September-December 2012Year 4, No. 3Annual Seminar of Latinportsin Chile Convened Ports of theContinentBrazil: Controversy for CrucialPackage of Measures for the PortSectorChairman of the ExecutiveCommittee of Latinports atHarvard Club New YorkSee more... See more... See more...MSC Inés, the Largest ShipArrivingto LatinAmerica
CONTENTSSeptemberDecember2012News Of LatinAmerican PortsMailANNUAL SEMINAR OF LATINPORTSThe IIIAnnual Seminar of Latinports ConvenedPorts of the Continent in Viña del Mar, ChileDeclaration of ValparaisoEditorialCoverz, 9,100 TEU Capacity and14 Feet Draft, the LargestVessel that has come toLatin America (Oct 2012)DesignJulian Pinedawww.email@example.comNew Members- Empresa Portuaria ValparaisoDistinctions- Liebherr and Incatep- The Chairman of the Executive Committee ofLatinports at the Harvard Club New York: BrazilInfrastructure Investment Forum- Interview of Mundo Marítimo to the ExecutiveDirector of theAssociation: LatinportsReconfirmed its Commitment to CombinePublic and Private EffortsCHAIRMANAND EXECUTIVE DIRECTION- The New Mexican GovernmentIntends to Convert Lázaro Cárdenas inthe Hub for theAmericas.- Panama: Fourth Country in the Worldin Port Infrastructure- Port of Cartagena Receives for theSixth Time theAward as Best Port ofthe Caribbean- Brazil: Controversy for CrucialPackage of Measures for the PortSector- The Largest Container Ship of theWorld Enters the Europe-Asia Route.- Trade Volumes are Slowing Down.- Increase in Freight Tariffs MayAffectContract Negotiations for 2013.- Hapag-Lloyd and Hamburg SüdAnalyze Possible Merger.- Somber Future for the NavalConstruction Industry in 2013.- Grupo Empresas Navieras of ChileStart Investments for US$515 Million inFleet of Ships.- Pacific Brazilian-Peru Route BringsBusinesses and Devastation- SouthAmerica needs InfrastructureProjects for US$116,000 Million for aBetter Integration- The Three Largest Terminals of LatinAmerica will Enter in Operation inBrazil in 2013.- Open the Doors! Editorial of theEditor of the Law of Ports of Colombiain the Book Colombian Port Law.LOGISTICS,COMPETITIVENESSAND PORTS IN LATINAMERICAMARITIME TRANSPORTATIONAND PORTSLATINAMERICAAND THE WORLD- “China Effect” Revives Mexico andShadows Brazil- Positive Position of ECLAC- Advancements of LatinAmerica CouldTransport it to its Development in the Next Decade.WATERWAYS IN LATINAMERICA- Navigation Recovery Starts in theMagdalena River of Colombia.- New Brazilian Waterway will Reduce OneBillion Dollars in Grains Freight Costs.
September - December 2012SEditorialFor third consecutive year we successfully developed, on this occasion inChile, our Annual Public-Private Seminar, where representatives of the mainports of the region analyzed the outcome of the industry. The host Minister ofTransportation, in his opening speech, established what would be the event:“It is with great pride that while the world is going through a major crisis, LatinAmerica not only has overcome this crisis but continues to grow”, he stated, andunder this premise work was developed until accomplishing the Declaration ofValparaiso and the conclusions of the event, of which you may find details in thefollowing pages.An event worth mentioning is the package of port measures that the President ofBrazil launched the beginning of December, implying important changes in themodel of concessions and multimillionaire investments for the years to come, onwhich topic we shall extend further on. As was said in Chile by the president electof Latinports, Arturo López, “the first stage of the opening of ports has beenmet and now we are entering the second stage which is the modification of lawsto adapt them to the present situation of the industry, and for which the public-private view of Latinports may be of great help”.Also worth mentioning is that while the world shipping industry (and thus that ofshipyards), is undergoing an unprecedented crisis that has forced it to desperatelyincrease freights, to stop equipment, postpone investments and study mergersin order to survive, the Group Empresas Navieras de Chile and its subsidiaryCompañía Sud Americana de Vapores, are starting an important expansion planof their fleet, convinced of the potential of the region.On the other hand we are pleased to announce that in view of the impulse beinggiven to waterways in the principal countries of South America (Brazil, Argentinaand Colombia), so necessary for our countries foreign trade, we have decidedstarting with this issue to include a special section for this important node oftransportation and river terminals that we are sure will be of great interest for ourreaders. “If logistics through waterways did not exist, it had to be invented”, statedin a recent forum consultant Jan Wilen Koeman, designer and responsible at thetime of the master plan of the Port of Rotterdam.This and much more are indications that a promising year 2013 awaits us. HappyNew Yearfirstname.lastname@example.orgJulian PalacioExecutive Director
September - December 2012III ANNUAL SEMINAR OF LATINPORTSCONVENED PORTS OF THECONTINENT IN VIÑA DEL MAR, CHILEPedro Pablo ErrázurizMinister of TransportationUnder this title and its subtitle “Representativesof the Main Ports of the Region Analyzed theFuture of the Industry”, Mundo Marítimo ofChile highlighted the annual event of Latinports,informing that “important persons of the portactivities of Latin America shared its experiences,achievements and challenges”. This is a good extractof what happened.Developing our great annual event in Chile wasespecially significant as we remember this countryas the one that started port decentralizationand privatization in Latin America, an examplesuccessfully followed by most of the countries ofthe region. Besides, this country stands out for itspermanent innovation in all sectors, which resultshave made it a leader in logistics and competitivenessin the region, as recently highlighted by the WorldBank and the Institute of Competitiveness Aden.Thus, with the presence of the Minister ofTransportation and Telecommunications of Chile,Pedro Pablo Errázuriz, on November 26 and 27 washeld at the grand Hotel Sheraton Miramar of Viñadel Mar, the important annual event of Latinportsin commemoration of 100 years of the port ofValparaiso, focused on a topic of great relevance asis Ports and Logistics Platforms for Foreign Trade.Minister Errázuriz said it gave him great pride tosee that while the world was undergoing a greatcrisis, Latin America was not only overcoming itbut continued to grow, and the president elect ofLatinports, Arturo López, considered that the firststage of the opening of ports had been fulfilledand the second stage was now the modificationof laws to adapt them to the present condition ofthe industry, in reference to the importance of thepublic-private associations in which Latinports couldbe of great help.
September - December 2012Arturo LópezPresident Elect of LatinportsWith the remarkable sponsorship of EmpresaPortuaria Valparaíso and the concessionaire TerminalPacífico Sur, important matters were dealt with asis the economic leadership of Latin America, therepercussions of the extensions of the PanamaCanal regarding the size of vessels that will bearriving to the region, the multimodal logisticsplatforms, and the required integration of theport with the city (in particular the project PuertoMaravilla: Rio de Janeiro 2016). These matters,masterfully developed by outstanding internationalexperts, served as the frame for the presentationof the experiences and perspectives of some ofthe most important containers terminals of theregion such as Valparaíso, Santos, Buenos Aires andCartagena. Conferences in general may be consulted,in power point and video, in the link of the event ofour webpage www.latinports.org“It is with great pride that while the world is livinga very large crisis, Latin America has not onlyovercome this crisis but continues to grow”. Thissentence of the Minister of Transportation of Chile,Pedro Pablo Errázuriz, was reconfirmed in detail byECLAC and served as the frame for the III AnnualLatin American Public Private Seminar, making portsand countries aware of the necessity to benefit inthe best way possible of the potential of the region,making laws flexible in such a way they adapt topresent situation by means of a public-private jointwork.The event focused on this topic, highlighting thegreat perspectives that open to the ports of theregion with the extension of the Panama Canal,which opening is foreseen for 2015, as well as theresulting requirements to receive ever larger ships(currently ships arriving have 9,100 TEU capacity).Also worth mentioning is the effort of thegovernments to improve in a substantial mannerinternal transportation and port connectivity, a fieldin which the region is way behind compared todeveloped countries, which reduces foreign tradecompetitiveness.On the other hand, port operators must not belimited to the business as was first conceived butto expand its field of action through distributionlogistics, in order to make connectivity more efficientand reduce internal transportation costs, as is nowbeing successfully done by some large operators inthe region.Conclusions of the event were entered in theDeclaration of Valparaiso, which we transcribebelow:Multimodality and LogisticsPort-City Relationship and SustainabilityDECLARATION OF VALPARAISO 2012
September - December 2012INTERVIEW OF MUNDO MARÍTIMO TO THEEXECUTIVE DIRECTOR OF THEASSOCIATION:CHAIRMAN OF THE EXECUTIVE COMMITTEE OFLATINPORTSAT THE HARVARDCLUB OF NEW YORKWonder Port Rio de Janeiro 2016 and Port ofValparaiso are an example of the harmoniousrelationship between city and port, with largedividends for both and for the welfare of thecommunity in general. Ports must work onsustainability to make this relationship even moreharmonious.The Chairman of the Executive Committee of Latinports and of the Management Councils of Terminals ofSantos Brasil and Multiterminais, Richard Klien, referred at the Harvard Club of New York to the success ofport privatization in Brazil and the growth of its foreign trade, even higher than China’s, emphasizing that thekey to success for port efficiency is investment.Also worth noting is the vision of the Chileangovernment of a long-term (50-year) planning inmatter of transportation infrastructure and ports,above the immediate interests.Situation in Particular
September - December 2012LATINPORTS RECONFIRMED ITS COMMITMENT TOCOMBINE PUBLICAND PRIVATE EFFORTSThe executive director of Latinports, Julián Palacio,after congratulating the excellent level of the lecturespresented during the event – that gathered importantpersons from the industry of the principal portsof Latin America – emphasized and renewed thepurpose of the association of adding up the effortsof both public and private sectors towards thedevelopment of the port industry of the continent,an issue summarized in the slogan: “Governmentsand private sector working together for port logisticsdevelopment of the region”. This was done duringthe closing ceremony that took place at HotelSheraton of Ciudad Jardín on 26-27 of November.In reference to fulfillment of this objective,Julián Palacio stressed that Latinports “is the onlyassociation worldwide where the public and privatesector are working”, emphasizing that both sectorsmay not be divorced, “we are working in the samebusiness and have to make it hand in hand”, hestated, and likewise stressed the brief but successfulroute of the association: “We have now threeyears of age and have developed important things,beginning with the fact that we were born with 15ports, basically from Brazil, Mexico and Colombia,and at present we are more than 45 ports in 12countries”, he stated.It is worth stating that the host of this version of theseminar was the Port of Valparaiso, which added tothe meetings already held in Brasilia, which coincidedwith 50 years of its foundation; and Cartagena,where 20 years of the Law of Ports of Colombiawere commemorated. Also, the development ofthe historic event in the Chilean port emphasizedthe commemoration of its 100 years. Regarding thelatter, Julián Palacio remembered that “Chile wasthe country of the region that first decided to allowprivate initiative in the port industry, which resulted inits excellent development”.Altogether with the above, Julián Palacio mentionedsome of the elements that will be included in theDeclaration of Valparaiso, a document that – asusual at the end of the development of each seminar– will gather the conclusions and objectives tobe followed by the members of Latinports. This,altogether with the analysis set forth during both daysof the seminar. In this sense, Palacio emphasizedas the main concern expressed by several of theparticipants to improve logistics available within portstructures.In this matter, the executive director of Latinportsstated that: “I always say nothing is more frustratingthan a very efficient port with a poor connectivity,thus little favor is being done to foreign trade ofa country, because everything is being lost withinLogistics Chain: Basic Concern of the In dustry
