Latinports Newsletter January-April 2012

January-April 2012
Year 4, No. 1
Latinports Mobile:
A New Tool
Brazil, Sixth Economy of the World and
Mexico After Seventh Place;
Chile, Peru and Colombia: Emerging
Economies in the Region
Will Latin America be the leader of
the Recovery of World Economy?
See more... See more... See more...

CONTENTS
January
April
2012
Upcoming Events
LatinAmerican Port News
Mail
Shall LatinAmerica be the leader of the
Recovery of World Economy?
China’s footprint in LatinAmerica: Help or Threat?
Constitutive Treaty of theAlliance of the Pacific:
Mexico, Colombia, Peru and Chile
World Shipping Crisis: Hamburg Süd Unifies
Services in SouthAmerica with MSC and
Maersk Increases Freights
Empresa Portuaria Nacional de Nicaragua,APM
Terminals Moín of Costa Rica and PortMagdalena
of Colombia Enter Latinports
Brazil, Sixth World Economy, and Mexico after
Seventh Position;
Chile, Peru and Colombia: Emerging
Economies in the Region
Obituary: Paul Richard Klien, Sep.30.1914 –
Mar.06.2012
Latinports Mobile:
ANew Tool
Editorial
Cover
Latinports Mobile in iPad,
designed by Miroamarillo
Studio of Canada.
Design
Julian Pineda
www.miroamarillo.com
studio@miroamarillo.com
Conference of the Executive Director of Latinports
at theAndean & CentralAmerican Infrastructure
Summit in Bogotá

January-April 2012
S Editorial
It is with the deepest regret that we register the death last March 6, of the
illustrious Brazilian businessman by adoption, Paul Richard Klien, at the
age of 96, father of the chairman of our executive committee, Richard
Klien. His legacy shall be an example for the present and future generations,
precisely when Brazil, country in which he greatly believed, has now reached
the place as the sixth economy of the world, displacing Great Britain, as was
released by coincidence the same day of his departure, by the London-based
Center for Economics and Business Research (CEBR).
As a memorial tribute to Paul Richard Klien, we highlight in this issue the
surprising recovery of Brazil and Latin America, in general, and the great
perspectives of the region, as recognized by organizations as important as
the World Trade Organization, the World Economic Forum, the World
Bank, the International Monetary Fund, the Inter-American Development
Bank, the Economic Commission for Latin America and the Caribbean –
ECLAC, and the Latin American-Asia Pacific Investment Forum, as well as
well-known private entities specialized in regional and global level markets
such as Business News Americas, Goldman Sachs, Bulltick Capital Markets
and Bloomberg Markets Magazine, and prestigious economic magazines as
Time, among others. This, despite little planning and even yet the still scarce
government support to the private sector in many cases, has been seen as
one of the principal barriers for the development of infrastructure initiatives,
where ports and internal transportation logistics have to play a major role.
This is the time of Latin America and we must know how to take advantage
of this. Living up with what happens in the region and disclosing it to the
world, we are pleased in this issue to present Latinports Mobile (motif of our
cover), a development of Miroamarillo Studio of Canada, through which the
association wishes to offer the port community all information possible on
our sector and the activities related to Latin America. Through this state-of-
the-art technology, web applications and a new webpage, Latinports pretends
to involve the port sector in general by providing updated information in the
most practical way possible, being able to consult in mobile devices (iPhone,
iPad, etc.) permanently updated information. In this way, Latinports becomes
the only port association worldwide offering this service.
Until the next!
jpalacio@latinports.org
www.latinports.org
Julian Palacio
Executive Director

