Latinports Newsletter May-August 2011


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Latinports Newsletter May-August 2011

  1. 1. May-August 2011Year 3, No. 2Reactivation of Navigation on the MagdalenaRiver, Colombia:ACountry ProjectMinister of Ports of Brazil, Leonidas Cristino,announces investments for US$3,500 millionin the sector.Main container ports in Latin America andits future with the expansion of the PanamaCanalPedro Brito, former Minister of Ports ofBrazil assumes as Director of the NationalAgency of Waterway Transportation, AntaqSee more... See more... See more...
  2. 2. CONTENTSMayAugust2011TrainingNews of LatinAmerican PortsMailMain Container Ports of LatinAmerica and its Future with theExpansion of the Panama CanalII Public-PrivateAnnual Seminarof Latinports and I ColombianCongress of Ports next December inCartagenaBNAmericas interviews theExecutive Director of Latinports: Themega-containerships and its effectsin LatinAmerican portsPedro Brito, former Minister of Portsof Brazil, assumes as Director ofthe NationalAgency of WaterwayTransportation,AntaqReactivation of navigation on theMagdalena River, Colombia:ACountry ProjectMinister of Ports of Brazil, LeonidasCristino, announces investments forUS$3,500 million in the sectorEditorialCoverMagdalena River, ColombiaLayout and DesignJulian
  3. 3. SEditorialMay - August 2011It is with great satisfaction we record the happycoincidence that while the existing Ministerof Ports of Brazil, Leonidas Cristino, announcesinvestments for the sector amounting to US$3,500millions, former minister, Pedro Brito, starts off as director of theWater Transportation National Agency (Antaq). As we said in our previousissue, Dr. Brito was in charge of constituting the Special Secretary’s Officeof Ports, SEP, of Brazil at a ministry level and to consolidate it in a three-year period of time as one of the most important and highest productionportfolios of his country, during which time Brazil moved from place 61to place 41 in logistics worldwide performance, mostly attributable to theport sector (Logistics Performance Index (LPI) of the World Bank). BeingSEP the entity formulating policies and Antaq the implementing entity, itnow corresponds to Minister Cristino and Director Brito to propitiate thedevelopment of a joint strategic plan to encourage growth of the Brazilianport sector, an issue in which both are determined for the benefit of theactivity.We are also pleased to record the beginning of specialized periodicalseminars, which will start in Colombia with one on waterways, showingthe need of integrating modal waterways to transportation logistics, andthe realization of our second public-private Latin American seminar inCartagena, jointly with the Superintendence of Ports and Transportation,which will undertake the first Colombian congress of ports to commemorate20 years of the port law in this country, one of the first countries intaking this great step in Latin America. Also, we are proud to highlight theinvitation presented by Lloyd’s List Global Ports Conference to representLatin America in the event on emerging markets worldwide to be held inLondon on November 30-December 1st of this year.Finally, in order to maintain a permanent updating of the Latin Americanport community in its desire for training, we present a series of large-scaleevents cosponsored by Latinports in different countries and for each of theupcoming months.Until next time!jpalacio@latinports.orgwww.latinports.orgJulian PalacioExecutive Director
  4. 4. Reactivation of Navigation on the MagdalenaRiver, Colombia:ACountry ProjectThe Colombian government has decided to bet on rivertransportation between the central part of the country and theAtlantic coast, as a way to make more competitive its precarious transportation logistics almost100% concentrated on roads, in a region with the most rugged topography of the continent (the AndesCordillera and its three large branches) and with the largest distances between the main productive centerand the seaports. Distances of more than 1,500 km have to be traveled by road to transport most of today’sprincipal export product of the country, oil, its main deposits located southeast of Bogotá, in a regionknown as the Llanos Orientales. Something similar occurs with the second most important export product,coal, with its main beds in the center-eastern part of the country, and distances of up to 1,000 km to theports. Not to mention import commodities with destination to the main productive centers of the country,located in the central area.“I do not want any more road destruction” stated President Juan Manuel Santos just a few monthsafter his inauguration last year, thus giving frontal support to port development and river transportation thathas been promoted during the last eight years by a mixed, mostly privately-owned company, the SociedadPortuaria Multimodal del Río Magdalena S.A., which has just now signed a 25-year concession agreement withthe national government for the most Mediterranean river port of the country to become the port ofBogotá and that of the central part of the country, as was described not long ago by the general directorof the Corporación Autónoma Regional del Río Grande de la Magdalena (Cormagdalena). This high official wasnot far from reality as the current distance of almost 200 km between Bogotá and Puerto Salgar, througha mountainous territory and one lane road in each direction, represents a winding travel of more than fivehours that will now be reduced to less than half, in a three-year period of time, with the new highway Rutadel Sol, currently under construction, as its technical route reduces distance to one fourth in time and itsmodern design includes two lanes, tunnels and viaducts, which will substantially increase operating speed.ConvoySailing up theMagdalena River, ColombiaMay - August 2011
  5. 5. Being the port of the central area of Colombiaimplies having a hinterland with more than 50%of the foreign trade of the country, which willenable its surroundings to become the principalindustrial-logistics activity area of the country, thustransforming national transportation logistics andtherefore becoming the most ambitious projectin its history. “One needs to think big” said thePresident in reference to his decision of granting theconcession of the river with the purpose of bringingits minimum navigation depth to a permanent depthof nine feet in low waters, thus achieving a greatreduction in multimodal transportation costs, mainlyfor cargo volumes and long travels.This process shall involve three stages:- Early Operation (end 2011-beginning 2012):Studies and necessary resources are available toguarantee a minimum permanent depth of 4.5feet for the first 150 km of the river, upstream,tender process currently underway. This depth thatwas achieved in the high Mississippi more than ahundred years ago will enable transporting 500,000to one million tons per year in the short- andmedium-term.- First Phase: Six feet of minimum permanentdepth in low waters, the study of channeling worksnow underway to end in September, in order toaward works next year and terminate works one yearlater (2013). Thus, the river may transport in the mid-term between two (2) and five (5) million tons peryear.- Second Phase or Final Phase: The riverconcession through private initiative or public-privateassociation, consisting of permanent channelingworks to guarantee a permanent minimum depthof 9 feet in low waters, and its award to be finalizedprior to the end of this government in 2014. In themid- and long-term the river will be in a condition totransport more than 10 million tons per year.Releasing this important project at nationaland international levels, the Colombiangovernment, altogether with the AsociaciónColombiana de Logística (Colombian LogisticsAssociation), Acolog, and the AsociaciónLatinoamericana de Puertos y Terminales(Latin American Association of Portsand Terminals), Latinports, shall realize aspecialized event in August, for which you mayobtain more information in the Training sectionof this bulletin.Puerto Salgar TerminalMay - August 2011