September - December 2012“CHINAEFFECT” REVIVES MEXICOANDSHADOWS BRAZILanother part of the logistics chain. I believe emphasismust be done and we must work hand in hand withthe governments to encourage all these projects wehave seen that are really big”, he stated referring tothe challenges of ports such as Santos, Buenos Aires,Cartagena, and Valparaiso, among many of thosethat expressed their challenges.Within this scope, Julián Palacio declared himselfgreatly surprised on how the works being developedwithin the area of logistics support of the PortAccording the information of Reuters AméricaLatina, Mexico is starting to displace Brazil as theking of the Latin American markets for the samereason it had been relegated to a second place withinthe region: China. While the Mexican economygains in competitiveness and grows slowly but firmlyby the hand of the demand of the United States,where it is starting to steal market from China,Brazil decelerates because of the lower appetite ofPeking for raw materials, and for this reason foreignportfolio investors continue increasing their exposureto Mexico and reducing their stakes for Brazil, whichis vulnerable to the risk of a deeper eventual fall ofthe Chinese economic rhythm.During the first seven months of the year, the StockExchange of Sao Paulo received a net flow offoreign investment of 2,900 million dollars, whichwas overcome by the 3,400 millions that entered theMexican market, according to the central banks ofboth countries. Last year, the balance had been quitedifferent: Brazil had captured 7,100 million dollars,whereas Mexico had to absorb the exit of 6,200millions. And in 2010, the stock market of Sao Paulohad seduced the trifle of 37,700 million compared tothe modest 640 million of its Mexican counterpart.“The foreign investor, with no heart and noemotion, (…) always goes where the best economicopportunity lies and suddenly Brazil does not seemof Valparaiso have expressly called the attentionof other countries such as Brazil. It must beremembered that the sixth economic power ofthe world has multimillionaire projects in portinfrastructure, mainly to be developed in Santos andRio de Janeiro, encouraged by nearby challenges asthe development of the Soccer World Cup in 2014and the Olympic Games in 2016. This interest,according to Palacio, clearly shows that things arebeing well done in the Chilean port, mentioning itslogistics chain as “an example for all Latin America”.
September - December 2012Since China joined the World Trade Organization(WTO) in 2001, Brazil triggered its growth mountedon what seemed an insatiable demand from theAsian power for its raw materials, while the Mexicanindustries fought in the United States against cheapChinese products but, with a new government thatpromises reforms to accelerate growth, Mexicoexpects to consolidate a favorable trend in timeswhen the fall of Brazil coincides with the lowerexpansion rate of the second economy of the world.“The pendulum has oscillated back in favor ofMexico”, stated Claudio Brocado, administrator offunds for Batterymarch Financial Management Inc.,that helps to supervise 5,900 million dollars investedin shares of emerging countries. “It had oscillatedtoo much in the opposite direction”, he described.as the best opportunity”, stated Luis Maizel, whosupervises the 7,000 million dollars invested by thefunds of Legg Mason Capital Management.Brazil grew at rates that almost doubled those ofMexico during the last decade and even obtainedthe place as the greatest Latin American economyin 2005, thus becoming the spoiled country of themarkets; but Mexico is starting to shine, and notonly because of the clouds over Brazil. While theeconomy is routed to expand more than the Brazilianfor second consecutive year – something that did nothappen since 1999 – its industries competitivenessis growing. The gap in labor costs compared toChina fell to 7 percent in 2011 from 238 percentin 2002, according to Moody’s, and its links to theUnited States, that is now leaving the crisis betterthan other developed countries, becomes a lessvulnerable option than the global storm. That iswhy its products are regaining space on U.S. racksand market participation that had fallen 9.5 percentin 2005 because of China, has now moved to 13percent.However, many expect that the largest LatinAmerican economy recovers in the next quarters asa result of the collection of government measuresto reactivate growth and by the surge of investmentsin infrastructure for the Soccer World Cup of 2014and the Olympic Games of 2016. Data from EPFRGlobal that monitors the activities of the investmentfunds showed that by mid-September Brazil had inthree months the greatest flow of shares enteringthe market after the approval in China of aninfrastructure plan for 150,000 million dollars toreactivate its activity.Barclays assures that besides the proximity withthe United States, Mexico has the increasingspecialization advantage in sectors of great addedvalue such as vehicles and telecommunicationsequipment, which has helped makers to recovergrounds with China. Large products may takeOut of the Shadow
September - December 2012between four and five weeks to arrive to the UnitedStates from China, but the Canadian BombardierInc, for example, may send a truck in a Learjet 85,almost finished, from its plant in the Mexican stateof Querétaro and assembled in Kansas in only twodays, according to the quality director of the Mexicanaffiliate, Norman Thompson.China’s growth of more than 7 percent per yearstill has great advantage over the United States andMexico, but reduced to almost half since the crisisand will probably continue within these levels asPeking seeks a less explosive but more sustainableexpansion rate. And China cut its demand forprimary products: shipment of Brazilian mineral oreand oil to its Asian partner, two of the main productsit sells, fell 21 and 13 percent, respectively, duringthis year compared to the same period of 2011.“Flows are now driven by the perception that theBrazilian wagon is very subject to China that is nowdecelerating and changing its orientation in a way itreduces its intensity for raw materials and energy”,stated Frances Hudson, strategist of Standard Life,that has approximately 260 billion dollars in assetsinvested worldwide.Funds focused to invest in Brazil had an averagereturn of 6.74 percent during the first eight monthsof the year, compared to an average of 8.17 percentof those focused on Mexico, according to data fromLipper, a company of Thomson Reuters. Foreigninvestors are also diving into the markets of bondsand Euan Munro, who supervises a portfolio of27,300 million dollars, stated he is protecting hisportfolio against Chinese risks and leveling it with alarger exposure to the United States by maintainingMexican bonds. “We look to emerging marketsagainst high return junk bonds and favor Mexicowithin the emerging markets for its valuation andfundamentals”, stated Munro.The strategy of the Brazilian President, DilmaRousseff, is partly addressed to reinforce domesticconsumption with imposing exemptions and anaggressive policy to reduce interest rates and revivecredit, but from the financial investor point of view,the composition of the main stock index of Brazil,Bovespa, this does not help for almost 40 percentis linked to raw material producing companies. Onthe contrary, in Mexico, two thirds of the leaderstock index CPI is formed by securities linked toconsumers such as telecommunications, retailersand beverages. For Claudio Brocado, administratorof funds for Battery March Financial Management,this is partly explained because the CPI index hasincreased almost 9 percent this year and is routedto a level record compared to 7 percent of theearnings of Bovespa. “The Mexican index is moreto the defensive”, he stated, in reference to thestocks that provide dividends in a constant mannerand report stable profits. “Composition of theindex has favored Mexico in relation to its relativeperformance”.Unfavorable Exposure
September - December 2012POSITIVE POSITION OF ECLACWhen deceleration winds started blowing in LatinAmerica, as a result of the slowdown in globaleconomy, more than one analyst was questionedhow the region would react with the surf. ECLACprovided its reply during a press conference heldat its office in Santiago de Chile. According tothis organization, growth of the Gross DomesticProduct of the countries of the area will be only3.2 percent in 2012, a figure unfavorably comparedto the 4.3 percent of last year and 6.1 percent for2010. However, the halt may be less worrying than itseems, once certain realities are considered.To begin with, the international context has changedas a result of the European crisis, the mediocreperformance of the United States and the slowdownof China. These three elements have hit more orless the different Latin American nations, as it isdifficult to talk of a uniform impact. Because ofthis, it is difficult to generalize and better to move toanalysts case by case. For example, it is inevitable toBelow is the editorial of the director of theeconomic publication Portafolio of Colombia,Ricardo Avila, on October 2012:pass up the situation of Brazil that is not having agood moment and its economy has a weight equal tomore than one third of the regional GDP. Accordingto ECLAC, the South American giant shall onlyadvance 1.6 percent that will serve as ballast for theresults of the entire zone. Likewise, Argentina isfacing problems because of policies promoted bythe government of Cristina Fernández that haveweakened domestic confidence and shown a growthof only 2 percent because of the strong draught thataffected the soybean crop in this country.However, in the rest of Latin America, perspectivesare fairly good, with the exception of someCaribbean islands. In other words, dynamics maynot be spectacular, but things are relatively good.This affirmation may be verified by the evolution ofurban unemployment that continues to fall to levelsof a 6.8 percent average. Most employed populationis the best guarantee for poverty rates to decreaseagain, after having reached a historical minimumlast year, and for internal consumption to maintainrelatively vigorous. On the other hand, inflationis under control, while fiscal indicators are solid,which are the envy at other latitudes. The balance ofinternational reserves has also increased, and at thesame time public debt is not a reason of concern.Thus, the region may rest assured regarding howit has evolved in the midst of very complex globalcircumstances.Upon saying the above, eyes must be kept open.In its diagnosis, ECLAC insists that dangers fromoutside are real and expressed in the low dynamicsof international trade. But in case of a suddendeterioration of the requirements of the countries
September - December 2012It had been established that the expression inprocess of development is no longer being used forLatin American countries. The fact is that political,economic and social advancements within the region,according to some economists, could take us todevelopment the next decade.Figures support us. Latin America currentlyrepresents 8% of world population and 9% of worldGDP, and has a rent per capita doubling the averageof emerging countries. Latin America is catching upwith several economies that were ahead for a longtime, thanks, among other factors, to the executivetalent within this region.The Latin executives have a series of competencesthat make them stand out compared to theEuropeans, Asians and Anglo-Saxons. They areefficient and academically well trained professionals,with deep-rooted expectations for a better future,proper of a culture that challenges time, as it seeks toattain development.On the other hand, although differentiating elementsexist, Latin America has a similar culture and history.We share the same language and an idiosyncrasy thatmakes us friendly, family lovers, homogeneous inreligious beliefs and feeling proud of our traditionsand customs.If we further add up our growing potential, we mayaffirm it is the time for Latin America. The growthof our population takes us through a virtuous circle,on one hand fighting poverty with the generation ofConsidering it of great interest, we transcribe belowan article of Christian Duarte, president of the GroupTransearch – Mandomedio of Chile, published byEducaméricas the end of December:ADVANCEMENTS OF LATINAMERICACOULDTRANSPORT IT TO ITS DEVELOPMENTIN THE NEXT DECADE.located either on the other side of the Atlantic or thePacific, maintaining good conditions will be a titanictask. This warning bell must be listened by all LatinAmerican countries. As has been the constant asof the end of 2008, the great factor of uncertaintyis again happening in the rest of the world. But ifnothing catastrophic occurs, in 2013 there shouldbe an upturn that would take regional growth to4 percent, an acceptable figure considering thedifficulties seen in other continents, and that thistime have abstained from passing a large collectionaccount.
