Latinports Newsletter January-April 2011


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Latinports Newsletter January-April 2011

  2. 2. CONTENTSJanuaryApril2011The Book of theMinister of Ports ofBrazil: Much to Sail:ALogisticsAnalysis ofBrazilian PortsLatinports presentat Port FinanceInternational Brazil inJuneSuper-Port ofAҫu,Brazil in The Top 10 ofInfrastructure WorksHutchison GroupEnters Latinportsthrough its MexicanaffiliatesNew SustainingMembersNews of LatinAmerican PortsTrainingMailEditorialCoverGantry Cranes at the ContainerPort Terminal Lázaro Cárdenas,MexicoLayout and DesignJulian
  3. 3. SEditorialJanuary-April 20112011 started specifically prolific for Latinports.The Hutchison Group, the largest port operator worldwideformally entered through its Latin American affiliate in Mexico, and newsustaining members incorporated from the United States and Europe.Besides, we have been invited to participate as lecturer in representationof the Latin American port sector in a number of important regional andglobal events: TOC Asia in Tianjin, Euromoney Seminars in Miami, AndeanInfrastructure Summit in Bogotá and Argus Americas Coal Summit in NewOrleans (averaging a monthly conference), although because of agendaproblems we had to apologize for not being able to attend the first twoconferences. In May and June we will give our support to the XII Congressof Ports of Brazil and the Port Finance Infrastructure Brazil, this last eventwhere the executive director of Latinports will make a presentation on theDeclaration of Brasilia 2010: Evaluation and Perspectives of the Port System in theRegion. We then will start organizing our association’s specialized seminarsstarting with the so-called Navigation and Flood Control on the Magdalena River, tobe held in July in Bogotá, supported by the Colombian Logistics Association,which will be the first of a series of seminars that will be developed everyyear, in a series of countries, on different port activity topics.In view of the great impetus the association has had, at the end of Februarythe executive director met in Rio de Janeiro with the chairman of theexecutive committee, Richard Klien, in order to plan a hectic 2011 andconsolidate the achievements obtained for our next great annual event,which will be held in Bogotá in October, jointly with the Superintendenceof Ports and Transportation of Colombia. During this trip the executivedirector of the association had also the opportunity to meet with the formerminister of ports, Pedro Brito (candidate to director of the National Agencyof Waterway Transportation, Antaq) who stated his satisfaction with thework developed by Latinports and reiterated all its support.This acknowledgment from the port and infrastructure sector to Latinportsfills us with pride and obliges us to be ever more proactive in favor of itsstrengthening in Latin America, and for this reason as of this edition we willpresent the new image of the bulletin, more modern and functional, so ourmembers are kept permanently informed of the evolution of ports in ourregion.Unitl next time!jpalacio@latinports.orgwww.latinports.orgJulian PalacioExecutive Director
  4. 4. The Book of the Minister of Ports of BrazilMUCH TO SAIL:ALogisticsAnalysis ofBrazilian PortsWith the inscription “With appreciation andgreat admiration for your work”, former minister,Pedro Brito, delivered to the executive director of Latinports the bookwritten and published before the end of his outstanding management,that concluded with the government of President Lula on December31st, 2010. As was well noted in the preface of the book by the legendaryformer minister of finance, Antonio Delfim Netto (responsible of the so-called “Brazilian economic miracle” of the past decades), “the title is rathermodest, as its analysis is not restricted to the port systems, but goes beyond,and in reality totally and extensively handles the logistics problems of theentire Brazilian physical infrastructure, involving seaports and their access,the insignificant use of waterways navigation for the transportation ofcargo, the lack of a minimum coordination for planning road and railroadnetworks, and the expansion of the airport system”… that, we add, are ingeneral the same within all Latin America, thus the book acquires a regionalimportance.This corroborates that expressed by former minister Antonio DelfimNetto, the fact that the book starts with a chapter called “Logistics: The KeyWord” and that, in a declaration of an advanced and unusual openness,beyond politics, minister Pedro Brito dared suggesting that the Secretary’sOffice of Ports started and developed by him, transforms in the Ministryof Logistics, as this area is divided among several ministries “which does notseem sensible”.Pedro BritoMinister of Ports ofBrazil 2007-2010January-April 2011
