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Latinports Newsletter May-August 2012


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  • 1. May-August 2012Año 4, No. 2Accelerated advance of Mexicoin Ports and TransportationInfrastructureShould Latin American Ports beChasing the Mammoths of theSea?Latin America & World TopContainer Ports 2011See more... See more... See more...
  • 2. CONTENTSMayAugust2012UpcomingEventsNew MembersLatinAmerican Port NewsMailNovember 26-27: Third LatinAmericanPublic-PrivateAnnual Seminar in Viña delMar, ChileContainer Management Interview to Pedro Brito,former Minister of Ports of Brazil and Directorof the National Water TransportationAgency,AntaqEditorialPortadaLogosímbolo de III SeminarioAnual Público PrivadoLatinoamericano en Valparaiso-Viña del Mar, Chile.DiseñoJulian Now is the Port of Rio de Janeiro: Article ofthe Chairman of Latinports, Richard KlienLATINAMERICA& THEWORLD- Mundo Marítimo of Chile, Interview to JulianPalacio, Executive Director of Latinports- The Executive Director of Latinports, Speakerin Important LatinAmerican Events- LatinportsAchieves ImportantAgreement inMexico- Octuber: Colombia Capital Projects& Infrastructure Summit in Bogota- November: Third LatinAmericanPublic-PrivateAnnual Seminar inValparaiso so- December: TOC Container SupplyChainAmericas 2012 in Panama- Port of New Orleans, United States- Mardique Port Society, Colombia- Inland Port Magazine of United StatesHighlights Presentations of the President of thePort of New Orleans and the Executive Directorof Latinports, in the Magdalena River Event- Chile Leader in Logistics and Competitivenessin LatinAmerica- Inter-oceanic Canal in Nicaragua?- Modern Logistics for River Terminals- Legal Certainty in Concession Contracts:ACall to Good Sense- Accelerated advance of Mexico in Ports andTransportation Infrastructure- LatinAmerica & World Top Container Ports2011PRESIDENCY & EXECUTIVE MANAGEMENTLOGISTICS, COMPETITIVENESS & PORTS OFLATINAMERICA- Prime Minister of China Proposedat ECLAC a Forum for High LevelCooperation with LatinAmerica andthe Caribbean- Should LatinAmerican Ports beChasing the Mammoths of the Sea?- Widespread and DisproportionateIncrease of Sea Freights:AWorldCartel?MARITIME TRANSPORTATION &PORTS- LatinAmerica may take the Lead ofWorld Economy altogether withAsia:Carlos Slim- Reorganization of Iberian Ports?
  • 3. Mayo - Agosto 2012S EditorialOn the third anniversary of the incorporation of Latinports this August, resultsare more than encouraging as practically we have tripled the number of members,now exceeding 40 in 12 countries, have developed three international eventsand supported more than ten, given more than 20 lectures in different countriesof America and Europe promoting the excellent positioning of Latin Americanowadays and of the port sector in particular, having edited 12 newsletters inthree languages, produced Latinports Mobile to consult our webpage in devicessuch as iPhone or iPad…. And most important of all, we have disseminatedto the world the advantages of port privatization in Latin America and theimportance of public-private joint work to develop port logistics within ourregion (“Public Ports Operated by Private Initiative: A Winner Model” as definedby our chairman, Richard Klien of Brazil). Based on the above, the Latinportsbrand has positioned as spokesman to the world of Latin American port strongdevelopment.Other than the event represented by the Newsletter commemorating oursuccessful third year, this edition involves great importance for reasons asmeaningful as the presentation of the Port of New Orleans as new member ofthe Association, thus demonstrating the interest of the principal economy ofthe world in the development of Latin America, in general, and of our ports, inparticular, and launching our third great annual event to be held in Valparaiso-Viña del Mar in commemoration of the centenary of the start of construction ofthe port., Chile in the month of November, focused on logistics. All this obligesus to reward even more all persons who have accompanied us in our task.Finally we invite you to consult our web site completely updated, from yourmobile devices.Thank you so much for your support and, until the next!jpalacio@latinports.orgwww.latinports.orgJulian PalacioExecutive Director
  • 4. Mayo - Agosto 2012
  • 5. Mayo - Agosto 2012NOVEMBER 26 & 27: THIRD PUBLIC-PRIVATE LATIN AMERICAN ANNUALSEMINAR IN VIÑA DEL MAR, CHILEAfter the great reception of our previous annualevents in Cartagena and Brasilia, now is the turnfor Viña del Mar. Developing our great annualevent in Chile is of special significance as we mustremember that this country was the first to startport privatization and decentralization in LatinAmerica, an example that has been successfullyfollowed by most of the countries of the region.However, after almost 20 years of this importantadvance for the foreign trade of our countries, itis important to make a stop and look towards thefuture, and nothing better than doing this in Chile, acountry that continues innovating all its sectors andresults have caused it to be a leader in logistics andcompetitiveness within the region, as was recentlyemphasized by the World Bank and the Institute ofCompetitiveness of Aden.Thus, on Monday 26 and Tuesday 27 of Novemberat the Hotel Sheraton Miramar of Viña del Mar willtake place the Third Public-Private Annual LatinAmerican Seminar, focused on a highly topicalissue as the Empresa Portuaria Valparaiso andthe Ultramar Group, and with the support of thenational authority Sistema de Empresas SEP andthe Maritime and Port Chamber, where during twodays we will refer to topics such as Latin AmericanLeadership worldwide, the repercussions of theextension of the Panama Canal and the size ofships arriving to the region, the inland logisticscenters and port sustainability; besides, experiencesand perspectives of the most important containerterminals will be shown, such as Valparaiso, Santos,Callao, Cartagena and . On the last day of theseminar there will be guided tours to Terminal
  • 6. Mayo - Agosto 2012CONTAINER MANAGEMENT INTERVIEW TO PEDRO BRITO,FORMER MINISTER OF PORTS OF BRAZILAND DIRECTOR OFTHE NATIONAL WATER TRANSPORTATIONAGENCY,ANTAQPacífico Sur Valparaiso, TPS, and to the Special Areaof Logistical Support. of Valparaiso, ZEAL.This will be an excellent opportunity for an updatein port logistic matters and to prepare ourselves forthe challenges that gives us the global economicsituation. All this within the fabulous environment ofthe traditional Viña del Mar.You will find more information on the event(program, registration, hotel registry, etc.) in thewebpage www.latinports.orgYou may also contact Emilia Peró epero@emew.clor Julián Palacio
  • 7. Mayo - Agosto 2012Brazil’s Agency for Waterway Transportation(ANTAQ) was created by Law 10.233/01 toimplement policies formulated by the Ministryof Transport and the National Council forIntegration of Transport Policies (CONIT). Thesepolicies comprise the regulation, supervision andinspection of the activities and provision of watertransportation and port infrastructure and the use ofwaterways by third parties.Today, ANTAQ’s main purpose is to look afterthe legal and institutional safety of the watertransportation sector, with the objective of assuringthe continuing inward flow of private investmentthat has been received by the sector since the PortsAct was published in 1993. One of the subsequentbenefits of the Act has been the upgrading andmodernization of much of the ports and terminalssector to the same levels of efficiency, productivityand service as some of the best in the world.However, as the facilitator of access to Brazilianports, and in order to continue to increase theefficiency of the sector, it is incumbent uponANTAQ to give priority to waterways. After all,operations depend as much on efficient port accessas they do on the logistics chain.Another function is to provide and maintain a clearand modern regulatory framework, particularly inrelation to port concessions, in order that they willcontinue to be as successful as those in other sectors,such as the electricity and, more recently, the airportsectors.Yet another important function of the agency is toprepare plans for port and waterway concessions,I believe that the intermodal integration of logisticscorridors, with priority for waterways and railways,is ANTAQ’s most important task and arguable themost challenging. Intermodal integration is already anestablished feature of the world’s largest ports, whichis why they are so efficient. The ports attracting thelargest volumes of cargo are those in which cargoarrives (and departs) via the most efficient modeor combination of modes, whether by road, rail orwaterway. The greatest challenge for Brazil’s portlogistics sector is to secure intermodal integration,with all its attendant gains for export and importsalike.Another important challenge is to consolidate coastalnavigation, which in Brazil is still in its infancy,resulting in unnecessary costs within the logisticschain. Today, 60% of cargo in Brazil is transportedby road, but if and when the country increases itsinvestments in its waterways, the intention is forthis transportation mode’s share to increase from itscurrent 13% to around 29%. The same goes for thewhich will provide guidelines for those interestedin investing in new ports and terminals along theBrazilian coast and river shores.ANTAQ is a unique regional organization. Canyou explain its origin and aims?And what are the challenges?
  • 8. Mayo - Agosto 2012railway sector, which is anticipated to increase from25% to 32% in the next 15 years.These modal shifts will assure better intermodalintegrations while increasing ports’ efficiency, as wellas benefiting coastal navigation. In addition, therewill be significant environmental benefits: a ship ora barge convoy that replaces hundreds of trucks willemit much less CO2 per ton of cargo transported.Redefining ANTAQ’s study and research programsin order to strengthen its role in guiding the portsector is another challenge facing the agency. It iscurrently in discussions with port authorities aboutlaunching a new environmental managementquality index, and is additionally preparing a soon-to-be-launched satisfaction index for Brazilian portusers. Furthermore, a number of studies are beingdeveloped that will provide support to the portsector in its efforts to continue to attract investmentswhilst increasing efficiency. Increasing the efficiencyof Brazilian logistics is a prime objective for theagency.I served in a number of ministerial roles, includingState Minister of National Integration and, morerecently, as Minister of the Ports Secretariat ofthe Presidency of the Republic between 2007 andDecember 2011.During my periods as minister, I was responsible fora number of initiatives that I believe have proved tobe responsible for a significant transformation ofthe Brazilian port environment: one of which wasdredging. At the time when President Lula appointedme head of the newly created Special PortsSecretariat (SEP) in 2007, Brazil had not dredge itsports for more than 10 years and, in some cases, formore than 15 years. As a result, I created the NationalDredging Plan and, with the participation of foreigncompanies, contracts were awarded not only fordeepening but also for maintenance dredging.The plan eventually encompassed Brazil’s 20 mostimportant ports and the resultant improvements inaccess made coastal navigation feasible, as well ascreating the conditions for the development of hubcenters in ports such as Santos, Rio Grande, Suape,Pecém and Itaqui.These in turn, brought about an important reductionin port costs and charges, which resulted in thecountry’s exports becoming more competitive andour imports cheaper. The end result was that cargo-handling capacity in Brazilian ports increased by30% overall, which in Santos, for example, it leg to adoubling not only of throughput capacity but also ofthe size of vessels that the port could handle.In addition to dredging, I was responsible for anumber of infrastructure improvement works, tothe tune of US$5 billions, as part of the President’sGrowth Acceleration Plan (PAC). These worksincluded the construction of breakwaters in thePort of Rio Grande access channel; construction ofnew mooring berths at the ports of Santos, Itaquiand Vila do Conde and the expansion of the PortDuring your previous ministerial appointments,what systemic improvements were youresponsible for in the Brazilian port and logisticssectors and how relevant are they proving to betoday?
  • 9. Mayo - Agosto 2012Pedro Brito, right, with the executive director of Latinports, JuliánPalacio, during the last annual event of the association in Cartagena,Colombiaof Rio de Janeiro, amongst others. Moreover, wealso launched an investment program for passengerterminals that will welcome tourists during the 2014World Cup and the 2016 Olympics.Another important measure that will increaseefficiency, at the same time as helping to reduce costsand waiting time for vessels at Brazilian ports, is thePort Without Paper (PWP) project, set up jointlywith the Federal Data Processing Service and all portauthorities. Following its implementation, ports willbe able reduce the time taken to clear goods froman average 5.7 days to 2.5 days, which, although stilla long time compared with large international ports,brings us closer to them.change that is still having efficiency and productivityadvantages today.Long-term strategic planning did not exist for theBrazilian port sector when SEP was created, andwithin the PAC program we instigated partnershipsand contracts such as those with the FederalUniversity of Santa Catarina, with support from thePort of Rotterdam. Together they are concludinglong-term plans for Brazil’s port sector that defineinvestment horizons both public and private for thenext 20 years, with specific steering plans for the 10largest Brazilian ports.This long-term planning is vital for the sector’sdevelopment because it establishes strategic targetsfor the next few years, indicating what investmentsthe government needs to make and at what timeinvestments need to take place; this is something thatwill change Brazil’s port environment forever.I would also like to highlight the progress we havemade in increasing professionalism throughout theports industry. Trained port and logistics directorswere appointed in both the public and privatefacilities, and they have been able to give new visionto Brazil’s port strategy. Replacing political appointeedirectors at dock companies with professionals was aProgress in professionalism
  • 10. Mayo - Agosto 2012Mayo - Agosto 2011
  • 11. Mayo - Agosto 2012NOW IS THE PORT OF RIO DE JANEIRO:THE PRESIDENT OF LATINPORTS,RICHARD KLIEN,ARTICLEThe city of Rio de Janeiro has just received the titleof the World Heritage Urban Cultural Landscape ofHumanity, awarded by UNESCO. This landscapeintegrates urban life and the richness of the Bayof Guanabara with its sheltered waters and naturalaccess channel. The port was installed here aspromoter of economic activity for the states of Riode Janeiro and Minas Gerais, sharing with otherpeople, accumulating in the successive cycles ofregional development the following:• In the 19th century, the opening of ports tofriendly nations in 1808 with the arrival of the courtof Portugal to Brazil, promoted growth with theestablishment of industries, the construction ofroads, the creation of the Bank of Brazil and theBoard of Commerce;• In the 20th century, reopening of the port in1910 started a new economic cycle altogether withthe works of modernization, improvements in port-city integration, expansion of the port complex ofRio de Janeiro, bases for supporting the so-calledMarvelous City.• In this beginning of the 21st century, collectingthe benefits of the Law for the Modernization ofPorts, issued in 1993, an expansion of activitiesoccurred by means of tenders that would transferthe operations of port terminals to private initiatives,and with the commitments of large investments inmodern equipment, systems and training of humanresources.