September - December 2012We have the responsibility and the great challengethat Latin America will continue the path of growth.Today, despite political differences that have causedsome countries to recur to international courts, atthe level of businessmen a cooperation environmentof working together has maintained for thedevelopment of the entire region; because the wallsthat separate governments are much smaller whenstarting and developing businesses.new jobs, attracting foreign investment, growing ininfrastructures and improving distribution networks.Today, regional companies have their own engine.They are multi-Latin. It is not new that ourcompanies are growing towards other countries ofthe region because we are interested in investingin ourselves, above all in the face of a depressedEurope, and a United States fighting with China foreconomic leadership.Measures Announced: Folha summarized wellthe principal provisional measures announced byPresident Dilma Rousseff and the Minister ofPorts Leônidas Cristino. Besides the opening of theproprietary (private ports for private services) andthe rebidding of approximately 50 port terminalswith expired contracts (leased prior to the Lawof Ports of 1993), measures were the following:concession of five public ports, of which three arenew (Manaus, Ilhéus and Vitória) and two existingones (Imbituba and Ilhéus); tenders at public portsthrough bidding criteria that will weigh the best tariffand higher cargo movement; creation of Conaportothat will gather all public agents working at portsin only one location (police, customs and sanitarysupervision, among others); and the creation of acentralized dredging system with a ten-year term (aninstitute will study a permanent system); the NationalWater Transportation Agency, Antaq, and river ports,will move to the Secretary’s Office of Ports; andbreaking down the monopoly of the Navy to trainand register practical pilots: a national committeeformed by technicians will make rules flexible inorder to increase the number of ship stevedores anddebureaucratize work to reduce costs.The government package expects to attract aboutUS$27 billion in private investments for the nextfive years (until 2017), investing out of this amountUS$16 billion between 2013 and 2015. To attractprivate interests, the government will guaranteepublic financing of the port system projects to reachUS$17 billion, of which US$3.5 billion will be foraccess works to ports.BRAZIL:CONTROVERSY FOR CRUCIAL PACKAGE OF MEASURESFOR THE PORT SECTOR
September - December 2012Richard KlienChairman of LatinportsDivided Opinions of Entrepreneurs: TheBrazilian Association of Containers Terminals,Abratec, shows its concerns with these measures:“While the constitutional principle is in force that theport is a public service activity in the country, this isillegal”, stated Sérgio Salomão, president of Abratec.In preparation for the package, this associationpresented a study identifying the possibility to investUS$5 billion in the new terminals until 2021, butin relation to what Salomão considers as disloyalcompetition, “these investments are at risk”.However, for the president of the BrazilianAssociation of Private Terminals, ABTP, WilenManteli, the announcement of the president hadgood news as is the requirement of eliminating itsown cargo in private terminals for private use, anopinion shared by Pedro Brito, director of the stateorganization National Water Transportation Agency,Antaq: “Differentiating between own and third-party cargo has ended”, he said. However, Mantelidisagreed with the rebidding of port terminals withexpired contracts and said he hoped contents ofthis provisional measure is modified as, in case therewere more proposals, “where will the terminal bebuilt if the land belongs to the first investor?” Forthis reason he added that “congress has to honorthe Law of Ports that he himself approved in 1993,after two years of discussions”, and concluded sayingthat “if congress does not welcome these arguments,we will go to court, as this would be harmful foreveryone, even for the government that will not seeexpected investments”.For the chairman of the executive committeeof Latinports, Richard Klien (chairman of themanagement councils of the important containersterminals of Santos Brasil and MultiRío), “sincedecision was made to revoke the Law of Ports,there will be modifications in all the articles tothe Provisional Measure and a serious discussionin congress; without a strong hand to coordinateprocedures, the risk exists of having a blackout atports”.Port Workers on the Defensive: The measure didnot please port workers according to the presidentof the National Port Federation, Eduardo Guerra,quoted by Tribuna. The trade unionist suggeststhat changes in the legislation may generate greatimpacts in the working system of ports, as in the caseof port management concessions. “With this, thegovernment is opening privatizing port management,which represents a regression”, he said. Anotherconcern of the unionist is the permit so that privateinitiative builds new ports other than the organizedports to move third party cargo. “Besides takingcargo from public ports, this measure may generateprecariousness of work as these terminals may hireworkers not registered in the Ogmo (ManpowerManagement Organization) and therefore, without aseries of rights guaranteed by the law”. According to
September - December 2012Tribuna, port unions of Santos will decide in a jointgeneral meeting in January the approval of a generalstoppage in all Brazilian ports, to be done February16-17, in order to achieve revoking the provisionalmeasure.Ports Package Attracts Investments for more thanUS$10 million: Valor informed that large groupshave already presented 23 new projects to thegovernment to be implemented in the years 2016-2017, according to estimates of Palacio de Planalto(the Presidential Palace). “Public calls” are about tocome out where the government will inform themarket on the existence of the projects, openingMaking a brief recount of the needs within the portenvironment, the new Minister of Communicationsand Transportation, Gerardo Ruiz, mentioned theimportance of making viable projects as the secondcontainers terminal of the Port of Lázaro Cárdenas,an issue yet to be solved by courts, thus affirmingthis will be the flagship of his administration beforethe Secretary’s Office of Communications andTransportation (SCT). He assured these facilities willgive Lázaro Cárdenas the possibility to compete withgreat strength for the arrival of goods from the Eastand to become a “great hub center” to distribute itscargo to different locations in the Americas.“This will be the first work started by thisadministration. I expect to start these works, whichare in conditions to be initiated with a very importantinvestment of approximately one billion dollars”,stated the Minister.In an interview with T21, the executive director ofthe Association of Terminals and Port OperatorsATOP, Jaime Aguilar, showed his approval on theappointment of the new Minister and assured heis a person of recognized capacity, experience andknowledgeable of the situation, which ascertains that“the relationship to be started with the new directorof SCT will result in a greater development for theport sector of our country”.them to competition. Calls will have 30-day duration,and during this time any company may offer analternative project.Provisional Measure will be Discussed in theFebruary Congress: The mixed committee ofrepresentatives and senators that will analyze theProvisional Ports Measure issued by President DilmaRousseff, will be installed after the parliamentaryrecess in February 2013.NEW MEXICAN GOVERNMENT INTENDS TOCONVERT LÁZARO CÁRDENAS IN THE HUB FORTHEAMERICAS.