  5. 5. Below you will find some sentences of the book thatwill make the Latin American port sector think:Logistics: The Key Word:- In almost all Europe there are logistics centersin which railways, roads and mainly waterwaysconnect, and cargos are redistributed according totheir destination, for export or distribution to theinternal market, harmonically, as a well- assembledorchestra.- By itself, a port makes no sense if it is not partof a network, a chain, a system.Ever Greater Vessels:Regulatory Framework:- When investment is consistently being done ininfrastructure, in improving and building causeways,railways, ports and waterways, foundations arenaturally created enabling, at once, the developmentof integrated systems and the application of logisticsintelligence and the network concept that leadingcountries are already adopting.- …the entrepreneur only invests its money ifit is entirely convinced that legislation and rules arefully consistent and lasting… Investment in portsis always a long-term bet, something within a five-decade horizon.Institutional Roots:- We must overcome our historical tendency ofvaluating more form than contents, superimposingmeans to ends, privileging the process and not theobjective.“…And Nobody Died”:- My objective conscience is that there is no wayof building a 100% efficient structure if there is notechnical team formed by qualified professionalsbased on an executive point of view based ontraining and specialized in the sector.- I remember well an observation of DilmaRousseff, then Minister of the Civil House (todayPresident of the Republic), who gave us greatsupport in the project of only establishing technicalteams. After the process was concluded and changeswere consolidated, she said: ‘You established yourteams based only on technical criteria, withoutyielding to political pressures, and nobody died.’- The ‘Emma Maersk’ (the largest container carrierof the world that may transport between 13,000 and 15,000TEUs), does not arrive at South American portsnot because of the limitations of our ports, butabove all for a matter of global logistics, that flowspredominantly in an east-west sense, in the Asia-Europe-United States hub. North-south flows aresupplementary and have a restricted participation inthe global trade of container transportation.- Each port must be prepared for demandingvessels and not for the eventuality of receiving oncea year a 15,000 TEU vessel as the ‘Emma Maersk’.The size of the largest vessel to be required by theport of Santos, that is the largest Latin Americanport, will be the Super Post Panamax, a Santa typeof the German shipper Hamburg-Süd, with 8,600TEUs, and for this are being prepared the Brazilianports.January-April 2011
  6. 6. - I am absolutely certain that good resultsobtained during the first three years of work ofthe Secretary’s Office of Ports must give credit tothe possibility we had of arranging technical teams,without political interference.A New Logistics Matrix:- In Europe and other parts of the world,waterway transportation is even more importantthan road transportation, and we must think inmaking this transformation in Brazil, where roadtransportation has a greater weight despite beingmore expensive and more contaminating… Thisinvolves changes in the transportation matrix thatwill increase efficiency, decrease logistics prices andbe less contaminating for the environment, bothwith the railroad as with the waterways. It is clear thata large investment must be done for this to becomea reality, but there is no other way, and the social andeconomic benefits will compensate this.Removing Obstacles:- When will the operator feel encouraged toinstall larger and more modern equipment? Whenthe port, as of its infrastructure point of view,justifies this investment (dredging and access toports – railways, roads and waterways – amongother).- The Secretary’s Office of Ports promotedthe dredging concept according to results, whichmeans the company that is awarded the tender fordeepening the dredging will have the contractualresponsibility of taking care of its maintenance fora term of up to six years… That is, deepening andmaintenance at the same time are facts, and thiswill guarantee that the depth is maintained for thefollowing years by means of a unique tender and aunique contract.- Another important legal change allowed theparticipation of international firms in dredgingtenders, which was not possible before. Marketingdoes not limit to works at public seaports, aswaterways must be dredged…- One of the main challenges imposed to theSecretary’s Office of Ports was the definition ofpriorities, considering the inevitable limitation ofresources and the need to recover lost time. We thenstarted with what was more urgent, the obstaclesthat impeded the development of the Brazilian portsector, independent from the medium- and long-term planning we were starting to develop. In portlogic there is a clear concept: when one obstacle iseliminated, another one appears, that is, a queue ofobstacles exists.January-April 2011
  7. 7. In Short, Planning Carried Forward:- It is possible that the greatest legacy theSecretary’s Office of Ports has given the country inits first three years of operation is long-term strategicplanning. The goal imposed on its technicians waschallenging: thinking how the Brazilian ports shouldbe in the next 20 years, based on the objectivedemands of the country’s economy and the interestsof society… In response to this demand, theSecretary’s Office of Ports decided to prepare theNational Plan for Port Logistics for the next twodecades.- Worth mentioning is another study for theProject of Access to the port of Santos, which todayis congested by the circulation of almost 15,000trucks per day. It is absolutely unthinkable to triplethis flow to 45,000 trucks based on same accessUnblocking Frontiers and InvestigatingOpportunities in the Ports of BrazilWith the support of Latinports, the BrazilianAssociation of Port Terminals and United KingdomTrade & Investment, this two-day conference willpresent a deep understating of innovative financialsolutions and the practical advice around thechallenges and opportunities in the dynamic sectorof Brazilian ports. Industry experts will center inthe ports of Brazil and on their expansion anddevelopment plans, while investigating growth andinvestment opportunities – and paying attention tochallenges and risks.Attendance expected is of 150 delegates from portsand related