  6. 6. In an interview to ValorEconómico, the Minister-Chiefof the Secretary of Ports (SEP),Leônidas Cristino, stated that thegovernment is “advancing” in the opening oftenders for the construction of four new portsand terminals: Port of Manaus, Porto Sul in Bahia,a port of Deep Waters in Espírito Santo, and themultiple-use terminal of Vila do Conde in Para. Allthese ports are in the study stage for edict launching,which will occur by the end of the year. The mostadvanced are the port of Manaus, with a basicproject and now its technical and economic viabilityphase being concluded, and that of Vila do Conde,of which the public hearing on the tender for thelease areas was already done at the company Docasdo Para. These two ports represent an investment ofUS$1,350 millions.In this interview, Cristino denied that thegovernment is studying privatizing the port systemand reaffirmed that the present model will bemaintained. The legal structure of the sectorforesees the concession of public ports to privateinitiative, through a tender, up to 50 years, and theauthorization as private terminals, without timelimitations, provided the entrepreneur has its owncargo. According to Cristino, the government is notpreparing any alteration in the regulatory framework.Part of the private initiative states port flexibility,eliminating tenders for port construction in order toaccelerate infrastructure investments. At present, toavoid tenders is only possible when the entrepreneurhas its own cargo in amounts higher than thatof third parties and uses the port in a way of up-righting its main business, as for example, PetrobrásMinister of Ports of Brazil, LeonidasCristino, Announces Investments forUS$3,500 Million in the SectorLeônidas Cristino,Minister of PortsMay - August 2011
  7. 7. and Vale. If the purpose of the business is providingservices for third-party movements, the rule will bethe tender. Brazil has 129 private sea ports and 34public sea ports. “What is included in the Law wewill continue doing in the near future. In the meantime there is no intention of change”, declaresCristino. “The national port system is that of apublic port with private operations. However, ifthere is need for a port, the federal government hasthe legal structure to award the authorization to builda private-use terminal, provided it has its own cargoin an amount higher than that of third parties andthat the cargo is of the same type. That is obvious”,stated the Minister.According to the analysis developed by theAgriculture and Livestock Confederation ofBrazil (CNA), some of the states of the north andnortheastern regions ceased producing 3 milliontons of soy and corn during the last harvestingbecause they lacked nearby sea ports with evacuationcapacity. CNA is one of the associations fighting incourt against Decree 6620 of 2008 that establishedthe need of having own cargos in amounts higherthan that of third parties in order to waive tenders.One of the claims is that this norm would preventinvestments within the sector. Cristino does notagree. He believes private investments occur aspublic power makes the appropriate thing withcontributions, a rare issue until the creation of theSEP in 2007.Private Sector will quadruple GovernmentInvestmentUntil 2014, SEP will invest US$3,500 million in 66works, through the Acceleration for Growth (PAC)Program. “Estimates establish that private initiativewill invest approximately US$15,000 million duringthis period of time”, stated the Minister. Regardingthe overdue portfolio of PAC 1, until 2010, the SEPdeclared having concluded 45% of civil works andalmost 70% of the National Dredging Program,which is to deepen the main national ports, thegreatest obstacle of the sector, allowing the traffic oflarge vessels.More than US$300 million of the amount foreseenup to the year 2014 shall be destined to a logisticsintelligence program, which according to Cristinomust increase operation efficiency up to 25%.There are three basic actions: installation of theVTMS (Vessel Traffic Management InformationSystem), a tool that will undertake virtual monitoringof vessel traffic; the ‘Paperless Port’, an onlineplatform to integrate bureaucratic procedures for anapproximate total of 20 actors involved in foreigntrade operation; and the Intelligent Cargo thatwill link the industry, the treasury and the port, insuch a way to send merchandise only when thereis availability on vessels. The objective is to preventovercrowding and to optimize logistics flow.During a recent visit to the port of Santos toaccompany the implementation of the PaperlessPort, Cristino confirmed that the program willbe implanted on August 1st (original term wasApril 2010). Also was announced launching at thebeginning of August the tender for the VTMS ofSantos, the first port to have the system to aid innavigation control, basically during bad weather days.It will be formed by monitoring towers installedalong the estuary and a processing and supervisingcentral of its transmitted data. The first VTMSMay - August 2011
  8. 8. tender was cancelled since the equipment could notbe included in the Reporto, a federal governmentexemption program to acquire machinery for portmodernization. “I already talked to the MinisterFernando Pimentel (of Development, Industry andForeign Trade), so we may use the Reporto for theIntelligent Cargo and the VTMS”.During his visit to Santos, the Minister informedhaving received from the National WaterTransportation Agency (Antaq) the design for thenew physical borders of the port’s dock. The newlayout almost doubles the port area under thejurisdiction of the Company Docas del Estado deSão Paulo (Codesp), which will be of approximately15 million square meters. The request for theexpansion was filed more than one year ago byCodesp, which depends on this to proceed with theproject of expansion of the port, called BarnabéBagres. According to Cristino, if no problemexists with the new design, it is the intention of theSecretary’s Office of Ports to send the minutes ofthe decree to the Presidency of the Republic by theend of July.Port of Santos, BrazilMay - August 2011
  9. 9. Great display has been given bythe specialized press of Brazilon the appointment and swornin of former Minister PedroBrito, initiator and developer of the SpecialSecretary’s Office of Ports, SEP, as director of theWater Transportation National Agency, Antaq.Proposed by the President, Dilma Rousseff andratified by the Senate, Pedro Brito assumed hisfunctions as of the end of June. According toinformation from the press, his appointment waswell seen by the port community and professionalslinked to the sector, and, according to Tribuna, this isthe opportunity to increase the integration betweenthe two bodies that command sea transportationcargo in the country. During his work at SEP, Britoadopted measures that were not always defendedby Antaq, says the publication, and an example is,according to the text, that he always defended thatport terminals must be public but developed byprivate initiative as of concessions. Tribuna addsthat the “two great challenges” of Pedro Brito’smanagement as director of Antaq shall be theintegration of the modal waterway to the logisticsscenario of the country and the need of the sectorto have well defined regulatory frameworks.The new director of Antaq also emphasized on theneed to make the awarding procedures more agilein order not to hinder the expansion of the sector.“We are not entitled to commit investments basedon bureaucratic delays”. For Brito, joint work withSEP will propitiate developing a strategic plan toencourage port sector growth in the next 20 years.The new Minister-Chief of SEP, José LeonidasCristino also has the same idea of joining efforts,says Tribuna. In his speech during the swear-inceremony of the new director of Antaq,Pedro Brito, Former Minister of Portsof Brazil, Assumes as Director ofthe National Agency of WaterwayTransportation, AntaqPedro Brito,Antaq DirectorMay - August 2011