September - December 2012After the announcement of starting civil works inthe month of December and the support of thenew federal authorities to the project, the directorfor Latin America of APM Terminals, J.D. Nielsen,stated to T21 that TEC II of Lázaro Cárdenasin México will become an added value to thebusinesses. He commented that his plan includesoffering the facilities to all interested shippingcompanies, as well as the possibility of providingfacilities to freight forwarders and customs agents.“APM Terminals is proud of being at LázaroCárdenas and we are looking forward to become anadded value for the businesses of the port and thecity, and also for the state of Michoacán in Mexico”,stated Nielsen.Upon asking why APM Terminals chose the Portof Lázaro Cárdenas for a new containers terminal,the executive stated it was basically because of itsgeographic location placing it closer to the “huge”market of Mexico City, over any other port in thePacific coast. “The port has an excellent water depth,which allows handling large size containers ships.There is no congestion at the port and clients willprofit of a more efficient handling of its cargo.There is an excellent railway connection directly tothe market of Mexico City, and finally, the port is welldirected and managed by the port administration”,stated Nielsen.Some years ago, Maersk affiliate had announcedinvestments for a logistics cluster at the port ofPanama that finally did not materialize; therefore, theTEC II project at Lázaro Cárdenas may fill the megainvestment that had been thought of. However, J.D.Nielsen rejected this idea and said that TEC II isbasically addressed to the market of Mexico, “butwe will also be capable of offering a transshipmentservice to and from other markets of Central andSouth America”.Plans of APM TerminalsThe Port of Lázaro Cárdenas is the largest Mexicanseaport and one of the largest seaports in the PacificOcean Basin, with an annual traffic capacity ofaround 25 million tonnes of cargo and 2,200,000TEUs.The Port of Lázaro Cárdenas
September - December 2012it to be one of the most competitive of the CentralAmerican region.The movement of containers in Panamanian portsclosed 2012 with a 5% increase arriving at 7 millionTEU, an increase much lower to that of 2012because of a workers stoppage that considerablyreduced a growth forecast higher than 18%. Ofthis total, the Port of Balboa, managed by PanamaPorts Company, moved 2.6 million TEU, that is,1.2% more than previous year. Cristóbal moved740 thousand TEU. Furthermore, ManzanilloInternational Terminal (MIT) received 1.7 millionTEU, 10% more; the Port of Colon ContainerTerminal (CCT) moved 513,000 TEU, Bocas Fruit,almost 30,000 and Panama International Terminal(PSA), 53,000 TEU. According to Enel Camargo,of the Maritime Chamber of Panama, the maritimetrade market has 180 companies dedicated tomaritime activities, “which represent 20% of thegross domestic product, and is the one with thehighest growth in national economy”.Based on information of Mundo Marítimo of theend of September, quoting the paper La Prensa,efforts of the sector have positioned Panamaas the fourth country of the world for its portinfrastructure quality. This was stated in the GlobalCompetitiveness Report for 2012-2013, preparedannually by the World Economic Forum. In thisissue, Panama moved up one place since last year,when it was in the fifth place of the world, indicatinga continuous institutional development curve inmovement of containers. In fact, the report of theWorld Economic Forum mentions that port sectoras one of the main elements for the efficiencymodel of Panamanian economy, which has takenAccording to Mundo Marítimo, the Colombian Portof Cartagena received for sixth time the distinctionas the Best Port of the Caribbean granted by theCaribbean Shipping Association (CSA) for itsachievement in 2011 in the fields of infrastructure,cargo increase, reliability and efficiency, amongothers, during the forty-second Annual Congress ofthe organization being held this week in San Juan,Puerto Rico.PANAMA: FOURTH COUNTRY IN THE WORLD INPORT INFRASTRUCTUREPORT OF CARTAGENARECEIVES FOR SIXTH TIMETHEAWARDAS BEST PORT OF THE CARIBBEAN
September - December 2012Chile, seeking for businesses. Brazil needed anexit to export its products to the Asian marketsin the Pacific and was the main sponsor of theInteroceanic. The non-governmental organizationof journalism, Connectas, traveled almost 700 kmof the Interoceanic to see the changes this routehad brought for the environment and the lives ofpersons.The distinction, granted by the vote of all CSAassociates – formed by ports and shippingcompanies – is granted in the category of “ContainerTerminal” and includes other specific areas inwhich the port fully showed satisfactory results, asimprovement of physical and industrial securityand advances in infrastructure. Such advancesallow facing with great autonomy the commercialchallenges resulting from the trade agreements ofColombia with other nations, and also the flow ofthe large size ships that will arrive at its docks afterthe completion of the expansion of the PanamaCanal in April 2015.Acknowledgement by CSA was made public atthe capital of Puerto Rico and add up to thosepreviously received by the Port of Cartagena inBridgetown, Barbados, in 2005; Panama City in2006; Santo Domingo, Dominican Republic, in2007; Paramaribo, Surinam, in 2009, and Kingston,Jamaica, in 2010.Estado of Brazil informed of the Interoceanic Southhighway 5,400 km long that connects the PeruvianPacific and the Brazilian Atlantic, opened a year ago.This brought forth great wealth and developmentopportunities, but also great environmental andsocial challenges. The road opened in the tripleborder of Brazil, Peru and Bolivia an extendedarea of forests and thousands of persons arearriving to live there, besides a great number ofinvestors from China, Russia, France, Mexico andCSA was created in 1971 to facilitate in an efficientmanner maritime industry development in theCaribbean and its members are twelve shippingassociations and more than a hundred individualentities, including port authorities, terminal operators,and maritime agents, shipping lines, cargo consultantsand agents, among others.This accomplishment of the Port of Cartagena hasbeen possible thanks to the effort of its human teamand the confidence deposited by the internationalmaritime sector, allowing the port to function aslogistics distribution center for five of the mostimportant shipping lines of the world and to projectas regional leader in containers transshipment, effortsthat for several years have been extensively valuedby CSA, to whose members it thanks this newacknowledgement..PACIFIC BRAZILIAN-PERU ROUTE BRINGSBUSINESSESAND DEVASTATION
September - December 2012Brazil and Peru, and between these countries andBolivia. On the other hand, Chile expects to seecommercial opportunities to grow, considering thatthe road will give access to a market of 200 millionBrazilian consumers.Interoceanic has in average a flow of only 160 cargovehicles per month (most of it carrying timber tothe Pacific) and almost 640 passenger vehicles, asstated by toll officers at kilometer 73 of the Peruvianpampa. Three reasons explain why the resoundingcommercial bonanza of the road between the threecountries is taking long to takeoff. The first is thereare no agreements for a more organized bordercrossing. The second is that in theory it is cheaper totransport cargo from Brazil to Peruvian ports, butsince the vehicle carrying cargo must return empty,then this country exports less or freights are moreexpensive. Finally, it is not easy for chauffeurs todrive these huge Brazilian trucks through the narrowAndean Peruvian roads on the way to Juliaca, southof Peru, where some curves are so narrow that evenpassenger buses have difficulties going through.The scenario shown is somewhat chaotic: illegalmining extraction, especially in Peru and Bolivia,and the transit facilitated for drug and personstrafficking. In the meantime, commercial exchange,its principal reason of being, is starting to give results.Until now, the products of the region of Acre inBrazil, such as soybean, have to travel more than26 thousand kilometers to arrive to China, with acostly mandatory passage by the Panama Canal, butthe new road reduces this distance to 17.5 thousandkilometers. Furthermore, Peru may send its productsat a lower cost to Africa and Europe, loading themdirectly at the Brazilian ports in the Atlantic. TheInteroceanic is expected to improve trade betweenSouth America requires investments forapproximately US$116 million in infrastructureprojects to reach a better regional integration, statedthe head of the Ministry of Transportation andCommunications (MTC) of Peru, Carlos Paredes,in his closing speech at the third ordinary meetingof ministers of the South American Council ofInfrastructure and Planning (Cosiplan) that washeld in Lima in November. Paredes is acting protémpore president of the entity. “Member stateshave a commitment to prepare plans oriented toimprove tools for the execution and conclusion ofhigh impact projects in the region, actions that willallow taking greater impetus towards the integrationprocess between South American countries”, hestated.The infrastructure ministers of the member statesof Cosiplan ratified a portfolio of projects originallyinformed in November 2011, which includes 531projects distributed in nine integration agreementsin the entire region. Of these, 31 are considered aspriorities, which will require an investment of almostUS$17 billion.SOUTHAMERICANEEDS INFRASTRUCTUREPROJECTS FOR US$116,000 MILLIONFORABETTER INTEGRATION
September - December 2012The mixed use Private Port Complex of the SuperPort of Açu, in construction by LLX, logisticscompany of the Group EBX, is the highestinvestment in port infrastructure of Latin America.These works, located in the state of Rio de Janeiro(next to Bahía de Campos, area responsible for 85%of oil and gas production of Brazil), characterizedby an innovating project, as is the port-industryconcept, allies modern engineering, construction andoperation practices, involving investments for US$2billion. Of this total, US$500 billion must be investedby LLX Minas-Rio (responsible of implanting theport terminal dedicated to mineral ore) and US$1,5billion for LLX Açu (responsible of the operation ofother cargoes as steel, oil, coal, granite, slag, iron oreproducts and cargo in general).Being located next to the principal producing andconsumer poles of the country, the Super Port ofAçu has great potential of becoming the principalalternative for production transportation of thecenter-west and southeast states of the country,currently suffering of lack of logistics accesses.Besides, the region has the adequate depth to receivelarge ships. Thus, the Super Port of Açu will havean initial depth of 21 meters, with perspectives toexpand to 26 meters, sufficient for Capesize vesselsand Very Large Crude Carriers (VLCC) transportingup to 320 thousand tons of cargo, and Chinamaxcarriers that have 400 thousand ton capacity. Atpresent, only 7% of Brazilian ports have capacity toreceive Capesize vessels.Forecast is that the Super Port of Açu moves 350million tons per year between exports and imports,with emphasis on oil, and this will position it amongthe three largest port complexes of the world.Operations are foreseen to start in 2013.Embraport, Brazilian Company of Port Terminals,is a project of Odebrecht Transport with DPWorld and the Group Coimex, located in an area of850,000 square meters at the Port of Santos, to buildand operate a private mixed-use private terminal.Once completed, the terminal may move 2 millionTEU and 2 billion liters of liquid bulk. Estimated tostart operating in 2013, the terminal has absorbedinvestments for about US$1.2 trillion.THE THREE LARGEST TERMINALS OF LATINAMERICAWILL ENTER IN OPERATIONIN BRAZIL IN 2013.