January-April 2012
OBITUARY: PAUL RICHARD KLIEN
30.09.1914 - 06.03.2012
Paul Richard, father of the President of the Executive Committee of Latinports Richard Klien,
Believed in the immortality of the soul.He hoped that, in the transition, we did not let sadness invade our
hearts!
He asked that in the cremation ceremony, occurred only among his relatives,
Was read the poem LIFE of his friend Gilbert Carpenter.
I do not die.,
I only pass the portal of a new and brighter view,
A broader, sweeter vision of eternity,
Beyond earth´s sorrows, pain and fear.,
So do not grieve for me but let me go,
And make your last farewell, joy for my joy.
I only wake to see my dearest wish fulfilled---
The blessed good revealed. I´ll wait your coming;
Do not haste to leave your tasks till done,
Send from your life the perfume of good deeds
Into a world of sin and selfishness.
Then, when you reach that last great foe called death—
That last obstruction to be overcome—
You´ll meet it with a courage high and true;
Backed by your faith in God, your trust and love.,
Then, as the mist before the sun melts and is gone;
That great deceiver, death—which only hides
From timid hearts God´s heaven here and now—
Will also melt away, and you will find
My love, your joy—an endless heaven divine.

January-April 2012
By means of this leading technology, latinports.org is
pleased to present its new webpage, designed by the
specialized company Miroamarillo of Canada, www.
miroamarillo.com
Compatible with our mobile devices, the new
page, pioneer of the organized port environment
worldwide, is designed to provide to all its users
updated information on the port industry of the
region, and the most remarkable global issues.
All these advantages are at your disposal in three
languages (Spanish, Portuguese and English) and
may be seen in your iPad by only connecting to the
Internet.
As we are aware that technology continues to
advance, our following step shall be to provide
as soon as possible this same information on
your mobile phones (iPhone, Android, Samsung,
Blackberry). Our objective is that the community
may participate more actively in the course of
their activity and may centralize in the future all
information in a blog, with forums, discussion
groups and virtual business tables, for associates to
benefit the most of the leading technology we offer.
You may find the following information in the new
page:
-Special reports with the most recognized figures of
the port industry.
-Short news on the industry and other news related
to Latinports.
-A list of recent and future events with links to the
most representative lectures to keep you updated.
-List of Latinports members including basic data
and physical location, and a link with detailed
information to refer you to the company of your
interest.
-Contact list and information on Latin American
port authorities.
-Historical relation of our informative bulletins,
which may be consulted directly.
-And more….
Your participation and comments will be essential
for this project in order to continue growing and
offering more and better updated information.
Welcome to this new era.
LATINPORTS MOBILE:ANEW TOOL

January-April 2012
According to emol.economia, which at the beginning
of March published its last data on economic
growth, states that Brazil has officially become the
sixth economy of the world, relegating the United
Kingdom to the seventh place, as was officially
confirmed by the Center for Economics and
Business Research (CEBR). The London-based
CEBR predicted last December upon publication of
the annual table of countries according to the size of
their economies, that Brazil would unseat the United
Kingdom regarding volume of its Gross Domestic
Product (GDP), which has now been confirmed.
“According to figures given and informed today
and applying current prices and a medium rate of
exchange, Brazil is confirmed as the sixth economy
and the United Kingdom moves to the seventh
place”, was declared to EFE by Tim Ohlenburg,
chief economist of this center, which is now
preparing its next table to publish in a few months
time.
According to the CEBR list of December, which
must now be updated with the data of each country
in relation to 2011, Brazil would come after the
United States, China, Japan, Germany and France, in
that order. The Government of Brazil informed that
Brazilian economy grew 2.7% in 2011, generating a
total GDP of US$2,469 billions. This amount may
be compared to the British GDP of 2011, coded
in US$2,42 billions. “this is a natural movement as
Brazil has a considerable population, large natural
resources and a strong industry; it is a country
destined to continue growing”, stated Ohlenburg.
Despite the growth of Brazil in 2011, it was much
lower than that entered previous year of 7.5%,
which reflects an increase in costs and lack of
competitiveness of some sectors of the Brazilian
economy. On the other hand, the British economy,
weakened as of the credit crisis of 2008, continues
slowing down as a result of the public expense cuts
applied by the Government to reduce deficit and by
the impact of the sovereign debt crisis in the euro
zone. In 2011, the British Gross Domestic Product
only grew 0.8%, although the last quarter showed a
contraction of 0.2%.
BRAZIL, SIXTH ECONOMY OF THE WORLD
AND MEXICOAFTER THE SEVENTH PLACE;
CHILE, PERUAND COLOMBIA:
EMERGING ECONOMIES IN THE REGION