sectors. Besides, it will be an excellentopportunity to get to know potential enterpriseand business partners such as government officials,senior executives from port authorities, port andterminal operators, and the legal and bankingindustry, involved either in investing in ports or inproviding investments.The executive director of Latinports, JuliánPalacio, will present a conference on theEvaluation and Perspectives of the Port Systemin the Region, based on the conclusions of theDeclaration of Brasilia 2010.conditions. It is therefore urgent to change theaccess matrix to the Port of Santos, reducing thepresence of trucks and increasing the participationof other transportation systems, mainly waterways,duct routes, and railways, and above all, with thecreation of logistics platforms outside the port.Then, in the case of Santos, access will be the greatobstacle in the immediate future.- Lack of planning in the past obstructed thedevelopment of the Brazilian port sector. Today,Brazil has implanted an unprecedented planningsystem for the medium- and long-term that, in acoordinate, integrated and harmonious mannerwith a series of other orders will represent a gain inlogistics efficiency that the country needs to conquerin order to compete in equal conditions with the bestports of the world.Latinports Present in Port FinanceInternational Brazil in JuneJanuary-April 2011
  8. 8. Lecturers will also be, among many others:• Fernando Fialho, Director General, NationalAgency of Waterway Transportation – Antaq• Sérgio Paulo Perrucci de Aquino, City Secretary ofPort and Maritime Affairs, Santos• João Emilio Freire Filho, Adviser to the Board,Associação Brasileira dos Terminais Portuários• Walter Kemmsies, Chief Economist, Moffatt &Nichol• Michel Donner, Port & Maritime Consultant(formerly World Bank)• Robert Grantham, Commercial Director, Port ofItajaiAccording to the firm Competitiveness Group LongTerm Assets, contracted by the magazine AméricaEconomía, the port of Açu, with an investment ofUS$5,500 million (similar to the expansion of thePanama Canal), is ranked seventh among the maininfrastructure works in the region. Located in themunicipality of São João da Barra, in the northernregion of the state of Rio de Janeiro, the Super-portAçu, of the EBX group, is a private, public use portterminal, which stands out as the largest investmentin port infrastructure of the Americas.In its construction phase, the development will haveup to 30 locations for the movement of productssuch as steel, oil, coal, mineral ore, liquid bulk, andgeneral cargo. With an initial depth of 21 meters,and a possible expansion to 26 meters, the super-port will have a 2.9 km extension bridge (alreadyfinished), that will enable berthing the largest sizevessels of the world such as Capesize, VLCCs andChinamax.• Marc Evertse, Port of Rotterdam International(PORint), Sr. Project Manager• Jean-Marc Daniel Aboussouan, InfrastructureChief, IDB – Inter American Development Bank• Gustavo Gusmao, Senior Manager CorporateFinance - Public Sector, Ernst & Young Terco• Marcos Pinto, Ocean Engineering Department,USP (University of Sao Paulo)For more information and to obtain a copy of theagenda, please contactpatrick@portfinanceinternational.comwww.portfinanceinternational.comThe endeavor foreseen to start operating in 2012,is being constructed since October 2007 and itsprojection was based in the modern and efficientconcept of port-industry. In the nearby area of thesuper-port will be built an Industrial Complex withinan area of 90 km2 where will be installed differenttypes of industries as steel industry, a thermal powerplant, cement, and metallurgical pole industries.Next to the bays of Campos, Santos and EspírituSanto and with easy access to the more developedregions of the country, the Super-port of Açu shallserve as logistics center for the central-western andsoutheastern regions. The super-port will have anenormous adjacent Industrial Complex for theinstallation of different types of industries such assteel, mineral ore pellet plants, and an oil treatmentunit, besides an area for storage and movement ofproducts.Complementary services will also be offeredprovided by specialized firms in the issuance,intermodal integration, and storage and customsclearance. This modern concept, known as one-stop-shop, offers to firms installed within theIndustrial Complex all services necessary for theproduction and flow of its products. Besides, theSuper-port of AÇU, Brazil, amongTOP 10 of Infrastructure WorksJanuary-April 2011
  9. 9. the industries may have electricity to be supplied bythe thermal power plant of MPX, company of theEBX group that will act in synergy with anothercompany of the group in the installation of thermalplants, the first phase on 2,100 MW coal and thesecond phase on 3,300 MW gas. A logistics corridorof 45 km, formed by transmission lines, water, gasand telecommunications pipelines, railroad and road,will connect the Super-port of Açu with the cityof Campos, located north of the state of Rio deJaneiro, 286 km from the city of Rio de Janeiro.Hutchison Port Holding HPH, one of the mostimportant port operators worldwide, makes a strongentry to Latinports through its affiliates Internacionalde Contenedores of Veracruz (International Containers)ICAVE, and Lázaro Cárdenas Terminal Portuaria deContenedores (Container Port Terminal) LCTPC, bothfrom Mexico, where is located the main office of theorganization for Latin America.Hutchison Port Holding HPH has interests in morethan 25 countries throughout Asia, the Middle East,Europe, America and Australia. Currently it operatesmore than 306 terminals and more than 