September - December 2012first phase 1.4 million tons per year of liquid bulk and1.2 million TEU per year.“With the new terminals (Embraport and BTP)operating at full speed, in 2014 the movementcapacity for containers in the complex will jump to8.1 million TEU compared to 3.14 million at present”stated Tribuna.Brasil Terminal Portuario BTP, corporation formedby two large global operators, APM Terminals andTerminal Services Limited, will start operationsthe first quarter of 2013, with an investment ofmore than US$1 billion. According to InternationalFinance Corporation IFC of the World Bank,cofinancier of the works, this new containersterminal located at the Port of Santos will be theprincipal Brazilian terminal and the most importantof Latin America. BTP has foreseen to move in itsExtracts of the Prologue of Hugo Palacios, editor ofthe Law of Ports of Colombia (Law One of 1991),to the book Colombian Port Law of Oscar FabiánGutiérrez:“This book is called to have many readers andeditions because Colombia, finally, is leaving behindthe ECLAC remnants and has decided to open itsdoors and ports to the world (…)During a long time, the country, which wasimposed an economic vision obliging it to seekdevelopment by contemplating its own navel, didnot have a great need for its ports. Buenaventura,Barranquilla, Cartagena and, in a certain way SantaMarta, developed their ports thanks to coffeegrowers and an occasional bold entrepreneur thatmaintained them alive since the time of the colony.Since ports were not very important for the countrythat was closed to the world, governments did nothave remorse to look the other way, while corruptunions and corrupt bureaucracies of governmentcompanies made of ports a private source of incomeand of advantages for its members. (…)Law 1 of 1991 transformed ports belonging to astate company that became mixed corporations,for public service. Private persons did not want toinvest in such companies as, based on experience,it was difficult to believe they could be profitable.Some, driven above all by civic reasons, invested and,as said by their enemies, became immensely rich inthe process; this version must be true, as I have notseen the accused defending themselves. In any case,these corporations have further done considerableOPEN THE DOORS!: EDITORIAL BY THE EDITOR OFTHE LAW OF PORTS OF COLOMBIAIN THE BOOKCOLOMBIAN PORT LAW.
September - December 2012investments to improve port services, and they haveachieved it. (…)(…) Many other things could be said on innovationsto Law 1 in the field of public policies andadministrative law. Óscar Fabián Gutiérrez, in thisbook, does it with singular talent and precision,without limiting, as many other books of law, toparaphrase legal rules. He well knows, after manyyears of practice, the rules, jurisprudence and scarce“We are very pleased to announce in Cormagdalena(Corporación Autónoma Regional del Río Grandede la Magdalena) the opening of this process, thuswe are complying with the express instructionsof President Juan Manual Santos, for whom therecovery of the Magdalena River constitutes one ofthe most important infrastructure projects”, statedExecutive Director, Augusto García, last October23rd. This process will extend until May 2013, whenthe best offer resulting from a selection process willbe awarded.The project involves the construction of civil worksin rock on the 256 kilometers from Puerto Salgar-La Dorada to Barrancabermeja, and dredgingmaintenance and other activities, along the Riverto Bocas de Ceniza (Barranquilla), to guarantee aminimum depth of 7 feet all year round, enabling itto transport convoys of up to 7,200 tons each.doctrine on the matter. His fine criterion as a lawyerallows him to read, between lines, the sense of portregulations. Whoever wishes to know how theport sector operates in Colombia must read thisbook. And who believes in making the necessaryadaptations of the rules of Law 1 to the new realitiesand technologies of foreign trade, must also read it toknow where to start from… and not risk inventingthings already invented.”NAVIGATION RECOVERY STARTS IN THEMAGDALENARIVER OF COLOMBIA
September - December 2012Reactivation of the Magdalena River will offereconomic benefits as the decrease in internalfreights, increasing competitiveness of our productsabroad, environmental benefits, reducing effects ofemissions of greenhouse gases, and connecting theFolha of Brazil informed that the governmentdecided to take the first step for the construction ofthe waterway Tapajós-Teles Pires, which will evacuatethrough the territory of Pará the production ofgrain from north of Mato Grosso, and has openeda tender to define the company that will developfeasibility studies and the project of works. Aprosoja(association that congregates soybean and maizeproducers of the Mato Grosso) estimates thattransportation cost of a ton of soybean would fallfrom US$110 to US$20 with the waterway. In oneyear, the sector would save one trillion dollars.country without intervening its landscape, wetlands,biodiversity and social benefits, rescuing manyabandoned municipalities of which the only reasonof being was its proximity to the Magdalena River.Works will eliminate obstacles as rocks and sandyrivers, making navigable somewhat more than 1,000km, starting at the Teles Pires River and followingto the Tapajós River up to the port of Santarém,from where arrival to the Atlantic Ocean is possibleby the Amazon River. With this, grain productionin Mato Grosso, which main evacuation route is byroad and railroad to the port of Santos, will gain anew route.NEW BRAZILIAN WATERWAY WILL REDUCE ONEBILLION DOLLARS IN FREIGHT COSTS OF GRAINS
September - December 2012Container Management informed the latest update ofglobal freight data collected by the InternationalTransport Forum (ITF) at the OECD, which showsthat global trade volumes are slowing down. Totalexternal trade by sea (in tons) has remained stagnantbelow pre-crisis levels in the European Union (EU)and the US (-2% and -10%, respectively) accordingto seasonally adjusted preliminary estimates of goodscarried until August 2012.A 38% increase in freight tariffs for containermaritime cargo in the Asia-Europe market may affectthe next contracts negotiations in 2013, as statedin the evaluation of tariffs of the route Shanghai-Rotterdam of the World Container Index (WCI)According to Container Management, by mid-November the vessel Marco Polo of CMA-CGM,the largest container vessel of the world, started itsfirst voyage at Ningbo, China. It was built by DSME(Daewoo Shipbuilding and Marine Engineering) inSouth Korea, and has a capacity of 16,000 TEU, 396meters of length, 54 meters of beam and 16 metersof draft (53 feet).THE LARGEST CONTAINER SHIP OF THEWORLD ENTERS THE EUROPE-ASIAROUTETRADE VOLUMESARE SLOWING DOWNRAISE IN FREIGHT TARIFFS MAYAFFECTCONTRACT NEGOTIATIONS FOR 2013
September - December 2012of Drewry, informed Mundo Marítimo. The reportthat captures freight tariffs valid for a one-monthcontract, confirmed that price increases announcedby shipping companies for November 1st wereamply accepted by the market.However, Martin Dixon, research and benchmarkingmanager of freight tariffs of Drewry said thisincrease in tariffs is expected to be partially revertedin the following weeks, but despite that tariffincreases will probably influence negotiations ofannual contracts for 2013 establishing a higherstarting point compared to previous year. Theincrease of 38% in freight tariffs for the Asia-Europeroute increased to US$2,865 per 40-feet units,showing the most recent of a series of continuousprice fluctuations this year and revealing the highvolatility of that market.“Almost three fourths of the increases of US$500per planned TEU were implemented, based on ourmarket evaluations in Europe and China”, statedThe largest shipping companies of regular servicesof containers transportation of Germany, Hapag-Lloyd and Hamburg Süd are now analyzing apossible merger to become a major global weightactor and thus overcome recession suffered by thesector in the last four years. The combination offorces would locate them as the fourth operator atworld level after Maersk Line, MSC and CMA CGM,enabling the establishment of a powerful fleet ofabout 250 vessels.“This is a business where size cares”, stated theRichard Heath, director of WCI. However, thesituation is not yet as alarming. Drewry stressed thatincreases week by week are less significant than theperiod during which these increases are maintained.For example, during the months of March, April,May and July, WCI registered large increases intariffs, but after the July increase tariff decreases wereconstant.Drewry makes a call to shippers to consider adoptingthe mechanism of linking prices to an index andthus preventing default in contracts within currentenvironment of major price volatility.In December, shortly after writing this article, Mundo Marítimoreported that Hamburg Süd increased their tariffs for servicesfrom the west coast of South America to its destination inNorth America, Asia and Europe, applicable as of January15 and February 1st, 2013.HAPAG-LLOYDAND HAMBURG SÜDANALYZEPOSSIBLE MERGER
September - December 2012analyst of Westend Brokers Research, KlausKraenzle, who explained that if continuing withpresent situation “Hamburg Süd could, in the longterm, have difficulties to keep up in the same levelwith the principal players of the industry”. Therefore,he sees with good eyes a possible merger: “Thiswould be a good step, which would give Germanya worldwide player in maritime transportation”, heconsidered.Both companies tried but could not join forces 16years ago, and they stated in a joint declaration lastDecember 18 that they are analyzing in detail whenand in what conditions the merger would be ofinterest. Based on sources close to Hapag-Lloyd,conversations that started a few months ago shouldmaterialize before the end of the first quarter of2013.The container shipping sector has been fightingagainst the worst crisis of its history, caused bya weak global economy, the oversupply of shipsThe naval construction world industry faces asomber future for 2013 as orders have decreased asa result of current global crisis of the naval industry,as stated in the most recent version of the revisionand annual forecast of the naval constructionmarket of Drewry, informed Mundo Marítimo. Ina global industry as the shippers market, once anarea faces problems it is not long before the entireindustry plunges into a crisis. In the case of thenaval construction market, the situation has reachedthe same we have seen in the rest of the industry:oversupply facing low demand. This, altogetherwith the increase in tariffs, reflects the fact that forsome time now the activity of orders for new vesselshas exceeded trade growth requirements. In simpleterms, the difference between forecast demand andcapacity is too big to be satisfied by the isolatedcontraction of the capacity of an area, which requiresthat shipyards will have to fight to survive by assuringthemselves enough orders in the years to come.and the low freight tariffs. A clear example ofthis situation is that German shipowners, in thebeginning of this year, saw the need to apply fora state rescue. It must be noted that the Germancountry is the home of the largest fleet of containervessels, amounting to 1,800 of the 5,000 existingvessels worldwide.The major shareholder of Hapag-Lloyd, Klaus-Michael Kuehne, has tried for some time to combinethe group with a powerful partner, arguing an alliancewould be sensible between a Hapag-Lloyd stronglyfocused in Asia and a Hamburg-Süd very powerfulin the routes to and from South America. Kuehne,who controls the Swiss logistics group Kuehne &Nagel and has approximately 28 percent of Hapag-Lloyd, stated that the strategy would be even better ifthese two German colossi would merge with a thirdshipping company of Asia. In fact, approximatelyfive years ago there was an attempt to bring togetherHapag-Lloyd and Neptune Orient Lines (NOL)of Singapore, but the agreement failed after hotdiscussions on who would be the major shareholder.Crisis and search of new partnersSOMBER FUTURE FOR THE NAVALCONSTRUCTION INDUSTRY IN 2013