  10. 10. he emphasized the opportunity for the integrationof the two bodies. “He (Brito) shall have thefunction of regulating, monitoring, but above all,the extraordinary function of harmonizing. If we allwant the same thing, we will work together”.According to the article of Valor, Brito’s plans alsoinclude the need to involve the so-called dry portswithin the scope of port policy. Today, those bondedwarehouses depend on Federal Rent, which makesdifficult the performance of a port-logisticsstrategy.Based on the title: ´The Mega-containerships Will Not Arriveto Latin America in Many Years’,below is the interview of Catherine Setterfieldto Julian Palacio:BNAmericas spoke with Palacio and asked him hownecessary it was for regional ports to prepare for the expansionof the Panama Canal.Palacio: Yes, undoubtedly a preparation isnecessary, as well as investments, but not in thewrong magnitudes. What I refer to is that the mega-containerships will not arrive to Latin Americain many, many years, due to a matter of marketeconomy. Developed countries are in the east-westroute. Then these large ships will arrive at four orfive ports of the world following this route. Thenorth-south route will have larger size ships. LatinAmerica cannot point out to having the largest shipsof the world as they will not arrive. In Colombia,Peru, Chile, and even Brazil, there is not enoughcargo to receive these ships.Therefore, large investments are not justified if theseships will not arrive in a very long time. Even more,I would say that investments in dredging should bemeasured for the ships we expect in the next 10-20years. I insist, it is important to invest in dredging,but we must know until where and not to extremes.BNamericas: Then the idea of a great port pole inSouth America is a myth?Palacio: The Pacific area of South America is notgoing to have an important port hub because ofmarket economy matters. Callao, in Lima, moves90% of the foreign trade of Peru; thus, it has animportant support. But it will always be smallercompared to transshipment ports in Panama.BNAmericas Interviews the Executive Directorof Latinports: The Mega-containerships and itsEffects on Latin American PortsMay - August 2011
  11. 11. BNamericas: In what do you believe this moneyshould be used if not in port expansion?Palacio: If they have the money, what theyreally need is to correct an important failurethat is transportation in Latin America. Inlandtransshipment costs are excessively expensive. Forexample, it is cheaper to move cargo from China toany country of Latin America than moving cargofrom a port to the interior of the country. Thensomething is really going wrong.BNamericas: What countries do you believeare delivering the best model in relation to theirpreparation?Palacio: My example is Brazil. Although Brazilwas way back in matter of ports, as of the creationof the Special Secretary’s Office of Ports, whichin fact is a Ministry, they are now preparing in anappropriate manner. Pedro Brito said when he wassecretary (of ports), which he was until December31st, that Santos is the largest and most importantport of Latin America, and is now preparing toreceive ships of 8,000t-9,000t. Brazil is the mostdeveloped country in Latin America; it is aneconomic global power and as such it is being seen.Then, is Brazil wrong or are other much smallercountries of the region wrong?BNamericas: Would you say there is a weak link inLatin American ports?Palacio: Yes, in many parts. I believe CentralAmerica is extremely behind schedule in this matter.Nicaragua is way behind, as well as El Salvador andGuatemala, which has not yet started privatization.And if ports are not privatized, they will never get tohave the appropriate ports.In Costa Rica, on the other hand, they are preparingto receive ships between 15,000 and 18,000 TEUs.How may Costa Rica, a small economy, think aboutdredging to receive ships that will never arrive? Thismoney to be spent in dredging would be needed forother things, for example, transportationinfrastructure. In the case of El Salvador, they aremore aware, they are thinking in a more down-to-earth way. They see this will not be a matter for theshort- or medium-term.BNamericas: Some have said there could be amarket in Central America for feed services, do youagree?Palacio: Also, I do not believe much in this; theseare very small markets. Works are being done inmatters of short sea shipping, and they want to dowhat Europeans are doing on this matter. But theEuropean economy is years far from that of CentralAmerica. Also to be considered is the amount ofcargo that will be moved. Only if governments willsubsidize it, I do not see a private port taking short seashipping matters seriously in Central America.BNamericas: In January of this year some of theports of the Pacific within the region met to formthe commercial block Copasud. What do you thinkof this idea?Palacio: I personally do not believe much inthis. The leader is the Peruvian government,altogether with, for example, Sociedad Portuaria deBuenaventura, 100% privately-owned. Then, theseare two completely different approaches. The generalmanager of Sociedad Portuaria de Buenaventuramay make decisions that the Peruvian governmentmay not make. In this case, the day the generalmanager is replaced, guidelines continue being thesame because the owners are the same. But the daythat the President of Peru changes, the day thatOllanta Humala or Keiko Fujimori is president, onenever knows what may happen. (The interview tookplace shortly before the presidential election in which OllantaHumala was elected president: Latinports). Then, theintention is interesting, but many things have to bedone. If new associations continue being created, wemay not be able to work in what we really need todo. I do not know how many results we may see inthe short- or medium-term. Now is being created anassociation of countries of the Pacific, and it couldbe an extension of that. In this case, it might beinteresting.May - August 2011
  12. 12. BNamericas: The last time we spoke, Latinportshad very short time of being created. Could you tellus what the organization is doing at this time?Palacio: At the end of August we will celebrate 2years of our creation. And we now have more than300 members from 10 countries of Latin America.We had a first event in Brazil last August on ourfirst anniversary, with the presence of the BrazilianMinister of Ports and all the private associations.It was a very interesting event, an excellent startingpoint.BNamericas: Will you have any similar events thisyear?Palacio: This year we will possibly have an event inBogotá during the second semester. We have not yetdefined dates, although it will probably take placeduring the last quarter. We want to celebrate it jointlywith the Superintendence of Ports.Main Containers Ports of Latin America and the Caribbean in2010 and its Future with the Expansion of the Panama CanalAccording to containers port movement ranking ofLatin America and the Caribbean, prepared by theInfrastructure Services Unit of Cepal, and recentlydisclosed, “… during 2010, the twenty main ports ofcontainers of the region grew 20.9%, a figure much higherthan that of 2009 when the activity contracted by 6.8%”.Another fact worth noting in this opportunity is thatnot only port activity recovered its pre-crisis levels,but furthermore 17 of the 20 main ports recordedmore than two-digit growth rates, a fact thatalthough is excellent news for the region, bringsforth the discussion of the need to improve portinfrastructure to face this growth, and invest inthe best port and connection logistics with thehinterland enabling an efficient distribution of cargo.The 2010 Ranking is lead on this occasion by Panama.The maximum position is headed by the Colon portcomplex, followed by Balboa at the Pacific entryof the Panama Canal. Third place is for Santos inBrazil, although worth noting is its 20.7% growthcompared to previous year. The fourth and fifthplaces are maintained by Kingston in Jamaica andBuenos Aires, Argentina, respectively.“…during 2010, the twenty mainports of containers of the regiongrew 20.9%, a figure much higherthan that of 2009 when the activitycontracted by 6.8%.”May - August 2011
  13. 13. Source: Infrastructure Services Unit, Cepal 2011 (for the complete list including 100 ports, please consult,link Divisions: Natural Resources and Infrastructure)(1) Freeport was the only port of the region that decreased its cargo movement, because of fragility represented by italmost exclusive dedication to movement of transshipment cargos (Latinports).(2) No official figures exist for Puerto Cabello and therefore its position within the ranking is relative (Latinports).May - August 2011