  • 12. Mayo - Agosto 2012Results of Brazilian ports modernizationare shown especially in the movement ofcontainers, in accordance with the globalcontainerization trend of 70% of the generalcargo transported worldwide, and in contrastwith the participation of 20% in the decadeof the 70s. Adopting the model set forth byprivately operated public ports, private leasersof container terminals obtained more than fivetimes the movement of containers in a jointaction with port authorities (in the case of Rio,the Compañia Docas de Rio de Janeiro), thusdecisively contributing to the development ofinternational commercial trade.Considered as one of the main logistics cargocorridors of the country, the state of Rio deJaneiro is inserted in the so-called NationalLogistics Network, established in 2001,where Rio occupies the fourth place in cargomovement figures with a market participationof 6.4%. The port movement of Rio amountsto 8 million tons, of which 65% correspondto containerized cargo and vehicles. Worthmentioning is the high aggregated value ofits cargo amounting to US$2,063 per ton.Comparatively, Santos entered US$1,497 per tonand Paraguaná US$864 per ton, and the nationalaverage being US$593 per ton.Acknowledgment of this driving developmentpotential moved a great coalition pro-port asof the first edition in 2006 of the program Portof Rio-21st Century, until its branches thatcarried on the current version. A meeting ofshareholders for the preparation of the masterplan of the Port of Rio was decisive. TheCommercial Association of Rio de Janeiro,the Federation of Industries of the State ofRio de Janeiro, the Foreign Trade Associationof Brazil, the Brazilian Association of PortTerminals, the Commission of Ports, the Unionof Port Operators, the Union of Sea NavigationAgencies and other unions, altogether withthe Federal Government (represented by theSecretary’s Office of Ports of the Presidencyof the Republic and by the Compañía Docasof Rio de Janeiro), the State Governmentand the Prefecture of Rio assure projectconstitutionality.Below is the article written by the Chairman of the Executive Committee of Latinports, RichardKlien, for the July-August edition of Brazilian Business, a publication of the Brazil-United StatesChamber of Commerce:
  • 13. Mayo - Agosto 2012Estimates are that over the next 5 years, investmentsin logistics centered in the port for an amount ofUS$1.5 billions may include more than US$0.5billion in private investments at port facilities. Publicprojects, with a significant contribution of resourcesof the Growth Acceleration Plan promote theadequacy of sea and land accesses to the port (inroads and railways). As an ultimate result, cargocurrently moved must double and reach US$40billion in 5 years.In accordance with the progressive increase ofcontainerships, profits of scale are continuouslypushed in sea and port operations. In the case of thePort of Rio, special adequacy of container terminalshas repercussions in dock restructuring for roll-on/roll-off vessels. Expansion projects developed bythe container terminals Libra Rio and Multi-Rioand of vehicles Multi-Car in the Cais Do Cajurecently approved by the National Agency of WaterTransportation, Antaq, facilitated the simultaneousberthing of up to 4 containerships Super PostPanamax. The line of docks will be increased to1,600 meters, with a growth of 522 meters.In attention to the increasing demand of the autoindustry, which has new installed manufacturers andothers in way of implementation at the states of Rioand Minas, the roll-on/roll-off terminal operatedby Multi-Car will add a second berthing dock 180meters long, doubling its operational capacity. Vehiclestorage will be enlarged by constructing garage-buildings, moving from the capacity of 326,000vehicles/year to 450,000 in a second stage. Withan extension of 1,960 meters joining the containerand vehicle terminals, the Cais do Caju, after theexpansion works that started in 2012, will be thegreatest continuous deep-draft dock of the country,making possible to quadruple current movement ofcontainers and doubling vehicle capacity.It also registers an important increase in the demandof other port services, notorious offshore supportactivities on the way of the dock of San Cristóbal,extending to the dock strip of Gamboa, up toWarehouse 14, in an extension of 1,800 meters.The main fact generating this demand is thedevelopment of the activities in the oil platforms ofthe Bay of Santos, overlooking the new identified
  • 14. Mayo - Agosto 2012potential for oil extraction, besides the alreadysigned commitments with Petrobras for the normalactivities of the ocean platforms.In the seafront of the dock of Gamboa, whichcorresponds to warehouses 7 to 13, reinforcementworks have been programmed for more viabledredging services down to a depth of 13 meters.This depth guarantees the connection up to the mainaccess channel of the port, which will maintain theoperation conditions of the existing multiple-useterminals, serving the general non-containerizedcargo movement (steel products and printingpaper imports, among other), and will facilitate thereception of wheat import vessels to the back areaof the dock of San Cristóbal.Among expansion plans worth noting is thepassenger terminal, a strategic project for the plansof the city, in view of the increasing flow of seacruisers ships and the 2016 Olympics. To extendthe terminal a new Y-shaped berthing dock will bebuilt for additional and simultaneous berthing of upto six large vessels. More than double the numberof tourists is expected to be supported at the Portof Rio, more or less 1.5 million passengers per year,compared to 650,000 at present. On the occasionof the Olympics the port may receive, as in floatinghotels, visitors from worldwide to accompany the31st Olympic Games.
  • 15. Mayo - Agosto 2012cargo in Latin America, or the Panamanian portsthat because of their strategic location having accessto the Panama Canal, make these the ports withthe greatest movement of containers, basically bytransshipment”.“Therefore we must be very careful with the ‘whiteelephants’ as because of locations and marketeconomy, not all ports of the region have thecondition to receive mega-containerships in the mid-term. Although a must is that we must be preparedto receive ever larger vessels, as suggested byECLAC, we must be aware of our real potential andact accordingly.ECLAC investigators have alerted that SouthAmerican ports do not address the future,as they are working to the limit of theirinfrastructure. Which is, in your opinion, theworking capacity of South America? Are therenotorious differences between countries?“In Latin America we are used to act when we are indeep water. Although I agree with ECLAC that mostLatin American countries are working to the limitof their infrastructure, I must recognize that actionsare being taken in this respect, although sometimeswithout sufficient criteria. One thing is Santos, theport moving the largest amount of foreign tradeIn its edition dated July 23 and under the title “It is Imperative to Prepare Ourselves to Receive everlarger vessels”, the executive director of Latinports refers to the reality of ports within the region.Below you will find the interview given to Mundo Marítimo:Julian Palacio has more than 30-year experience in ports and worth mentioning is his work as Latin American Coordinator ofthe American Association of Port Authorities (AAPA), projects such as the Multimodal Port Society of Río Magdalena River(Colombia) and consultancies for the Peruvian firm, Andemar. The Colombian executive, current executive director of Latinports(Latin American Association of Ports and Terminals), spoke with Mundo Marítimo on the challengesahead for Latin American portsMUNDO MARÍTIMO OF CHILEINTERVIEWS JULIAN PALACIO,EXECUTIVE DIRECTOR OF LATINPORTS
  • 16. Mayo - Agosto 2012Likewise, greater logistics coordination hasbeen urged for port development and work.What is the public-private coordination balanceand which are the most urgent challenges to beovercome?Public-private cooperation is ever greater but there isstill a long way to go. This is the task of Latinports,which motto is “Governments and private sectorworking together for the port logistics developmentof the region”. The most urgent challenge of thisrelationship is developing adequate transportationlogistics and infrastructure, on which we continuebeing way back compared to developed countries.Therefore, I agree with the former minister ofpromotion of the first government of PresidentZapatero of Spain, Magdalena Álvarez, whoregarding foreign trade states, ‘little does a good portserve without good internal connectivity”. “It wasprecisely during a recent event on containers logisticsat the National Entrepreneurs Association ofColombia I proposed the creation of a Ministry ofTransportation Logistics and Infrastructure, based onthe positive experiences in countries such as SouthKorea and Germany. The discussion is now open”.Which are the present tasks of Latinports andits future projects?“The main task in our short but fruitful existencehas been bringing closer relationships betweenpublic and private sectors, and also disseminating theadvantages of decentralization for the port sectorand privatization of operations, which is definedby the chairman of our executive committee,Richard Klien of Brazil, as ‘Public Ports with PrivateOperation: A Winner Model’”.Consequential to the needs of the sector, ourcurrent approach for the mid-term is transportationlogistics and infrastructure, or in other words, internalconnectivity. Finally, working in all that the portsector of the region may require”.
  • 17. Mayo - Agosto 2012After two days of conferences on efficient portinfrastructure models from other countries withinthe framework of the FTA, the National Associationof Entrepreneurs of Colombia and the BusinessAlliance for Secure Commerce organized their ownevent. “Efficient Models in World Trade” was held inBarranquilla, where several tasks are pending for thelocal and national governments, as well as the privatesector. The conference featured presentations fromrepresentatives of the ports of Le Havre, Hamburg,Houston, New Orleans, the Latin AmericanAssociation of Ports and Terminals, Latinports,and the Inter-Port Police of the United States. Amajor topic was the importance of rehabilitatingthe Magdalena River. “Achieve minimizing cost ofinternal transportation with the rehabilitation ofthe Magdalena waterway will be the only way inwhich the country may give a great leap towardscompetitiveness,” was one of the conclusions ofinternational experts at the conference.Two old friends, Gary LaGrange, president of thePort of New Orleans, and Julián Palacio, executivedirector of the Latin American Association of Portsand Terminals, Latinports, were among the speakers.LaGrange advised that the best way of improvingport infrastructure is developing a maintenanceprogram for the access channel, particularly inBarranquilla, where funds are required to make acontinuous dredging of the river. On the other hand,he said, a specialized port in containers and bulk isa must, as well as cruisers to promote tourism. “Iapplaud the initiative with the concession of ports,”said LaGrange. “In the case of New Orleans, thereis a consortium totaling five ports on the Mississippi.We all work together. I insist that if Colombianports work together they may achieve what we havedone, 500 million tons per year.” LaGrange stressedthat the Magdalena has great potential. “The MasterPlan being developed must be monitored veryclosely because I believe results will be very good inINLAND PORT MAGAZINE OF UNITED STATESHIGHLIGHTS PRESENTATIONS OF THE PRESIDENTOF THE PORT OF NEW ORLEANSAND THEEXECUTIVE DIRECTOR OF LATINPORTS, IN THEMAGDALENARIVER EVENTMagdalena River to Become Main Artery ofColombia
  • 18. Mayo - Agosto 2012Julián Palacio said he is convinced that the Magdalenawaterway is the only thing that will give an importantdevelopment to the region, provided it operates thebest way possible and moves a great amount ofcargo at very affordable cost. “Barranquilla is at themouth of the Magdalena River, which must be themain artery of the country as stated by the Presidentof the Republic,” said Palacio. “This gives it anenviable position in a country with a badly locatedindustry. Any country would like to have a waterwaylike the Magdalena River and we have it. In cases likeNew Orleans or Rotterdam, rivers are the logistics.When we speak of Rotterdam, the main Europeanport, 85% of its bulk cargo is moved throughwaterways. When we question what is happeningthe face of the FTA,” he said. “Therefore, amongmy recommendations is dredging, and identifyingwhat is produced there for exports, as in the UnitedStates there is high demand for specialized coffee. Atpresent we are receiving at the port exports from thelargest coffee processor of Colombia.”here, where we have a Rhine, a Mississippi, or a Seineand do not use them. The river is already discovered.What it needs is making it work.” He concluded, “Thecost-by-kilometer of deepening the river is muchcheaper compared to any road, and maintenance ischeaper and benefits are much larger”. In agreement,the President of the Republic, Juan Manuel Santos,announced the allocation of US$400 million for theupstream channeling Works for the Magdalena River.The work will be based on preliminary studies engagedthrough the US Trade and Development Agency andthe last studies with the participation of Rob Davinroy,of the US Army Corps of Engineers, MissouriDistrict. On the other hand, the Master Plan for theport ofBarranquilla that groups several terminals, aboutto be formally presented by the Dutch consultantsRotterdam Maritime Group and Pharos, estimatesthe potential of the river, both ways, for the mid-term between 10 and 30 million annual tons (oil,coal, grains, fuel and containers). This has attractedimportant international shipping lines, such as SeacorHoldings, which operates in the Mississippi River.President Santos concluded, “We are going to makethe Magdalena River the main artery of Colombia”
  • 19. Mayo - Agosto 2012On May 25th, in a panel shared with theAdministrator of the Panama Canal, AlbertoAlemán, who referred to the effects the extension ofthe Canal will have for foreign trade, the executivedirector of Latinports, Julián Palacio, presented alecture called “Effect of Post Panamax Vessels inLatin America”, where he said that even thoughports of the region must prepare to receive everlarger vessels, they must also be careful with thewhite elephants as ports were not a magnet attractingshippers because of its depth, but that deepeningaccess channels should be in accordance withmarket demand and the niche where ports belong.To reinforce their point of view he referred to thatexpressed in the book of the former minister ofports of Brazil, Pedro Brito: “The Emma Maersk(the largest containership at present) does not call at SouthAmerican ports, not because of the limitations of our ports,but above all for a matter of global trade logics that flowspredominantly east-west, in the Asia-Europe-United Statesaxis. North-south flows are complementary and of a restrictedparticipation in container-transported global trade”, andconcluded stating “…Each port must be prepared for vesselsdemanding so and not for eventualities to receive once a year aship of 15,000 TEUs as the Emma Maersk”.At the opening of the event, where the main tablewas shared with the Vice-minister of Infrastructureand the Manager of Logistics, Infrastructure andTransportation of the National Association ofEntrepreneurs of Colombia, ANDI, and theexecutive director of Latinports stated:At times in which Colombia is internationally perceived as ahigh level economy and considered within the group of emergingcountries with currently the best performance and perspectives,the name of the forum cannot be more revealing: “Ports andContainers: Logistics and Competitiveness”. Logistics is keyto competitiveness, where ports and inland transportationmust meet an outstanding role, working altogether with thegovernment and private sector. From there comes the slogan ofthe Latin American Association of Ports and Terminals:“Governments and private sector working together for portlogistics development of the region”.Despite the great changes of the country in economic, politicaland social matters during the last ten years, according tofigures clearly sustained by the Center of Economic Studiesof ANDI, it is no secret that in matters of transportationinfrastructure, Colombia is one of the most backward countriesof the region, and even worse, most of our industry is locatedinland and almost all depends on road transportation, themost costly of them all and which causes the most seriousdamages to the infrastructure of roadways and the environment.However, since there is no evil that lasts a hundred years, I mustEXECUTIVE DIRECTOR OF LATINPORTSSPEAKERAT IMPORTANTLATINAMERICAN EVENTS
  • 20. Mayo - Agosto 2012emphasize the decision of President Santos to reactivate othermodes of transportation as the railroad and the river, mostlyused for long distances in developed countries.By rationalizing transportation and using modes in acomplementary manner, according to its vocation, the main portsof the country would be optimally connected at both oceans withthe most important industrial and national consumer centers,and logistics nodes would be developed inland. One of the mostrapid ways to achieve this is through public-private associationswhich require prompt and essential regulations.However, in reference to international transportation,ECLAC in a recent study states that containerships currentlywith 13,000 TEUs average capacity worldwide (SouthAmerican average is approximately half) will be arriving atthe region between 2016 and 2020 with an operating draft ofDuring a meeting held the beginning of August inMexico between the executive director of Latinports,Julián Palacio, and the executive director of theAssociation of Port Terminals and Operators,ATOP, Jaime Aguilar, they agreed on the jointcelebration in that country of the great annual eventof both organizations during May 2013. This eventis of great importance for Mexico as it will celebrate20 years of the issuance of the Law of Ports, thefirst year of the reform of this law, the nationalgovernment has shortly been in office, and the newchairman of Latinports is the founder and currentVice-president of ATOP.15-16 meters, thus concluding that these forecasts are interestingto alert on the need of an efficient planning in the mid-termfor the port logistics industry, in which its timely execution willenable preventing possible bottlenecks and negative impacts onregional economy. Nevertheless, I must alert on white elephants,as not all ports will be in conditions of receiving these mega-containerships because of locations and market economy.In addition, in the panel introduction onExperiences and Perspectives of Containers SeaTerminals in Colombia, the executive director ofLatinports suggested the creation of a Ministry ofTransportation Logistics and Infrastructure, as partof the solution to the backwardness of the sectoramong Latin American countries.LATINPORTSACHIEVES IMPORTANTAGREEMENT IN MEXICO
