cargo consultants and agents, among others.

This accomplishment of the Port of Cartagena has been possible thanks to the effort of its human team and the confidence deposited by the international maritime sector, allowing the port to function as logistics distribution center for five of the most important shipping lines of the world and to project as regional leader in containers transshipment, efforts that for several years have been extensively valued by CSA, to whose members it thanks this new acknowledgement..

PACIFIC BRAZILIAN-PERU ROUTE BRINGS BUSINESSES AND DEVASTATION

September - December 2012Mayo - Agosto 2011


Brazil and Peru, and between these countries and Bolivia. On the other hand, Chile expects to see commercial opportunities to grow, considering that the road will give access to a market of 200 million Brazilian consumers. Interoceanic has in average a flow of only 160 cargo vehicles per month (most of it carrying timber to the Pacific) and almost 640 passenger vehicles, as stated by toll officers at kilometer 73 of the Peruvian pampa. Three reasons explain why the resounding commercial bonanza of the road between the three countries is taking long to takeoff. The first is there are no agreements for a more organized border crossing. The second is that in theory it is cheaper to transport cargo from Brazil to Peruvian ports, but since the vehicle carrying cargo must return empty, then this country exports less or freights are more expensive. Finally, it is not easy for chauffeurs to drive these huge Brazilian trucks through the narrow Andean Peruvian roads on the way to Juliaca, south of Peru, where some curves are so narrow that even passenger buses have difficulties going through.

The scenario shown is somewhat chaotic: illegal mining extraction, especially in Peru and Bolivia, and the transit facilitated for drug and persons trafficking. In the meantime, commercial exchange, its principal reason of being, is starting to give results. Until now, the products of the region of Acre in Brazil, such as soybean, have to travel more than 26 thousand kilometers to arrive to China, with a costly mandatory passage by the Panama Canal, but the new road reduces this distance to 17.5 thousand kilometers. Furthermore, Peru may send its products at a lower cost to Africa and Europe, loading them directly at the Brazilian ports in the Atlantic. The Interoceanic is expected to improve trade between

South America requires investments for approximately US$116 million in infrastructure projects to reach a better regional integration, stated the head of the Ministry of Transportation and Communications (MTC) of Peru, Carlos Paredes, in his closing speech at the third ordinary meeting of ministers of the South American Council of Infrastructure and Planning (Cosiplan) that was held in Lima in November. Paredes is acting pro témpore president of the entity. “Member states

have a commitment to prepare plans oriented to improve tools for the execution and conclusion of high impact projects in the region, actions that will allow taking greater impetus towards the integration process between South American countries”, he stated.

The infrastructure ministers of the member states of Cosiplan ratified a portfolio of projects originally informed in November 2011, which includes 531 projects distributed in nine integration agreements in the entire region. Of these, 31 are considered as priorities, which will require an investment of almost US$17 billion.

SOUTH AMERICA NEEDS INFRASTRUCTURE PROJECTS FOR US$116,000 MILLION

FOR A BETTER INTEGRATION


The mixed use Private Port Complex of the Super Port of Açu, in construction by LLX, logistics company of the Group EBX, is the highest investment in port infrastructure of Latin America. These works, located in the state of Rio de Janeiro (next to Bahía de Campos, area responsible for 85% of oil and gas production of Brazil), characterized by an innovating project, as is the port-industry concept, allies modern engineering, construction and operation practices, involving investments for US$2 billion. Of this total, US$500 billion must be invested by LLX Minas-Rio (responsible of implanting the port terminal dedicated to mineral ore) and US$1,5 billion for LLX Açu (responsible of the operation of other cargoes as steel, oil, coal, granite, slag, iron ore products and cargo in general).

Being located next to the principal producing and consumer poles of the country, the Super Port of Açu has great potential of becoming the principal alternative for production transportation of the center-west and southeast states of the country, currently suffering of lack of logistics accesses. Besides, the region has the adequate depth to receive large ships. Thus, the Super Port of Açu will have an initial depth of 21 meters, with perspectives to expand to 26 meters, sufficient for Capesize vessels and Very Large Crude Carriers (VLCC) transporting up to 320 thousand tons of cargo, and Chinamax carriers that have 400 thousand ton capacity. At present, only 7% of Brazilian ports have capacity to receive Capesize vessels.

Forecast is that the Super Port of Açu moves 350 million tons per year between exports and imports, with emphasis on oil, and this will position it among the three largest port complexes of the world. Operations are foreseen to start in 2013.

Embraport, Brazilian Company of Port Terminals, is a project of Odebrecht Transport with DP World and the Group Coimex, located in an area of 850,000 square meters at the Port of Santos, to build and operate a private mixed-use private terminal. Once completed, the terminal may move 2 million TEU and 2 billion liters of liquid bulk. Estimated to start operating in 2013, the terminal has absorbed investments for about US$1.2 trillion.

THE THREE LARGEST TERMINALS OF LATIN AMERICA WILL ENTER IN OPERATION

IN BRAZIL IN 2013.


first phase 1.4 million tons per year of liquid bulk and 1.2 million TEU per year.

“With the new terminals (Embraport and BTP) operating at full speed, in 2014 the movement capacity for containers in the complex will jump to 8.1 million TEU compared to 3.14 million at present” stated Tribuna.

Brasil Terminal Portuario BTP, corporation formed by two large global operators, APM Terminals and Terminal Services Limited, will start operations the first quarter of 2013, with an investment of more than US$1 billion. According to International Finance Corporation IFC of the World Bank, cofinancier of the works, this new containers terminal located at the Port of Santos will be the principal Brazilian terminal and the most important of Latin America. BTP has foreseen to move in its

Extracts of the Prologue of Hugo Palacios, editor of the Law of Ports of Colombia (Law One of 1991), to the book Colombian Port Law of Oscar Fabián Gutiérrez:

“This book is called to have many readers and editions because Colombia, finally, is leaving behind the ECLAC remnants and has decided to open its doors and ports to the world (…)

During a long time, the country, which was imposed an economic vision obliging it to seek development by contemplating its own navel, did not have a great need for its ports. Buenaventura, Barranquilla, Cartagena and, in a certain way Santa Marta, developed their ports thanks to coffee growers and an occasional bold entrepreneur that maintained them alive since the time of the colony. Since ports were not very important for the country that was closed to the world, governments did not have remorse to look the other way, while corrupt unions and corrupt bureaucracies of government companies made of ports a private source of income and of advantages for its members. (…)

Law 1 of 1991 transformed ports belonging to a state company that became mixed corporations, for public service. Private persons did not want to invest in such companies as, based on experience, it was difficult to believe they could be profitable. Some, driven above all by civic reasons, invested and, as said by their enemies, became immensely rich in the process; this version must be true, as I have not seen the accused defending themselves. In any case, these corporations have further done considerable

OPEN THE DOORS!: EDITORIAL BY THE EDITOR OF THE LAW OF PORTS OF COLOMBIA IN THE BOOK

COLOMBIAN PORT LAW.


investments to improve port services, and they have achieved it. (…)

(…) Many other things could be said on innovations to Law 1 in the field of public policies and administrative law. Óscar Fabián Gutiérrez, in this book, does it with singular talent and precision, without limiting, as many other books of law, to paraphrase legal rules. He well knows, after many years of practice, the rules, jurisprudence and scarce

“We are very pleased to announce in Cormagdalena (Corporación Autónoma Regional del Río Grande de la Magdalena) the opening of this process, thus we are complying with the express instructions of President Juan Manual Santos, for whom the recovery of the Magdalena River constitutes one of the most important infrastructure projects”, stated Executive Director, Augusto García, last October 23rd. This process will extend until May 2013, when the best offer resulting from a selection process will be awarded.