  14. 14. Regarding displacement from the first place ofthe Port of Santos by the group of Panamanianports in each of the two oceans, the commercialdevelopment director of Companhia Docasdo Estado de Sao Paulo (port authority of thePort of Santos), Carlos Helmut Kopittke, in anarticle on this particular matter published by theBrazilian paper Tribuna in the beginning of June,minimized leadership loss recognizing that growthof Panamanian ports shall be even greater with theexpansion of the Canal, but that this is not a pointof comparison with Santos as it corresponds to atotally different dynamics: while cargo movement ofSantos corresponds to its hinterland, that of Panamacorresponds to international transshipment. Thehigh official concluded by highlighting, as doneby Cepal, that the growth of 20% of the port ofSantos in foreign trade cargo movement, in which itcontinues being leader by a large margin of regionalstatistics.In relation to the effects of the expansion of thePanama Canal, the publication Valor of Brazil agreesthat the estimated cost of US$5.25 billions mayhave an “impact on international sea transportation,especially in the containers segment”, as of theend of 2014, when works will be terminated. Thisbecause shipping companies may implant shipperswith larger tonnage to operate through the Canal.Today, the Panama Canal is limited, regardingcontainers, to ships of 4.6 thousand TEUs, acapacity that will be more than doubled. ThePanama Canal Authority (ACP) that manages theroute states that the expansion shall allow passage ofvessels of up to 13.6 thousand TEU althoughamong ship owners some believe this capacity mayremain in about 10 thousand TEU, having in mindthe size of ships that go through the new line, whichmay have up to 366 meters of length and transport,lengthwise, 19 rows of containers. Bulk transporters,today limited to 60,000 tons, may pass through theCanal ships of up to 170,000 tons. According tothe text, the use of larger ships to cross the Canalwill represent scale economies and cost reduction.Alberto Alemán, administrator of the ACP,foresees that the expansion program will change seatransportation game rules having influence on LatinAmerica.MAXIMUM SIZE OF SHIPS OPERATING INLATIN AMERICA(JAN HOFFMAN, UNCTAD, MAY 2011)Panama: Maersk with Maersk Stockholm and similar 8,600 TEUMexico: Maersk with Maersk Stockholm 8,600 TEUBrazil: Maersk with Maersk Lima and similar 7,450 TEUArgentina: Maersk with Maersk Lima and similar 7,450 TEUUruguay: CSAV with CSAV Maipo 6,316 TEUColombia: Hamburg Süd with Cap Valiente and similar 5,770TEUEcuador: Hamburg Süd with Cap Valiente and similar 5,770TEUChile: Hamburg Süd with Cap Valiente and similar 5,770 TEUDominican Republic: Hapag Lloyd with Buenos Aires Express5,551 TEUSPeru: MSC with MSC Lisa and similar 5,060 TEU.The above shows that the higher capacity of ships receivedin Latin America at present are between half and one thirdof the Emma Maersk, the largest container ship of the world(Latinports).Maersk StockholmMay - August 2011
  15. 15. Cartagena, 6-7 December 2011Hotel Las AméricasLast June 16th, the Superintendent of Ports andTransportation of Colombia and the ExecutiveDirector of Latinports signed an agreement for thejoint celebration of the First Colombian Congressof Ports and the Second Public-Private LatinAmerican Port Seminar, to be held the second weekof December in Cartagena, Historical and CulturalHeritage of Humanity. Under the name of BestPractices in Sea-Port Node, a follow-up to port lawsof the most important Latin American countrieswill be done, its modifications and projections,the legal certainty for concessionaires will also bediscussed and a critical focus will be presented onthe development of transportation infrastructurein the region. Furthermore, the results of theSpecial Secretary’s Office of Ports (SEP) of Braziland the logistics approach of this ministry as statepolicy, unique in the region, shall be analyzed. TheColombian congress of ports to take place forthe first time shall focus on matters of the highestimportance for the logistics-port activity and howto accomplish excellence in the activity, including avisit to Sociedad Portuaria Regional de Cartagena,consecutively considered for the last five years by theCaribbean Shipping Association as the best containersterminal of the Caribbean.This event, unprecedented in Colombia, shallbe attended by the Minister of Transportation,Germán Cardona, the Superintendent of Portsand Transportation, Juan Miguel Durán, theChairman of the Executive Committee ofLatinports, Richard Klien, and quite possiblythe President of the Republic, Juan ManuelSantos.Tourism in Cartagena:Given the time of year in which the event will takeplace, very close to the start of the high touristseason but still with low-season hotel rates and anexcellent weather, this is an incredible opportunity totake a short holiday with your family and enjoyMay - August 2011
  16. 16. Trainingthe nostalgic Cartagena de Indias, declared yearsback by Unesco as Historical and Cultural Heritageof Humanity, as it has maintained intact its colonialand republican historical downtown (the walled cityor the so-called “corralito de piedra”), with beautifulchurches and stately homes, many of which havebecome boutique hotels and restaurants of theutmost quality.Military structures such as walls, bastions and fortsmay be observed next to the well-preserved city.The walls were part of the plan of defense orderedby Philip II of Spain to strengthen the main portof the Caribbean Sea, a project that lasted almosttwo centuries, and during which the city receivedinnumerable attacks of pirates, which ended in 1796.The walls may be walked entirely and do not besurprised if you find couples in love watching thesunset from places where cannons were formerlyfired. You may visit the Fort of San Felipe deBarajas, protector of the city and originator of themost heroic defenses of Cartagena. When the sunReactivation of Navigation on theMagdalena River, Colombia: ACountry ProjectSeptember 7, 2011Hotel Marriott SalitreBogotáFollowing the 25-year concession of what is tobecome the most important logistics node ofthe country because of its proximity to Bogotá,Latinports, jointly with the Asociación Colombiana deLogística and the Sociedad PortuariaMultimodal del Río Magdalena, and supported by someof the most important companies of the country,will develop this international event to demonstrateto the region the importance of the developmentfalls, another Cartagena comes to life full of bars,discotheques and night spots radiating the joy of theCaribbean.Only 30 minutes from Cartagena one may discoverIslas del Rosario, islands full of natural enchantmentthat make you live a dream where the peaceful andwarm blue waters and white sand beaches make ofthis area a paradise island on earth.More Information:Event: Please visit the webpage and/or contact directly the executive directorof Latinports, Julián Palacio, jpalacio@latinports.orgTelephone (57 1) 7518145, Bogotá.Air Transportation: The AviancaTaca Alliance,official airline of the event, offers national andinternational tickets at special prices.of inland navigation routes as a need fortransportation logistics competitiveness. Expertsof the Engineer Corps of the Army of the UnitedStates, of the Paraná-Paraguay Waterway andof the World Bank, altogether with the WaterTransportation General Director of Brazil andnational experts shall promote a new reality inLatin America. This initiative, with the support ofthe national government and the entrepreneurialassociations will serve as an example for similarentrepreneurship elsewhere in the region.For more information please visit the and/or contact the ExecutiveDirector of Latinports, Julián Palacio jpalacio@latinports.orgTelephone: (57 1) 7518145 Bogotá.May - August 2011
  17. 17. II Coaltrans Colombia20-21 September 2011AR Hotel SalitreBogotáSupported by Latinports, Coaltrans Conferences ofLondon returns to Bogotá in September to exploreopportunities that have been described by some as“the wild west” of mining.As international investors examine the availabilityto invest in Colombia, the conference will welcomeperspectives that national and internationalbanks have of Colombia as a competitive placefor investment, and will analyze tax policies andlegal considerations to enable advantageous andprofitable business decisions.Coke coal now being in fierce demand around theworld, Colombia thus offers a real opportunityto supply the Market with good quality coke coal.Coaltrans Colombia will deal on how the Colombiancoke coal industry may take advantage of worlddemand, how mining operations may best becoordinated, and how proposed infrastructurePort Finance Internationa Brazil5-6 October 2011Convention Center Rio Stock ExchangeRio de JaneiroThe first International Port Finance Conferencein Rio de Janeiro 2011 will enable participantsto obtain extensive knowledge on innovativefinancing solutions and also to supply importantpractical information for actions within the portsector. The purpose of this event is discussingfinancing and developing options for the portsector, thus becoming a unique opportunity tomeet with potential business partners, as well ashigh management level executives (governmentand port authorities, terminal operators, legal andfinancial sectors). Besides, the conference will focuson the work of Brazilian ports and its expansionand development plans, investigating also those ofthe ports of South America with a view towardsinvestments and business expansion.development plans make of Colombia a competitiveplayer for coke coal world markets.One of the panels, called ‘A Look to ColombianPorts’, will be presided by the executive directorof Latinports, Julián Palacio, on September21st.For more information please visit webpage and/or contact Christian David-Griffits, Commercial Manager, cdavid-griffits@euromoneyplc.comTelephone: 44 207 7798946 LondonThe Executive Director of Latinports, JuliánPalacio, will be one of the lecturers on theopening day, October 5th, with the presentationof the Declaration of Brasilia 2010: Evaluationand Perspectives of the Regional Port System.For more information on the event please and/or contactdirectly withPatrick@portfinanceinternational.comTelephone: 44 207 0173411 LondonMay - August 2011