50 portsaround the world. In 2009, the Hutchison Grouphandled more than 65.3 million TEUs worldwide.Internacional de Contenedores de Veracruz -(International Containers Associates) ICAVEthe Atlantic basin, the eastern coast of North andSouth America, Europe and Africa.ICAVE has become the main containers portoperator of Mexico, having significantly increased itscargo movements, and operates today 80% of thecontainers of the port of Veracruz, which represents20% of the containers handled at all Mexican ports.Lázaro Cárdenas Terminal Portuaria deContenedores - (Containers Port Terminal)LCTPCLocated in the state of Michoacán, on the eastcoast of the Mexican Republic, LCTPC startedoperations on November 19, 2003. At present,LCTPC is in a construction and developmentphase of the largest container terminal of theMexican Port System, in an unexploited land facingthe water on the north canal of the port of LázaroCárdenas, which will have a total surface of 122hectares, with 1,480 meters facing the water and adynamic capacity of up to 2.6 million TEUs. Thisnew terminal is developed in three large phases,of which the first one, unique in its type, startedoperations on November 28, 2007.ICAVE, a maneuvering firm established as a resultof port privatizing and restructuring program,started in Mexico in 1994 as the first port terminaloperated by the private sector of the country.Located at Zone 2 of the port of Veracruz, it startedoperations in 1995 with the adequate infrastructureand equipment to handle all types of containercargo, serving as main exit to merchandises towardsHutchison Group enters Latinportsthrough its Mexican affiliatesJanuary-April 2011
  10. 10. New Sustaining MembersCapacitaçãoLIEBHERR NENZING CRANE CO.Liebherr Port Equipmente-TECHNOLOGIES SOLUTIONS CORP.e-Tech SimulationsFounded in 1949 in Nenzing, Austria, Liebherr-Werk Nenzing GmbH producesand distributes an extensive program of differentlines of products, such as vessel cranes, gantry cranesfor port and drilling platform cranes, as well as seacranes, probe platform cranes, port gantry cranes,and also universal crawler cranes and lifting crawlercranes.For more information please contact Anton Waslerat the Miami branch, e-mail or telephones 1-305-8890176 (fixed) and 1-305-7467155 (mobile).Port Finance International BrazilJune 15-16, 2011,Rio de Janeirowww.portfinanceinternational.comcathy@portfinanceinternational.comNavigation and Flood Control onthe Magdalena River,July 8, 2011,Bogotáwww.latinports.orgjpalacio@latinports.orge-Tech Simulation is adivision of e-Technologies Solutions Corp., established in West Palm Beach, Florida,with more than 18 years of experience in providingtools for professional, academic, and technologicaltraining for the industry of digital libraries in LatinAmerica and the Caribbean. It focuses exclusively onthe simulation area developing and manufacturingsimulators for different industries, among whichis the port industry, as a training method forapprentices and improvement of experiencedpersonnel.For more information please contact Jairo Leiva,e-mail or telephone1-561-6973222.January-April 2011
  11. 11. News of Latin American PortsBrazilLogistics requires “Strong Investment” inWaterways and RailwaysIn a recent interview to Brasil Econômico, the formerminister of ports Pedro Brito, informed on portlogistics obstacles and defended a change inthe transportation matrix. For this purpose, theelimination of the obstacle caused by the low depthof ports, accomplished by the dredging program,the challenge of the government is the expansionof inter-modality transportation, altogether with theexpansion of investments in waterways and railways.Jointly with this matrix change, Brito defends thecreation of logistics support zones outside the portarea for containers to go in and out in barges. “Wemust have good roads, and basically invest largely inwaterways and railways”, stated Brito.two ships that stopped in 2009 and 2010 as a resultof the effects of the global crisis.Log-In has an investment plan of US$0.8 billionsto renew its fleet, which foresees larger vessels insubstitution of present ones (two will arrive inSeptember). Created in 2007, the company hasshown since then an annual growth of 28% involume. “We consider this market has a very strongpotential of growth”, said the president of Log-In,Vital Jorge.As complement, Valor highlights that almost 188million tons that moved through Brazilian ports in2010 were cabotage, which represented an increaseof 6% compared to 2009. According to data ofthe National Agency of Waterway Transportation,Antaq, despite the growth of the cabotage fleet,the family of Brazilian vessels is still insufficientto meet the demand. That is why the number ofauthorization orders for charter vessels increasedin 2010, having reached the amount of US$126millions. Today the authorization for cabotagenavigation of three companies: Marítima Navegação,Brasfels and Martin Leme Serviços, has been requested toAntaq.On the other hand, the operators with Brazilianbanner Mercosul Lines and Log In, partners of aservice called “Cabotage Manaus”, started weeklystops in Itajai, with operations at the APM Terminal.This service originally stopped at the port ofImbituba, south of Brazil. The reasons for changingwere expressed by Mr. João Batista Momesso,Commercial Manager of Mercosul: “the changeto Itajai was due to its geographic position and tothe concentration of services providers within theregion, which will enable the line to offer door-to-door logistics solutions for all Brazil”. The rotationof this service shall be from now on: Itajai, Manaus,Paranagua, Santos, Suape and Pecem. They expectto handle an average of 2,500 containers per month,mainly including cargo produced in the state ofSanta Catarina, such as frozen chicken, tiles, paperand cellulose.Cabotage Increases and Attracts MultinationalsAccording to an article of the informative Valor,growth of cabotage made it again a viable optionfor companies with large volumes and nowbets for logistics rationalization. Challenges noware to increase offer of ships and improve portinfrastructure. “Cabotage potential is huge; dependsof availability of operators investing on morelines”, affirms Darlan Carvalho, logistics directorof the internal market of Brazil Foods, currentlytransporting by ship only 4% of the 2.5 milliontons moved through the internal market every year.