  • 21. Mayo - Agosto 2012
  • 22. Mayo - Agosto 2012ACCELERATED ADVANCE OF MEXICOIN PORTS AND TRANSPORTATIONINFRASTRUCTUREAlejandro Chacón, GeneralCoordinatorPorts and Merchant MarineWherever one looks, investment needs –and plans–for infrastructure add up to thousands of millionsof dollars and materialization of these investmentsis currently the highest of all times, even thoughthere is yet a long way to go. In the case of Mexico,in June 2011 Business News Americas, in its documentInfrastructure Intelligence Series, mentioned that in thebeginning of 2008 the Mexican Government createdthe National Infrastructure Fund amounting toUS$3,900 million to finance projects for US$25,000millions in that sector during the following five years.In the case of the ports, an article in the latest editionfor Latin America of Container Management advisesthat Mexico’s volumes of containerized cargo havegrown steadily, and this growth is projected tocontinue over the coming years. To meet demand,the Mexican government is rolling out a major portinfrastructure development program to increasecapacity for both containers and other types ofcargo. In 2011 total port investment, public andprivate, amounted to US$692m, 7.7% higher than in2010. Of this, US$270m was private investment, anincrease of 24.4% over 2010.A number of major projects are under way. Anew privately-funded container terminal is underconstruction at Manzanillo and is due to becompleted later this year. The terminal will beoperated by Contecon Manzanillo, a subsidiary ofICTSI, the Manila-based global terminals operator. Itwill be developed in three phases and is scheduled tobegin operations in November 2013, with a capacityof 450,000 TEU in its first year. When complete, itwill have a handling capacity of 2 million TEU peryear.Port Infrastructure Development Program
  • 23. Mayo - Agosto 2012Elsewhere, Chilean company SAAM Puertoshas won the tender for a multi-purpose terminalat Mazatlan, Sinaloa, and will invest US$30m tomodernize and operate the existing facility. It willbenefit from other infrastructure projects in theregion, such as the Durango-Mazatlan highway,which is expected to be ready by the end of 2012.infrastructure works built on 25 ha of reclaimed land,with almost US$60 million of public investment.The new facilities have doubles the port’s capacityand have enabled it to receive larger vessels.Another major project, the expansion of the Port ofVeracruz, is expected to begin this year. This will bea massive task requiring a total investment of overUS$3.6 billion, of which US$2.2 billion will comefrom the private sector. A tender will be launchedin the second half of 2012 for the construction ofa new container terminal, with four berths totaling1,440 m in length. This will increase the port’scontainer capacity by over 2 million TEU a year. Thegoal is to meet demand for maritime transportationin t he Gulf of Mexico and the Atlantic, in particulartrade moving to and from central Mexico. Theproject will eventually comprise 37 berths in totalacross a number of different terminals (containers,bulk minerals and cars, among others) and willinclude a logistics zone.In addition to its plans for Veracruz, the governmentis aiming to develop port facilities elsewhere. Inthe Port of Guaymas, in the state of Sonora onthe Pacific Coast, a first phase of development willfocus on the creation of dry and liquid bulk handlingcapacity. During the second phase, a multi-modalcontainer terminal will be built. A specialized carterminal is to be constructed at Lázaro Cárdenason an area of 40.4 ha, with the capacity to handle750,000 cars a year. Investment will be close toUS$37,5 million. Finally, a new terminal for handlingstone materials, mineral bulks and/or general cargowill be built in the Port of Altamira. The facility willhave a total area of 11.8 ha and a 300 m dock. Theinvestment required here is estimated at aroundUS$10m.Another bidding process has been concludedin Tuxpan, in the state of Veracruz, for thedevelopment of a container facility with a capacityof 500,000 TEU a year. The winner, SSA Mexico,will benefit from the new Mexico-Tuxpan highway,which will also go into service this year. Investmentfor this facility, which will boost Tuxpan’s capacity by22%, amounts to US$260m.A number of other bidding processes are currentlyunder way, including one for a specialized bulkterminal in Puerto Madero, Chiapas, which will profitfrom several mines in the surrounding area. Theport will export an estimated 500,000 tons of copperand titanium annually to Asia. In Topolobampo,Sinaloa, a tender process will conclude shortly forthe construction and operations of a facility tohandle copper and its derivatives. It is estimated thatan annual volume of 360,000 tons will be exportedfrom Arizona to China via Topolobampo. At thesame port, on February 20th, 2012, PresidentFelipe Calderón inaugurated a number of new
  • 24. Mayo - Agosto 2012to Mazatlán, from where it is placed on a truck chassisand delivered onto river barges in Brownsville in oneday, and from there these barges may be transportedto Pittsburgh, thus saving large amounts in freights(two for the cost of one). Instead, transporting onecontainer directly from China to the United Statesmust be loaded with only 20 tons to meet limitsestablished by U.S. highways.Another great advantage of logistics for this newtrade route is that the Port of Mazatlán is locatedon the Tropic of Cancer, about 2,400 km northof the Panama Canal. Brownsville is located justnorth of the Tropic of Cancer, as most of China,and consequently vessels may save almost 5,000 kmfrom going south, besides the delays and costs of theCanal. In addition, Panama is located far from theeast, south of Miami, more than 1,600 km east ofBrownsville. For the Texas-China trade this meansalmost 6,500 km of extra navigation time, possibly14days.A Mexican truck from Mazatlán to Brownsville willmake the trip in one day and the river barges in theUnited States currently represent the greatest cost-benefit relation for inland transportation, connectingMexico with the eastern coast of the United States athalf cost by railroad and one third costs by truck.This new inter-oceanic highway is programmed tobe completed soon, in advance to the opening of thenew Panama Canal. All U.S. shippers in the Midwestor the Northeast that depend on the trade withcountries of the Pacific basin, should use this newtrade route as an alternative to the Panama Canal andto the costs and the ever more crowded ports of theEast Coast of the United States.Until here the extract of the article of Joseph J. Linck in InlandPort.The U.S. magazine Inland Port, in its section Smart Businessof its last edition, has an interesting article written by Joseph P.Linck (former director of the Port of Brownsville) called Inter-oceanic Highway of Mexico to Compete with the PanamaCanal and Extend the Area of Influence for the Waterwaysof the United States, of which we transcribe its most interestingexcerpts:The huge and rugged mountains of the Sierra Madrewest of Mexico have always been insurmountablebarriers dividing the ports of Mexico Pacific ofTexas and the United States, in general. However,not any more. An incredible new bridge calledBaluarte, the longest in North America, has finallyconnected the Pacific Coast of Mexico with Texas,through a modern highway called the Inter-oceanicHighway. This important work is expected to be inoperation this year and will finally connect the portsof Mazatlán and Lázaro Cárdenas on the Pacificwith Brownsville and the system of waterways of theUnited States.Unlike the United States, mass Mexican roadsroutinely carry 40 tons of cargo (two-fold theUnited States), and are the main mode of cargotransportation of the country, easily competing withthe railroad. These fully loaded trucks may enter theUnited States at Brownsville because of the stateLaw of Ports that allows overloaded trucks withinthe corridor, and also loading and unloading same.The navigable waterways of the United States mayattract heavy 40-ton containers from China anddeliver them at the east coast of the United States, inPittsburgh, via Brownsville. Also, a container may beloaded in China with 40 tons of cargo and shippedMexico-United States Inter-oceanic Highway
  • 25. Mayo - Agosto 2012Based on the above, Latinports decided to investigate thecharacteristics of this highway, and found surprising factsdescribed below:Federal Highway 40 or the Inter-oceanic Highwaystarts at Reynosa, Tamaulipas, just east of the Portof Brownsville, Texas, and ends at Federal Highway15, at Villa Unión, Sinaloa, near Mazatlán and thePacific Coast. It is called Inter-oceanic because, oncefinished, the cities of Matamoros, Tamaulipas, onthe Gulf of Mexico, and Mazatlán, Sinaloa, on thePacific Ocean, will be linked. Its total length is 1,145kilometers.The critical stretch between Durango and Mazatlán,about to be completed, of 230 km, goes throughthe western part of Sierra Madre, and has 90 km oftunnels, viaducts and impressive bridges (63 tunnelsand 115 bridges in the most rugged mountain area)and an estimated initial cost of US$1,260 millions.The most representative bridges are Neverías, 320meters long and 101 meters high, and above all theaforementioned Baluarte, of 1,124 meters long and402 meters in its highest clear part, which will be oneof the longest and highest of the world, and furtherthe highest suspension bridge. Once this project hasbeen completed by the end of the year, travel timebetween Durango and Mazatlán will be two and ahalf hours, which represents a savings of four hours.This important work of engineering, besidesfacilitating trade, will benefit 21 million personsresiding in the northeast of the country.
  • 26. Mayo - Agosto 2012Intermodal Logistics Terminal of HidalgoThe concept of port regionalization is inciting portsand terminal operators to look at the hinterland tosupport their core terminal business. TILH is aninland port facility owned and operated by HPH(80% stake), which opened in 2012. It is located inthe southern part of the state of Hidalgo about 50km north of Mexico City, one of the world’s largestmetropolitan areas with a population of more than21 million people. HPH is the dominant containerterminal operator in Mexico, handling about 50%of the country’s container port throughput infour major terminal facilities (Ensenada, Veracruz,Manzanillo and Lázaro Cardenas).Mexico City as an origin or destination accounts for40% of all the container cargo handled by HPH,generating about 700,000 TEU per year. In recentyears, significant developments have taken placein the northern part of the metropolitan area withseveral large retailers and manufacturers establishingdistribution facilities in the area. The site includes astandard greenfield logistics zone of 127 hectares(Logistics Activities Zone Hidalgo; 80% owned bythe Mexican trucking company Unne) co-locatedwith an intermodal terminal facility covering 53hectares, with an additional 10 hectares allocated tocustoms. Securing land was a complex endeavor thattook 3 years since the ownership of the rural landwas collective and required a process where it wastransferred to the state and then to private interests(HPH and Unne). Recognizing the potential of sucha facility and its logistics zone for employment andregional development, the public sector contributedby building an access road, a bridge and utilities(electricity, water and sewage).TILH is a grounded intermodal facility wherecontainers are stacked trackside (see abovephoto), which is different from the standardNorth American chassis-based storage. The initialintermodal capacity of the facility is about 200,000TEU and once all expansion phases are completed,the capacity would increase to above 1 million TEU.In its current setting, the terminal provides 4 railsidings of 600 meters directly connected to the railnetwork of two of Mexico’s largest railways; KCSMand Ferromex. Because of its geography, the MexicoCity metropolitan area has a scarcity of large surfacesof flat land, implying that the TILH site requiredsignificant modifications (mostly infill and gradeadjustments) to make it suitable for intermodal
  • 27. Mayo - Agosto 2012operations. The main value propositions of thefacility are:• Modal shift. Like many developing countries,the share of trucking for inland distribution inMexico is very high, which is linked with congestion,energy consumption, air pollution and delays. Theexpectation is that the inland port will favor a modalshift of a share of the cargo bound to MexicoCity to rail, thus improving the cargo capacity (raileconomies of scale) and the use of a more energyefficient mode. One of the key advantages of thefacility is its direct connectivity to both the Pacific andAtlantic maritime ranges where HPH operates portterminals. Veracruz on the Atlantic side is about 500km away while Lázaro Cardenas and Manzanillo onthe Pacific side are about 600 km away. This distanceis at the threshold of commercial competitiveness forrail services.• Custom clearance and dwell time. Importershave the option, through bounded deliveries,of having the custom clearance deferred to theinland port instead of at the gateway port. Thiscan lower inspection costs as well as delays. Inlandterminals having abundant storage space can alsooffer convenient dwell time, implying that they canpartially act as a warehouse for their customers sincea container at the inland port can be considered aspart of the inventory of a nearby distribution center.• Load center. As a facility integrated to themaritime ports it is linked to, TILH acts as adeconsolidation (for imports) and consolidation (forexports) center. This can be effective to attract andretain customers as well as improving the quality ofthe transport service since the HPH port terminalsand TILH are one functional transport chain. Inaddition to the inland accessibility from ports onthe Atlantic and Pacific sides (longitudinal flows),TILH has the potential to become a load center forthe NAFTA trade (latitudinal flows), which remainsdominantly serviced by trucks. Its access to theLázaro Cardenas - Laredo - Kansas City corridoroffers a strategic commercial opportunity.• Metropolitan accessibility. A logistics cluster(intermodal terminal and nearby distribution centers)offers a platform that is better placed to service ametropolitan area (Mexico City) than direct truckservices from port terminals, particularly if wellconnected to an urban highway system. There arealso more opportunities to deconsolidate the cargo inloads that are more suitable to urban demand (highfrequency) and driving conditions (congestion).Since TILH represents a novel intermodal model forMexico, it is facing the challenge of securing regularrail services to its facility.(Taken from The Geography of TransportSystem)
  • 28. Mayo - Agosto 2012With the publication in the Official Diary last June11th, entered in effect the decree by which provisionsof the Law of Ports of Mexico are amended,supplemented and repealed, approved by Congresson April 25th. In the meantime, concessions, permitsand contracts partially assigning the rights andobligations of the terminals granted prior to the datethis decree entered in effect, will continue using theseas for which they were granted until the conclusionof its validity or its extension, whatever the case.The Secretary’s Office for Communications andTransportation, SCT, made known that this decreedetails more aspects of the definition of publicand private use terminals, and also the guidelinesfor investors and the integration of a planningcommittee. In this sense it is specified that for its usethe marine terminals and port facilities are public inthe case of containers and general cargo, or if theobligation exists of placing them to the service ofany requestor, while these will be individuals if holderuses them for its own purposes, and third parties ifby means of a contract, provided services and cargoare of a similar nature to that originally authorizedfor the terminal.This resolution also establishes that the port authoritywill be in charge of promoting competitiveness ofMexican ports within their facilities and its servicesand tariffs, based on the interests of the nation.In addition, it will promote different types oftransportation services converging at national portsin order to interconnect efficiently, and that servicesby which ships, persons and goods are assistedin navigating between ports or national sites beefficiently provided.The SCT specifies it may authorize for only one timethe extension of the area of public use terminalsand port facilities, which have been subject matterof partial assignment of rights, registered at thatoffice. Thus, surfaces may grow up to an additionalberthing position with a maximum length of 350meters, and its corresponding ground surfaces. Theseextensions will be granted provided there are at leasttwo terminals or port facilities of the same kind fordifferent operators in a port, as was made clear bysaid office.Port planning will be in charge of a PlanningCommittee, formed by the Port Administrator, theHarbormaster, a representative of the Secretary’sOffice of the Environment and Natural Resourcesand by the assignees or port service providers. Thiscommittee shall be acquainted, among other matters,with the master port development program andits modifications; the assignment of these areas,terminals and port service contracts undertaken bythe port administrator; as well as any other matteraffecting the long-term operation of the port.The Secretary’s Office for Communications andTransportation Diffuses Law of Ports Reform