  18. 18. Toc Container Supply Chain Americas15-17 November 2011.Hotel El PanamaPanamaHighlighting the growing influence of Latinportsin the Latin American port sector, as was perceivedduring TOC Americas 2010 that took place inNovember in Rio de Janeiro, the TOC WorldwideEvents of London appointed the Chairmanof the Executive Committee and the ExecutiveDirector of Latinports, Richard Klien and JuliánPalacio, respectively, in its advisory committee forLatin America. Both of them, altogether withprofessional expert analysts of the industry, such asCarlos Urriola, president of the Caribbean ShippingAssociation, and Paul Gallie, new Projects Managerof APM Terminals for Latin America, supportedthe TOC Container Supply Chain Americasorganization in designing the agenda of the mostimportant containers event of the continent.As Panama proceeds with its historical expansionof the Canal, TOC Americas returns to the countryfor the third time in its 12-year history with a newname and an extended agenda. The new image ofthe Containers Chain of Supply of TOC Americas2011 has all the analysis and discussion topicsthat delegates have expected on the evolutionof container traffic, sea transportation and portsof North and Latin America, but with an addeddimension of and from producers and retailers,which cargo loads containers, ships, ports andterminals.The Containers Chain of Supply is extendingthroughout the global portfolio of TOC-Events,with the mission of facilitating dialogue amongcargo owners, logistics suppliers, port transportationand industries, so all parties may work bettertogether in the face of undoubted challenges.These challenges involve not only seeking themost efficient flow of containers, predictable andprofitable from origin to destination, but at the sametime being the way to reduce the environmental andsocial impact of the large volumes of commerce oftoday’s containers.The development of Panama is about to changethe face of world logistics for merchandises and theregions, the surge of Latin America in the creationof a new generation of world consumers andexporters, and North America continuing to developits port of entry and its strategic corridor, in the faceof the recovery of its imports and the increase of itsexports; thus, there will not be much more to talk inNovember.Not less important is how all moneys from thefunds of such a required improvement for theinfrastructure in the Americas, becomes oncemore an obstacle so that ports and terminals andtheir connection to land transportation networksaccommodates to the continuous increasesin volumes and size of liners. How to obtainfinancing and how to strongly work on the existinginfrastructure, will be another of the topics ofdiscussion in an extensive three-day program.May - August 2011
  19. 19. Lloyd’s List Global Ports ConferenceNovember 31-December 1st, 2011LondonEnglandInforma Maritime Events in association with LloydsList shall develop this leading event of the industrywith the main actors of the sector discussing thelast developments in emerging market investments,global tendencies and construction of infrastructure.Attending this event will help understand and obtainanswers to key questions that will define the sectorof the ports of the world, including:• Tendencies in the global port sector –providing sustainability and growth.• The changing phase of liners – the era ofmega-ships.• Growing markets and opportunities – whereare the ‘hot points’?• Investments in emerging markets – Africa,Latin America and India.The chairman of the executive committeeof Latinports, Richard Klien, will participateas lecturer in the panel ‘Challenges andOpportunities for Latin American Ports, onNovember 15th.For more information please visit webpage and/or contact SamWhelan, Conference Producer, atSam.whelan@toc-events.comTelephone: 44 207 0175675 London• Increment of demand for short sea shippingand connection with feeders.• Tendencies towards small scale evolution andinvestment in ports• Port concessions – contractual and financialissues.The Executive Director of Latinports,Julián Palacio, will make a presentation on“Investments in Latin American Ports”.For more information on the event please or contact directlyShelley Bullen at inLondon.Telephone 44 (0) 20 7017 5720II Public-Private Annual Port Seminarof Latinports and I ColombianCongress of Ports6-7 December 2011.Hotel Las AméricasColombiaSee detailed information in the special articleabove on this particular matter in this sameedition.May - August 2011
  20. 20. Expobizz MontevideoTrading, Logistics and Packaging8-10 December 2011LATU Park of ExhibitionsMontevideoThe progressive positioning obtained by Uruguay aslogistics operations center is the value proposal of thisinternational fair, specialized in foreign trade, logistics andpackaging, to be held at the LATU Park of Exhibitionsof Montevideo. The World Confederation of Businesses(WORLDCOB) of Houston, Texas (USA) andMERCOSOFT CONSULTORES of Uruguay are theorganizers of this convention, with the participation ofLatinports as strategic partner.The objective of this important event is the generationof new businesses among its 3,000 associated companiesin 60 countries and other leading participating companiesof different sectors of the market and the world. Threeactivities will be developed: BUSINESSMATCH (BusinessAppointments), a system required to establish businessappointments with other companies of related or differentitems. SHOWROOM (Room of Exhibitions), a fair thatwill enable participating companies to have the possibilityof selling their products and/or services at a moduleor stand. EXPOROUND (Round of Exhibitions), anopportunity to expose and make known offered productsand/or services.Besides Latinports, several organizations have now joinedas international strategic partners, such as the Federaciónde Agentes de Carga de América Latina y el Caribe(ALACAT) (Federation of Latin American and CaribbeanCargo Agents), Chamber of Commerce, Industry andProduction of the Republic of Argentina, ColombianLogistics Association, National Chamber of Exportersof Bolivia, National Chamber of Customs Dispatchersof Bolivia, National Chamber of Industries of Bolivia,Costa Rican Association of Logistics and other importantorganizations of Brazil, Mexico and Chile. This conventionis expected to exceed 2010 figures, where were represented250 participating companies and generated US$50 millionsin business intentions.For more information we invite you to visit webpage and contact LisetteMenacho, Communications Manager, WORLDCONFEDERATION OF BUSINESSES, telephone +1-713-339-9900, Houston, Texas, USA.May - August 2011