September - December 2012Three alternatives for an uncertain futureTo provide a more profound viewpoint of futureperspectives of the shipyard industry, the documentof Drewry presents three alternative scenarioson the forecast of the construction requirementsaccording to sector and type of ship, over a 15-year period, reflecting the uncertainty that affectsthe industry. The report of Drewry shows thatonly for the scenario set forth in the case of majorvessels there is a demand of more orders beyondreserve orders as of the beginning of 2012. On thecontrary, the base case is more realistic presentingalmost the total number of orders according to typesof fleet in the beginning of 2012 with an amount ofportfolio orders that exceeds the demand that wouldexist in 2016.Conclusion: Forecasts for the shipyard market aresomber. A greater access to financing, either throughretained reserves or by debt acquisition continuesbeing limited to shipowners and under currentcircumstances it seems inevitable that new orderlevels will maintain low for some more time.Three soccer fields in line are the dimensionsthat may contain each of the ships to be acquiredby Grupo Empresas Navieras (GEN), wroteEl Mercurio, quoted by Mundo Marítimo. Thecompany started the greatest acquisition plan ofships that may be remembered by its controllers,which involves six modern Post Panamax vesselswith a nominal capacity of nine thousand TEU andvalue of approximately US$86 million. Thus, theglobal operation would add up to about US$515million.GEN started this plan with the mandate to buildtwo vessels given to the shipyard Hanjin HeavyIndustries, one of the most important conglomeratesof South Korea, to be delivered in 2014. Theshipping group is refining financing to acquire otherfour vessels and within the next five months mustconfirm the purchase option to the same maker.GRUPO EMPRESAS NAVIERAS OF CHILE STARTINVESTMENTS FOR US$515 MILLIONIN FLEET OF SHIPS
September - December 2012NEW MEMBERSDISTINCTIONSThe object of Empresa Portuaria Valparaiso EPVis management, exploitation, development andpreservation of the Port of Valparaiso, and alsothe properties it may have on any title, includingall activities connected to the port environment,essential for its due fulfillment. It maintains fourconcession contracts with important companiesLiebherr-Werk Nenzing GmbH was awarded theClean Technology State Prize Austria 2012, amonga total of more than 200 submitted projects –double the total number of 2010 – which shows thesurprising evidence of the innovating strength ofAustria in the sectors of environment and energetictechnology.Liebherr is world leader in manufacturing movablegantry cranes and obtained the prize for Pactronic,the first hybrid hydraulic unit for cranes andThe Group Incatep was certified by the Braziliangovernment and by the ANAB of the United Statesto provide courses of the Program of ProfessionalMaritime Teaching to all ports of Brazil. Thisachievement comes to add up to a certificationprogram of competences for port equipmentoperators, which is certified by ABS/QE of Braziland by ANAB of the USA. Incatep also hascertifications ISO 9001:2008construction machinery that accomplishes anincrease in its performance of up to 30 percentand at the same time reduces fuel and energyconsumption in 30 percent.of the country to potentiate port competitiveness,according to logistics, security and technology, all thisin harmony with the sustainable development of thecity. It also has under its administration importantpublic spaces in Valparaiso, such as the quaypromenades Paseo Muelle Prat and Paseo Muelle Barón.Webpage of the port is www.puertovalparaiso.cland its general manager is Harald Jaeger email@example.com
September - December 2012Septiembre - Diciembre 2012News Of Latin American PortsArgentinaGrupo Ultramar of Chile Enters Port ofRosario:Through a training program called Protep, withteachers fluidly speaking Portuguese, Spanishand English, Incatep certifies and guaranteescompetences for port workers at the main portsof Brazil, Ecuador, Colombia and Mozambique(Africa). These trainings were developed to assistin the new competences required nowadays inthe world, and for this the training program calledProtep uses last generation simulators developed by acompany part of the group, WSS (Work Education,According to information of Mundo Marítimo ofthe end of September, Grupo Ultramar of Chilereached an agreement to acquire 30% of the sharesof Terminal Puerto Rosario (TPR), located on theParaná River, south of the province of Santa Fe, inArgentina. Ultramar, through its affiliate Neltume,acquired the percentage from the corporation InterRosario Port Services of Spain that had this 30%class A shares of the port.The entry of Ultramar will enable having twodirectors in TPR, while the Argentinean groupVicentín will keep control with its 70% and threedirectors in the company. It is expected thatthis process, if it has the authorizations of theAdministration Entity of the Port of Rosario, will besigned shortly and thus Ultramar may formally enteras owner of the port. Ultramar will be in chargeof developing the containers business of the portthat today moves about 50 thousand TEU/year, farfrom the 973,000 TEU handled by Valparaiso or the870,000 TEU moved by San Antonio. Besides, othercargoes transferred at the port will be potentiated.Thus, Ultramar adds up another port operation to itsportfolio, including participations in 9 port terminals.Simulation and Service). Portable simulatorscorrespond to the following equipment: STS, RTG,MHC, Reach Stacker, Forklift Truck, Jib BoardCrane, and Gantry Board Crane.
September - December 2012In 2013 will be awarded the Concession for theNew Port of Santa FeWilen ManteliPresidente ABTPArgentinean authorities are envisaging the awardin 2013 of the long expected concession of thenew waterway multipurpose terminal of SantaFe, an initiative valued in US$160 million, statedto BNamericas the president of the local PortAuthority, Administrator Entity of the Port of SantaFe, Marcelo Vorobiof. “We would be in conditionsto open the call in October or November and thiswill allow awarding the contract next year”, statedVorobiof.The 33-year concession contract includes theconstruction, maintenance and administration of thenew multipurpose terminal located in the waterwayParaná-Paraguay. Corresponding funds amounting toUS$15 million and US$25 million will come from thebudget of the province of Santa Fe and the FinancialFund for Development of La Plata Basin (Fonplata),respectively, while the private concessionairewill contribute the remaining US$120 million.At the same time, the Federal Government willfinance another tender for US$13.5 million for theconstruction of a bridge and other roadway worksnecessary to guarantee access to the new terminal.The port of Santa Fe is the last stop for oceanvessels at the waterway Paraná-Paraguay, whichmakes it the “obliged transfer center for cargo toand from countries located on the waterway”, statedthe governor of the province, Antonio Bonfatti, in acommunication. In this context, the main objectiveof the project is transforming the new terminal in a“regional production pole for north Argentina andParaguay and south Brazil”, stated Vorobiof. “Aftera while of being in operation, the new terminal maymove 3 million tons of commodities of agriculturebulk in the first year, plus sub-derivatives such as flourand oil that must be transported in containers”, headded. Present infrastructure of the port of Santa Fehas a capacity to move almost 300,000 tons per year.BrazilPort Sector Investment may reach US$22Billion:
September - December 2012According to information gathered by Folha andEstado at the Competitive Brazil Forum held in SãoPaulo altogether with the Group Estado and theNational Council of Infrastructure (CNI), shortlybefore the issuance of the package of port measuresby the president of the republic, on a survey doneby the Brazilian Association of Port Terminals,ABTP, among 84 associated companies, requestedby the federal government, the Brazilian port sectormay receive investments amounting to R$44 billionduring a five to ten year term. Of the total amount,R$10 billion are for the containers segment. “Thisinvestment may be even higher depending on theport reform”, stated the president of ABTP, WilenManteli, who believes that the main problemsencountered by the sector in the country areregulatory framework and port management. “Thereis great political interference and current model doesnot function, therefore we expect these problemsare effectively addressed in the package of decisionsthat is being announced”, he said. Regarding theregulatory framework he affirmed it is unstable andthere are excess entities and rules generating juridicalinsecurity. He also mentioned that taxes to the sectorare among the problems blocking investments.“There is great expectation and we hope the federalgovernment announces the third port reform as theprivatization of port management to unblock thesenodes and the bottlenecks that prevent the portsector from progressing”, emphasized Mantelli.The press furthermore emphasized that thepresident of ABTP criticized the companhiasdocas (port authorities) and characterized thismodel as “anachronistic and with a bureaucraticmentality, preventing the port administrator fromusing resources as any private company”. ForMantelli, the solution would be to adopt public-private associations (PPA). “This would be themost adequate instrument where private capitalwill predominate; the government would have vetopower in some matters”, added the president ofABTP. According to the executive, this model wouldgive assurance to the government and promote a“private and efficient port administration”.According to information from the president ofLibra Terminais, Wagner Biasoli, quoted by Valor,the Libra group will reinforce the integrationbetween the different business areas (airports,logistics and ports) in the market of Rio de Janeiro asof 2013, basically focusing on oil and gas companiesexporting and importing goods and equipment. Theconcept is to design logistics solutions with a lowercost to clients. The plan may consider, providedits advantages, the use of assets of Libra in Rio,including the international airport of Cabo Frío,in the Lagos region, the containers terminal of thecompany in the port of Rio and a storage structurethat is being built in the state by Libra Logistics.Biasoli comments that the business plan of Libra for2012-2016 foresees growth as of the three vectors.One of them is the expansion of the terminals ofRio and Santos, and two dry ports. At Santos, Libraforesees investing R$550 million to expand thecontainers terminal of the company. Another sectorof growth, according to the executive, is tenders forcontainers port terminals, new dry ports and airports.The last point to be considered by Libra is mergersand acquisitions.Libra will Reinforce Action in IntegratedLogistics of Rio de Janeiro
September - December 2012The Port of Rotterdam (Holland) expects to enterinto an agreement the beginning of next year withthe group Terminal President Kennedy (TPK). Theagreement includes the creation of the Central Port,a private deep-water terminal in the state of EspíritoSanto. The investment is expected to amount toUS$2 billion – as informed by Estado and Tribuna.“This is our current expectation. Europe is alreadya mature market. Emerging markets as Brazilare important in terms of higher growing rates”,declared Minico Van Hezen, speaker of the Port ofRotterdam, to the newspaper Estado.Brasil Económico referred in a special report to PuertoMaravilla in Rio, which will have investments forUS$3.8 billion through a PPA (Public-PrivateAssociation). One of the contributions focuseson the project Rio 21st Century that has as mainobjective revitalizing facilities, structure and portservices to improve its efficiency, and furtherimprove and modify maritime, railroad and roadaccesses. The report states, in the meantime, thataccess works to the port of Rio have now stoppedand that railway and road projects will only startthe beginning of 2013. Total cost of internal worksof the port for the next five years is estimated inapproximately US$500 million and, according to thestate Transportation Sub-secretary of Rio, almostUS$75 million were invested by the Secretary’sOffice of Ports in dredging the port to evacuatemore than four million cubic meters. The companiesMultiterminais and Libra already have their projectsapproved to start works. Engineering projectsregarding road access were presented to the federalgovernment and, according to the Sub-secretary ofTransportation the phase is now in conversationsfor its priority within the Growth Acceleration Plan,PAC. Regarding railway accesses, basic projects arebeing discussed with MRS Logística.“The port has the fourth place in cargo movementof the country and is the one with the greatest addedvalue, reaching over US$2,000 per ton, when thenational media is of US$600 per ton”, stated theDevelopment Secretary of the State, who added:“We have a long way to grow and I am certain this isgoing to happen”.Port of Rotterdam has partnered in BrazilUS$3.8 Billion in Puerto Maravilla and toImprove Access to the Port of Rio de JaneiroTPS Prepares Tender Bases to Extend TerminalOneChile