“If there were more sea route capacity, this ratiowould undoubtedly increase”, stated Carvalho. Thenewspaper informs that the containerships fleetdedicated to cabotage on a regular frequency in theBrazilian coast is of 20 vessels and most of them areplanning to expand this year: Maestra will have twomore units this semester; and Aliança will reactivateJanuary-April 2011
  12. 12. News of Latin American PortsAnother cabotage operator made its inaugural stopat the port complex of Itajai. . Maestra Navegaçãoe Logistica, a company fully controlled by TriunfoInvestments. Maestra Atlántico (former Lloyd Atlántico)made its first call on April 7 at Terminal Portonave,and very soon will be joined by Maestra Mediterráneo(former Neptunia Mediterráneo) and possibly two moreships. The intention of the line is to provide servicesto the ports of Itajai, Santos, Suape and Manaus.revised investment forecasts for 2011 in the country,moving from US$86.5 millions to US$117 millions,paying special attention to the terminal of Imbituba.A note from Tribuna stated that operational increasefor the company reflects the strong growth ofBrazilian foreign trade, the valuation of the Real,and its investments in infrastructure, technologyand manpower. Valor brings more details of thequarterly balance sheet of Santos Brazil, highlightingthat net income for the quarter amounted toUS$221, and the Ebitda reached US$60 million (an88% growth). According to the publication, theexecutive director of relationships with investorsof the company, Marcos Tourinho, stated that thecompany raised US$52 millions the Ebitda forecastfor 2011, for a total of US$306 millions.Besides, Tribuna informed that the ContainersTerminal of Santos Brazil closed March withtwo historical productivity records: an averageof 60.71 movements per hour/vessel, and 23.94movements per hour/crane, which were the resultof investments in personnel training and advancedtechnology, according to the company.Expansion Plans of Libra at the Port of SantosThe informative Tribuna highlighted the commentof the president of Libra Terminais, Wagner Biasoli,on the intention of the company to increase itsoperations in the port complex of Santos: “Librawants to expand and any other area of the Portof Santos is important in this process”. Consistentwith the above, Biasoli stated that the companywill challenge the area of Prainha for containermovement, located on the left margin of the port ofSantos, for which it was already authorized to studyits implantation, as well as NF Motta, LPC-Latinaand Locafrio.Press Highlights Growth of the Terminal ofContainers Santos BrazilRelease of results of the group during the firstquarter had a positive welcome in the publicationsValor, Folha, A Tribuna and Brasil Econômico. A reportof Valor highlights the increase of 50% incomeas a result of the growth in cargo movement. Anarticle of Folha, calls attention on the volume ofmovement, good part at the port of Santos (227,000containers in the quarter, which represent a 31%growth compared to the same period of 2010). BrasilEconômico also highlights the investment of US$ 117million foreseen for this year.Valor presents comments of Richard Klien,president of the management council, and of thedirector of relationship with investors, MarcosTourinho. “It was an excellent result, not onlyeconomic-financial, but also operational”, statedKlien; according to him, results were mostly of ahigher volume of containers mobilized, especiallyat the terminal of Santos, but also contributed thereadjustment in tariff prices of services provided asimports storage of containers. Both Valor and BrasilEconômico make a note of quarterly liquid profits,which amounted to US$27 million, compared to theUS$3 millions of last year. Investment during theperiod amounted to US$28.5 millions. Folha, Valorand Brasil Econômico also informed that the companyJanuary-April 2011
  13. 13. News of Latin American Ports2010 originated in the different services provided tothe oil and gas industry, in ten years this percentagemay reach 50%”, forecasts the president of WilsonSons, Cesar Baião.Controversy for Previous License to Triunfo fora Mega-terminal in SantosThe Port Terminal Brites, of the Triunfo group,received a previous license for its construction ina land of 190 hectares in the left margin of theSantos channel, although it may be possible it willhave difficulties to obtain the authorization fromthe National Agency of Waterway Transportation,Antaq, as according to the informative Valor, thelaw of ports foresees that only companies owning aminimum cargo may build private terminals, whichis not the case of Triunfo; in addition, according toTribuna, the Management Port Council, CAP, of thePort of Santos will recur to the Brazilian Instituteof the Environment and Natural Resources,Ibama, to suspend the environmental license forthe installation of the terminal, as the area