  21. 21. News of Latin American PortsPresident of the Brazilian Association of PortTerminals affirms the Government DiscouragesPort InvestmentsValor published an article of the president of theBrazilian Association of Port Terminals ABTP,Wilen Manteli, criticizing a resolution issued bythe Heritage Secretary’s Office of the Union,determining the appraisal of the port terminals ofthe country by “assignment of physical spaces inpublic waters”. Manteli states that the country is“living a setback in the port sector”, but that thissetback is in the field of taxes. He then explainsthat with this resolution the government is causingentering investments more expensive and creatingtributes “instead of using its force to encourageinvestments as an engine for economic growth”.At the end, the article affirms that the “port sector isconfused. There are so many bodies interfering andinflating the regulation system of this activity thatthe investor does not know who to pay attention toor recur”. To amend this distortion would sufficethat the public power would respect the attributionsof SEP and Antaq. “Formulation of policies forthe sector is competence of the first entity, andthe second entity must implement these policies,such as the regulation and inspection of portactivities”, states Manteli. He draws attention on theimportance of the sector for the competitiveness ofBrazilian companies and economic development,and suggests this may not be done by increasing porttaxes, as will be the case.In a further article, Valor refers to the resolutionimposed by a series of demands for leasingport terminals and restricts profit margin ofentrepreneurs, quoting recently elected director ofAntaq, Pedro Brito, who in opposition toArgentinaTecplata on course for 2012 openingAccording to Container Management, implementationof phase one of ICTI’s 40 ha Tecplata project, atthe port of La Plata 60 kms south of Buenos Aires,is reported to be well under way. The 450,000 TEUcapacity terminal, will have two to three berths on600 m of quay initially which will be extended by220 m to 820 m in the second phase.BrasilGovernment Plans the Concession of 45 PortsThe Agency Estado informed that the federalgovernment prepares a new model for the portsector that foresees a “different managementphilosophy” of that currently existing for Brazilianports. This is because “now all the operation hasalready been privatized” in the so-called public ports,the Executive is preparing guidelines for transferof port management to the private sector, besidesbuilding new complexes in all the country on an“urgency regime”. According to the text, “noveltyis now moving to private initiative the organizedconcession ports” and “who wins will manageand operate everything within the port, under thesupervision of Antaq”, in reference to tenders to beopened for the concessions.The entity has now identified 45 areas consideredas priority to receive private investments and theprocess will begin with the tender of a new terminalin Manaus, where the port situation is considered“critical”.May - August 2011
  22. 22. Movement of containers in Santos arriving atits full capacityBased on a study of the IDB published by Tribuna,the projection of Companhia Docas do Estado ofSao Paulo (Cosep) for 2011 amounts to 3 millionTEUs (an 11% increment compared to 11%of 2010), fairly close to the static capacity of thecomplex which is currently of 3.1 million TEUs.The study adds that only during the three firstmonths of this year, movement increased 18.2% inrelation to the same period of 2011, adding up to650.146 TEUS. The newspaper then emphasizesthat the port of Santos will arrive soon to its limit,if forecasts are real. According to the strategicplanning and control director of Cosep, RenatoBarco, a “yellow sign” is on. He comments there willbe “a little more comfort in 2014”, when BTP andEmbraport terminals start operating. With these twodevelopments completely functioning, containersmovement capacity at the port of Santos will moveto 8.1 million TEUS in 2014, and demand will arriveat 4.25 million (52% of the total).AccordingtoTribuna,onapossiblecollapseofportoperationspriortoenteringinoperationthenewfacilities,BarcoaffirmsthatCodespisattentivetothenumbersandassuredthereisnoreasonforgreatconcernasthetwonewterminalsareabouttocompleteconstruction.Opposedtotheexecutiveof Codesp,agroupformedbycargoimportersandexportersfromallthestate(Comus)isworriedwiththeoperationof theportforthenexttwoyearsandcallstheattentiononthetimesof stayforcontainersintheyardsandtheincreasingmovementcostsinthecomplexof Santos.Accordingtothem,productivityincreaseinportterminalsmayintensifywithcustomstransitof containersintosecondaryareas.News of Latin American PortsNational Agency of Waterway Transportationwill revise the Port Leasing ModelThe new director of the Water TransportationNational Agency of Brazil, Pedro Brito, informedthe entity will revise the Technical-EconomicViability Studies of the port leasing model. “We shallrevise and adapt what is important to favor privateinvestment in ports, which is what we want to causethe flow of the growth of Brazilian economy”,stated Brito in a report to Tribuna.In a meeting promoted by Antaq, the formerminister of ports, Pedro Brito, presented the newmodel for the “economic-financial rebalance ofleasing contracts”, which foresees regular revisionsto the contracts every five years, both for new andold leasing contracts. In addition, the manager ofpublic ports of Antaq, Jair Galvão, put the examplethat “a flood affecting leasing areas and equipmentwould undoubtedly be a fact justifying the economicand financial revision of the contract prior to itslegal term of duration”.criticizing the private initiative against theresolution, the organization does not want tocontrol earnings. “Of course, that does not fit.We will revise procedures”. The article adds thataccording to sector entrepreneurs, the norm createdlast year limits the inland rate of return of thebusiness between 8% and 9%, which accordingto the president of ABTP, Wilen Manteli, “is anintromission in the life of the entrepreneurial sectorbased on no legal base whatsoever”, adding thatthe obligation of companies to reveal the originof cargo in order to participate in a tender “is aprofessional secret”.May - August 2011
  23. 23. News of Latin American PortsLogisticsgainsimportanceinoperationsofSantosBrazilandLibraValorhighlightsthatbusinessof thetwogroups,besidesloadingandunloadingoperationsof merchandisesattheport,hasthepurposeof gainingmusclewithanetworkof assetsthatwillenablesellinganintegratedsolutiontoclientthroughlogistics.Forthispurposethecompaniescreatedspecificdivisionsduringthepastyears,whichrepresent18%of thebillingof SantosBraziland16%of Libra.ThisreportmakesevidentthatSantosBrazilistheleaderof thesectorwithalargercapacity.Itscommercialdirector,MauroSalgado,commentsthatlogisticsoperationseliminateinefficienciesthatresultwhentheprocessisatomizedinanetworkof differentcompanies,besidesthepreferenceof themarketthatpreferstalkingtoonlyoneindividualtomanagetheentirechain.Salgadoaddsthata“greatemblematicexample”isthecontractwithMercedesBenz,detailingthatthecompanywasalreadyimportingthroughtheportterminalof SantosBrazil,andenteredintoacontractsixmonthsagotomanageitscargoflowinvolvingtheplantinSaoPauloandincludingthetruckassemblyline.Regarding the plans of Libra, with an assetsportfolio including two export sites at BajadaSantista and a dry port in Campinas, the report ofValor informs that the group expects to increase itsbilling ten times in a five-year term. According tothe president of Libra Logística, Eduardo Leonel,besides organic growth, leap will be entered throughacquisitions and mergers. According to the executive,“the main focus is storage areas so we may have afairly robust net, with maximum one day travel byroad”. He does not doubt the time will come whenlogistics activity will assume the same percentage ofimportance than that of the port activity within thegroup.OMX will start building Puerto Castilla in thebeginning of 2012With an investment of US$300 millions, theChilean company OMX Operaciones Marítimas,subsidiary of the Brazilian group EBX, expects tostart construction at the beginning of 2012 of itsmulti-purpose unit Puerto Castilla, in the northernIII Region. The facilities will have three terminalsand may receive post-Panamax and Capesize ships,the latter with a capacity of 170,000 deadweight tons(DWT).“We already have the environmental approval, whichmeans we have the green light to start projects. Weare currently negotiating long-term contracts forthe use of the port, and if these are successful, weexpect to start construction the beginning of nextyear. “The construction will last two years”, statedto BNAmericas the manager of Puerto Castilla, JorgeRonda. OMX has prequalified four companiesfor the construction of the port and is developinga turnkey tender focused on terminals of copperconcentrates and coal for the port. “There hasbeen great interest of Chilean and internationalconstruction companies to build the port, but wecannot develop a tender process with 20 participants.The selected companies will have 75 days to presenta formal offer that will include detailed engineering,acquisition of equipment and construction”, addedthe executive.The port is designed to import up to 6 million tonsof coal and export 2 million tons of copper and10 million tons of mineral ore. Port facilities willsupply the Castilla coal-fired power plant of 2.1GW,its installation in charge of the sister company ofOMX, MPX Energia.ChileMay - August 2011