September - December 2012According to El Mercurio of Valparaiso, quoted byMundo Marítimo, Terminal Pacífico Sur TPS worksin an essential project for its development: theextension in 120 meters of Terminal One it hasunder concession. The initiative, already approved byEmpresa Portuaria Valparaíso EPV in January of thisyear, will allow Terminal Pacífico Sur to extend from620 to 740 meters its main berthing front (formedby places 1, 2 and 3) thus being in conditions toreceive and serve simultaneously two ships type postpanamax, vessels that start arriving to national portswith increasing frequency in reply to the need of theshipping lines and operators to lower costs throughthe so-called economy of scale.“Ports require adapting their infrastructure,which implies long and straight docks in orderto be prepared for the larger size vessels andhaving an option to receive, at least, two vesselssimultaneously”, informed the general manager ofTPS, Francesco Schiaffino during the annual meetingheld by the company with its clients, collaborators,workers and suppliers. “We must not forget that afew years back 3 design vessels of the time fittedin 620 meters, something impossible today”,remembered the executive. And it was preciselybased on this last argument that the state, throughEPV, decided to authorize this initiative.The Project will be developed through a contractunder the EPC (engineering, project andconstruction) modality by means of a public tender.The investment will be approximately US$70million and besides works at docks, the acquisitionof three new Super Post Panamax cranes is beingconsidered. This implies that the two oldest oneswill be discarded, from year 2002, which will makeTPS to have in this berthing front 6 last generationgantry cranes plus 2 Gottwald movable cranes of100 tons of lift and 50 meters of reach. The initiativealso includes other modernization works as thestructural reinforcement of sites 4 and 5 to makethem antiseismic. Project will possibly be awardedthe beginning of 2013 and detail engineering willbe completed mid-2013. It is expected to have theapprovals by mid-2013 and to begin the execution ofthe project approximately said date, to be completedin 2015. The execution of this project will enableextending the original concession of TPS from 20 to30 years and continue operating Terminal 1 of thePort of Valparaiso until year 2029.A communication of Sociedad Portuaria Regional deBarranquilla informed that Southern Cross Groupacquired in mid-November something more than50% of the shares of this Colombian port located inthe mouth of the Magdalena River, in the CaribbeanSea.Sociedad Portuaria Regional de Barranquillaaccomplished in 2011 the highest cargo movementin the history of the port with 4,257,000 tons (63percent of the total figure of public use docks ofthe port zone of Barranquilla). In total, SociedadPortuaria de Barranquilla has an investment planfor 179 million dollars to be executed more rapidlyby the Southern Cross Group, to expand not onlySouthern Cross Group Acquires Share Majorityof Sociedad Portuaria de Barranquilla,ColombiaColombia
September - December 2012According to the information of the economicjournal Portafolio, port operator DP World (amerger of Dubai Ports Authority and Dubai PortsInternational) would be the new partner of the Portof Buenaventura, the most important port of thecountry. DP World would pay an amount of almost150 million dollars to obtain 25 percent of this portsociety. Nevertheless Port Society reported that thepurchase of the shares is subject to lift up the rightof preference, process in which they are currently.The advantage of this negotiation is that the eventualnew operator has all the experience to renew portpractices and management and to manage increasingcargo volumes. With this transaction, the maingroups of the port society would be: DP World with25 percent, Harinera del Valle with 24 percent, theMayor’s Office of Buenaventura with 15 percent andCiamsa (sugar group) with 10 percent.logistics services but also connectivity to the interiorof the country and the Caribbean.The head of the Ministry of Transportationand Public Works of Ecuador, María de losÁngeles Duarte, stated they will proceed with theconstruction of a deep-water port in the region ofManta, with a public investment estimated in US$106million, dredging the port to a draft of 16 meters,among other infrastructure needs. In addition,Duarte confirmed that the concession process ofthe enclosure continues, despite the setback thatmeant having declared previous tender void, statedin a communication of the state port authority,Autoridad Portuaria de Manta (APM), as informed byBNAmericas.In November, APM declared the process voidafter announcing that of the nine companiesand consortia that acquired tender specifications,none presented an offer for the concession. Theconcession process for 25 years of US$300 millionwas addressed to transforming the port in a deep-water enclosure and a logistics pole for the bioceaniccorridor Manta-Manaus and to increase capacity to 3million TEU for the year 2030.Dubai Ports in Buying Process of 25% ofBuenaventura Port Society:Concession Process of the Port of Manta willbe Relaunched in Mid-2013Ecuador
September - December 2012an essential alliance for the transformation ofinfrastructure and logistics enabling to promotethe creation of wealth and opportunities for ourpeople”.Mundo Marítimo, quoting the magazine Vía Libreof Spain, informed that the president of Ferrocarrilsde la Generalitat de Catalunya FGC, Enric Ticó, andthe president of the company Corredor Interoceánicode Guatemala, Santiago Bassols, have signed anagreement in which both entities agree to find theway to cooperate and thus FGC will advice thecompany CIG in these works. The Guatemalancompany Corredor Interoceánico de Guatemala is now inthe phase of developing this railway project that willlink the Atlantic and Pacific coasts of this CentralAmerican country, and that includes the constructionof two large ports, one on each coast.Corredor Interoceánico de Guatemala (CIG) is acompletely new railroad. The new line will have alength of 336 kilometers, joining the two oceans,Pacific and Atlantic. The destination of thisinfrastructure is basically intermodal transportationAccording to the President of the AutonomousExecutive Port Commission (CEPA), Alberto Arene,in interview granted in September to El Heraldo ofHonduras and transcribed by Mundo Marítimo, “wehope that between March and April 2013 the biddingprocess is opened, therefore we expect that inSeptember winner will be known and in Decemberthe new operator assumes the destiny of the Port ofLa Unión”. As set forth by the executive, the Portof La Unión was conceived to be the port of theCentral American Union and particularly to meetport demands of Honduras and El Salvador. “ElSalvador will have Puerto Cortés in the Atlantic, andfurthermore, Honduras will have Central AmericanLa Unión in the Pacific to be used to generate wealthand opportunities for the benefit of both countries”,said Arene.For the president of CEPA, “modernization ofinfrastructure and logistics in Central America is oneof the fundamental conditions for our countries toadvance towards a more productive and exportingdevelopment model, inserted in the best conditionsof global economy. In this framework we see thatthe concession of Puerto Cortés in Honduras andthe port of La Unión in El Salvador constituteTender will be Opened the First Semester of2013 for Port of La UniónFerrocarrils de la Generalitat de Catalunya willAssist in the Construction of the InteroceanicCorridor of GuatemalaEl SalvadorGuatemala
September - December 2012Containers Operation will be granted inFebruary for Puerto CortésMegaport Project in Punta Colonet Cancelledof containers. But the project also includes theconstruction of a new four-lane road, and apipeline. This would form a global transportationaxis that would be an alternative to the only existinginteroceanic, great capacity axis at present, thePanama Canal. This transportation corridor willinclude the creation of new industrial areas along itsroute and the construction of the aforementionedport complexes on its opposite maritime ends.This project is covered by the modality of public-private association. The public part is represented bymunicipalities and local governments. The privatepromoter of the project is represented by OdepalInternacional, a Guatemalan company that hasbeen working in this initiative since 1998. To date,prefeasibility, market, environmental and social orderstudies have been done, still pending the purchase ofland where will pass both the railway and the roadand pipeline.FGC may advice both in the works of design,project, construction and management of railwayinfrastructures, and also the mobile material for theservice of travelers and that of merchandises; thedesign and evaluation of the service for travelers inthe railroad line associated to the Corridor and theevaluation of company potentials, among others.The agreement, of two years duration, establishesthat FGC will be considered as priority adviserfor the development of works of the interoceanicrailway corridor.According to El Heraldo, quoted by Mundo Marítimo,the president of Coalianza, Carlos Pineda, informedthat the most important infrastructure operation ofHonduras, Puerto Cortés, will start relocating to thehands of foreign companies as of February 1, 2013,within the concession process of the containersdock, where 70% of logistics operations of theport develop, and the grain dock where 90% of thefood and raw materials consumed in the countryenter. The officer expressed that in the case of thecontainers dock process, tender specifications werealready acquired by some 20 companies, amongwhich are 10 of the main firms of the internationalmarket. The idea is the coexistence of two portoperators, the main logistics asset of the country inthe Atlantic Coast that will compete to provide thebest tariffs and services. On the other hand, he statedthe tender was already opened to award constructionof the grain terminal and is expected to be awardedby mid-March 2013.HondurasMexico
September - December 2012The outgoing Federal Government finally cancelledthe last day of its administration, the concourse forthe development of a port and railway connectingsaid port in Baja California with the United States,informed Mundo Marítimo. Cancellation of the so-called “megaproject port” of the six-year term ofFelipe Calderón, results after the financial problemsthat affected the world, the expectations ofinternational trade growth, which sensibly affectedcargo volume forecasts on which was based theexecution of the port project. Besides, the highprivate investment costs foreseen and the increasein interest rates, altogether with the complexityto select the point for the railway crossing at theborder of the United States of America, endangeredthe profitability of the railway project, and thusgenerated doubts among private economic agents onthe viability of the project as a whole.The document that terminates this project disclosedthat last July 31, 2012 the General Planning Directionretained KPMG Cárdenas Dosal, S.C. to undertake a“Study to determine the economic-financial viabilityof the multimodal project of Punta Colonet”,which results were submitted last October 22nd.This study confirms that “the installed capacity ofport and railroad terminals of the West Coast ofNorth America does not show now saturation andcongestion levels shown in 2008 and previous years,containers market in the trans-Pacific route will showone-digit growth rates in the years to come, besidesactors of the containers transportation market thatwere consulted did not express a special interestand in particular did not seem to show an appetiteto invest in a project of the scale of Punta Colonet.Under the assumptions established in the study, theproject is not economically viable, except if there is acontribution of repayable capital of public resources,thus it is determined that assumptions prevailingin 2008 are not valid today, and there are no signsenabling to define there will be in the followingyears”, was confirmed by the opinions of thetechnical areas of this Secretary’s Office.In this respect, the new head of the Secretary’sOffice of Communications and Transportation(SCT), Gerardo Ruiz, stated that the port ofGuaymas may become a very good substitute tothe aborted flagship project of the administrationof former president Calderón. During its firstpress conference, the officer considered the Portof Guaymas as the perfect project to substitute themegaproject of Colonet, not only to help the portsof California in the reception of goods, but ratherto be a great port for the transportation of Mexicangoods south and north of the United States, throughArizona.Monopolies at Ports?