The project involves the construction of civil works in rock on the 256 kilometers from Puerto Salgar-La Dorada to Barrancabermeja, and dredging maintenance and other activities, along the River to Bocas de Ceniza (Barranquilla), to guarantee a minimum depth of 7 feet all year round, enabling it to transport convoys of up to 7,200 tons each.

doctrine on the matter. His fine criterion as a lawyer allows him to read, between lines, the sense of port regulations. Whoever wishes to know how the port sector operates in Colombia must read this book. And who believes in making the necessary adaptations of the rules of Law 1 to the new realities and technologies of foreign trade, must also read it to know where to start from… and not risk inventing things already invented.”

NAVIGATION RECOVERY STARTS IN THE MAGDALENA RIVER OF COLOMBIA


Reactivation of the Magdalena River will offer economic benefits as the decrease in internal freights, increasing competitiveness of our products abroad, environmental benefits, reducing effects of emissions of greenhouse gases, and connecting the

Folha of Brazil informed that the government decided to take the first step for the construction of the waterway Tapajós-Teles Pires, which will evacuate through the territory of Pará the production of grain from north of Mato Grosso, and has opened a tender to define the company that will develop feasibility studies and the project of works. Aprosoja (association that congregates soybean and maize producers of the Mato Grosso) estimates that transportation cost of a ton of soybean would fall from US$110 to US$20 with the waterway. In one year, the sector would save one trillion dollars.

country without intervening its landscape, wetlands, biodiversity and social benefits, rescuing many abandoned municipalities of which the only reason of being was its proximity to the Magdalena River.

Works will eliminate obstacles as rocks and sandy rivers, making navigable somewhat more than 1,000 km, starting at the Teles Pires River and following to the Tapajós River up to the port of Santarém, from where arrival to the Atlantic Ocean is possible by the Amazon River. With this, grain production in Mato Grosso, which main evacuation route is by road and railroad to the port of Santos, will gain a new route.

NEW BRAZILIAN WATERWAY WILL REDUCE ONE BILLION DOLLARS IN FREIGHT COSTS OF GRAINS


Container Management informed the latest update of global freight data collected by the International Transport Forum (ITF) at the OECD, which shows that global trade volumes are slowing down. Total external trade by sea (in tons) has remained stagnant below pre-crisis levels in the European Union (EU) and the US (-2% and -10%, respectively) according to seasonally adjusted preliminary estimates of goods carried until August 2012.

A 38% increase in freight tariffs for container maritime cargo in the Asia-Europe market may affect the next contracts negotiations in 2013, as stated in the evaluation of tariffs of the route Shanghai-Rotterdam of the World Container Index (WCI)

According to Container Management, by mid-November the vessel Marco Polo of CMA-CGM, the largest container vessel of the world, started its first voyage at Ningbo, China. It was built by DSME (Daewoo Shipbuilding and Marine Engineering) in South Korea, and has a capacity of 16,000 TEU, 396 meters of length, 54 meters of beam and 16 meters of draft (53 feet).

THE LARGEST CONTAINER SHIP OF THE WORLD ENTERS THE EUROPE-ASIA ROUTE

TRADE VOLUMES ARE SLOWING DOWN

RAISE IN FREIGHT TARIFFS MAY AFFECT CONTRACT NEGOTIATIONS FOR 2013


of Drewry, informed Mundo Marítimo. The report that captures freight tariffs valid for a one-month contract, confirmed that price increases announced by shipping companies for November 1st were amply accepted by the market.

However, Martin Dixon, research and benchmarking manager of freight tariffs of Drewry said this increase in tariffs is expected to be partially reverted in the following weeks, but despite that tariff increases will probably influence negotiations of annual contracts for 2013 establishing a higher starting point compared to previous year. The increase of 38% in freight tariffs for the Asia-Europe route increased to US$2,865 per 40-feet units, showing the most recent of a series of continuous price fluctuations this year and revealing the high volatility of that market.

“Almost three fourths of the increases of US$500 per planned TEU were implemented, based on our market evaluations in Europe and China”, stated

The largest shipping companies of regular services of containers transportation of Germany, Hapag-Lloyd and Hamburg Süd are now analyzing a possible merger to become a major global weight actor and thus overcome recession suffered by the sector in the last four years. The combination of

forces would locate them as the fourth operator at world level after Maersk Line, MSC and CMA CGM, enabling the establishment of a powerful fleet of about 250 vessels.

“This is a business where size cares”, stated the

Richard Heath, director of WCI. However, the situation is not yet as alarming. Drewry stressed that increases week by week are less significant than the period during which these increases are maintained. For example, during the months of March, April, May and July, WCI registered large increases in tariffs, but after the July increase tariff decreases were constant.

Drewry makes a call to shippers to consider adopting the mechanism of linking prices to an index and thus preventing default in contracts within current environment of major price volatility.

In December, shortly after writing this article, Mundo Marítimo reported that Hamburg Süd increased their tariffs for services from the west coast of South America to its destination in North America, Asia and Europe, applicable as of January 15 and February 1st, 2013.

HAPAG-LLOYD AND HAMBURG SÜD ANALYZE POSSIBLE MERGER


analyst of Westend Brokers Research, Klaus Kraenzle, who explained that if continuing with present situation “Hamburg Süd could, in the long term, have difficulties to keep up in the same level with the principal players of the industry”. Therefore, he sees with good eyes a possible merger: “This would be a good step, which would give Germany a worldwide player in maritime transportation”, he considered.

Both companies tried but could not join forces 16 years ago, and they stated in a joint declaration last December 18 that they are analyzing in detail when and in what conditions the merger would be of interest. Based on sources close to Hapag-Lloyd, conversations that started a few months ago should materialize before the end of the first quarter of 2013.