  24. 24. News of Latin American PortsThe Prime Minister of Canada Attendedthe Signature of the Trust Agreement by theCanadian AmegaBusiness News Americas informed that the generaldirector of Americas Gateway DevelopmentCorporation (Amega), Aubrey de Young, enteredinto a trust agreement with the government ofCosta Rica for the construction of the new transferterminal to be located next to the port of Moín.The press conference held prior to the signing wasattended by the Canadian Prime Minister, StephenHarper, and the President of Costa Rica, LauraChinchilla.The Costa Rican government must now selectan independent auditor for the Project and in themeantime, Amega will start working in the studiesand designs for the port Project appraised inUS$900mm, to be concluded in August 2012. Oncedesigns have been presented, the government hasthree months to revise the plans and call for bid.The transfer terminal will have a capacity to handle2 million TEUs per year with a dock 1-km long, a19m deep access channel to the port of Moín and aberthing for three containerships with a capacity of15,000 TEUs each.On the other hand, the manager of Puerto Castillastated that the government of the III Region northof Chile is working so the international passage ofSan Francisco may be an alternative to the passageLos Libertadores that links Santiago with Mendoza,Argentina. Los Libertadores, located in the V Regionof the central zone, is the main international passageto Argentina and handles about 5 million tons ofcargo per year, which represents 70% of the landcargo transportation between the two countries. “Inwinter it is closed most of the time, therefore plan Bis currently the passage Cardenal Samoré in Osorno,one thousand kilometers south, where weatherconditions are even worse. Therefore, we have beenworking in the regional government to eventuallymake of San Francisco the plan B”, stated Ronda.Modernization of the Chilean side of the passagemust be completed by mid-2012; on the other hand,works in the Argentinean side have been completed.The project involves paving 109 km of Route 31-CH, as well as the passage itself, and will requirean investment of approximately US$34.6 million,according to the website of the governor’s office ofthe III Region. Once works have been completed inthe new route, trucks leaving Cordoba, in Argentina,may transit to the new port to make shipmentsthrough the Pacific instead of going to Rosario orBuenos Aires, stated Ronda.Costa RicaMay - August 2011
  25. 25. News of Latin American PortsPort of Singapur will manage the containerterminal of MarielAccording to Reuters agency quoted by ContainerManagement, the Port Authority of Singapur PSA,through PSA International, has silently signedthe management of a containers terminal inconstruction at the port of Mariel. The terminal ispart of a more extensive plan for the developmentof Mariel Bay, 45 km west of Havana, in thepotentially most important Caribbean port for hubcargo. Also, Container Management quoting officialsources in its July-August 2011 edition adds that theagreement was to manage the port and does notimply any investment by PSA International.Mariel is one of the most important ports along thenorthern coast of Cuba and is destined to replaceHavana, the main port of the country, in the yearsto come. Having in mind that the terminal foreseesto start operations in 2014, when the largest vesselswill start transit through the Panama Canal, currentlyin expansion, it is believed that PSA Internationalwill then participate in the planning of the terminal.The Mariel terminal that will have to begin with700 m of dock is ideally located to handle cargofrom the United States, if the commercial embargoto this country is eventually raised, and wouldreceive U.S. food exports. Plans for 2022 are calledto make of Mariel the base of logistics facilitiesfor the exploration and exploitation of offshoreoil, the terminal of containers, and the facilityfor general cargo and food in bulk, and also theSpecial Economic Zone of Development for lightmanufacture and warehousing.Concession granted for the most importantinland port of the countryDescribed by the director of the CorporaciónAutónoma Regional del Río Grande de laMagdalena (Cormagdalena) as “the port of Bogotá”,last June 10th the national government signed a25-year concession contract with Sociedad PortuariaMultimodal del Río Magdalena S.A.(MultipuertoSalgar), a public-private entity, mostly privately-owned and established eight years ago. Studiescontracted through the U.S. Trade DevelopmentAgency (USTDA), the consultant firm TEC Inc.,altogether with its U.S. associates Nathan Associatesand Pacon Americas, and its Colombian associateEmdepa Consultoría, developed last year withexcellent results the Rehabilitation Study for theRiver Terminal of Puerto Salgar. This terminal,located 190 km from Bogotá by road (170 km andonly two hours of travel, once the double-lanehighway, now under construction, is completed)and 880 km from Barranquilla by the MagdalenaRiver is meant to become the main transportationnode of the country, according to the presidentof the Colombian Chamber of Infrastructure,Juan Martín Caicedo, as “it is the only one in thecountry where the river, railroad, road, airport andpipeline converge”. Precisely, through the pipelinethat will arrive to Puerto Salgar (currently it isonly at a distance of two kilometers), one of themain products to transport downstream is oil thatis produced in the Llanos Orientales, southeastof Bogotá, and that has made of Colombia thethird Latin American producer of this product,after Venezuela and Brazil. Likewise, coal will betransported from the mines located only 70 kmfrom the port. Starting early operation is foreseen forthe last quarter of this year.CubaMay - August 2011Colombia
  26. 26. News of Latin American PortsConcessão para novo terminal em LázaroCárdenas enfrenta possível cancelamento.According to BNAmericas, a tender for theconstruction of a second containers terminal inthe port of Lázaro Cárdenas, on the Pacific coastof Mexico, will be probably cancelled. The FederalCourt for Fiscal and Administrative Justice ruled thatthe tender was not valid but, the Secretary’s Officeof Communications and Transportation (SCT, inSpanish) instead of stopping the tender process,took the case to the Court of Appeals. “Theprobability that this ruling is firm is very high”, statesthe analysis done by the port operator HutchinsonPort Holdings HPH that has been operating the firstcontainers terminal of the port as of 2007.MexicoBrazil has donated US$800 million to financeinfrastructure and port facilities construction nowunderway, jointly with the Odebrecht group, thelargest construction and engineering company ofthat country. According to presidential counselorMarco Aurelio García, US$400 million have beendisbursed, and another US$200 million have beenapproved, the balance amount is being studied. Theport of Mariel will handle vessels with more than15m draft, compared to 11m of Havana and willhave a capacity to handle between 850,000 and onemillion containers per year, compared to 350,000 atHavana.May - August 2011Contracted study on short sea shippingtransportationAccording to the report of MBW Mexican BusinessWeb, as of mid-June the consulting firm IDOM wasgranted the ruling in the tender for the developmentof the “Study to analyze the viability of short seashipping transportation within Mexico and toNorth America, and its implementation strategy”,which will be ready in approximately 6 months. Thetender, in which also participated the consultingfirm AT Kearney, was summoned by the GeneralCoordination of Ports and Merchant Marine.HPH indicated that the port authority arbitrarilymodified its master development plan in order tocontinue with the tender of the second terminal.The SCT called the tender for the constructionand operation of the second terminal in LázaroCárdenas in February of this year, and setthe reception of offers for August. The 30-year concession implied developing an area of850.000m2 that could be extended to 170.000m2,and the construction of a specialized containersterminal, which would require an estimatedinvestment of US$500 millions and a capacity tomove 2 million TEUs per year.The development plan of the port allows extendingthe first terminal in three specific phases, and HPH’sargument is that at the time the second tender wasdone, times of execution of the development planwere not respected, which could affect its presentinvestments. Unless the tender is suspended, theport authority will face compensation demands bybidders that have “committed efforts and resourcesin a legally flawed process”, according to HPH.