September - December 2012Article of T21 informs that with the award tothe company SSAMéxico of the SpecializedVehicle Terminal (TEA) of the port of LázaroCárdenas, present port authorities contradict in theirantimonopoly discourse, which they say guides themto proceed. And the case is that with this assignment,SSAMéxico will add up to 90% of its capacity in theMexican Pacific coast regarding vehicle movement,in addition to that already controlling 60% of themarket of the Gulf of Mexico.Returning to the discourse of the port authorities,these state they are protecting the interests ofthe user and country competitiveness, but in thecontainers operation of the Pacific coast, the onlyreal competition is International Container TerminalServices (ICTSI), the Philippine company that nextMay will start operations at the Port of Manzanillo.On the other hand, containers terminal II ofthe Port of Lázaro Cárdenas does not meet theconditions to be a real competition as this will be aterminal vertically integrated to a shipping company(Maersk). If antimonopoly practices are studiedsomewhat more than more developed countries inthe matter (European Union and American Union),more than a dominance of a market segment,penalizes vertical integration. Who will operateMaersk terminal when it is in operation?, wellthe ships of this shipping line, and service will beexclusively provided to their cargo and shipping lineswith which they have alliances, and only for cargoeson board their ships.Traditionally, shipping companies are not interestedin operating in a terminal owned by its competitors.Obviously, each is jealous of the information of itsclients and safeguards it from falling in the hands oftheir competitors, in order not to expose them tothe theft of its clients. This is the main motivationfor shipping companies not operating in terminalscontrolled by the competition.The President of the Republic, CommanderDaniel Ortega, informed that the Government hassigned a memorandum of understanding with acompany incorporated in Hong Kong, China, forthe construction of the Great Interoceanic Canalthrough Nicaragua, informed Mundo Marítimoquoting El Pueblo Presidente. “I wish to informthe people of Nicaragua, the Nicaraguan families,that this afternoon was signed a memorandumof understanding where the State of Nicaragua,through its representative, the president of the CanalAuthority, authorizes the company HK-Nicaraguato structure, undertake procedures for financingthe project of the great interoceanic canal ofNicaragua”, stated the president during a meetingGovernment Signs with HK of China aMemorandum to Build a Great InteroceanicChannelNicaragua
September - December 2012held with Wan Jin, president of Xinwei, the largesttelecommunications company of China.Ortega stated that at present studies are beingdeveloped by Dutch specialists, which will beconsidered for the works to be developed by Chineseentrepreneurs. He explained that the Chinesecompany, called Company of Investment for theDevelopment of the Great Canal of Nicaragua,will work in the development both of the wet canalas the dry canal, which will also join the PacificOcean with the Atlantic Ocean from MonkeyPoint to Puerto Corinto. Works have been studied,he assured, taking into account the reality of theeconomy, trade and transportation worldwide.Likewise, he remembered this construction will havethe most advanced technology that may presentlyexist in our planet. The president indicated that thedream of an interoceanic canal through the countrygoes back as far as 500 years, when the Spaniardsconquered the country and started looking fora passage between the two oceans, and thus thedisputes and cravings for the domain of Nicaragua.Regarding forecasts of the Xinwei Company toinvest in Nicaragua in telecommunications, Ortegaexplained being essential for the rural area to bringthem this benefit as here are located the largeproduction forces of the country.On the other hand, the president of the XinweiCompany, Wan Jin, informed that in fact a newcompany has been incorporated in China with thepurpose of developing the canal through Nicaragua,which includes programming, capital constructionand project management. “We are confident of asuccessful construction of this Nicaraguan canal”,assured Wan Jin, who explained that other investorshave visited the country and are willing to bringtechnology and capital for the construction of thecanal, but have wanted to exchange the freedom ofthe Nicaraguan people and then the dignity of thepeople has not enabled that the project be developedin these conditions. The entrepreneur stated that thegeographic position of Nicaragua is very importantfor the construction of the interoceanic canal, and ifit were to be built this will change the history of theworld and the history of world trade. “As of today,this 500-year dream will be developed”, stated WanJin.The Project dreamt by Nicaragua of having adeep-water port is stagnant, as according to thenewspaper La Prensa, quoted by Mundo Marítimo,the Brazilian company Andrade Gutiérrez wouldhave given up building the Port of Monkey Point,in the Autonomous Region of the South Atlantic(RAAS). Laureano Ortega, son of the president ofthe republic and investment counselor of the agencyProNicaragua, confirmed this megaport will notbe developed by the Brazilian company. “Not withAndrade Gutiérrez, but with other companies, yes”,stated Ortega, who explained that the agreementof intention entered into between the Governmentand Andrade Gutiérrez has expired, thus thefeasibility studies of Port Monkey Point belongto the Government. Documents are now used toPuerto Monkey Point Project in Nicaragua isStagnant by Withdrawal of Brazil
September - December 2012offer the works to other investors, but will undergomodifications in its design.Through an electronic mail, representativesof Andrade Gutiérrez AG limited to say that“Constructor Andrade Gutiérrez (AG) deliveredall studies of the Port of Monkey Point to itscounterpart in the Government that is the NationalPort Company (EPN). Because of confidentialitymatters, AG may not pronounce itself on thematter”. It was confirmed that the company didclose its offices in the country. AG stated thatthe operations in Nicaragua are managed by theoffice in Dominican Republic. The main reason todiscontinue the project is that the pre-feasibility andfeasibility studies showed that construction cost ishigher than the initially foreseen amount of 300million dollars, but does not guarantee a return forthe millionaire investment, as the volume of goodsto be moved through the port would not be enough,a situation recognized by Laureano Ortega: “Theirreasons are they need a greater flow of ships thatmay berth at the port of Monkey Point and thus weare now working to interest shipping companies thatmay provide more feasibility to the project”.ProNicaragua started searching new investors thatmay be interested in the port of Monkey Point andthus prevent losing one of the flagship projects ofthe Government that is part of the National Plan ofDevelopment. Works are supposedly necessary as itwould imply savings of one hundred million dollarsper year in costs of cargo currently incurred by thecountry when transporting goods through the portsof Honduras and Costa Rica. “We are working witha Spanish company that is investing in the project,seeing it from the logic of a dry canal, making arailroad corridor from Monkey Point to Corinto (inChinandega), which is another dimension of theproject and makes it more feasible”, stated Ortega.Change of design is required – he justified – as the“port in itself is less attractive than building a drycanal”. “Logically, having only one port is not thesame opportunity of being able to transfer goodsfrom the Caribbean to the Pacific”, he affirms.According to El Panamá América, the Atlantic sectorof the country has become the most coveted area forthe construction and expansion of port terminals,with investments of more than one billion dollars.The increase of containers cargo that will generatethe post panamax ships after finalizing the projectof the extension of the Panama Canal is the mainreason for investors to see in Colon the best place toexpand their operations. The free zone of MargaritaIsland has become a new pole for port development.Here, the company Panama Canal Colon Port isdeveloping a new port with an investment of morethan 600 million dollars. “The containers terminalwill have three docks and generate 3,000 indirectjobs and approximately 1,500 permanent jobs onceoperations start”, stated the Vice-minister of ForeignTrade, José Pacheco.Investments for More than One Billion Dollarsin ColonPanamá