The container shipping sector has been fighting against the worst crisis of its history, caused by a weak global economy, the oversupply of ships

The naval construction world industry faces a somber future for 2013 as orders have decreased as a result of current global crisis of the naval industry, as stated in the most recent version of the revision and annual forecast of the naval construction market of Drewry, informed Mundo Marítimo. In a global industry as the shippers market, once an

area faces problems it is not long before the entire industry plunges into a crisis. In the case of the naval construction market, the situation has reached the same we have seen in the rest of the industry: oversupply facing low demand. This, altogether with the increase in tariffs, reflects the fact that for some time now the activity of orders for new vessels has exceeded trade growth requirements. In simple terms, the difference between forecast demand and capacity is too big to be satisfied by the isolated contraction of the capacity of an area, which requires that shipyards will have to fight to survive by assuring themselves enough orders in the years to come.

and the low freight tariffs. A clear example of this situation is that German shipowners, in the beginning of this year, saw the need to apply for a state rescue. It must be noted that the German country is the home of the largest fleet of container vessels, amounting to 1,800 of the 5,000 existing vessels worldwide.

The major shareholder of Hapag-Lloyd, Klaus-Michael Kuehne, has tried for some time to combine the group with a powerful partner, arguing an alliance would be sensible between a Hapag-Lloyd strongly focused in Asia and a Hamburg-Süd very powerful in the routes to and from South America. Kuehne, who controls the Swiss logistics group Kuehne & Nagel and has approximately 28 percent of Hapag-Lloyd, stated that the strategy would be even better if these two German colossi would merge with a third shipping company of Asia. In fact, approximately five years ago there was an attempt to bring together Hapag-Lloyd and Neptune Orient Lines (NOL) of Singapore, but the agreement failed after hot discussions on who would be the major shareholder.

Crisis and search of new partners

SOMBER FUTURE FOR THE NAVAL CONSTRUCTION INDUSTRY IN 2013


Three alternatives for an uncertain future

To provide a more profound viewpoint of future perspectives of the shipyard industry, the document of Drewry presents three alternative scenarios on the forecast of the construction requirements according to sector and type of ship, over a 15-year period, reflecting the uncertainty that affects the industry. The report of Drewry shows that only for the scenario set forth in the case of major vessels there is a demand of more orders beyond reserve orders as of the beginning of 2012. On the contrary, the base case is more realistic presenting

almost the total number of orders according to types of fleet in the beginning of 2012 with an amount of portfolio orders that exceeds the demand that would exist in 2016.

Conclusion: Forecasts for the shipyard market are somber. A greater access to financing, either through retained reserves or by debt acquisition continues being limited to shipowners and under current circumstances it seems inevitable that new order levels will maintain low for some more time.

Three soccer fields in line are the dimensions that may contain each of the ships to be acquired by Grupo Empresas Navieras (GEN), wrote El Mercurio, quoted by Mundo Marítimo. The company started the greatest acquisition plan of ships that may be remembered by its controllers, which involves six modern Post Panamax vessels with a nominal capacity of nine thousand TEU and value of approximately US$86 million. Thus, the global operation would add up to about US$515 million.

GEN started this plan with the mandate to build two vessels given to the shipyard Hanjin Heavy Industries, one of the most important conglomerates of South Korea, to be delivered in 2014. The shipping group is refining financing to acquire other four vessels and within the next five months must confirm the purchase option to the same maker.

GRUPO EMPRESAS NAVIERAS OF CHILE START INVESTMENTS FOR US$515 MILLION

IN FLEET OF SHIPS


NEW MEMBERS

DISTINCTIONS

The object of Empresa Portuaria Valparaiso EPV is management, exploitation, development and preservation of the Port of Valparaiso, and also the properties it may have on any title, including all activities connected to the port environment, essential for its due fulfillment. It maintains four concession contracts with important companies

Liebherr-Werk Nenzing GmbH was awarded the Clean Technology State Prize Austria 2012, among a total of more than 200 submitted projects – double the total number of 2010 – which shows the surprising evidence of the innovating strength of Austria in the sectors of environment and energetic technology.

Liebherr is world leader in manufacturing movable gantry cranes and obtained the prize for Pactronic, the first hybrid hydraulic unit for cranes and

The Group Incatep was certified by the Brazilian government and by the ANAB of the United States to provide courses of the Program of Professional Maritime Teaching to all ports of Brazil. This achievement comes to add up to a certification program of competences for port equipment operators, which is certified by ABS/QE of Brazil and by ANAB of the USA. Incatep also has certifications ISO 9001:2008

construction machinery that accomplishes an increase in its performance of up to 30 percent and at the same time reduces fuel and energy consumption in 30 percent.

of the country to potentiate port competitiveness, according to logistics, security and technology, all this in harmony with the sustainable development of the city. It also has under its administration important public spaces in Valparaiso, such as the quay promenades Paseo Muelle Prat and Paseo Muelle Barón.

Webpage of the port is www.puertovalparaiso.cl and its general manager is Harald Jaeger [email protected]

http://www.puertovalparaiso.cl

mailto:jaegerhjaeguer%40puertovalparaiso.cl%20?subject=

mailto:jaegerhjaeguer%40puertovalparaiso.cl%20?subject=


Septiembre - Diciembre 2012

News Of Latin American Ports

ArgentinaGrupo Ultramar of Chile Enters Port of Rosario:

Through a training program called Protep, with teachers fluidly speaking Portuguese, Spanish and English, Incatep certifies and guarantees competences for port workers at the main ports of Brazil, Ecuador, Colombia and Mozambique (Africa). These trainings were developed to assist in the new competences required nowadays in the world, and for this the training program called Protep uses last generation simulators developed by a company part of the group, WSS (Work Education,

According to information of Mundo Marítimo of the end of September, Grupo Ultramar of Chile reached an agreement to acquire 30% of the shares of Terminal Puerto Rosario (TPR), located on the Paraná River, south of the province of Santa Fe, in Argentina. Ultramar, through its affiliate Neltume,

acquired the percentage from the corporation Inter Rosario Port Services of Spain that had this 30% class A shares of the port.

The entry of Ultramar will enable having two directors in TPR, while the Argentinean group Vicentín will keep control with its 70% and three directors in the company. It is expected that this process, if it has the authorizations of the Administration Entity of the Port of Rosario, will be signed shortly and thus Ultramar may formally enter as owner of the port. Ultramar will be in charge of developing the containers business of the port that today moves about 50 thousand TEU/year, far from the 973,000 TEU handled by Valparaiso or the 870,000 TEU moved by San Antonio. Besides, other cargoes transferred at the port will be potentiated. Thus, Ultramar adds up another port operation to its portfolio, including participations in 9 port terminals.

Simulation and Service). Portable simulators correspond to the following equipment: STS, RTG, MHC, Reach Stacker, Forklift Truck, Jib Board Crane, and Gantry Board Crane.


In 2013 will be awarded the Concession for the New Port of Santa Fe

Wilen ManteliPresidente ABTP

Argentinean authorities are envisaging the award in 2013 of the long expected concession of the new waterway multipurpose terminal of Santa Fe, an initiative valued in US$160 million, stated to BNamericas the president of the local Port Authority, Administrator Entity of the Port of Santa Fe, Marcelo Vorobiof. “We would be in conditions to open the call in October or November and this will allow awarding the contract next year”, stated Vorobiof.