whereit will be constructed is strategic for the port andmay not be separated from the expansion projectsbeing studied (“such area may not be treatedindependently”, stated the president of CAP, SérgioAquino, who will also recur to Antaq to prevent theindependent issuance of the authorization).Nevertheless, the company will look forshipping partners in the modalities of cargo fortransportation in order to fit into national legislation;in addition, the decision of betting for an exclusivestructure for cabotage is also a form of Triunfo notto compete with containers in public-use terminalsas they are struggling for a long-time market at theport of Santos, as the idea is to service a less valuedniche in times of movement peaks. According to theplans of Triunfo, Brites must be a mega-terminalWilson Sons Invests in the Expansion of theTerminal in SalvadorAccording to the president, Cezar Baião, thecompany is planning to invest more than US$400million in 2011 and 2012 to sustain the strategy ofgrowth supported mostly in the oil and gas segment,without including potential acquisitions. “It is aninvestment in organic growth” said Baião, and thestrategy will continue focused on the attention toBrazilian foreign trade, through port terminals inthe domestic market by means of offering logisticsservices, and the oil and gas segment, which is evermore gaining space. “While company income inOn the other hand, according to the informativeTribuna, Libra Logística signed with the companiesKomatsu, Wobben and Brasken annual contractsfor a total amount of US$17.5 millions, to handleits logistics exports chains in Santos, Cubatãoand Campinas, respectively, which will investapproximately US$37.5 million. In the particularcase of Santos (Teval), 100,000 square meters ofstorage will be gained. As of April, Brasken issending thermal-plastic resins to Teval and Cubatão;Wobben Windpower, which produces equipmentfor wind power plants, may store an average of 40wind vanes; and the Japanese Komatsu, on the otherhand, manufacturer of tractors, backhoes and otherheavy equipment, has already obtained 18% savingsin its costs.In addition, worth noting is the historicalproductivity record of the terminal that, accordingto Container Management-Latin America of April, onFebruary 6 reached a peak of 105.6 movementsper hour, much higher than the January 85.4movements (average that month was 48.4movements). This was the result, according to thecompany, of the acquisition of two new dock cranesZPMC that have been in operation there sinceDecember of last year.January-April 2011
  14. 14. News of Latin American Portswith a capacity to move 870,000 containers, twomillion tons of solid grains, and 4.5 million tons ofethanol, for which an investment has been foreseenof one billion dollars. Expectation is to generate1,200 direct employments and start operations in2013.In exports, one year ago costs of a container fromBrazil to China was US$1,300, and today there is nodifficulty in getting it for US$800.Bolivian Cargo registers a strong growth at Portof AricaBolivian cargo transportation at the port of Arica,located in the northern region of Chile, substantiallyincreased in the last years. In 2010 Bolivian cargoincreased 19% having moved to 1.5 million tons,which represent 73% of port transfers during theyear. This figure must increase even more with thetermination of the renewal of the Arica-La Pazrailroad.The port moved a total of 2.13 million tons ofcargo last year, with a growth of 20% compared to2009. Handling of 130,884 TEUs during the yearrepresented an increment of 20% compared to2009.At its peak performance in 2010, Itajaiapproached one million TEUsWith a record of 954,036 TEUs handled in 2010,it surpassed the forecast 800,000 TEUs for the endof this year. This volume represents 61% increasecompared to performance of 2009. The totalnumber of full containers handled increased 98%,while unloading empty containers increased almost15%. Total export containers increased 50% whileempty containers increased 117%.Megaships of Maersk Line Start Arriving to theCountryMaersk informed that its new fleet of megashipswill start arriving to Brazil in May: six ships witha nominal capacity of 8,000 TEUs and 1,707refrigerated container jacks to be used in the Asiantraffic. The first one to arrive will be the MaerskLima, to the port of Sepetiba in Rio de Janeiro,and then to Santos. The fleet will be completed inAugust and besides Sepetiba and Santos, a stop isguaranteed in Paranagua.Today, Maersk has traffic to Asia on a weeklybasis jointly with Hamburg Süd. A total of 12containerships (half from each shipper), with anominal offer of 5,500 TEUs, but upon substitutionof the 12 ships, the service will increase 37%regarding space offer, thus reaching 90 thousandTEUs.Currently, the market has an excess offer of capacityand pressure on freights, as prior to the crisis of2008 several ship owners placed orders to shipyardsand most vessels are being delivered this year.As of the end of 2010, prices of services withAsia and the East Coast of South America havefallen, after recovery started in 2009. In the caseof Brazil, one year ago a container imported fromChina would cost US$4,500 and today it may costUS$1,900. According to data of the consultantDatamar, Brazilian sea imports from Peking grew42% between February 2010 and February 2011,having reached 51,337 TEUs.ChileJanuary-April 2011