January-April 2012
Mexico will be the Seventh Highest Economy
of the World in 2020: Goldman & Sachs
Mexico will become the seventh largest economy
of the world in 2020 and will contribute 7.8% to
the global Gross Domestic Product, higher than
Russia and India, was affirmed by the Director of
Investment Funds of Goldman Sachs, Jim O’Neill,
at a meeting with British investors, in accordance
with the report of CNN Expansion, and in
reference to the business forum ‘Mexico Week’ held
in London last 12 March.
The creator of the BRIC (Brazil, Russia, India and
China) economy concept affirmed why Mexico was
not included in this block of emerging countries a
decade ago, and it is because it was not growing at
the rhythm of China or Brazil. “During the last ten
years the BRIC economies have contributed one
third to the growth of the global Gross Domestic
Product and represent one fourth of world
economy”, according to Goldman Sachs, but the
attention is changing towards the growth markets.
The executive states this year Mexico will grow
3.6%, at the same rhythm as Brazil, and in 2013 its
economy is expected to grow 3.8%.
In the forum organized by the Mexican Chamber
of Commerce in Great Britain and its counterpart
in Mexico, was said that China will continue
contributing half of the world Gross Domestic
Product in the next decade, but there are eight
more countries –including Mexico– that will
contribute to global growth. He explained there are
15 variables to measure growth, among which are
the laws, corruption, political stability, fiscal deficit,
education, investment, Internet, mobile phones,
computers and economic opening, among others.
However, he recognized that Mexico must continue
promoting reforms to the energetic sector as there
is “a perception that the way in which oil has been
used has not been so beneficial” for the country.
Regarding insecurity matters, O’Neill stated that
Mexico must work to improve its image as the
tendency is “to attract attention implying that (crime
and insecurity) are dominating every aspect of
everyday life”.
On February 16, the National Statistics and
Geographic Institute (INEGI, in Spanish) informed
that the Mexican economy grew 3.9% during 2011, a
figure lower to the increase of 5.5% entered in 2010.
The 3.9% rate is lower since Mexico came out of a
deep recession in mid 2009, and was thus affected
by a consumer deceleration and a fall of agricultural
activity.

January-April 2012
Peru and Chile are considered the third and fourth
emerging economies with the greatest projection
worldwide, after China and Thailand, according to
a ranking prepared by the magazine Bloomberg
Markets, was informed by Gestión (Management).
Peru has grown an average of 5.7% per year during
the last decade, and will benefit of an increase in
consumer expense in South America, stated the
executive president of the American company
San Mateo, Mark Mobius, according to Semana
Económica.
The leader of the ranking of the most promising
emerging markets was China, followed by Thailand,
which attracts investors with its agricultural wealth
and labor workforce. The document was prepared
based on investment factors, growth forecasts of the
Gross Domestic Product (GDP) and the facility to
make business in these nations.
Today the world is understanding that Colombia is
one of the most dynamic democracies, also with a
very dynamic economy, stated President Juan Manuel
Santos to Time, publication that qualified him as the
Latin American leader to follow and the country he
directs as a model. During his presidency, Santos
has tried to position Colombia as a key international
player and as a regional leader, and the cover of Time
magazine becomes a further step in that direction.
The publication inquires if Santos is the new leader
of the region, as upon Lula da Silva leaving power
there seems not to be any other Latin American
leader that is occupying this role as is being done by
the Colombian President (however, Time states that
Dilma Rousseff may also assume that position).
Peru and Chile Among the Most Promising
Emerging Economies
President of Colombia, Cover of Time in April:

January-April 2012Mayo - Agosto 2011

January-April 2012
This entire optimistic panorama has caused
Colombia to be internationally perceived as an
emerging high level economy, according to a study
of the Center of Economic Studies of the National
Association of Colombian Entrepreneurs (ANDI,
in Spanish), published in the January-February
magazine of the association. The study says that
during the last years in Colombia important changes
have occurred in economic, political and social issues,
changes the country may show with conclusive
figures:
In the last ten years, the country moved from a
GDP of less than US$100,000 million to almost
US$335,000 millions; the GDP per capita increased
from US$2,000 million to more than US$7,000
million; foreign trade increased fourfold reaching
figures that this year will be more than US$110,000
million; Direct Foreign Investment increased
from US$1,800 million to levels at present close
to US$14,000 million; and the macroeconomic
environment is characterized by indicators close to
international parameters.
Some examples showing this situation are:
recognition of international markets as a relatively
low-risk economy, which resulted in the recovery
of the investment grade of the three great risk
rating companies, after having lost it for more than
a decade; its position within the region with Brazil,
Chile, Peru and Mexico as a leading economy; and
classification of the country in the group CIVETS
(Colombia, Indonesia, Vietnam, Egypt, Turkey and
South Africa), the group of emerging countries
with the best recent performance and the best
perspectives in the years to come.
Based on statistics of the World Trade Organization
for the 70 economies representing 90% of world
trade, exports increased almost 20% between January
and October 2011, compared to the same period
of previous year, worth mentioning the growths of
India (50%) and Colombia (42%).

January-April 2012
WILL LATINAMERICABE THE LEADER OF THE
RECOVERY OF WORLD ECONOMY?
Latin America Surprises the World: IDB
“Since the last Summit of the Americas held almost
three years ago in Trinidad and Tobago, Latin
America has surprised the world because of its
rapid upturn after the global recession”, wrote the
president of the Inter-American Development Bank
– IDB, in newspaper El Tiempo, on the occasion
of the Summit of the Americas that was being
held in Cartagena in mid-April, with the attendance
of almost all the presidents of the continent. He
continues saying: “We have not only grown more
than industrialized countries but have also reduced
poverty to a historical minimum. Today we are,
altogether with Asia, a motor of world economic
recovery. Beyond high prices and sustained demand
of our principal exports of commodities, the good
performance of our countries is also the result of
two decades of difficult reforms and a cautious
macroeconomic management. Therefore, Latin
America is seen as a region with an extraordinary
perspective of progress”.
The president of the IDB also wrote that “if our
recent economic average growth is maintained, in
less than one generation we will have a middle class
of 500 million persons, equal to today’s European
Union population”, adding that “whoever wants to
position in this market must start today to prepare
their strategic plans” but that “our government may
not face by themselves popular demands without
risking fiscal discipline” and for this reason “the
private sector must be part of the response, entering
alliances with the public sector”.
Luis Alberto Moreno, President of IDB
Inter-American
Development Bank

January-April 2012
IMF: Latin American Outlook is Promising
Latin America continues its path of sustained
economic growth, but the authorities of the
region have an ever more difficult task to prevent
overheating and overcome the effects of the
European crisis, stated the International Monetary
Fund – IMF in mid-April, quoted by Reuters.
The IMF projection for Latin America will grow
3.7 percent this year and 4.1 percent in 2013, figures
representing a slight increase compared to January
estimates, that showed expansions of 3.6 and 3.9
percent for those years. The region would expand
to rates doubling those foreseen by developed
economies, even in case of a moderate growth in
the rhythm of 4.5 percent seen in 2011, according to
estimates of the IMF. These projections show that
the region has been capable of navigating through
risk among waves of aversion as a result of the
European crisis and the strong flow of capitals that
put pressure on their currencies. “This combination
of policies and resistance facing the fluctuations in
global confidence make this outlook promising”, said
the Fund in its Global Economic Outlook.
However, the institution said that sharp turns in
financial markets are complicating the work of
authorities that must “remain alert to possible
negative currents from Europe and the increasing
currents of capital flows”.
Shortly before, in February, experts of the 2nd
Forum of Investors of Latin America and Asia-
Pacific highlighted in Hong Kong that “economic
diversification and rapid growth of the middle
class in Latin America drove development without
depending on external economies”. This event was
attended by directors of Latin American and Asian
investment companies to establish businesses, as
informed by the agency EFE. Brazil, followed by
Chile and Colombia, is leader of this economic
development that will accelerate as of the second
semester of 2012, experts predict.
On the other hand, according to the executive
director of emerging markets of CIBC World
Markets, John Welch, Latin America is perfectly
positioned for the next 10 years as a result of its
good macroeconomic policies and a considerable
growth of the middle class. We are at a part of the
cycle where internal demand is more important
than external demand, which allows being more
independent of external flows, explained Welch.
Diversification of its industries has enabled Latin
America to better survive the economic crisis and
take advantage of the global economic slowdown by
increasing its exports, explained lecturers during the
first session of this Latin-Asian forum. However, the
low savings index of Latin countries is yet one of the
outstanding accounts of the region, stated Welch.