  • 29. Mayo - Agosto 2012Reforms to the Mexican Law of Ports greatly favorcurrent operators, stated to BNamericas Hugo Cruz,lawyer of Bitaz Consultores. “Reforms are biasedtowards protecting current terminal operators”,stated Cruz.The criticism target for the analysis of the industryhas been Article 10 of the Law, which establishesthat terminals are public, even though they may referto containers or general cargo terminals in the handsof private operators. Besides, terminals are availablefor any user requiring access. In virtue of the law,extension and access to these public terminals willbe done by public tenders that will be granted by aplanning committee. This means that companieswishing to move products through a port will have toenter a bidding process, stated Cruz.There is also great concern in how the planningcommittee is formed. Although it is constitutedby three government officials, all current suppliersof services within the terminal are entitled toapprove or reject the expansion plans and theentry of new entities, he added. “The fact ofhaving placed the decision in the hands of thoseaffected does not seem logical”, stated Cruz, whoadded this deprives the government from portdevelopment responsibility. Prior to the reforms,operators established a committee that deliveredrecommendations on the expansion plans or the newoperators. “Now they decide who gets in and whodoes not”, stated the lawyer.As general director of ports between 1996 and 2003,Cruz participated in drafting the original law as legalrepresentative of the decentralized organizationMexican Ports. Prior to the enactment of the originallaw, “ports were limited, they lacked importantinvestments and were under the control of theunions”, he stated. The objective of the originallaw was to open the sector to private investorsaddressed to transforming ports into enterpriseswith international levels of productivity, accordingto Cruz. These goals “were fully achieved with thislaw”, stated the lawyer.Even though Cruz has criticized reforms, herecognizes that the law required modifications.Nevertheless, reforms go against the original spiritof the law. “It will terminate the opening of the portsector to private investment, as was contemplatedby the original law; it is a counter reform”, heemphasized.Specialized magazine T21, in its June edition,highlights the reform to the Law of Ports, subtitlingthat “After 19 years without amendments, thelegislature issues changes to the Law of Ports thataccording to legislators with four substantial changeswill modernize the port system with the participationof the public and private sectors”. Below is theopinion of private operators in the article:Do the reforms to the Law of Ports favorpresent operators?The Opinion of the Operators
  • 30. Mayo - Agosto 2012Jaime Aguilar, director of the Association ofTerminals and Port Operators ATOP, assures thatthe investor now benefits with 20-year extensionsof the contracts: “Those certainty conditions wereto be given, but now the law facilitates this evenmore, being one of the greatest achievements”.He adds that the reform is not going to provideautomatic extensions, but now, requirementsare much clearer for those who believe havingthe right to request a postponement. “Finally, togrant extensions or not will be the power of theauthority”. But the modification will reinforce thelegal certainty of who have bet for investment”,he states. Also, Article Seven of the new Law ofPorts authorizes for only one time the extensionof the area of the terminals and public use portfacilities, up to one additional berthing positionwith a maximum length of 350 meters and itscorresponding ground surfaces, provided there areat least two terminals or port facilities of the samekind for different operators at a port.On the other hand, León Fregoso, presidentof ATOP, states that this also gives certainty tocurrent investors with already 20 years at the ports.For Germán Tirado, Coordinator of InstitutionalRelationships of Hutchison Port Holdings (HPH),the size of current vessels would require extendingport terminals: “This is something exponential, asterminals are a physical structure that may not bestretched. The idea is not seeking concentration atonly one terminal, as previous terminals will competein equal circumstances with new ones, and that isvery relevant”.Prior to the new Law existed the figure of theOperations Committee, an organization that had theentire responsibility to approve the Master Plan ofDevelopment in charge of the Port Administrator,who would submit it to the Committee, andmany ports adopted that assignees would have arepresentative, that is, only one vote. “We hope thatnow the right of seniority will be really recognized toassignees, an important part of the port community,being the one that invests the larger part in theport”, comments Germán Tirado. It was a problemof justice, adds Jaime Aguilar. “With this PlanningCommittee, the first thing we will see is an order inthe system of ports”.Jaime Aguilar, Executive DirectorAssociation of Terminals and Port Operators
  • 31. Mayo - Agosto 2012Summarizing, he ends stating that in the article ofT21 many organizations coincide that the reformto the Law of Ports encourages productivity andcompetitiveness of Mexican ports, faces internationaland regional competition that might displaceMexico from the main sea routes, promotes andlegally ascertains investment of private resourcesfor modernization, expansion and technologicalupgrading of Mexican ports, and promotes theexploitation of national infrastructure so the differenttransportation modes used in the logistics chain mayconverge in portsInvestment in infrastructure during the governmentof president elect of Mexico, Enrique Peña, willbe much more than that of present administration,stated in a press conference César Duarte, presidentof the National Conference of Governors (Conago,in Spanish) as reported the end of August byBNamericas. “The infrastructure investment triggerthat might be seen in the country by PresidentEnrique Peña may be three or four times more ofwhat we have seen in the past years”, stated Duarteduring the meeting of the Conago of the centralregion of the country.Governors of the central region of Mexicogathered to define infrastructure projects thatwill be incorporated in the next budget and toanalyze strategic initiatives for the National Plan ofInfrastructure for 2013-2018. Resources are nowavailable to triple current infrastructure budget, whichwill come mainly from private parties’ investmentof Public-Private Partnerships (PPP), according toDuarte. A perfect example of the importance ofthe PPP corresponds to the construction of theDurango-Mazatlán highway for US$1,880 million,which materialized “without using one penny ofthe federal budget”, and using private investment ofconcessionaries, informed Jorge Herrera, presidentof the area of infrastructure of Conago (see Inter-oceanic Highway Mexico-United States at thebeginning of this article).Although the national PPA law was approved inJanuary of this year, all governors attending themeeting emphasized the importance of approvingregulations, situation that is still pending. Otherchallenges faced by the sector consider introducingplural-annual budgets to reduce uncertaintysurrounding long-term projects, and a law to “assurethat works being developed may continue, despitegovernment changes”, concluded Herrera.Investment in Infrastructure will Triple Duringthe New GovernmentEnrique Peña, Elected President of Mexico
  • 32. Mayo - Agosto 2012
  • 33. Mayo - Agosto 2012CHILE: LOGISTICS ANDCOMPETITIVENESS LEADERIN LATIN AMERICAChile has been mentioned as the country with thebest logistics of Latin America, followed very closelyby Brazil and Mexico, according to a report of theWorld Bank. Chile moved to place 39 among155countries, whereas Brazil moved to place 45 andMexico to place 47, as per the report Connectingto Compete 2012: Commercial Logistics in WorldEconomy. The list is based on six factors: efficiencyof the process to dispatch goods through customs,infrastructure quality in relation to trade andtransportation, facility to organize competitive priceshipments, competence of logistics services, andthe frequency of shipments arriving on time to theirdestinations.Chile, Brazil and Mexico also positioned within the10 nations of medium-high income obtaining thebest results, altogether with South Africa and China;however, during the last three years improvementsin countries logistics have been stagnant. “This willprobably reflect in certain conditions that have leftaside logistics reform priorities of governments, as isworld recession and the crisis of the sovereign debtof Europe”, states the report.The infrastructure related to trade, especially roads, isstill an obstacle for the logistics performance and thesame occurs with the quality of railroads and portinfrastructure, according to the report. Infrastructureis the principal motor for progress, as well as aclose cooperation between public and privatesectors, stated in a communication Mona Haddad,sector director of the Department of InternationalCommerce of the World Bank.An article of El Tiempo of Bogotá of the end of Julystates that Brazil, in the last 15 years has become oneof the seven largest economies of the world (todayis the sixth) and, after the United States, is the powerof the continent, registering according to severalanalysts a stagnancy because of internal and externalfactors that may even cause a revision of its growthmodel based on its natural resources. And the factis not that the South American giant is falling. Whatconsulted economists agree is that the scarce tenthsThis country suffers because of the European crisis but,according to analysts, the upturn will come in 2013.Brazilian Economy Decelerates
  • 34. Mayo - Agosto 2012of growth it will has in 2012 and 2013 are bad newsfor a country that has been an “advantaged student”in relation to what was happening with mortgage andfinancial crisis in the United States and afterwardswith several European countries.Sebastián Briozzo, director of sovereign ratingsof Standard and Poor’s, said to EL TIEMPO thatBrazilian economy “was never as extraordinarilygood as affirmed, but also has not been as bad asthey want to make it appear in the last months”. Theanalyst considered that a growth around 3 percentin the last 10 years and an upturn of 7.6 percentin 2010, “Brazilian landing has been given in adeceleration environment of partners such as China,but also because of the accelerated adjustments ofits economic authorities. In this respect, AlfredoCoutiño, director for Latin America of Moody’sAnalytics, stated to this paper that “the stagnancy ofBrazil in the first two quarters of 2012 is explainedmostly by the aggressive monetary policy of thefirst half of 2011”, including strong increases inthe rates of the central bank, added to restrictivemonetary conditions that affected industry andcredit. Therefore he says that for the time being,“the patient must be alleviated and then savingsand investment will generate” to give course to theeconomy, which may last several months.According to Portafolio of Colombia, the U.S.newspaper states that currencies are solid and stable,inflation is controlled, credit ratings are high andGovernments know how to act in difficult times.And the fact is that Brazil after being the ‘pretty girl’in economic matters does not have today manyreasons to smile: less employment generation,expressed in the creation of 1,04 million jobs in thefirst semester, 25.9 percent less than during the sameperiod of last year; a 70 percent average fall in the useof installed capacity during the four first months ofthe year, a growth in the Gross Domestic Productof only 0.2 percent for the first three months ofthe year compared to previous quarter, and a fall of0.2 percent in industrial production up to last April.However, one of the most worrying indicators ofBrazilian economy is the deterioration of its creditsportfolio, as the number of unpaid debts grew 19.1percent in the first semester, compared to the sameperiod of 2011.In the meantime, the recent announcement byBrazilian President, Dilma Rousseff, of reducingtaxes and maintaining investments and allowancesfor the poorer gives hope that, unlike the austerityrecipe applied in Europe, will enable the regionalgiant to retake its course.Colombia and Peru are the New EconomicTigers of Latin America: The Wall StreetJournal
  • 35. Mayo - Agosto 2012INTER-OCEANIC CANAL INNICARAGUA?At the close of this Edition, the last day of August, in the firstpage of the newspaper El Tiempo of Colombia, appeared aheadline based on an interview with the outgoing Minister ofFinance of the country: “The Colombian Economy Surpassedto the Argentina”. Explains the important official that thegross domestic product of the country currently is US$362.000million and Argentina US347.000 million, which becomesColombia the third Latin America economy after Brazil andMexico.It also refers to the political and social situation ofColombia. “The confrontation with FARC continuesactive, as well as drug trafficking. But thanks to thestrengthening of the army, the decrease in terroristacts and kidnapping, and the persecution to the drugcapos, Colombia seems to have convinced foreigninvestors that changes are here to stay”, concludesWSJ.The U.S. newspaper recalls that some years back theonly investment possibilities considered viable werein Brazil, Mexico and Chile. “This has changed: anew group of countries in the region is emerging asa viable alternative”, states the paper. According toThe Wall Street Journal and WSJ, both Colombiaand Peru are in a growth boom. “Last yearColombia grew 5.9 percent and Peru 6.9 percent.For 2012, Colombia’s GDP is expected to expand4.7 percent and Peru’s 5.5 percent, according to theInternational Monetary Fund”, it states. Likewise,the WSJ report brings forth the fact that Colombia,and also Peru, have investment grade from the threemain rating companies of the world. “Only Chilesurpasses them within the region and its ratings placethem on a par with Brazil and Mexico, and someother countries”, it adds.
  • 36. Mayo - Agosto 2012Approved by the National Assembly, PresidentDaniel Ortega signed in July the law for theconstruction of a great inter-oceanic canal inNicaragua, an alternative to the Panama Canal,informed AFP. The project – a dream pursuedby Nicaragua since its independence – proposesopening a canal by any of the six possible routes ofmore than 200 km that are to be determined by thefeasibility study.According to the government, the canal will costabout 30 billion dollars that will be financed bycountries that have shown an interest in executingworks, such as Russia, China, Brazil, Venezuela, Japanand South Korea. The purpose of this “monumentalwork” is to encourage a “sufficiently rapid progressof the nation to eradicate poverty”. The initiativealso foresees the creation of the Authority of theGreat Canal, with a board of directors sitting sixmembers appointed by the president and ratified byParliament, who will be elected at first for a periodno longer than ten years, the term foreseen for thedevelopment of works. The entity will be financiallyand administratively autonomous to manage fundswith countries or interested foreign firms and also tomanage works.Latin Business Chronicle, quoting La Prensa of Panama,informed that the government of Nicaraguaauthorized the Dutch consortium Royal Haskoning-DHV and Ecorys to develop the prefeasibilitystudies for the construction of an inter-oceanic canalthrough the San Juan River, in limits with Costa Rica.The agreement was signed between the recentlyappointed minister president for the Authority ofthe Great Canal, the vice-chancellor Manuel Coronel,and the Dutch consultants, who stated to La Prensathat funds for the feasibility study were donated byHolland and that the consortium of said countrywas chosen as it offered “the shortest time” todo it. This study “will enable the Authority of theCanal to make a final decision on the route” to beused to promote this ambitious project, stated thechancellor’s office. Although the San Juan River isof Nicaraguan sovereignty it is the borderline withCosta Rica, thus its right margin is Costa Rican andthe San José authorities have warned that a project ofsuch size may not be developed without the approvalof Costa Rica, based on existing border treaties.Publimetro of Colombia highlighted that accordingto the Nicaraguan government, the project would becomplementary to the Panama Canal and thereforenot merely a competition. The publication adds thatthe most optimist estimates of the government statethe canal could be ready in 2019 and would have acapacity to receive 416 million tons, thus representingalmost 4% of world cargo. As of 2025 the canalcould receive 573 million tons, that is, 4.5% of worldsea cargo.President Ortega, according to Publimetro, expressedthat Nicaragua is the best place to build a canalbecause the environmental impact would be less andthis country has extensive availability of waters andlow lands. Regarding the Panama Canal, Nicaraguaconsiders it is saturated despite its expansion, becauseit will not be capable of receiving the ever largervessels of the market.Complement rather than Competition to thePanama Canal
  • 37. Mayo - Agosto 2012MODERN LOGISTICS OFINLAND TERMINALSHistorically, the waterway system has been seen asa transportation artery with terminals strategicallylocated along its route. These terminals tend to belocated at points where they may provide supportservices to the local neighborhood or regionalindustries. However, requirements for the 21stcentury have changed this approach.Modern dispatches require fully integratedtransportation systems that may quickly andefficiently respond to the requirements of local,regional and global services. Instead of operating asisolated terminals, port facilities are ever more beingseen as elements of an integrated system. They mustoperate as regional logistics centers, inland ports or,sometimes, as virtual ports.A regional logistics center positions itself as anessential link for the general transportation system,supporting producers, shippers and recipients,using the integration of waterway, railway and airtransportation systems to provide their services. Aninland port slightly differs as it complies with someof the functions of a deep-water port, althoughbeing located on a navigable route or at a location onthe coast, and among its benefits it allows having thetime to classify commodities to be delivered near toregional distribution centers and far away from busyseaports, providing value added services to goodsbeing moved through the supply chain.Latinports wanted to supplement this article with one of theconclusions of the first specialized event in container logisticsheld by the National Association of Entrepreneurs ofColombia ANDI, the month of July:Daniel Negron, Vice-presidentThomas Miller Inc.
  • 38. Mayo - Agosto 2012LEGAL CERTAINTY IN CONCESSIONCONTRACTS: A CALLTO GOOD SENSE“The lack of ports connectivity with other modes of transportsuch as the river and rail, affect access to several areas ofproduction and consumption of goods, what is required todevelop viable alternatives to mass transit than the truck whichA virtual port, on the other hand, does notoperate form a specific location but rather uses theinternet to facilitate regional domestic trade andinternational trade, supporting exports and importsoperations by using technology to improve the useof transportation systems. This provides users asimple virtual location for all related services such ascommerce, logistics, security and other transportationactivitiesBeing considered of interest, we hereby transcribe the articleentitled Land of Opportunities, written for ContainerManagement Latin American supplement by Johnny J.Medranda, Regional Manager for Latin America and theCaribbean of RAM Spreaders and former CommercialManager of TIDE, failed concession of Hutchison in Manta,Ecuadorallow an integration of logistics processes and strengthen themultimodal transport, the mobilization of goods to facilitate theforeign trade in terms of competitive prices”.