  15. 15. News of Latin American PortsThe Project seeks connecting the railway networkof Carare with the Central Railroad, thus forminga network that would transport almost 30 milliontons of coal per year. The railway starts at thecentral department of Cundinamarca, passing bythe departments of Boyacá and Santander, andfinally arriving to the south of the departmentof Cesar before connecting with the coast in thenorthern regions. The Carare project shall implyan investment of approximately US$670mm. TheCentral Railroad, after its failed concession of 2008,will require approximately US$1,160mm. Bothlines will have only one operator and the initiativewill be one of the most ambitious of the nationaldevelopment plan of Colombia, forming the biggestrailway network of the country, emphasized the vice-minister in her presentation, adding that “we expecthaving this great project structured in a couple ofyears and then advance with the tender”.Buenaventura Containers Terminal Enters inOperationOperations of the new terminal (TCBuen) startedin January, and for its first year estimated capacityis 260,000 TEUs, increasing 30% the total capacityof the port of Buenaventura. The last developmentof the global terminal operator TCB of Barcelonarepresented an investment of US$250 million forthe first phase of four estimated phases of TCBuen,becoming the second largest port of the ColombianPacific Coast. Next May 13th will be the formalinauguration of the terminal, with the presence ofthe President of the Republic, Juan Manuel Santos.Ministry of Transportation will Develop Public-Private Association for Railway NetworkThe Ministry of Transportation of Colombia ispreparing a public-private association Project (APP)for the amount of US$1.830mm for a railwaynetwork that will allow transporting coal to theports of the Atlantic, stated the vice-minister ofTransportation, María Constanza García, during theevent BNAmericas-Andean Infrastructure Summitthat was recently held in Bogotá.Arica will implement a community port systemby SeptemberThe Chilean port of Arica plans to implementthe first version of a new community port systemby September of this year, as informed by thestate-owned firm Empresa Portuaria Arica. TheCommunity Port Arica (CPA), formed by a numberof public and private entities involved in the port, isinvesting approximately US$148,000 to develop thefirst phase of the prototype of the system, being thefirst public port of Chile in implementing this typeof system.The first phase will allow monitoring cargo traffic sothe CPA may identify congested points in the port.Software will further enable to track containers forBolivian imports and offer tutoring to users of theport and clients of the logistics chain, detailing theprocess to handle cargo and the agencies involvedin each phase. The goal of EPA is that clients maytrack their own cargo at any point of the logisticschain, and besides to handle accounts, requestquotations, deal with government agencies such ascustoms, and process payments online.ColombiaJanuary-April 2011
  16. 16. News of Latin American PortsAtlántico, Japdeva, has criticized the award of theconcession. The National Chamber of BananaGrowers also presented a demand against theNation and requested the government to annul theconcession, as informed by the local newspaper, LaNación. The chamber claims that the governmentdid not have the proper technical, financial andenvironmental studies for the initiative and that costof the new terminal will raise tariffs 130% comparedto present tariffs at the terminal Moín-Limón.The Minister of Public Works and Transportation,Francisco Jiménez, defended the concession atthe time and stated that feasibility studies hadbeen completed and that the bidding process wasdeveloped in accordance with the legislation.This project is the second private port, large-scale initiative that advances in the last month, asthe government authorized Americas GatewayDevelopment Corporation (Amega) not long agoto start the second phase of studies for a transferterminal of US$900 millions, also in the province ofLimón.Government Authorizes Amega to StartDesigns of the Transfer Terminal at MoínThe government of Costa Rica completed the laststeps required for Americas Gateway DevelopmentCorporation, Amega, to begin the second stage ofthe studies for a new transfer terminal next to theport of Moín, in the province of Limón. Amegareceived final approval after the appointment ofa governmental counterparty for the project andafter accepting that a trust contracts an independentengineering consultant to act as auditor.The government will appoint an independentauditor within the next three weeks, which will becontracted through a trust established byAPM Terminals will start construction ofcontainers terminal in 2013On March 1st the President of the Republic, LauraChinchilla, signed a concession agreement withAPM to build and operate the new port, and in thenext 18-24 months the Dutch firm must completethe final designs and obtain environmental permitsfor the project. The new port shall be an importantpart of the logistics corridor of the north Caribbeanarea and will have a key role in the development ofcountry competitiveness, stated Chinchilla at a pressconference.The National Council of Concessions (CNC)awarded the tender to APM, the only bidder forthe project, after extending the initial date ofaward programmed for the end of January. Theeconomic offer includes a port tariff lower thanthe reference price approved by the national publicservices regulator, Aresep. During the next 120 daysfollowing the date of award, APM must completecertain conditions of the contract, constitute thelocal company, capitalize it, change the tenderguarantee for a construction guarantee, and anextensive series of administrative matters.The new terminal of containers in the Easternprovince of Limón, will be located about 10 kmof existing ports Moín and Limón, and involvesa construction area of 1,500 square meters. It willhave a capacity to receive Panamax vessels of upto 65,000 tons of cargo and will have a capacityto handle 3.7 million TEUs in four stages, startingwith 1.3 million TEUs. The terminal will require aninvestment of US$992 millions.Nevertheless, the project has faced certainopposition from the time it was awarded to AMPand the union of workers of the port authority ofCosta RicaJanuary-April 2011