The 33-year concession contract includes the construction, maintenance and administration of the new multipurpose terminal located in the waterway Paraná-Paraguay. Corresponding funds amounting to US$15 million and US$25 million will come from the budget of the province of Santa Fe and the Financial Fund for Development of La Plata Basin (Fonplata), respectively, while the private concessionaire will contribute the remaining US$120 million. At the same time, the Federal Government will finance another tender for US$13.5 million for the construction of a bridge and other roadway works necessary to guarantee access to the new terminal.

The port of Santa Fe is the last stop for ocean vessels at the waterway Paraná-Paraguay, which makes it the “obliged transfer center for cargo to and from countries located on the waterway”, stated

the governor of the province, Antonio Bonfatti, in a communication. In this context, the main objective of the project is transforming the new terminal in a “regional production pole for north Argentina and Paraguay and south Brazil”, stated Vorobiof. “After a while of being in operation, the new terminal may move 3 million tons of commodities of agriculture bulk in the first year, plus sub-derivatives such as flour and oil that must be transported in containers”, he added. Present infrastructure of the port of Santa Fe has a capacity to move almost 300,000 tons per year.

BrazilPort Sector Investment may reach US$22 Billion:


According to information gathered by Folha and Estado at the Competitive Brazil Forum held in São Paulo altogether with the Group Estado and the National Council of Infrastructure (CNI), shortly before the issuance of the package of port measures by the president of the republic, on a survey done by the Brazilian Association of Port Terminals, ABTP, among 84 associated companies, requested by the federal government, the Brazilian port sector may receive investments amounting to R$44 billion during a five to ten year term. Of the total amount, R$10 billion are for the containers segment. “This investment may be even higher depending on the port reform”, stated the president of ABTP, Wilen Manteli, who believes that the main problems encountered by the sector in the country are regulatory framework and port management. “There is great political interference and current model does not function, therefore we expect these problems are effectively addressed in the package of decisions that is being announced”, he said. Regarding the regulatory framework he affirmed it is unstable and there are excess entities and rules generating juridical insecurity. He also mentioned that taxes to the sector are among the problems blocking investments. “There is great expectation and we hope the federal government announces the third port reform as the privatization of port management to unblock these nodes and the bottlenecks that prevent the port sector from progressing”, emphasized Mantelli.

The press furthermore emphasized that the president of ABTP criticized the companhias docas (port authorities) and characterized this model as “anachronistic and with a bureaucratic mentality, preventing the port administrator from using resources as any private company”. For Mantelli, the solution would be to adopt public-private associations (PPA). “This would be the most adequate instrument where private capital will predominate; the government would have veto

power in some matters”, added the president of ABTP. According to the executive, this model would give assurance to the government and promote a “private and efficient port administration”.

According to information from the president of Libra Terminais, Wagner Biasoli, quoted by Valor, the Libra group will reinforce the integration between the different business areas (airports, logistics and ports) in the market of Rio de Janeiro as of 2013, basically focusing on oil and gas companies exporting and importing goods and equipment. The concept is to design logistics solutions with a lower cost to clients. The plan may consider, provided its advantages, the use of assets of Libra in Rio, including the international airport of Cabo Frío, in the Lagos region, the containers terminal of the company in the port of Rio and a storage structure that is being built in the state by Libra Logistics. Biasoli comments that the business plan of Libra for 2012-2016 foresees growth as of the three vectors. One of them is the expansion of the terminals of Rio and Santos, and two dry ports. At Santos, Libra foresees investing R$550 million to expand the containers terminal of the company. Another sector of growth, according to the executive, is tenders for containers port terminals, new dry ports and airports. The last point to be considered by Libra is mergers and acquisitions.

Libra will Reinforce Action in Integrated Logistics of Rio de Janeiro


The Port of Rotterdam (Holland) expects to enter into an agreement the beginning of next year with the group Terminal President Kennedy (TPK). The agreement includes the creation of the Central Port, a private deep-water terminal in the state of Espírito Santo. The investment is expected to amount to US$2 billion – as informed by Estado and Tribuna. “This is our current expectation. Europe is already a mature market. Emerging markets as Brazil are important in terms of higher growing rates”, declared Minico Van Hezen, speaker of the Port of Rotterdam, to the newspaper Estado.

Brasil Económico referred in a special report to Puerto Maravilla in Rio, which will have investments for US$3.8 billion through a PPA (Public-Private Association). One of the contributions focuses on the project Rio 21st Century that has as main objective revitalizing facilities, structure and port services to improve its efficiency, and further improve and modify maritime, railroad and road

accesses. The report states, in the meantime, that access works to the port of Rio have now stopped and that railway and road projects will only start the beginning of 2013. Total cost of internal works of the port for the next five years is estimated in approximately US$500 million and, according to the state Transportation Sub-secretary of Rio, almost US$75 million were invested by the Secretary’s Office of Ports in dredging the port to evacuate more than four million cubic meters. The companies Multiterminais and Libra already have their projects approved to start works. Engineering projects regarding road access were presented to the federal government and, according to the Sub-secretary of Transportation the phase is now in conversations for its priority within the Growth Acceleration Plan, PAC. Regarding railway accesses, basic projects are being discussed with MRS Logística.

“The port has the fourth place in cargo movement of the country and is the one with the greatest added value, reaching over US$2,000 per ton, when the national media is of US$600 per ton”, stated the Development Secretary of the State, who added: “We have a long way to grow and I am certain this is going to happen”.

Port of Rotterdam has partnered in Brazil

US$3.8 Billion in Puerto Maravilla and to Improve Access to the Port of Rio de Janeiro

TPS Prepares Tender Bases to Extend Terminal One

Chile


According to El Mercurio of Valparaiso, quoted by Mundo Marítimo, Terminal Pacífico Sur TPS works in an essential project for its development: the extension in 120 meters of Terminal One it has under concession. The initiative, already approved by Empresa Portuaria Valparaíso EPV in January of this year, will allow Terminal Pacífico Sur to extend from 620 to 740 meters its main berthing front (formed by places 1, 2 and 3) thus being in conditions to receive and serve simultaneously two ships type post panamax, vessels that start arriving to national ports with increasing frequency in reply to the need of the shipping lines and operators to lower costs through the so-called economy of scale.

“Ports require adapting their infrastructure, which implies long and straight docks in order to be prepared for the larger size vessels and having an option to receive, at least, two vessels simultaneously”, informed the general manager of TPS, Francesco Schiaffino during the annual meeting held by the company with its clients, collaborators, workers and suppliers. “We must not forget that a few years back 3 design vessels of the time fitted in 620 meters, something impossible today”, remembered the executive. And it was precisely based on this last argument that the state, through EPV, decided to authorize this initiative.