  • 39. Mayo - Agosto 2012involved in the decision-making process forconcession contracts may have interests in other,competing concerns, causing serious conflicts ofinterest. In the initial business development stageof a project, the developer must identify the mainplayers and find out as much as possible aboutthem, to avoid subsequently having to deal with‘fifth columns’ that may prejudice the investment.Another issue to be aware of is ‘dirt swept underthe carpet’ that has not been properly addressedat the time of drawing up the contract. Thisincludes potential sticking-points that have nothingto do with the signatories themselves, but whichsubsequently can become real problems thatcan lead to costly legal battles. Examples includeoutstanding stevedore or labor disputes involvingshipping lines or their agents. If such issues are notresolved or properly addressed in the concessioncontract, the developer may be exposed later on tounforeseen financial scenarios. Unresolved disputesof this nature can frighten off shipping lines,making the business unsustainable. The developermust explicitly ensure as part of the contract thatthe port authority or the local government willmake all efforts necessary to end any such dispute.If a dispute is not resolved within a specifictimeframe, the developer can cite it as a fair cause towithdraw from the contract and claim indemnities.Like the conquistadores who sought the mythical cityof El Dorado, adventurers are still pouring into LatinAmerica and the Caribbean – this time not in searchof a golden city but of development opportunitiesin the region’s ports industry. However, they shouldbe aware that all that glitters is not gold. Someglobal port developers have already found their owngolden opportunities in the region. Such is the casewith HPH in Mexico, Panama and Argentina; DPWorld in Peru, Brazil, Argentina and the DominicanRepublic; APM Terminals in Brazil, Costa Rica,Peru and Argentina; SSA Marine in Mexico, Panamaand Chile; and ICTSI in Mexico, Brazil, Colombia,Ecuador and Argentina. Likewise, regionalpowerhouses such as Agunsa and SAAM from Chileare rapidly expanding their successful operations.These global and regional port operators andinvestors have developed world-class port operations,bringing with them the competitiveness requiredto thrive and survive. However, not everything thatshines from afar means gold. There are cases whereport developers have signed long-term concessioncontracts in good faith, only for their dreams to turninto nightmares. At the time of signing, both partiesmay indeed have intended to achieve whateverobjectives they set in terms of infrastructure andvolumes. However, initially exciting prospects andwarm feelings of good faith can in some cases turnto blind optimism that leads the parties to overlookreal threats to the viability of the business.Investors should beware of some of the commonchallenges affecting the Latin American andCaribbean region when it comes to public contracts.To begin with, no country in the world is immuneto public corruption. Some government officials
  • 40. Mayo - Agosto 2012Another major challenge, and one that is verydifficult to anticipate, is that of local media playersand their relations with the local community andthe government. Some unscrupulous media outlets,including TV, radio and newspapers, will want aninvestor’s advertising business, whether the investorneeds to advertise of not. If they decline, no matterhow politely, they may be demonized in the eyes ofthe public. This does not apply to all media. Someorganizations are very professional and understandthat they cannot expect a great deal at the outset.Port developers must understand the behavior oflocal media or hire a local expert who can deal withthem appropriately. They should be ready to establishwith port authority partners a common front in theeyes of the community and the government. Usuallya good strategy is for the port authority to take caseof local media while the developer handles publicrelations in national and international media.The relationship between the port authority andthe port developer is absolutely critical. If for anyreason this relationship sours after the contract hasbeen signed, the developer must step back, reflectand change course if required. Unless the developerhas already created a substantial business and hasstrong relationships higher up the public chain ofcommand, they stand no chance against the portauthority in any internal dispute. The developer mustalways be proactively ahead of the game and shouldlet no issue come between it and its partner. Therelationship resembles a marriage, or a family bond.The developer must understand that a concessionmay last for 20 or 30 years while governments usuallychange every five years or so, and governmentofficials come and go.Another issue to consider is the infrastructure inthe port’s hinterland linking it to the wider market.If this is not adequate, a government may promiseto improve it in “reasonable” time. However, thedeveloper must ensure that this is written into thecontract, and if shortcomings are not remediedwithin a specific timeframe, this can become anotherreason to withdraw and claim indemnities. Never letthe word “reasonable” be part of the contract: thiswill only lead to ambiguities in the future. Be veryspecific as to what the other party must do, and bywhen. If a developer finds itself in this situation,it should watch out for local authorities awardingcontracts for the construction of critical hinterlandlinks to companies owned by groups that also owncompeting ports. Call it conspiracy, corruption orconflict of interest: this is a real risk and does actuallyhappen.A port developer must also check local anti-narcoticsand customs regulations, which can cripple abusiness before it gets going. Imagine an inboundcontainer going to its primary zone in the port. It ischecked by anti-narcotics authorities and then placedin the container yard. Before the container vesselarrives, anti-narcotics decide randomly to take backthe container and check it again, and this becomes aroutine. It adds unnecessary costs for the exporter,who may decide to send their containers through adifferent port. The developer should check the levelsof anti-narcotics inspections in the port and have theauthorities commit to a reasonable regime.Critical Relationship
  • 41. Mayo - Agosto 2012internships in the port, donating beds to localhospitals, supporting sports teams, etc. Of course,there has to be a plan and a budget for such activities.The developer should not be viewed as a charityeither. It should work closely with local chambers ofcommerce and forge links with social leaders. Thedeveloper is part of a picture larger than the portitself. Sometimes, and unluckily for the developer, theport and the city are closely intertwined and so thingsbecome political. The game must be played wisely.Governments and port authorities, equally, mustbe aware of issues that may limit their ability tomaximize opportunities created by the port business.Most often than not, they own the infrastructure andtherefore possess an important strategic asset, butunfortunately they do not always exploit it effectively.They may invest millions of dollars in infrastructureand then let other benefit from it, leaving very littlefor themselves, sometimes not even enough to covermaintenance.Port authorities should regularly send technical andcommercial personnel to industry conferences andfor off-site training. They should have staff ready andprepared to seize new opportunities if they managethe port or, if it is concessioned, ready to take overoperations should the occasion arise. Port authoritiesmust truly understand the value of their own port,should they decide to concession it. They need well-briefed personnel to avoid any potential exploitationby consultants, investors or developers. In order forthem to determine the port’s current and potentialfuture value, they must fully understand the business,its dynamics, the links in the logistics chain, localThe developer must also check customs regulationssuch those relating to where goods in transit canbe nationalized (clearing customs, paying any dutiesand being given permission leave the port). Iftransit goods are nationalized at the port of entryand not at their final destination, this creates alogistics problem for the importer, increasing costsand reducing incentives to ship goods throughthe terminal. Again, the relevant authorities mustcommit to modify regulations that can lead to a lossof business.Another, more subtle, issue is the relationshipbetween the port developer and the localcommunity. The community must be educated tounderstand that changes to the port will not happenovernight and that ships will not be lining up theday after the concession contract is signed. Mostimportantly, the community must understand thatthe developer does not own either the cargo andcontainers or the shipping lines. It must know thata port developer/operator and the terminal arejust tools that facilitate national and internationalcommerce. Expectations must be set reasonable.The developer must not let the port authority runwild, claiming that miracles will happen immediately.This is especially important in greenfield or smallterminals. The developer should aim to integrateitself into the community. It should considercontributing to community programs: for example,offering scholarships at local schools or universities,donating computers to schools, giving local studentsMaximizing Opportunities
  • 42. Mayo - Agosto 2012LATIN AMERICA & WORLD TOPCONTAINER PORTS 2011Latinports wishes to add to the above the importance ofclearly defining conditions and opportunities for contractextensions, since many times this negotiation is too complex andattempts against port and/or terminals efficiency for duringthe negotiation period –especially when done at the end of theconcession– medium- and long-term investments are postponedbecause of lack of guarantees for its recovery in case contractsare not extended.Below you will find the fifteen major container portsin the region, most of which ammounted in theworld rankings where Panama leads in transhipmentand Santos in foreign trade (in parentheses the globalposition):Extension of ContractsLatin American Rankingand regional competition, economic trends, potentialalliances, and so on. This is not a job for the faint-hearted.When a concession contract is signed, and bothparties understand their rights and obligations, theymust both endeavor to establish simple yet clearcommunications in terms of reports, statistics, audits,etc. The port developer should not let itself be tiedup in bureaucracy or be coerced into constantlyreinterpreting contract clauses. Should a breakdownof the partnership occur, the contract should be veryspecific as to how long the port authority will beallowed to use the developer’s port equipment. Thecontract cannot say “the minimum or reasonable timeto maintain the port as operational”. Intentionally ornot, this minimum time will become permanent.Another contract issue relates to the jurisdiction forlegal action should a dispute occur. Some countriesin the region no longer submit to internationaltribunals for the resolution of disputes but resort totheir own domestic justice systems. If this happens,the developer may feel a terrible sense of insecuritybecause the case may not be handled impartially.Developers must ask themselves beforehand, even ifa contract is signed with the best of intentions, whatwould happen if there was a change of governmentinimical to their own interests. To secure the successof any project, a port developer and its partneringport authority must take the time to set out clearlyand explicitly every last detail, obvious or otherwise,to minimize the potential for conflict. That said,Latin America and the Caribbean are indeed the newland of opportunities, an El Dorado for those whodare to lead the way.
  • 43. Mayo - Agosto 2012Noteworthy positively that within the hundredmain ports of containers of the world ladder ofContainer Management, almost 10% are LatinAmerican (three are part of the first fifty: PanamaAtlantic and Pacific, and Santos).(*) If we exclude San Juan, which is Latin Americanbut belongs to United States, Montevideo (Uruguay)occupy 15th place (118 in the world), with 861.164TEUs.Eleven Asian ports (nine Chinese) within the firstfifteen ports of containers worldwide as we shall seebelow:Mundo Marítimo prepared the end of August thefollowing extract of Global Container Terminal OperatorsAnnual Review & Forecast 2012 published by DrewryShipping Consultants of London:During the last decade, the port industry has seenimportant changes, thus showing a solid growthand global expansion. The entry of China to theWorld Trade Organization (WTO) in 2001 andthe corresponding boom in volumes thanks tooutsourcing and global economic rise, the globalfinancial crisis of 2008 that resulted in the first fall intraffic of containers in 2009, the dramatic increase ofthe containerships and the rise of the Asian ports –especially Chinese ports – as important actors in theworld scenario are just some of the components thathave changed the face of the global port industry.Some of the principal changes encountered by theWorld Ranking:Global Container Terminal Operators AnnualReview & Forecast 2012
  • 44. Mayo - Agosto 2012port industry during the last decade are the trafficincrease of containers at ports, which has morethan doubled since 2002, while the participation ofChinese ports has reached 30%. Almost one third ofthe TEUs handled worldwide correspond to Chineseports and regarding total TEUs handled, more than75% are handled by global (*) port operators, a figuresignificantly greater if compared to 58% that werehandled by said large firms in 2002. Another changemay be seen in the size of vessels: in 2002 the largestvessel in service reached 7 thousand TEUs, whereasat present there are lots of ships of 15 thousandTEUs and coming closer those of 18 thousandTEUs.While some things change, others remain unaltered.The report shows that the main actors of theindustry ten years ago continue being at presentmostly the same. Taking the total movement ofTEUs, Hutchison Ports (**) continue way ahead,while PSA (**) and APM Terminals interchangedthe second and third places. The fourth place is forDP World, place previously occupied by P&O Ports(acquired by DP World in 2006). A new participant,Cosco Group, occupies the fifth place in 2011reflecting the emerging importance the Chinese havebeen gaining in the industry.In a globalized industry, merges are inevitable.Shipping lines have consolidated alliancesvoluminous in size but short in quantity, especiallyin the Asian-European routes currently under thedomain of four large groups.Looking one decade back is equally interestingconsidering how the industry will be in the future10 years to come. “We have forecast in this year’sreport that global container handling will exceed 800million TEUs in 2017. According to these estimates,within 10 years the industry may easily exceed onebillion TEUs per year and this is only based on aone-digit growth each year. Also, it is highly possiblethat only vessels of more than 20 thousand TEUswill be operating in the east-west routes. However,due to uncertain existing economic conditions, theindustry faces a great challenge in terms of growthin more than one front”, stated Neil Davidson, PortConsultant of Drewry.(*)Without much explanation Drewry suggests that in 2012total containers handled by global operators has substantiallydecreased (Latinports)(**) Port of Singapore Authority PSA owns 20% ofHutchison Group (Latinports)
  • 45. Mayo - Agosto 2012PRIME MINISTER OF CHINA PROPOSEDAT ECLAC A FORUM FOR HIGH LEVELCOOPERATION WITH LATIN AMERICA ANDTHE CARIBBEANTo strengthen the strategic relationship with theregion, the Chinese Prime Minister, Wen Jiabao,proposed the creation of a Chinese-Latin AmericanCooperation Forum and the establishment of aperiodical dialogue mechanism with the troika ofchancellors of the Community of Latin Americanand Caribbean States (CELAC) summoning thefirst meeting for 2012. Last June 26 the ExecutiveSecretary of the Economic Commission for LatinAmerica and the Caribbean (ECLAC), AliciaBárcena, welcomed Wen Jiabao in the name ofthe institution, who addressed a message fromthe headquarters of the organization to the LatinAmerican and Caribbean regions on the occasion ofhis official journey that took him to Brazil, Uruguay,Argentina and Chile.In his discourse at ECLAC, the Chinese primeminister submitted concrete cooperation proposalswithin the scope of food security, innovation, scienceand technology and sustainable development, amongothers. Wen Jiabao announced the creation of acooperation fund addressed to the region, includingat first 5 billion dollars to promote, among otherthings, the development of the manufacturingindustry, and also a line of credit for 10 billiondollars to promote infrastructure cooperationthrough the Bank of China. He proposed thecreation of mechanisms for multiple forms of inter-governmental consultations, extending contactsamong legislation entities, political parties andterritorial governments, and reinforcing the exchangeof experiences in matters of State governance andmanaging administrative issues. He also posed thecreation of a forum of Ministers of Agriculture andanother for Scientific and Technological Innovation,Wen Jiabao, Prime Minister of China and AliciaBárcena, Executive Secretary of ECLAC
  • 46. Mayo - Agosto 2012stating also that his country will actively considerthe proposal of ECLAC for the development ofperiodical meetings with the Chiefs of State andGovernments of the region.Within the framework of the visit of Wen Jiabao,ECLAC published the document The People’s Republicof China and Latin America and the Caribbean: Dialogueand Cooperation in the face of New Global EconomyChallenges, which examines the most recent trends inmatters of commerce and investment.Worth noting, according to the report, is theessential inter-industrial character of trade betweenboth parties, which means that China exports to theregion manufactured goods and Latin America andthe Caribbean basically commodities. “This reducesthe potential to eventual China-Latin Americaentrepreneurial alliances and makes difficult a moreefficient insertion of the countries of the region inthe productive chains of Asia and the Pacific”, statesthe document.Only four countries of the region, all SouthAmerican, had surpluses in 2011in their trade withChina: Brazil, Chile, Venezuela and Peru. In any case,this was the result of the sales of a reduced numberof primary products. On the other end is thecommercial deficit of Mexico with China: while lessthan 2% of Mexican exports in 2011 were to China,15% of its imports in the same year came from thatcountry.In this sense, Wen Jiabao stated that China does notpursue commercial surplus but seeks to maintain abalanced trade with the region, increasing importsto Latin America and the Caribbean of greater valueadded products in the future. China expects thatthe volume of trade with the region may exceed400 billion dollars in the next five years, stated theauthority.“The increasing growth of the economic andcommercial link of Latin America and the Caribbeanwith China presents opportunities and concernsand thus results essential to establish a dialogueand cooperation agenda between both parties”,stated Bárcena. Among the opportunities of therelationship with China, Bárcena mentioned animprovement in the terms of exchange, higherrates of growth and additional resources to invest ineducation, infrastructure and innovation. Concernsin the mean time relate to the reprimarizationof exports, deindustrialization, the emergenceof the Dutch disease, the access to the land andimmigration, he stated.Wen Jiabao proposed an increase of friendshipamong the peoples of China and Latin America,promoting mutual respect and pacific coexistence.China has lived titanic changes, he said, but itscondition as a country in way of developmenthas not changed, or its cooperation policy, or itssolidarity sentiments towards Latin American andCaribbean countries. China will invariably continueits path towards pacifist development. “Friends arelike the stars: they are far away but may be seen”, heconcluded quoting a Chilean thought.