January-April 2012
For the World Economic Forum, Latin America
is an Oasis of Stability
The Region has Many Strengths but is not
Immune: World Bank
Latin America was identified as an “oasis” of
stability, growth and opportunities during the World
Economic Forum in Davos (Switzerland), compared
to the general uncertainty because of the financial
and economic crisis faced by Europe and the
United States. Unlike previous years, investors and
businessmen today look first to emerging countries
than to great world powers. Proof of this is that in
the gathering of the most important and powerful
at Davos, Latin America stood out as an investment
magnet and a business center.
From the perspective of Lars Moller, World Bank
economist consulted by Dinero.com, the truth is
that the region has many strengths to face external
shocks, but worth mentioning is that the region is
not immune to a possible global economic crisis and
its heterogeneity must be taken into account. The
following is the explanation:
During the last decade, the Latin American and
Caribbean – LAC – regions have been improving
its immunologic system, which has made the
region much more resistant to external shocks
than in the past. This was the legacy of a silent
revolution in macro-financial policies, in particular
the monetary policy, but also the financial and fiscal
supervision policies. These measures caused the
traditional factors of external amplifying shocks
(currencies, weak fiscal processes and/or fragile
banking systems) to absorb shocks through flexible
and credible currencies, solid public finance and a
capitalized banking system with liquidity. All this as
a whole with a decrease in currency mismatches,
and thanks to the integration with safer international
financial markets, has enabled the region to develop
monetary, fiscal and credit counter-cyclic policies
during the global crisis, allowing it to leave the crisis
without deteriorating balance sheets and bouncing
since then in a quick and strong manner. However,
if the situation in Europe strongly deteriorates, LAC
countries may suffer adverse effects and possibly
present vulnerabilities that until now were latent.
Besides the good policies during the last decades,
the relatively successful performance during the
crisis of 2008/09, LAC was assisted by the fact
that trade patterns of a number of countries of
the region has slightly displaced towards emerging
market economies (China in particular and Brazil
in the region), thus reducing direct exposure to
the epicenters of the crisis. Also, because of the
facts that demand of basic exported products by
LAC countries remained high as a result of high
Chinese demand, despite the global crisis. “Finally,
I would like to add that although Latin America
did well in the last crisis, initial conditions of today
are different to those of 2007/08 and the growth
motor of China may not be in condition to offer
a counterweight to the recession in Europe or
the slowness in the United States as was done in
2008/09”, emphasized Lars Moller of the World
Bank.