The Project will be developed through a contract under the EPC (engineering, project and construction) modality by means of a public tender. The investment will be approximately US$70 million and besides works at docks, the acquisition of three new Super Post Panamax cranes is being considered. This implies that the two oldest ones will be discarded, from year 2002, which will make TPS to have in this berthing front 6 last generation gantry cranes plus 2 Gottwald movable cranes of 100 tons of lift and 50 meters of reach. The initiative also includes other modernization works as the

structural reinforcement of sites 4 and 5 to make them antiseismic. Project will possibly be awarded the beginning of 2013 and detail engineering will be completed mid-2013. It is expected to have the approvals by mid-2013 and to begin the execution of the project approximately said date, to be completed in 2015. The execution of this project will enable extending the original concession of TPS from 20 to 30 years and continue operating Terminal 1 of the Port of Valparaiso until year 2029.

A communication of Sociedad Portuaria Regional de Barranquilla informed that Southern Cross Group acquired in mid-November something more than 50% of the shares of this Colombian port located in the mouth of the Magdalena River, in the Caribbean Sea.

Sociedad Portuaria Regional de Barranquilla accomplished in 2011 the highest cargo movement in the history of the port with 4,257,000 tons (63 percent of the total figure of public use docks of the port zone of Barranquilla). In total, Sociedad Portuaria de Barranquilla has an investment plan for 179 million dollars to be executed more rapidly by the Southern Cross Group, to expand not only

Southern Cross Group Acquires Share Majority of Sociedad Portuaria de Barranquilla, Colombia

Colombia


According to the information of the economic journal Portafolio, port operator DP World (a merger of Dubai Ports Authority and Dubai Ports International) would be the new partner of the Port of Buenaventura, the most important port of the country. DP World would pay an amount of almost 150 million dollars to obtain 25 percent of this port society. Nevertheless Port Society reported that the purchase of the shares is subject to lift up the right of preference, process in which they are currently.

The advantage of this negotiation is that the eventual new operator has all the experience to renew port practices and management and to manage increasing cargo volumes. With this transaction, the main groups of the port society would be: DP World with 25 percent, Harinera del Valle with 24 percent, the Mayor’s Office of Buenaventura with 15 percent and Ciamsa (sugar group) with 10 percent.

logistics services but also connectivity to the interior of the country and the Caribbean.

The head of the Ministry of Transportation and Public Works of Ecuador, María de los Ángeles Duarte, stated they will proceed with the construction of a deep-water port in the region of Manta, with a public investment estimated in US$106 million, dredging the port to a draft of 16 meters, among other infrastructure needs. In addition, Duarte confirmed that the concession process of the enclosure continues, despite the setback that meant having declared previous tender void, stated in a communication of the state port authority, Autoridad Portuaria de Manta (APM), as informed by BNAmericas.

In November, APM declared the process void after announcing that of the nine companies and consortia that acquired tender specifications, none presented an offer for the concession. The concession process for 25 years of US$300 million was addressed to transforming the port in a deep-water enclosure and a logistics pole for the bioceanic corridor Manta-Manaus and to increase capacity to 3 million TEU for the year 2030.

Dubai Ports in Buying Process of 25% of Buenaventura Port Society:

Concession Process of the Port of Manta will be Relaunched in Mid-2013

Ecuador


an essential alliance for the transformation of infrastructure and logistics enabling to promote the creation of wealth and opportunities for our people”.

Mundo Marítimo, quoting the magazine Vía Libre of Spain, informed that the president of Ferrocarrils de la Generalitat de Catalunya FGC, Enric Ticó, and the president of the company Corredor Interoceánico de Guatemala, Santiago Bassols, have signed an agreement in which both entities agree to find the way to cooperate and thus FGC will advice the company CIG in these works. The Guatemalan company Corredor Interoceánico de Guatemala is now in the phase of developing this railway project that will link the Atlantic and Pacific coasts of this Central American country, and that includes the construction of two large ports, one on each coast.

Corredor Interoceánico de Guatemala (CIG) is a completely new railroad. The new line will have a length of 336 kilometers, joining the two oceans, Pacific and Atlantic. The destination of this infrastructure is basically intermodal transportation

According to the President of the Autonomous Executive Port Commission (CEPA), Alberto Arene, in interview granted in September to El Heraldo of Honduras and transcribed by Mundo Marítimo, “we hope that between March and April 2013 the bidding process is opened, therefore we expect that in September winner will be known and in December the new operator assumes the destiny of the Port of La Unión”. As set forth by the executive, the Port of La Unión was conceived to be the port of the Central American Union and particularly to meet port demands of Honduras and El Salvador. “El Salvador will have Puerto Cortés in the Atlantic, and furthermore, Honduras will have Central American La Unión in the Pacific to be used to generate wealth and opportunities for the benefit of both countries”, said Arene.

For the president of CEPA, “modernization of infrastructure and logistics in Central America is one of the fundamental conditions for our countries to advance towards a more productive and exporting development model, inserted in the best conditions of global economy. In this framework we see that the concession of Puerto Cortés in Honduras and the port of La Unión in El Salvador constitute

Tender will be Opened the First Semester of 2013 for Port of La Unión

Ferrocarrils de la Generalitat de Catalunya will Assist in the Construction of the Interoceanic Corridor of Guatemala

El Salvador

Guatemala


Containers Operation will be granted in February for Puerto Cortés

Megaport Project in Punta Colonet Cancelled

of containers. But the project also includes the construction of a new four-lane road, and a pipeline. This would form a global transportation axis that would be an alternative to the only existing interoceanic, great capacity axis at present, the Panama Canal. This transportation corridor will include the creation of new industrial areas along its route and the construction of the aforementioned port complexes on its opposite maritime ends.

This project is covered by the modality of public-private association. The public part is represented by municipalities and local governments. The private promoter of the project is represented by Odepal Internacional, a Guatemalan company that has been working in this initiative since 1998. To date, prefeasibility, market, environmental and social order studies have been done, still pending the purchase of land where will pass both the railway and the road and pipeline.

FGC may advice both in the works of design, project, construction and management of railway infrastructures, and also the mobile material for the service of travelers and that of merchandises; the design and evaluation of the service for travelers in the railroad line associated to the Corridor and the evaluation of company potentials, among others. The agreement, of two years duration, establishes that FGC will be considered as priority adviser for the development of works of the interoceanic railway corridor.

According to El Heraldo, quoted by Mundo Marítimo, the president of Coalianza, Carlos Pineda, informed that the most important infrastructure operation of Honduras, Puerto Cortés, will start relocating to the hands of foreign companies as of February 1, 2013, within the concession process of the containers dock, where 70% of logistics operations of the port develop, and the grain dock where 90% of the food and raw materials consumed in the country enter. The officer expressed that in the case of the containers dock process, tender specifications were already acquired by some 20 companies, among which are 10 of the main firms of the international market. The idea is the coexistence of two port operators, the main logistics asset of the country in the Atlantic Coast that will compete to provide the best tariffs and services. On the other hand, he stated the tender was already opened to award construction of the grain terminal and is expected to be awarded by mid-March 2013.