  • 47. Mayo - Agosto 2012LATIN AMERICA MAY TAKE THE LEAD OFWORLD ECONOMY ALTOGETHERWITH ASIA: CARLOS SLIMLatin America has a great potential of havingaccess to development and of being next to Asia asleader of the world’s economy, stated the Mexicanmultimillionaire Carlos Slim, quoted by LatinBusiness Chronicle in a forum in Mexico withpoliticians, experts and businessmen of the regionheld the end of July, which he hosted. “I am veryoptimistic; we have great opportunities, and if wedo it relatively well, we shall go to development” and“maybe Latin America may take the lead as is doneby Asia”, stated the man considered the richest inthe world during the last day of the two-day meetingof the Circle of Montevideo, that referred to theEuropean crisis and inequity problems worldwide.The Mexican businessman opposes the solutionbeing given to the crisis in Europe and states itrequires deeper solutions. “Medicine of the thirties isstill being given as the way to prevent the crisis, but itis rather a way to defer it”, stated Slim who considersthat the present situation of world economy is partof a process that started in 2000 and worsened in2008. In his opinion, the technological revolution hascaused changes requiring structural reforms to meetcitizen demands of health, education, pensions, andabove all, more and better jobs for the young.The billionaire stated that governments must takemeasures to prevent the same from happeningas with the industrial revolution that broughtforth serious conflicts, world wars and politicalexperiments, and at the same time affirmed thatcountries of the region have, in general, soundfinances and a large window of opportunities tohave access to external savings as source of financingprojects left behind. “Low return rates in otherregions of the world are attractive to investmentsseeking more profits”, he added.Carlos Slim, the world’s richestbusinessman according to Forbes
  • 48. Mayo - Agosto 2012REORGANIZATION OFIBERIAN PORTS?Spain and Portugal are now under pressure togenerate more income for ports in order to paythe debt of the government. According to PortFinance International the Minister of Economyof Spain is evaluating a privatizing movement ofthe assets of Spanish ports to obtain funding forthe shaky economy of the country. Unofficially,now the concern of the advisers of the minister onthe Spanish ports is a fact, which will be part of anew campaign to privatize entities managed by thestate, including the operator of state railroads ofSpain, RENFE, and the national agency of airports,AENA.Spain’s port debt has decreased if compared toother transportation assets, becoming a tangibleobjective for privatization, even more when someSpanish ports have continued growing despiteSpanish recession and the reluctance of previousgovernments to liberalize stevedoring laborservices. It has been considered that the Ministry ofEconomy could select a small number of ports forits privatization, but the Ministry of Public Works ofSpain might be thinking in favoring continuance ofports as public entities. Nevertheless, the economicagitation in Spain means that the management inMadrid is way below to increasing the pressure tointroduce reforms to the ports.
  • 49. Mayo - Agosto 2012SHOULD LATIN AMERICAN PORTSBE CHASING THE MAMMOTHSOF THE SEA?In relation to Portugal, Port Finance Internationalinformed that for June the government is expectedto announce reforms on the governance of portsand its labor regulations as part of the conditionsimposed by the economic rescue of the countryin 2011. Portugal received funds and loans underthe European Financial Stabilization Mechanism(EFSM) and the condition was to implement astrategy to improve the governance model of theport system, although a radical overhaul or reformis not expected of the ports owning the system,privatization included.In previous editions (and in the interview of Mundo Marítimoto the executive director of Latinports, in this edition) we haveforewarn on the concern there must exist at the moment ofplanning the growth of our ports, above all regarding capacity toreceive ever larger vessels due to the so-called “cascade effect”. Wehave been reiterative that planning must be rational, having inmind the growth foreseen for our economies and not thinking inthe wrong magnet effect (an expression we have created to showthat having ports with technical conditions to receive the largestvessels of the world, and those to come, is far from making themattractive to shipping lines), thus preventing the constructionof “white elephants” as called by ECLAC and furtherconcentrate in reality.Based on the above we found of great relevance the editorial ofGeoff Adams in the last edition of Container ManagementHowever, the Portuguese administration has notdisclosed to the port sector up to where there will bechanges and the scope of the reform still continuesbeing a very well kept secret. Last year Portugalwas forced to define the necessary measures toensure the separation of regulating activity, portmanagement and commercial activities and torevise the legal framework that rules port labor andmake it more flexible. Under a memorandum ofunderstanding between Portugal, the IMF and theEFSM of the European Community, the countrywas also forced to define a strategy to integrate portswithin a logistics and transportation general system.Changes are arriving to an improved atmospherefor the port system of Portugal, which registered atotal growth of 10% for the first quarter. “At presentthere is peace at ports and exports have grownthis year. Changes in labor regulations and portgovernance may cause some turmoil,” said AntonioBelmar da Costa, director of Agepor, the associationof shipping agents of Portugal, quoted by PortFinance International.
  • 50. Mayo - Agosto 2012London (July-August), entitled Size Matters where, based onthe presentation by Neil Davidson of Drewry Consultants inTOC Europe held in June, crudely referring to this topic andmaking ports worldwide and furthermore Latin Americanports to think about this, starting with the meaningful subtitle,including a separate part of which we entitle this article (wehave highlighted the sentences we consider most relevant):With the first 18,000 TEU ships expected toarrive later next year, and 22,000 TEU ships nowbeing discussed, should ports be chasing thesemammoths of the sea?Economies of scale are driving the containershipping industry to introduce very bigger ships,even in these economically stretched times –although, to be fair, most of the next-generationvessels were ordered at the height of globalgrowth, when trade seemed to be on an endlessupwards trend. However, what may be good forthe goose (shipping lines) may not necessarilybe good for the gander (ports)!It is expected that the introduction of vessels of18,000 TEU will lead to a ‘cascading’ effect, withmany ships currently plying the East-West tradeshuffled down onto other services. This, in turn,will see further ships of different sizes similarlycascading down until, somewhere at the end of theline, older ships will be disposed of. While admiringthe technology and man’s ability to design thesegiant carriers, attention needs to be turned toterminals and whether they can cope with everyincreasing vessel sizes, whether new-builds orvessels that have cascaded down.This was a subject aired by Neil Davidson, senioradvisor for ports at Drewry Consultants, at this year’sTOC Europe conference. He pointed out that over70% of the 1,476 container terminals worldwidehave capacities of up to half-a-million TEU. Inrelative terms therefore, larger terminals, withcapacities of up to 1 million TEU and above and theability to handle larger ships, are in the minority. Hehighlighted that the typical terminal has an averagecapacity of around 600,000 TEU, adding that thisfact should be kept in perspective when lookingat the implications of increasing ship sizes and theability to accommodate the changing trends in linerservices.Davidson came up with a simple checklist. Althoughit perhaps seems obvious, bigger ships mean theneed for more infrastructure and equipment toaccommodate them. Based on the current size ofcontainer ships, terminals need sufficient cranes,between three and five per ship, with an outreachof at least 21-22 boxes across (23 across for 18,000TEU vessels), together with berths long enough tohandle ships of 400 m, with at least 17 m of waterdepth in the approach channel and 14.5 m depthalongside.Geoff AdamsSIZE MATTERS
  • 51. Mayo - Agosto 2012Finally, there is a need for storage and landoperations to be able to handle up to 4,000 boxes –estimated to be the number transferred during eachcall of a 15,000 TEU vessel – with productivity tomatch. All this comes at a huge cost to the terminal,with no guarantee that a service will come or, if itdoes, that it will remain. Currently there are about 53terminals worldwide capable of handling the biggestships currently afloat, with a number of new portsbeing developed with a view to attracting the largestships yet to arrive.According to Braemar Seascope’s latestContainership Fleet Statistics, some 230 containerships are due for delivery this year, with 59 having acapacity of 10,000 TEU or more. It should also beremembered that even though their numbers areincreasing, there are still relatively few vessels of thissize. That leaves a majority of smaller ships, whichare ideally suited to, and will be required to call at, themajority of ports around the world. I acknowledgethat the cascading down of larger ships will meanthat some terminals will need to up their game.However, maybe those with aspirations to chase afterthe largest ships afloat, either now or in the future,should consider the true implications of such a moveand be satisfied with providing the best possibleservice to operators with ships of a smaller size.Perhaps there are lessons to be learned from theexperiences of others, albeit in a different sector.I am reminded of the battle, some years ago,between the UK’s two largest supermarket chains,when Tesco challenged its rival Sainsbury’s for thetop spot – and won. After a brief period of trying,unsuccessfully, to regain its top position, Sainsbury’sstopped looking over its shoulder and took the wisedecision to be the best second largest supermarket inthe country. And it worked.Emma Maersk (18.000 TEU),the world’s largest ship
  • 52. Mayo - Agosto 2012WIDESPREAD AND DISPROPORTIONATEINCREASE OF SEA FREIGHTS:A WORLD CARTEL?Despite recovery signs within the shipping sector asshown by the fact that in May the Israeli shipbuilderZIM reactivated two container vessels capable oftransporting 10 thousand containers each, whichhad stopped for five months as informed by Valor,the publication of Brasil Económico, highlightedshortly after that shipbuilders were trying to recoverthe damages caused by the international crisis ongrowing markets as the Latin American.Entrepreneurs, consultants, and lawyers claim thealleged coincidence of up to 40% freight increase bythe principal ship owners operating in the country.“A new revision of freights has been foreseenfor the months of July and August”, stated JoséAntônio Farina, commercial director of Log-in. Forthis reason the Brazilian publication suggests this isan action orchestrated by Maersk, Hamburg Süd,CMA-CGM and MSC, which transport 70% ofBrazilian cargo in containers, an action considered byspecialists as a cartel.Ship owners defend themselves stating that fuelcosts moved to become 65% of costs, whereas15 years ago they only represented 20%, and thatincreases coincided because of the fiscal calendarof companies, as stated by Bruno Crelier, directorof products of Hamburg Süd, who added that “ourbudget, revised in April, showed an absurd damage iffreights should continue as now. On the other hand,Maersk, quoted by Container Management in its lastedition “will become profitable at any cost” becausecurrent situation is “unsustainable”.Tribuna of Brazil informed that the shipownerMaersk Line readjusted freight values for the routesbetween Latin America, India and the Middle East,which vary between US$150 and US$800, dependingon the voyage and size of the container.On the other hand, Tribuna informed that shipbuilderDaewoo Shipbuilding and Marine Engineering,of South Korea started building the largest-to-be container vessel of the market, capable oftransporting 18,000 TEUs. It will have 400 metersof length and 59 m of beam, and a shelter decksufficiently big to cover four soccer fields. The vesselMega-Containership for 18 Thousand TEUs
  • 53. Mayo - Agosto 2012NEW MEMBERSto be delivered within one year is the first of 20ordered to the shipyard by the shipowner. However,according to the recently appointed CEO of Maersk,Soren Skou, quoted by Container Management, “we willNew Orleans has been an international trade centersince 1718 when founded by the French. Today, theport of New Orleans is the center of the busiestport complex of the world – lower Louisiana ofthe Mississippi River – and its proximity to the U.S.Midwest through a river system of 14,500 miles,makes of New Orleans an important port selectionfor cargo movement.With the Mississippi River moving almost 500million tons of cargo each year – including chemicalproducts, coal, timber, iron, steel and more than halfthe grain exports of the nation – the port of NewOrleans is the gateway of the United States for theglobal market. Besides, this port is the only deep-water port in the United States served by six firstclass railroads, providing users a direct and affordableservice to and from any part of the country. It is alsoone of the main general cargo ports of the UnitedStates to import steel, natural rubber, coffee andplywood.During the last 10 years, the port of New Orleanshas invested more than 400 million dollars in newlast-generation facilities. Better conventional andcontainer terminals have new multiuse cranes,expanded classification stations and a new road tohandle truck traffic. The Board of Commissionersof the Port of New Orleans is committed to builda port that will serve the needs of the world marketwell into this century.The president of the port is Gary a great friend of LatinAmerica. The manager for Latin America, based atSao Paulo, Brazil, is Celso Camargo more Information on the port please enterwebpage www.portno.comnot invest in our ship business for a couple of yearsas we believe that a decrease in investments is whatwe currently need”.Port of New Orleans and Mardique PortSociety
  • 54. Mayo - Agosto 2012UPCOMING EVENTSMayo - Agosto 2012Sociedad Portuaria Mardique is a multipurposeport project located on the bay of Cartagena, at themouth of the Magdalena River and Canal del Dique.The works of the project are expected to start thisyear; it has 90 hectares of which 43 are their own, a20-year concession contract and a Special Port FreeZone now underway.The general manager is Andres Londoñ and the web page www.spmardique.comBuilding and modernizing competitive nationalinfrastructure: Latin Markets brings togetherprominent leaders from the infrastructure sectorin Latin America, focusing on the developmentof energy, mining, transport, telecommunications,economic and social development of infrastructureprojects. In Colombia it includes more importantsinfrastructure projects in the stages of planning ordevelopment, with plans of investment in Medellín,Cali, Barranquilla and Cartagena.For more information please consult the or contact Ken Baucobauco@latinmarkets.orgOctuber:Colombia Capital Projects & InfrastructureSummitHotel JW Marriott BogotáOctuber 17 & 18, 2012November:III Latin American Private Public AnnualSeminar.Ports & Foreign Trade Logistics PlatformsNovember 26-27, 2012Sociedad Portuaria Mardique
  • 55. Mayo - Agosto 2012Después de la gran acogida de nuestros anterioreseventos anuales en Cartagena y Brasilia, ahora le tocóAfter the great reception of our previous annualevents in Cartagena and Brasilia, now is the turnfor Viña del Mar in commemoration of thecentenary of the start of construction of the port..Developing our great annual event in Chile is ofspecial significance as we must remember thatthis country was the first to start port privatizationand decentralization in Latin America, an examplethat has been successfully followed by most of thecountries of the region. However, after almost 20years of this important advance for the foreigntrade of our countries, it is important to make astop and look towards the future, and nothing betterthan doing this in Chile, a country that continuesinnovating all its sectors and results have caused itto be a leader in logistics and competitiveness withinthe region, as was recently emphasized by the WorldBank and the Institute of Competitiveness of Aden.Thus, on Monday 26 and Tuesday 27 of Novemberat the Sheraton Miramar Hotel of Viña del Mar willtake place the Third Public-Private Annual LatinAmerican Seminar, focused on a highly topicalissue as the Empresa Portuaria Valparaiso and theTerminal Pacífico Sur where during two days we willrefer to topics such as Latin American Leadershipworldwide, the repercussions of the extension ofthe Panama Canal and the size of ships arrivingto the region, the inland logistics centers and portsustainability; besides, experiences and perspectivesof the most important container terminals will beshown, such as Valparaiso, Santos, Callao, Cartagenaand Buenos Aires. On the last day of the seminarthere will be guided tours to Terminal Pacífico SurValparaiso TPS, and to the Logistics Support andExtension Area of Valparaiso, ZEAL.This will be an excellent opportunity for an updatein port logistic matters and to prepare ourselves forthe challenges that gives us the global economicsituation. All this within the fabulous environment ofthe traditional Valparaiso-Viña del Mar.You will find more information on the event(agenda, registration, hotel registration, etc.) in thewebpage www.latinports.orgYou may also contact Emilia Peró epero@emew.clor Julián Palacio