  17. 17. News of Latin American PortsThe port of La Unión had a cost of US$183millions and its construction ended in June of2008, in charge of the Toa-Jan De Nul consortium.The multipurpose port specializes in handling ofcontainers with a capacity of 850,000 TEUs in itsfirst phase and 1.7 million TEUs in a second andthird phase of development. A previous intentto concession La Unión failed in 2009 after theAssembly rejected a bill establishing a concessionmodel. For this reason Cepa started partiallyoperating the port in June of last year.Project of Puente Atlántico of the PanamaCanal Authority (ACP) will Cost US$350MillionsThe ACP entered the bid of a consultancy to finishthe design of a new and very long cable-stayedbridge on the Atlantic bank of the Panama Canal.The consultant will deliver final designs, constructionspecifications and estimate the cost of constructionthat should not surpass US$350 millions. The awardof the tender is foreseen for the end of April andaims at the construction tender of the bridge inFebruary 2012. The contractor will have 270 labordays from notice of award to work execution.Height of the structure must be 75 meters overthe canal, considering the possibility of a fourth setof locks and a life of 100 years. The project alsoinvolves the design of access roads at each sideof the canal, besides other bridges that might berequired as part of those routes.Cepa will Finish Port Concession of La Uniónin July 2012The Autonomous Port Executive Commission ofEl Salvador, national port operator, expects to finishthe concession of the port of La Unión in July 2012.A bill has already been presented to the LegislativeAssembly to concession the port, which must beanalyzed by the special treasury commission in ashort time and, once the project is approved, theauthorities will start preparing the tender documents.The objective of the government is to concessionthe port to an international operator for it to becomean international pole of cargo. Port operators suchas DP World, APM Terminals, Ports of Americaand SAAM have shown interest in the initiative.Amega. Disbursement will be included in projectdevelopment costs of the company that will investUS$15 million to complete detailed designs coveringtechnical, legal, financial and environmental issuesof the project, besides preparing drafts of thetender basis for the new terminal. Amega expectsto complete studies in May 2012, and once designsare presented, the government has three months torevise plans and launch tender for the concession.The transfer terminal will require an investment ofapproximately US$900 million will have a capacityto handle 2 million TEUs per year and a 1 km-longdock, a 19 m deep access channel to the port ofMoín and a berthing place for three containershipswith a capacity of almost 15,000 TEUs.El SalvadorPanamaJanuary-April 2011
  18. 18. News of Latin American Portsor expansion projects, in areas of rapid growthworldwide.In March of this year, APM also signed anagreement with the government of Costa Rica forthe construction and operation of a containersterminal in the eastern province of Limón.Government considers declaring of publicinterest a port of US$3,500 MillionsThe government of Uruguay is about to declare ofpublic interest a private initiative for the constructionof a deep water port in the department of Rocha,the first semester of this year, which will be partof a bioceanic corridor that will receive cargofrom Uruguay, Brazil and Paraguay, and its detailedfeasibility studies are expected to be presented to thegovernment by the end of March. The CompañíaOriental de Desarrollo e Inversiones (EasternCompany for Development and Investments), afirm representing the consortium that operatesthe Spanish port of La Coruña, formed by ACS,OHL and others, presented the private project ofUS$3,500 millions to the president José Mujica onDecember 31st.Contract of North Dock Would Close By theEnd of the YearThe Peruvian agency ProInversión awarded on April1st the concession of the terminal to a consortiumof which its leader is the Dutch port operatorAPM Terminals that expect to close the concessioncontract for the Peruvian port of Callao in a monthor two. The group, which also includes the Dutchfirm Callao Port Holding and the Peruvian firmCentral Portuaria, received the award thanks to thetariff offered for special port services, exceedingthe offer of the only other competitor, a groupformed by Hutchison Port Holdings (HPH), PortInvestment Limited and Sino Invest.The concession contract sets forth an investmentof US$749mm for the terminal, including themodernization and improvement of berth sites 1,2, 3, 4 and 5 of the port of Callao, the port withthe largest activity of the country. APM Terminalsoperate containers facilities in 34 countries, andcurrently work in 13 projects of new terminalsWith appreciation and great admiration foryour workPedro BritoFormer Minister of PortsBrazilWe received very positive comments in thesurveys, and you were quoted as one of themost interesting lecturersCarrie ShapiroConference ProducerArgus Americas Coal SummitNew Orleans, USAPeruMailUruguayJanuary-April 2011