Honduras

Mexico


The outgoing Federal Government finally cancelled the last day of its administration, the concourse for the development of a port and railway connecting said port in Baja California with the United States, informed Mundo Marítimo. Cancellation of the so-called “megaproject port” of the six-year term of Felipe Calderón, results after the financial problems that affected the world, the expectations of international trade growth, which sensibly affected cargo volume forecasts on which was based the execution of the port project. Besides, the high private investment costs foreseen and the increase in interest rates, altogether with the complexity to select the point for the railway crossing at the border of the United States of America, endangered the profitability of the railway project, and thus generated doubts among private economic agents on the viability of the project as a whole.

The document that terminates this project disclosed that last July 31, 2012 the General Planning Direction retained KPMG Cárdenas Dosal, S.C. to undertake a “Study to determine the economic-financial viability of the multimodal project of Punta Colonet”, which results were submitted last October 22nd. This study confirms that “the installed capacity of port and railroad terminals of the West Coast of North America does not show now saturation and congestion levels shown in 2008 and previous years, containers market in the trans-Pacific route will show

one-digit growth rates in the years to come, besides actors of the containers transportation market that were consulted did not express a special interest and in particular did not seem to show an appetite to invest in a project of the scale of Punta Colonet. Under the assumptions established in the study, the project is not economically viable, except if there is a contribution of repayable capital of public resources, thus it is determined that assumptions prevailing in 2008 are not valid today, and there are no signs enabling to define there will be in the following years”, was confirmed by the opinions of the technical areas of this Secretary’s Office.

In this respect, the new head of the Secretary’s Office of Communications and Transportation (SCT), Gerardo Ruiz, stated that the port of Guaymas may become a very good substitute to the aborted flagship project of the administration of former president Calderón. During its first press conference, the officer considered the Port of Guaymas as the perfect project to substitute the megaproject of Colonet, not only to help the ports of California in the reception of goods, but rather to be a great port for the transportation of Mexican goods south and north of the United States, through Arizona.

Monopolies at Ports?


Article of T21 informs that with the award to the company SSAMéxico of the Specialized Vehicle Terminal (TEA) of the port of Lázaro Cárdenas, present port authorities contradict in their antimonopoly discourse, which they say guides them to proceed. And the case is that with this assignment, SSAMéxico will add up to 90% of its capacity in the Mexican Pacific coast regarding vehicle movement, in addition to that already controlling 60% of the market of the Gulf of Mexico.

Returning to the discourse of the port authorities, these state they are protecting the interests of the user and country competitiveness, but in the containers operation of the Pacific coast, the only real competition is International Container Terminal Services (ICTSI), the Philippine company that next May will start operations at the Port of Manzanillo.

On the other hand, containers terminal II of the Port of Lázaro Cárdenas does not meet the conditions to be a real competition as this will be a terminal vertically integrated to a shipping company (Maersk). If antimonopoly practices are studied somewhat more than more developed countries in the matter (European Union and American Union), more than a dominance of a market segment, penalizes vertical integration. Who will operate Maersk terminal when it is in operation?, well the ships of this shipping line, and service will be exclusively provided to their cargo and shipping lines with which they have alliances, and only for cargoes on board their ships.

Traditionally, shipping companies are not interested in operating in a terminal owned by its competitors. Obviously, each is jealous of the information of its clients and safeguards it from falling in the hands of their competitors, in order not to expose them to the theft of its clients. This is the main motivation for shipping companies not operating in terminals controlled by the competition.

The President of the Republic, Commander Daniel Ortega, informed that the Government has signed a memorandum of understanding with a company incorporated in Hong Kong, China, for the construction of the Great Interoceanic Canal through Nicaragua, informed Mundo Marítimo quoting El Pueblo Presidente. “I wish to inform the people of Nicaragua, the Nicaraguan families, that this afternoon was signed a memorandum of understanding where the State of Nicaragua, through its representative, the president of the Canal Authority, authorizes the company HK-Nicaragua to structure, undertake procedures for financing the project of the great interoceanic canal of Nicaragua”, stated the president during a meeting

Government Signs with HK of China a Memorandum to Build a Great Interoceanic Channel

Nicaragua


held with Wan Jin, president of Xinwei, the largest telecommunications company of China.

Ortega stated that at present studies are being developed by Dutch specialists, which will be considered for the works to be developed by Chinese entrepreneurs. He explained that the Chinese company, called Company of Investment for the Development of the Great Canal of Nicaragua, will work in the development both of the wet canal as the dry canal, which will also join the Pacific Ocean with the Atlantic Ocean from Monkey Point to Puerto Corinto. Works have been studied, he assured, taking into account the reality of the economy, trade and transportation worldwide. Likewise, he remembered this construction will have the most advanced technology that may presently exist in our planet. The president indicated that the dream of an interoceanic canal through the country goes back as far as 500 years, when the Spaniards conquered the country and started looking for a passage between the two oceans, and thus the disputes and cravings for the domain of Nicaragua. Regarding forecasts of the Xinwei Company to invest in Nicaragua in telecommunications, Ortega explained being essential for the rural area to bring them this benefit as here are located the large production forces of the country.

On the other hand, the president of the Xinwei Company, Wan Jin, informed that in fact a new company has been incorporated in China with the purpose of developing the canal through Nicaragua, which includes programming, capital construction and project management. “We are confident of a successful construction of this Nicaraguan canal”, assured Wan Jin, who explained that other investors have visited the country and are willing to bring technology and capital for the construction of the canal, but have wanted to exchange the freedom of the Nicaraguan people and then the dignity of the

people has not enabled that the project be developed in these conditions. The entrepreneur stated that the geographic position of Nicaragua is very important for the construction of the interoceanic canal, and if it were to be built this will change the history of the world and the history of world trade. “As of today, this 500-year dream will be developed”, stated Wan Jin.

The Project dreamt by Nicaragua of having a deep-water port is stagnant, as according to the newspaper La Prensa, quoted by Mundo Marítimo, the Brazilian company Andrade Gutiérrez would have given up building the Port of Monkey Point, in the Autonomous Region of the South Atlantic (RAAS). Laureano Ortega, son of the president of the republic and investment counselor of the agency ProNicaragua, confirmed this megaport will not be developed by the Brazilian company. “Not with Andrade Gutiérrez, but with other companies, yes”, stated Ortega, who explained that the agreement of intention entered into between the Government and Andrade Gutiérrez has expired, thus the feasibility studies of Port Monkey Point belong to the Government. Documents are now used to

Puerto Monkey Point Project in Nicaragua is Stagnant by Withdrawal of Brazil


offer the works to other investors, but will undergo modifications in its design.