  • 56. Mayo - Agosto 2012Mayo - Agosto 2012Latin American Port NewsArgentinaAltogether with the chairman of the executivecommittee of Latinports, Richard Klien, as memberof the advisory committee, will take place at HotelEl Panama the most important maritime-port, in its news of the first week ofAugust, informs that the steps for the master plandesigned four years ago by Exolgan are beingmet with precision. The objective is updating theinfrastructure of a port which today moves 33% ofthe containers of Argentina, and for said purpose,US$150 millions are being invested, which is nota small amount in times of international crisis anddifficulties to have access to credits.Within planning, 360 linear meters already have beenbuilt of a dock suitable for super post Panamaxships, and 12 Transtainers and other equipment werepurchased. Three Transtainers must still arrive bythe end of 2012. Another fact worth mentioning isthe purchase of four Liebherr super post Panamaxcranes, the first of this type in Argentina, three ofof the continent. TOC offers to principal executivesof the sector and to those making decisions at thecompanies, the opportunity to discuss the last markettrends, and also the challenges and opportunities forcontainer transportation through North, South andCentral America.You will find more information on the event inwww.tocevents-americas.comDecember:TOC Container Supply Chain AmericasEl Panamá Hotel, Panamá CityDecember 4-6, 2012Exolgan Adapts its Infrastructure to Receive theNew Megaships
  • 57. Mayo - Agosto 2012which are already in operation and the last to arrivein the beginning of 2013 will be the most moderncrane of the Port of Buenos Aires, with a boomlength of 40 meters (20 rows of containers), aheight under spreader (device to grasp cargo) of 40meters and a loading capacity under spreader of 66.5tons. Added to this are the extension works of thenavigable area in the area of Cuatro Bocas, currentlyunder execution, and the extension of the navigablearea in front of the third dock, in bidding process.Once dredging of the South Channel has beencompleted, two super post Panamax vessels morethan 320 meters long by 48 meters wide may operatesimultaneously, which will be arriving to BuenosAires in 2013.“What we are doing is not easy, and what comes isnot either. We need much support, and have had itfrom the Nation and especially from the province ofBuenos Aires. These foreign investments providingArgentinean work fill us with pride as they haveconfidence in the country”, said Roberto Negro,CEO of Exolgán.In the opinion of Roberto Negro “the internationaltransportation system is now in permanentdevelopment, and seeks more efficiency in theframework of a world situation that so requires.Investments are in ever larger vessels, routemodifications, less fuel consumption, and economiesof scale. Safe, reliable and efficient ports are requiredto enable these ships to remain the shortest timepossible”.The company was acquired in 2008 by PSA (Portof Singapore) and GIP (international fund ofinfrastructure). PSA International is one of the mainterminal operators for containers worldwide, with 29terminals distributed in 17 countries. During 2011, itmoved 59 million TEUs in all its terminals, equal to50 times the movement of TEUs of Argentina.Via teleconference, President Cristina Fernándezde Kirchner recognized this “large investment ofone of the most important port operators of theworld”. In a frank and open dialogue with RobertoNegro, the Chief of State thanked “the confidencein Argentina of this international company”. Also,the deputy secretary of Ports and Navigable Waysof the Nation, Horacio Tettamanti, once againratified the support and accompaniment of thegovernment “for all actions enabling to increase thelevel of competitiveness of our ports”. Exolgan,Exologística and Logistic Platforms Investment(LPI) are the companies that form the ITL(International Trade Logistics SA) group.According to Mundo Marítimo (quoting Sitio Andinoof Mendoza), by mid-September in Buenos Aireswill gather the members of the Binational Entityof the Trans-Andean Railroad (Ebifetra), to presentthe final technical, financial and economic opinionsrequested to Corporación América (the entrepreneurialconsortium that pretends to develop works). Theproject of the Trans-Andean Train includes a low-En Septiembre Estará Listo el DictámenDefinitorio para el Ferrocarril Trasandino
  • 58. Mayo - Agosto 2012height tunnel to join the localities of the Andes inChile, and Punta de Vacas, in Mendoza. At this pointa railway stretch (using the existing rails) will startuntil Luján de Cuyo, at a loading station to be builtnear the Distillery.Corporación América will obtain financing from abroadbut this credit would be, as set forth in the proposal,supported by both governments (Argentina andChile), who will act as guarantors. That is whyEbifetra has been so keen in requesting information,both for the technical and the economic feasibilityof the project. This would be the key project for theeconomic future of the Argentinean province, asMendoza would become the center of commercialexchange for South America and, as stated by itsauthors, to be considered the “Panama Canal” of the21st Century.In July, the traditional economic paper Jornal doCommercio interviewed Sérgio Salomão, presidentof Abratec, who presented a positive profile ofthe sector, not a controversial one: 17 terminals inBrazil, 13 of public use and represented by Abratec.In 2011 this group was responsible for 74% ofcontainer movements in the Brazilian ports and theothers were moved by “private” terminals (privatefor private use).Making history, in 1995 Libra Terminais made thefirst leasing at Santos. From 1995 to 2011 the sectorinvested almost US$2,5 billion in modernizingleased areas with the purpose of meeting growingdemand. “Port activity then moved to be regardedas a business, with “entrepreneurial interests”, saidSalomão. Proof of this, according to the executive, isthat some companies of the sector were listed in thestock exchange, as is the case of Wilson Sons, Log Inand Santos Brasil.According to the president of Abratec, thereflections of the world crisis will not stopinvestments in the container segment of Brazil, thusthe sector will invest other US$2,5 billion in the nextthree years. Thus, despite there is “evidence of adecrease in container movements because of thecrisis”, according to Salomão the sector is preparingfor when demand recovers.Embraport Among the Most Innovative Projectsof the World, States KPMGBrasilSérgio Salomão,President of AbratecThe President of the Association of ContainerPort Terminals Shows a Positive Balance of theSector:
  • 59. Mayo - Agosto 2012Embraport terminal, under construction in the leftmargin of the Port of Santos, was chosen as oneof the 100 most innovative and inspiring urbaninfrastructure projects of the world, as informed byTribuna. This entrepreneurship was included in theconference ‘Infrastructure 100: World Cities Edition’,launched by KPMG at the Summit of Citiesof the World in Singapore. The selection of theproject was based on criteria such as viability, socialimpact, technical and/or financial complexity andinnovation. Embraport terminal, the only projectport selected, is among the principal in the categoryGlobal Connectivity, and KPMG highlightedthe direct access of the terminal by road and itsconnection to a railway branch, which will guaranteemore agility and efficiency in its operations.The first construction stage of this project ofOdebrecht TransPort, DP World and Coimex willconclude in March 2013, with 350 meters of dockand 50,000 square meters of storage area for cargo ingeneral. Upon completion of this stage in October,300 more meters will be in operation. In this phasethe terminal will have a capacity to move 1,2 millionTEUs and two billion liters of liquid bulk. In total,the project will occupy an area of 848,500 squaremeters, with 1,100 meters of dock, 342,000 squaremeters of storage area and 60,000 square meters forliquid bulk tanks. Annual capacity of the Embraportterminal, after fully implemented, will be two millionTEUs and two billion liters of liquid bulk.CDP, port authority of the northern Brazilian stateof Pará, will call to bid by the end of the year atender of US$44 million for the concession of theTeconbel container terminal at the port of Belém,stated BNamericas, quoting the port managementdirector of the entity. The 25-year concession,now being revised by the regulating entity Antaq,will include improving, extending and operatingthe terminal. Works will increase movement ofloading capacity at the port from 30,000 to 140,000containers, and will also improve the flow of cargotrucks because of the location of its facilities.Teconbel, the only enclosure that moves containersat the port, is operated by the public sector andprovides services to about 500 companies.A survey of the Logistics Institute Ilos points outan increase for the interest in short sea shippingoperations among the 100 largest companies ofBrazil. The challenge, according to companies, isPará will Call to Bid the Concession of TeconbelTerminal by the End of the YearHigh Interest in Short Sea Shipping:
  • 60. Mayo - Agosto 2012the limitation of the infrastructure of maritimecomplexes, which difficult service development.According to the survey, quoted by Tribuna, theexpectation exists of increasing in 36% cargovolume to be moved through this system during thenext two years.and Teles Pires rivers built without locks will causeproduction evacuation not being viable from anextensive agricultural area under the influence of thewaterway.According to BNamericas, the waterway departmentof the Brazilian state of São Paulo envisagesinvesting US$880 million in projects to improvenavigation of the waterway Tietê-Paraná from nowto 2015. A little more than half of the investmentis in the second stage of the Growth AccelerationProgram (PAC, in Spanish) of the country, andthe state government will provide the remainder.The initiative points out to increase waterwaytransportation through the construction of levees,reinforcement of bridges and modernization ofterminals, according to the spokesman.In general, the plan is expected to double cargocapacity of the waterway to 11.5 million tonsper year. In 2011, 3.5 million tons of cargo wastransported by the route, including maize, soy,oil, timber, coal and fertilizers. The Tietê-Paranáwaterway connects the five main producers ofcereals: Goiás, Mato Grosso, Mato Grosso do Sul,Minas Gerais and Paraná. It has 12 port terminalsdistributed in an area of 760,000 km². EntryThe presidents of the Brazilian Associationof Vegetable Oil Industries, Abiove, and theAssociation of Soy and Maize Producers of MatoGrosso (Aprosoja) published an article in Estadoemphasizing the fact that to gain competitiveness,the evacuation of large volumes of grain productionfrom the center-west of the country to the exportsports would require the intensive use of waterways.The productive chain of soy arguments that theconstruction of new hydroelectric plants must beaccompanied of locks to allow river navigation.The article mentions that the construction of theTucurí lock is considered an example of how thelack of a specific regulatory framework, obligingthe concomitant construction of locks to conciliatethe use of waters, harms social and economicdevelopment of a region. 15 years were necessary toplace the lock in operation and there is great concernthat the hydroelectric projects of the TocantinsLocks in the Extension of Modal Waterway:São Paulo Envisages Improvements for US$880Millions in the Tietê-Paraná Waterway
  • 61. Mayo - Agosto 2012Folha informs that the group Dislub Equador fromPernambuco works in developing a floating harborin Itacoatira, Amazons, and north of the countrythat may operate all year round, even during dryperiods. The dock of the private terminal for fuelhandling will rise and fall accompanying the level ofthe Amazon River and will be used by ships witha capacity of up to 80,000 tons. The company willalso extend its fuel storage area with two new storagebases, one on the Amazon, where the port is beingbuilt, and the other on Rio Grande do Norte. Thesewill be the first bases to provide services to thirdparties and Petrobras will be the main operation of the waterway encouraged theimplantation of 23 industrial poles, 17 tourist polesand 12 distribution poles, generating the creation ofmore than 4,000 direct mining projects as the Andina extension, andthe constant growth of foreign trade, among others.For the above to be fruitful requires coordinationand this is the purpose of the Logistics Council forthe Region of Valparaíso, which was presented a fewdays back at the Logistics Forum of Port Valparaíso(Folovap).The proposal aims to create an entity that willdevelop a strategic plan grouping the five portsof the area: Valparaíso, San Antonio, Quintero,Ventanas, and the dry port of Los Andes. “Whatwe want is ordering this port’s logistics and creatingmore and better quality employment for all thepeople of the Fifth Region”, comments the expertin logistics, Javier León, member of the CustomsChamber and one of the promoters of the proposal.It is intended to promote policies that not only allowconsolidating the area as an entry and exit gatewayfor products, but also giving it added value in termsof logistics. “In such a way we could compete atglobal level and increase the number and quality ofthe jobs existing in the area”, adds the executive.The establishment of the Regional Logistics Councilwill be the first step for a great project. “When we doit we may call all city-ports involved, but also otherurban centers such as La Calera, San Pedro-Quillotaand Casablanca as collection and distribution centers.In the end it is transforming an extensive primaryarea into the great port of the region”, adds León.This would also abandon the logic of competitionamong existing terminals.According to Mundo Marítimo, quoting El Mercurio,several challenges are coming forth for the region inthe years to come in the commercial and economicenvironment, among which are the expansion ofthe port with the agenda for the tender of Terminal2 in the short term, road connectivity required forthe flow of cargo, the potential low-height tunnel,Floating Harbor in ManausLogistics Council for the Region of Valparaíso isEstablished:Chile
  • 62. Mayo - Agosto 2012The Council may also become a first level consultingand technical entity giving advice in matters of portand road infrastructure investments by bringing forththe strategic plan, allowing generating consensus withthe rest of the economic activities of the region, andsolving the imminent conflicts that may result. “Thisentity will be advised by experts and will involvethe community in any problems that may arise”,states the executive, who sustains that this plan iscomplemented with the Competitive PromotionAgenda, as it precisely favors competitiveness but notat regional or national level, but at international level.necessary to transport Bolivian cargo, and why not,for Chilean cargo in the near future”, he expressed.He added that “this railroad is operating well, butfurthermore we have seen that the railway is clean inan important percentage and this is satisfactory forwe are helping to decrease contamination. That is,a good work has been done for the recovery of therailway”.It is worth noting that 70 percent of the cargo ofmobilizing the port of Arica is Bolivian.During his trip to China in May, President JuanManuel Santos entered into agreements that mayaddress most of the future exports of oil and coalto Asia. Signed agreements are presented at a timewhen the ally of the United States reconsiders itstraditional dependence on the markets of the northand west, stated the Minister of Mines and Energyof Colombia, Mauricio Cárdenas, in an interviewwith The Wall Street Journal. “With the increasingChinese demand and the evolution of the energeticmarket in the United States, we have to startA delegation of authorities was pleased with theworks developed on the Railroad of Arica to La Paz(FCALP) in an inspection visit to the works executedby the Arica Port Company (EPA), informedMundo Marítimo the beginning of August. TheRehabilitation Project Manager of FCALP explainedthe scope of the Project, emphasizing it will becompleted next October 30th, having progressed90% to date.The President of the System of Enterprises SEP,Domingo Cruzat, also highlighted the progress ofworks: “We verified on the field that it is starting tooperate without inconveniences. This railroad is veryArica Port Company will End in October theRehabilitation of the Arica - La Paz RailroadChina Agreements Decreases ColombianDependence on the United StatesColombia
  • 63. Mayo - Agosto 2012transferring our markets to Asia”, he expressed.The Bank of Development of China signed apreliminary agreement to finance a project thatwill transport 600,000 barrels of Venezuelan andColombian crude per day, through the jungle of bothcountries, to the southern coast of the ColombianPacific, from where these will be exported to Chinaand other Asian markets. However, details are stillunderway.According to Port Finance International, the Terminalof Containers of Barcelona TCB started theexpansion of its Colombian affiliate TCBuen, withan investment of US$98 million, with which thecapacity of the terminal will increase to 600,000TEUs. However, the company did not commentwhat percentage will be financed and declined givingdetails on the equipment planned for these facilities.Prior investments have been financed by a group ofinternational banks.According to the general manager of TCBuen,the terminal expects to increase production in25% (in 2011 it had already increased its capacity40%). Although the second phase of the projectwas foreseen for 2017, market demand obliged toadvance schedule, which is now foreseen for the endof 2014.Carbón de Colombia, the newest company of theBrazilian EBX Group, started formal proceduresrequesting the port concession for its coal portat Dibulla, northeast of the country. “The portconcession will be requested for 30 years and willserve to move 35 million tons of coal per year”, saidthe communicationThe long awaited concession of the multipurposedeep water terminal at the Port of Manta was finallyannounced by the port authority in May, despiteprevious month questionings on the validity ofthe process, informed Container Management.However, by mid July the manager of the PortAuthority of Manta APM announced the extensionfor three months of the public tender schedule,and for this reason the process will conclude theend of December. The Technical Commission ofAPM, after analyzing applications of participatingcompanies, issues a favorable report to extend termsTCBuen Starts ExpansionCCX Requests Port Concession in ColombiaConcession Extension for the Port of MantaEcuador