  27. 27. APM Terminals sign a 30-year concession forthe terminal in CallaoIn its last edition, Container Management informedthat a new contract for the development andoperation of the Terminal Muelle Norte (NorthTerminal) was signed last May 12th by PresidentAlan García and representatives of APM Terminalsand its local partner, Central Portuaria SAC, at thePresidential Palace in Lima.PeruUruguayNews of Latin American PortsLuis Pérez, consultant of IDOM, commented thatone of the decisive factors to be granted the tenderwas the experience of the consulting firm in the seasector and in this type of similar studies in Europe,where developed projects have been the MarcoPolo program and the MEDA Mos. In Mexicothere exists the experience of short sea shippingtransportation in several initiatives: besides cabotagefor oil products, there is the experience of therailway-ship service of Coatzacoalcos to Mobile, inthe United States; the Peninsular Line from PuertoProgreso to Panama City; and the recent operationof the Nafta Gulf Bridge, from Veracruz to Mobile.The purpose of the tender study was to determinethe viability and competitiveness of Short SeaShipping Transportation (SSST) in the Mexicancase, both for inland (cabotage) and foreign tradewith North American countries, for cargos currentlybeing transported by land (road and/or railroad),placing an emphasis on containers. Likewise,SSST routes must be proposed, both cabotageand international routes, for the transportation ofdetected volumes, considering any legal, commercial,environmental and infrastructure restrictions thathave prevented the development of SSST. It willalso include logistics factors and costs generatedby land transportation regarding the movement ofmerchandises indirectly affecting national economy,with the purpose that these, in each case, beredirected to promote SSST.In case the above is viable, the study will establishthe viability of the SSST and will present publicpolicy recommendations for its promotion andinstrumentation, evaluating costs and benefits forproposed measures, suggesting an instrumentationplan to operate detected routes.May - August 2011The ports of the country may be saturated inthe coming yearsAccording to the informative Valor of Brazil, anarticle regarding the economic growth of Uruguayin the last years establishing the dependence onthe economy of the country in relation to Brazil,states that currency revaluation and infrastructurebottlenecks are two of the main threats for thegrowth of the country in the coming years. TheBrazilian publication adds that port matters “raisesfears among the private sector”, detailing that inJune the movement of containers in the port ofMontevideo set a historical record having reached80,040 TEUs, and that the growth for the firstsemester was 45% compared to the same periodof previous year. “We see a saturation of currentstructure for 2015” commented Roberto Mérola,director of Schandy, holding controlling
  28. 28. News of Latin American Portsan expansion project for the port of La Guairain the state of Vargas, which cost will be US$400millions. The expansion will allow the port toreceive vessels transporting up to 6,500 TEUs,which represent an increase of more than threetimes its current capacity. Works will be executedby the Portuguese constructor Texeira Duarte andinvolve the incorporation of 23.7 hectares to theport’s existing area, thus the port will receive 600,000TEUs per year as of 2016, when the project willmaterialize.The Ministry entered into an agreement forUS$400mm for the expansion of the port of LaGuairaThe Ministry of Transportation andCommunications of Venezuela entered into anagreement with the Government of Portugal to startMontecon, the biggest port operator of Montevideowith approximately 200,000 TEUs per year. Oneof the main bottlenecks, according to Mérola, is theexistence of only one dock having a depth of morethan 34 feet. The last tender for the expansion ofthe port that took place last year, had no offers.Congratulations. I share with you that thelogistics matrix is today the big issue.Rodolfo GarcíaExecutive Vice-presidentMaritime Port ChamberValparaíso, ChileCongratulations for the Latinports report!It is very well and will help us a lot to knowwhat is happening in Latin America.Antonio Carlos SepúlvedaPresidentContainers Terminal, Santos BrazilSao Paulo, BrazilMailVenezuelaMay - August 2011
  29. 29. Thanks for the information. Veryinteresting the criteria of the formerMinister of Ports of BrazilIliana GonzálezExecutive DirectorAssociation of Private Port Terminals,ASOTEPGuayaquil, EcuadorI believe – and several persons have toldme – that it was a very interesting interview,as we do not always have the opportunityto publish such a decisive and well-arguedopinion.Catherine SetterfieldInfrastructure EditorBusiness News AmericasChileI really appreciate, above all, beingconsidered an addressee of informationrelated to waterway issues. Much is yet to bestrengthened in the design of solutions thatfavor developing logistics channels by meansof competitive costs. It is the challenge for alland once again receiving relevant informationwill be the best contribution.José QwistgaardGeneral Director Water TransportationMinistry of Transportation andCommunicationsPeruI read with great attention your interestingreport in BNAmericas. I hope your goodadvice is read not only by entrepreneurs thatregularly visit this site, but also by leaders.Inland transportation costs receive littleattention in our region, with the exceptionof Brazil, and few governments have a goodvision of how logistics costs are establishedand most have such partial approaches thatthey do not see the global scene. Every daywe are seeing examples and the saying that‘trees do not let see the forest’ is somethingreal in our region.Antonio ZuidwijkConsultant (Former Murchison)ArgentinaMay - August 2011
  30. 30. With a warm greeting, congratulations foradvancements and achievements, reflectedin the relationship with Hutchinson PortsHolding.Héctor LasernaGeneral ManagerTerminal of Liquid Bulk of Santa Marta,TerlicaSanta Marta, ColombiaSending our congratulations on the job as headof the Latin American Association of Portsand Terminals.Rubens MarkusBrazilian Association of Port Entities andWaterwatys ABEPHRio de Janeiro, BrazilA very interesting report.Fernando RevecoDevelopment and Projects ManagerUltramar GroupSantiago, ChileAn excellent report, congratulations. Youhave worked really hardDomingo ChineaGeneral ManagerSociedad Portuaria Regional de BuenaventuraColombiaWe are pleased that you continue sending ussuch good news.Lorena CastañedaProject Manager & Marketinge-Technologies Solutions Corp.West Palm Beach, FloridaUSAThanks for the bulletin; very interesting.Edgar HigueraExecutive DirectorChamber of Logistics ServicesNational Association of Entrepreneurs ofColombiaBogotá, ColômbiaI appreciate your message with the informativebulletin of Latinports, with matters very wellanalyzed and circulated among the Unions ofPort Operators affiliated to our federation andto the Management Manpower Bodies of theBrazilian port community.William Cady Jr.Executive DirectorNational Federation of Port Operators,FENOPBrazilMay - August 2011