Through an electronic mail, representatives of Andrade Gutiérrez AG limited to say that “Constructor Andrade Gutiérrez (AG) delivered all studies of the Port of Monkey Point to its counterpart in the Government that is the National Port Company (EPN). Because of confidentiality matters, AG may not pronounce itself on the matter”. It was confirmed that the company did close its offices in the country. AG stated that the operations in Nicaragua are managed by the office in Dominican Republic. The main reason to discontinue the project is that the pre-feasibility and feasibility studies showed that construction cost is higher than the initially foreseen amount of 300 million dollars, but does not guarantee a return for the millionaire investment, as the volume of goods to be moved through the port would not be enough, a situation recognized by Laureano Ortega: “Their reasons are they need a greater flow of ships that may berth at the port of Monkey Point and thus we are now working to interest shipping companies that may provide more feasibility to the project”.

ProNicaragua started searching new investors that may be interested in the port of Monkey Point and thus prevent losing one of the flagship projects of the Government that is part of the National Plan of Development. Works are supposedly necessary as it would imply savings of one hundred million dollars per year in costs of cargo currently incurred by the country when transporting goods through the ports of Honduras and Costa Rica. “We are working with a Spanish company that is investing in the project, seeing it from the logic of a dry canal, making a railroad corridor from Monkey Point to Corinto (in Chinandega), which is another dimension of the project and makes it more feasible”, stated Ortega. Change of design is required – he justified – as the

“port in itself is less attractive than building a dry canal”. “Logically, having only one port is not the same opportunity of being able to transfer goods from the Caribbean to the Pacific”, he affirms.

According to El Panamá América, the Atlantic sector of the country has become the most coveted area for the construction and expansion of port terminals, with investments of more than one billion dollars. The increase of containers cargo that will generate the post panamax ships after finalizing the project of the extension of the Panama Canal is the main reason for investors to see in Colon the best place to expand their operations. The free zone of Margarita Island has become a new pole for port development. Here, the company Panama Canal Colon Port is developing a new port with an investment of more than 600 million dollars. “The containers terminal will have three docks and generate 3,000 indirect jobs and approximately 1,500 permanent jobs once operations start”, stated the Vice-minister of Foreign Trade, José Pacheco.

Investments for More than One Billion Dollars in Colon

Panamá


Besides, corporation United Crown Construction Inc. will develop the Project Logistic Park (containers yard) at Margarita Island, its concession contract approved by the Council of the Cabinet. In development of the project more than 105 million dollars will be invested, which will generate 800 jobs in the construction phase and more than 1,200 in the operations phase. According to the legal adviser of the Panama Maritime Authority (AMP), Carlota Matos, the concession will have an area of 54 hectares for a period of 20 years. Matos states that this containers yard may provide services to the new port once it is completed and to others located around. “I consider it is a good project for the States and above all because capital is foreign investment, which will bring benefits to the same province of Colon and will generate jobs, which is very positive”, stated Matos. It is expected that the containers yard enter in operation in 2014, as well as the port. “The idea is that ports will receive larger ships with greater container capacity, and this project will greatly ease storage capacity and will benefit port operators”, stated Matos.

“Definitively, investment in the logistics sector is important”, stated the president of the Maritime Chamber of Panama, Willys Delvalle. He informed having knowledge that the Port of Manzanillo International Terminal (MIT) will start an investment of more than 200 million dollars, that is “we are

going to have an extended terminal and a new one, which will provide a greater capacity to the Atlantic system”. However, he stated that the Pacific sector only has one container terminal with considerable capacity. According to Delvalle there is evidence that Panama International Terminal (PSA) is interested in expanding its terminal and “yet expects to develop the terminal of Corozal, which would be very positive, and in the future there could be other investments on the Pacific side. He stated that the expectations are based on once the extension of the new interoceanic canal is completed enabling transit of larger ships, with greater capacity to transport containers.

T21 of Mexico, quoted by Mundo Marítimo, informed that in addition to the extension of the Panama Canal, which is foreseen to be completed the end of 2014, the Panamanian President Ricardo Martinelli anticipated the arrival of new projects that will contribute to the growth of the logistics infrastructure of this country. During the opening of Expo Logistics Panama, he emphasized that in order for a greater integration of the logistics industry to the Panama Canal, negotiations are being done for the construction of a new port in the area of Colon and another in Balboa. Thus, the President of the country declared: “The Panama Canal is about to approve in an area close to the port of Balboa, the purchase to the State of 45 hectares to operate and build a port in the area of Corozal; likewise, there is interest of other companies on the Pacific for the construction of more ports. Port infrastructure will substantially increase”. Corozal is located about five kilometers north of the port of Balboa (Pacific), near Hutchinson on the east bank of the interoceanic canal.

Presidente Anuncia Construcción de Puerto Corozal en el Pacífico


The president declared that the country is emerging as one of the fastest growing economies of the region, with a GDP of US$ 30.6 billion in 2011, an estimated inflation of 3.2%, and a GDP growth perspective for 2012 of 9.5 percent.On the other hand, the newspaper La Prensa, also quoted by Mundo Marítimo, said that the possible construction of a port in Corozal is one of the most important announcements for the national and international maritime community in the past years. As explained by the representatives of the Maritime Chamber, the port of Corozal would provide Panama a quantitative jump in operation capacity and service quality, not only complementing current operators, but also decidedly strengthening the position of Panama as logistics center of the Americas. The national government ascertains, on a timely manner, to promote the construction of the port for various reasons. In the first place, port capacity in the Pacific sector must be extended. Port activity has grown considerably in the last years, moving from about 200 thousand 20-feet (TEU) containers in 1990 to more than 6 million currently being moved through Panamanian ports. However, tendency will continue to increase, especially because of the new services and traffic as a result of the extended Canal. Some experts forecast more than 18% growth in the years to come.

Undoubtedly, the extension of the Panama Canal will bring much growth to the maritime industry. But it is also true that its current capacity is insufficient and this sets forth a serious risk if these opportunities generated by the extension of

the Canal are capitalized or not by Panama, but by our neighbors such as Colombia and Costa Rica, that are already entering large investments in their logistics infrastructure. Without going further, APM Terminals, the port branch of the giant Maersk, was awarded not long ago a tender for almost one billion dollars to operate, for 33 years, a port in the Costa Rican Caribbean. The stake of Costa Rica is clear: they want to attract all the trade generated by the Panama Canal that the country may not handle because of its present limitations. As of the announcement of the approval of the expansion project of the Canal, other countries of the region, as the case of Jamaica, are also analyzing their strategy to capture markets and obtain advantages from the expansion of the interoceanic canal.

Besides, it must be noted that port capacity in the Pacific side must be increased and its capacity developed, which presents a solid growth rate, and the port of Corozal, through the railroad, is the ideal and strategic location as it will benefit of the connectivity with the terminals of the Atlantic. Also, the lands with a greater option to develop a port terminal on the Pacific side at the east margin of the Canal are in the area of Corozal, and the lands with access to the sea are property of the Canal.

It is essential that the Authority of the Panama Canal (ACP) administers and preserves the area of Corozal, in view of its strategic location just at the entry of the locks of Miraflores and of the new set of locks. The ACP must be a central actor at the new port, which is not only convenient but strategic, and because a third party should not be allowed to enter the Canal to manage the operation of the port. Nobody would know better than ACP how to manage a port in this area.