  • 64. Mayo - Agosto 2012The second investment phase at the Seaport ofGuayaquil, now Libertador Simón Bolívar, wasadvanced and specified one year earlier, informedMundo Marítimo, quoting El Comercio of Quito.The concessionaire Contecon, subsidiary of thePhilippine company International ContainerTerminal Inc. (ICTSI), allocated almost US$70million for civil works and the acquisition of13 cranes, of which two are gantry cranes (forcontainers). This investment was planned for 2013and the anticipated arrival of the equipment fromChina coincides with the five years of the portconcession, which were recently commemorated.The concession was signed with the Port Authorityof Guayaquil (APG) for 20 years, following a longselection process directed by the Government.Through the Port of Guayaquil enter and exit 70%of the country’s exports and imports.José Miguel Muñoz, general manager of Contecon,explained that US$30 million were allocated for thepurchase of the cranes. Remaining budget includedreinforcing the 300-meter dock and seven hectaresof yards for cargo storage. “This extension willincrease (storage) capacity up to 1.5 million TEUs,as of next September. Present capacity is 1 millionTEUs”, expressed Muñoz. Product of this growthresulted in advancing in the investments in cranes toimprove and quicken the service, he explained. Infive years, the concessionaire has invested US$250millions.Emilio Aguiar, president of the Maritime Chamberof Ecuador (Camae), considers as main results theincrease in port operations productivity. As of Juneof this year, the port moved 500,000 TEUs, whichis equal to 53% of the volume moved in 2011.According to Contecon, as of now they may move45 containers by ship in one hour. As of this month,with the new equipment, 55 moves per ship per hourare required, in average.In mid-August, Mundo Marítimo informed that thepresident of Guatemala, Otto Pérez, postponedthe ratification of the concession contract for theadministration of Puerto Quetzal to the Spanishfirm Terminal de Contenidors of Barcelona(TCB), while the document is analyzed seeking anyillegality. One week after knowing the existence ofthe onerous usufruct of a land and of five daysestablished for the public tender. Delivery of offerswas closed the beginning of August.Second Phase for Investment of the Port ofGuayaquil is Specified A Year EarlierGovernment stops Enactment of theConcession Contract of Puerto QuetzalGuatemala
  • 65. Mayo - Agosto 2012of a labor strike at the Empresa Portuaria Quetzal(EPQ), the Government of Guatemala decidedto temporarily stop enactment of the concessioncontract with the Spanish company TCB.It must be noted that Empresa Portuaria Quetzal,port administrator, granted TCB the operation ofcontainers entering and exiting from this anchoragefor a term of 25 years. The contract was negotiatedthree weeks ago and grants TCB “the usufruct”of an area of 350,000 square meters for theconstruction of a berth with a capacity to receive thelargest vessels of the world. In exchange, the Spanishcompany will pay to EPQ one million fixed dollarsper year for having the usufruct and four dollarsfor each container received at the port. TCB, thatforesees an initial investment of US$120 million, wasselected among five international companies thatshowed an interest in the administration to handlethe movement of containers at the Port of Quetzal.In 2011, this port, located in the Guatemalan Pacific,according to official figures, docked 1,289 ships andmoved 8.380 metric tons of cargo.According to BNamericas, during the second halfof this year some advances might be observedregarding the tender to build and operate a newcontainers terminal, which will require an investmentof US$500 millions. No bidding process hadpreviously be called by the public-private partnership(PPP) for the Honduran Port of Cortés, but in factthis initiative has long been awaited being one ofthe most active ports of the country, expecting anincrease from 500,000 TEU per year to 3,5 million inthe next 15 years. The Inter-American DevelopmentBank IDB and the Central American Bank forEconomic Integration BCIE will provide financing.HondurasTender to be opened for Containers Terminal ofthe Port of CortésAPI Manzanillo Opens Tender for Multiple UseTerminalMéxico
  • 66. Mayo - Agosto 2012T21 of Mexico City, quoted by Mundo Marítimoof Chile, informed that the Port of Manzanillopublished in the Official Journal of the Federation(DOF, in Spanish) the call for the award of a partialcontract for the assignment of rights derived fromthe concession for the construction, equipping,operation and exploitation of a Multiple UseTerminal (TUM, in Spanish) for public use. TheIntegral Port Administration (API) of Manzanillostated in detail that the visit to the facilities wouldbe held on September 26, the period for writtenquestions would be on October 5; the presentationand opening of proposals on November 16 andruling on December 7, 2012. The contract will bevalid for 20 years and the possibility of a 10-yearextension for the use, achievement and exploitationof an area of 128,250 square meters, located at theport area of the Port of Manzanillo, Colima, federalland area and 31,584 square meters of maritime area,with a waterfront of 707 meters.On December 15, 2011, the local Integral PortAdministration (API) granted, prior internationaltender, the assignment of rights for 30 years;however, operators of Terminal I, Hutchison PortHoldings, interposed a legal process not beingin agreement with the process, situation that hadprevented concluding procedures. During the longlegal process that started the beginning of last year,the Port Administration Director of Port LázaroCárdenas assured that the office accepts that statedby the existing regulations and expected the contractwould be signed in 2012, as it finally occurred.ICA Construcción Civil will develop 100% of civilconstruction works for the first stage. The amountof the contract is US$90 million and will be includedin the contracting statement for the third quarterof 2012. Construction works for the first stageinclude channel dredging for the construction ofa 650-meter dock with two berthing positions”,informed the company. The Port of LázaroCárdenas is the most important of the Pacificregion of Mexico and its sea zone receives diverseconsumer products for the country; for this reasonits strategic position represented sufficient interest toundertake bidding for the new terminal.The consortium integrated by ICA Infraestructura(ICA) and APM Terminals, affiliate of the Danishgroup AP Moller, signed after more than sevenmonths the contract for the design, financing,construction, operation and maintenance of thenew Specialized Containers Terminal TEC II, atthe Port of Lázaro Cárdenas, which will requirean investment of more than US$900 million, wasinformed by Mundo Marítimo quoting an article ofEl Economista. Investment and construction willbe done in three stages: the first to be concludedin 2015 and will be allocated US$ 300 million asinformed in a communication by the Mexican firm.APM Terminals Obtains Tender for theTerminal at the Port of Lázaro CárdenasMaritime Authority of Panama Approves NewTerminalPanamá
  • 67. Mayo - Agosto 2012Container Management informed that the MaritimeAuthority of Panama (AMP, has authorized permitsto a private development consortium for theconstruction and operation of the Panama ColonContainer Terminal, at a cost of US$600 million,which shall be constructed at the Atlantic entry ofthe Canal.The Panama Canal Authority (ACP) and theMinistry of Economy and Finance (MEF) arecontemplating the construction of a new containerport costing around US$500m. To be located inCorozal, on the east bank of the Pacific side of thePanama Canal, the port’s quay line would be 2.5 kmlong and capable of accommodating five Panamaxships.Container Management CM reported that JorgeQuijano, vice president of engineering andadministration of the Canal expansion program, andelect administrator of ACP (he will replace AlbertoAleman in September), is reported as saying that theterminal would be awarded as a private concessionbut would remain under the supervision of theACP, which would provide infrastructure whilethe concessionaire provided the superstructure.The quay would require dredging and landfill towithstand the weight of containers. According toQuijano, construction would take place in threephases: first the dock, then the first container yard tothe south, followed by the north. “What remains isto finish the studies, to view the areas and the flow,how the containers are going to get out, as well as todetermine the approximate cost of the investment,how it is going to be performed, who will manage itand how long it will take to develop”, he said. Whenthe ACP was approached by CM for an update onthe situation, its response was: “This study is in a veryearly stage at the MEF.”Why the ACP would want to develop another portfacility in Panama is unclear. Certainly, Corozal isa good site, as it is next to a road and the PanamaCanal railway. However, surely the purpose of thecanal expansion is to move larger ships and cargothrough Panama. What cargo would be reloadedand to where? Furthermore, surely big shipstransiting the canal would carry out transshipmenton the Caribbean (Balboa) side rather than on theColon side? One thing is clear. If a concession iseventually awarded, Hutchison, with its facilities inBalboa and Cristobal, would not be allowed to bid,if only because the purpose of Corozal would be tostimulate more competition with another operator.The Peruvian state agency ProInversión considersgranting the concession of the General Port SanMartín at the Pisco Region during the first quarter ofnext year, informed BNamericas. However, schedulewill depend on the final decision of the direction ofthe company. The long awaited concession of thePort of Pisco will mark a new chapter in the processthat also derived in the award of the Port of Paitaand the Muelle Norte terminal in Callao.Is Corozal Really Necessary?Concession of the Port of Pisco to be Awardedthe First Quarter of 2013Perú
  • 68. Mayo - Agosto 2012“Pisco is a Gateway that may alternate withMuelle Norte of Callao”, stated to BNamericasthe president of the Peruvian Association of PortOperators (Asppor), Vicente Silva. “For example,all rolling material could be unloaded in Pisco andthus not overload Callao”. The concession of theport for 30 years will demand a total investment ofabout US$110 million and includes the constructionof two new berthing sites and a storage yard of 4ha, and it also considers dredging and acquiring newequipment.The financial problems of the state operator Enapu,in charge of the operations at General San Martínand other 10 ports, may quicken the decision-makingprocess in relation to new concessions. “At the Portof Salaverry there are opportunities to promote amineral port development”, states Silva. “The Portof Ilo is another port seeking strong developmentfor the petrochemical industry”.road. Construction must expropriate almost 500private properties according to the decree signed byPresident José Mujica. With this measure Uruguaywishes to generate a new pole for the entry and exitof products, potentiating transit by road and railroadwith neighbor countries, especially those with no exitto the sea. A communication from the governmentstated that “the executive power understands aspriority the realization of works and the operationof the port within the shortest time possible, inview of the high positive impact for the productive,economic and logistics structure for foreign tradewithin the region and its strategic value”.Article of El Universal, quoted by Mundo Marítimo,informs that since the Government of Venezueladecided to centralize ports and airports in 2009,there have been great deficiencies regarding logisticmatters by Bolipuertos. In the middle of the wave ofexpropriations and nationalizations, the governmentalso reversed the decentralization process developedin the past. “We are going to establish a corporationof national ports and a corporation of national andinternational airports, under the control, as alwaysshould have been, of the State”, expressed PresidentChávez in March 2009. The measure would beThe government of Uruguay approved theconstruction of a deep water mega-port in itsAtlantic coast that will require public and privateinvestment of at least US$700 millions, as informedby Brasil Económico with material of the agencyReuters. The port will be built in the departmentof Rocha, 240 km from Montevideo, on a nationalThe Country will have a Mega-portState Management of Venezuelan PortsDeteriorated OperationsUruguayVenezuela
  • 69. Mayo - Agosto 2012accompanied by a “strategic plan of investments,modernizations, development of ports and airports”.Three years after, the reality of national portsis not very encouraging. The president himselfrecognized that the principal port of the countryhas been neglected. “The Port of Puerto Cabellois abandoned”, said Chávez in his recent visit tothe state of Carabobo. Having found in 2010thousands of tons of expired food, known as the“Pdval scandal”, revealed, among other things, theinefficiency of national ports.The sustained increase of imports, especially ofthe State, the limitations of Bolivariana de Puertos(Bolipuertos) and the lack of coordination with otherofficial organizations are some of the things thatdefine the state administration of ports. Statistics ofthe private sector indicate that times for unloadingships and nationalizing merchandises has worsen.In the case of the Port of Puerto Cabello, and in LaGuaira, nationalization time of merchandises takes20 to 21 days, respectively. At the Port of Maracaibothis process takes 14 days. At terminals of neighborcountries this operation may be done in less than aweek.Sources linked to Puerto Cabello and La Guairainsist on “congestion” but authorities do notrecognize it. They explain that “unplanned” importsof the national government are the main cause forthis situation. Ship jams at the bay of Puerto Cabelloforce shipping lines to leave ships anchored forseveral weeks while waiting for qualification of adock. On other opportunities they have been forcedto deviate cargo to ports of neighbor countries.But difficulties are not exclusive of those two portterminals. At Maracaibo there are also delays becauseof lack of equipment.A study of the Venezuelan Confederation ofIndustrialists (Conindustria), prior to penalizingshipping lines, reflected that the average price forbringing a container to the country was US$2,868,amount 69% more expensive than importing it toColombia, 66% to Brazil and 52% to Mexico.
  • 70. Mayo - Agosto 2012MailExcellent bulletin. Good combination ofarticles of interest.Arturo LópezVice-president Executive Committeeof LatinportsPresident of Altamira Port TerminalMexicoI wish to express my appreciation for yourinvaluable contribution to the success ofExpoProBarranquilla 2012. Being a partof the academic agenda of the event was,undoubtedly, a fundamental factor for theexcellent development of the event.Tatyana OrozcoExecutive DirectorProBarranquillaColombiaThank you for the time and effort you spentpreparing your paper. Feedback from delegateshas been extremely positive!Esther RamosEvents Co-ordinatorMaritime Week Americas PanamaLondonCongratulations. Once again innovating. Forme it is a great honor to belong to Latinports.João Gilberto CamposPresidentInstitute of Professional TechnicalTraining INCATEPSantos, Brasil
  • 71. Mayo - Agosto 2012Excellent information.Pedro BarriosVice-president of OperationsCoordination and SuppliesPacific Rubiales EnergyColombiaA very interesting and practical newsletter.Pablo GutiérrezSeacor HoldingsBuenos Aires, ArgentinaThe newsletter of Latinports was veryinteresting.Leonard SuginPort ConsultantNew YorkExcellent bulletin.Asaf AsharCo-Director and Professor ResearchNational Ports and Waterways InstituteThe University of New OrleansUSAExcellent information. Finally we havespecialized information on ports here inColombia.Carlos H. OramasNaval, River and Port EngineeringColombian Center for TransportationTechnologiesBogotá, ColombiaThank you so much for such important,updated and significant information, whichenable us to visualize the projections of theport sector.Iliana GonzálezExecutive DirectorAssociation of Private Port TerminalsGuayaquil, EcuadorIt has been a real pleasure to lay thefoundation for a new relationship between oursister groupings.Jaime AguilarExecutive DirectorAssociation of Port Terminals andOperators ATOPMexico
  • 72. Mayo - Agosto 2012I appreciate your kindness in sending methe newsletter of Latinports. As privateconsultant I am greatly interested inaccompanying port development in our region.Congratulations for its contents.Robert GranthamShipConsultNavegantes, Santa CatarinaBrazilCongratulations on the new tool and thegood news shared, which are also a reason tocongratulate Colombia, Peru and ChileJosé Luis QwistgaardGeneral Director of WaterTransportationMinistry of Transportation andCommunicationsPeruMany thanks for sending the bulletinwhich I certainly find very interesting.Congratulations.Reinaldo EscobarAdviserSociedad Portuaria de Santa MartaColombiaI thank you for the bulletin which is reallyinformative. I have sent it to other contactsin URS Maritime who I know will be veryinterested in consulting it.Diego F. QuirogaPrincipal EngineerMaritime and PortsURS Infrastructure & EnvironmentUK LimitedUnited KingdomA very interesting information newsletter.Betty de RothMaraduana ShipagentsBarranquilla, ColombiaCongratulations for the newsletter, it is verygood. .Paulo Roberto VillaExecutive DirectorAssociation of Port Terminal UsersUSUPORTSalvador, BahíaBrazil
  • 73. Mayo - Agosto 2012LATIN AMERICAN ASSOCIATION OF PORTS AND TERMINALSLATINPORTSMEMBERSHIP FORMCORPORATE MEMBER (Latin American Port or Terminal): ___SUSTAINING MEMBER (Companies related to the port industry or portsand terminals from other regions of the world): ___Company:Address:City, Country:Telephone:Website:Legal Representative (Contact Person):Position:E-mail:Brief Description of the Company:As corporate (sustaining) member we agree to pay the annual dues ofUS$2,500 (US$850) within 30 days following presentation of the invoice.SIGNED:NAME AND POSITION OF PERSONFILLING OUT THE FORM:DATE:Please return this form filled out to