The Government should have it clear that this initiative will have some detractors, all interested


in defending their status quo, which is the same as preventing competition at all cost. But it must be clear that what is at stake is the future strategic planning that Panama will play in matter of logistics to maintain competitiveness of the country for the benefit of all Panamanians.

of Paraguayan shipowners. “The volume of cargo 2010/2011 was of approximately 20 million tons of Paraguayan, Brazilian, and Bolivian exports through the Waterway. Of this amount, 80% corresponds to Paraguayan flag ships”, specified Ehrecke. It is estimated also that the amount of tugboats will increase from 180 to 300 units.

Regarding cargo transported by rivers of the Waterway, Guillermo Ehrecke stated that 50% corresponds to iron ore, and the rest is shared by fuels, grains and other products. On present difficulties of the river, obliging to similar warehouse needs, but translated in a larger number of ships, he states all may not be loaded on large barges, thus it must be distributed among smaller ones appropriate for the draft of the river.

“The Port of El Callao is the most important project we have in the Southern Hemisphere”, stated Henrick Kristen, president of APM Terminals Callao, during the 11th International Forum of Ports organized by the Chamber of Commerce of Lima (CCL), as was informed by Mundo Marítimo quoting Agencia Andina. The executive stated that APM Terminals has businesses in more than 130 countries and the arrival to Peru responds to the fact the country has been identified within the group

The possibilities for the increase of up to 78% of cargo transported through the Waterway Paraná-Paraguay, from now to 2020, moves the enthusiasm of the local sector dedicated to shipping activities, and a testimony of this is provided by Guillermo Ehrecke, executive of the Center of Waterway and Maritime Shipowners of Paraguay (CAFyM). At present, Paraguay moves about 20 million tons and estimates are that the amount of barges will move to 2,500 in three years, approximately 100 barges per year, as today there are about 2,200.

The newspaper La Nación of Argentina, quoted by Mundo Marítimo, mentions 4,500 barges that will be in service in 2020, which also adds up as an item at the time of dimensioning the enthusiasm

Cargoes by the Waterway Paraná-Paraguay Would Increase 78% in 2020

APM Terminals will Invest US$750 Million to Make of El Callao a Hub Port

Paraguay

Perú


Brazil Supported the Deep-Water Port and Offered to Finance it.

of the 15 countries where they want to make their largest investments. “With an investment higher than US$750 million in infrastructure, we plan to make of Port of El Callao a world-class port, through the execution of five stages during a ten-year period of time”, he stated.

Kristen informed that the company will invest US$750 million in the next ten years, making El Callao a hub port for the region. He stated that in the next ten years five phases of the project will be developed and in this instance will be invested US$310 million in the next two years, as part of the development of phases one and two. “This investment of US$310 million, which wants to be developed in ten to twelve months, involves the acquisition of four gantry cranes that might arrive to the country in October 2013”, he stated. He also stressed that these two phases of the project will have the four largest gantry cranes of the world, which will enable transforming the Port of El Callao in a hub port that may receive the largest ships of the world. Likewise, he stated that as of today US$35 million have been invested after being awarded the concession of the North Dock of the Port of El Callao in April of last year, which started operations in July 2011.

with a delegation of the Executive Power, that its government “will support” the realization of this work as it is a “strategic” project for the region and commits to provide technical and financial cooperation to drive same.

In dialogue with El Observador, President Mujica was pleased for the explicit support of the Brazilian government in this initiative, as the genesis of the project included the participation of countries of the region as Brazil. “Brazil was the pioneer in presenting the idea of the waterway because it has the intention of joining the Port of Caceres (on the Paraguay River) to transport minerals and grains through the Atlantic”, he recalled. He said the government recognizes “this gesture of Brazil” because “they may have a positive interest” that will “help” reduce transportation costs. According to the president, the deep-water port at Rocha is not seen by Brazil as “competition” of the terminal this country has in Rio Grande do Sul, but as a “complementary” project to promote maritime transportation for this today saturated port.

The National Bank of Economic and Social Development (Bndes) will start working shortly with the team headed by the adviser of the Presidency in infrastructure works, Pedro Buonomo to coordinate the cooperation. Precisely, this chief said that having the support of a strategic partner as Brazil is “very important”. “In this manner it is much easier to find synergies to proceed with these projects”, he states. In the meantime, Pimentel announced that its government will invite Brazilian private companies with experience in the matter to participate in the first studies and public consultations done by Uruguay. Companies mentioned are working today in some port projects in the Caribbean, stated Mujica.

The government of Uruguay obtained in September the “political and economic” support of the best strategic ally of the region – Brazil – to build a deep-water port at Rocha, one of the main infrastructure works promoted by the administration of President José Mujica. The Minister of Industry of Brazil, Fernando Pimentel, said to the press after meeting

Uruguay


On the other hand, the Minister of Industry of Brazil said his government will bring in a technical team of the National Bank of Economic Development (Bndes) to help “Uruguayan people in the financial engineering of this project”. “If there will or will not be financing will be another stage we will see depending on how the Uruguayan government designs this ongoing work”, he explained. The policy of Bndes is to finance Brazilian

companies from different industrial branches. “This is a project that will integrate the region and Brazil is interested that same is viable”, ended Pimentel.

Buonomo informed to the portal of the Presidency that the Executive Power is interacting with private interested parties in the “data room” process before launching the public summons for the call. The officer stated that surely prior to the end of the year the competitive call will be presented within the frame of the Public-Private Participation (PPP) law. “The data room we are developing has had a great reception, we continue receiving interested parties, we have to define an adequate design, but we are optimist”, stated Buonomo. Building companies, financiers, consultants, operators of South Korea, Japan, Brazil and Spain, among other countries, have shown interest in this consulting process.

Excellent bulletin.

Capt. Ariel CanzaniLatin America & Caribbean Trade RepresentativeGeorgia Ports Authority Buenos Aires Office

Argentina

Very interesting informative

Alberto Jiménez General ManagerTerminal Muelles El Bosque Port Operator

Cartagena, Colombia

Mail

Septiembre - Diciembre 2012


Excellent publication and extraordinary contents

Carlos OramasNaval and Port Engineering Colombian Center of Transportation Technologies

Bogotá

Thanks for the Information. It is a subject of our interest.

José Miguel PazGeneral Director Asocreto

Bogotá, Colombia

This is a very impressive publication with great information to share. Congratulations on this accomplishment.

Philip Grissinger, PE SENIOR ASSOCIATECARDNO TEC

USA

Contents of the bulletin are very interesting.

Edgar Vieira ProfessorCESA Colegio de Estudios Superiores de Administración

Bogotá, Colombia

I thank you for sending me the bulletin which is very informative. I took the liberty to send it to my colleagues in Latin America.

Diego F. Quiroga Principal Engineer, Maritime and PortsURS Infrastructure & Environment UK Limited

Basingstoke, United Kingdom


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