January-April 2012
For Alberto Bernal, Research Director of Bulltick
Capital Markets, the financial sector of the region
had much more strict rules when the 2008 crisis
broke out: banks of the region had a base of very
stable deposits, and leverage was relatively low.
Therefore, banks did not have to go out to sell their
overdue portfolio for their capitalization in the short
term (they did not have to implement the “fire sales”
as had to be done by the banks of Wall Street during
2008 and 2009).
The region has implemented pension reforms for
some time now, which changed the structure of
the system from one based on inter-generational
generosity to a system based on individual
capitalization. This is important for long-term fiscal
stability and reduces the risk that debt markets may
start to attack regional assets (as is being done against
European countries).
The experience is showing that systems with
fixed exchange rates increase the virulence of the
financial crisis within the respective real economies.
Latin America has, with little exceptions, systems
of a variable type of exchange, fact that helped to
safeguard the fall of international trade through
material depreciations of the exchange rate.
Experts of the Economic Commission for Latin
America and the Caribbean (ECLAC) state that Latin
America is today in a privileged situation amidst the
crisis faced by some European countries. Especially
worth noting was the control of public finance and
the sustainability of the debt, regional assets that
must be maintained. “Quality of public finances has
improved in Latin America, public debt has been
drastically reduced and its profile and composition
is more balanced; fiscal income and average tax rate
increased, the decrease in payment of interests has
generated important fiscal spaces, and social public
expense has been maintained”, stated the Executive
Secretary of ECLAC.
Latin America was Prepared for the Crisis:
Bulltick Capital Markets
Latin America is Today in a Privileged
Situation: ECLAC

January-April 2012
With world economy moving at a slow pace, retail
companies are turning on their radars to detect
where opportunities are and the GPS is directed
to Latin America. According to information of
Euromonitor International, quoted by Clarín of
Buenos Aires, in 2011 real sales growth in the region
was 4%, the highest worldwide. Surveying shows that
Latin America is expanding at a greater rhythm than
Asia Pacific, the previous retail trading Mecca, and
is now “the new motor of growth for global retail”.
There exist three combining factors: rising economic
activity, more persons parting from poverty and
integrating to the middle class, and greater and better
access to credit in some markets, as is assumed by
Euromonitor. The expense per capita in the area of
retail trade was US$1,700 in 2011, whereas in Asia
Pacific this indicator was US$900. In Eastern Europe
expense is higher, US$2,300, but the differential jump
is given in Western Europe and the United States,
where each person disburses an average of US$6,000
a year.
Euromonitor forecasts point out that the retail sales
will increase this side of the world between 3.5 and
4% per year, from here to 2016. “Brazil and Mexico
are responsible of the greater majority of these new
sales through new channels such as pharmacy chains
and wholesalers”, says Jon Wright, executive of
Euromonitor.
Despite cuts to projections of growth of Latin
American economies for 2012 as a result of the
turmoil of the global crisis, the infrastructure sector
of the region has a positive perspective for this year,
as shown by the 2012 Survey on Infrastructure of
BNamericas, developed for experts and executives
of the industry between November and December
2011. A consensus is evident regarding the fact
that levels of risk-return in Latin America for
infrastructure investments promise being more
attractive or, at least, equal to other emerging markets
in 2012. This optimistic perception is also nourished
by the confidence of the majority of those surveyed
that the deterioration of the international economic
environment will not affect the infrastructure
projects of the region. But concerns also exist.
The lack of planning and government support
was mentioned as one of the main barriers for
developing infrastructure initiatives, a deficit more
evident among surveyed individuals from Mexico,
who are also the most pessimistic in relation to
the possible impact of the global crisis. According
to the survey, countries with greater investment
opportunities are: Brazil, Colombia, Chile, Peru and
Mexico.
Latin America is the New Paradise for Retail
Sales: Euromonitor
A Positive Perspective for the Infrastructure
Sector of the Region:
Executive Summary of 2012 Survey of Business
News Americas

January-April 2012
THE FOOTPRINT OF CHINA IN LATIN
AMERICA: HELP OR THREAT?
Since Deng Xiaoping formulated its policy of the
“four modernizations” in 1978, China is known to
the world as “the motor of the economy” because
of the sustained growth it has maintained over the
last 30 years. The fact is these four modernizations –
agriculture, industry, technology and defense – were
the result of “a considerable increase in developing
productive forces and, in the mid-term, the economy
that obliged migration of peasants to the city to
control the growth of its population”. So was stated
by the academician of the University Francisco
de Victoria of Spain, Gloria Claudio, who added
that China has been overcoming for several years
the Gross Domestic Product (GDP) of the great
powers, having reached 11.4% per year, a percentage
that represents the fifth consecutive figure of those
countries that have surpassed 10% and the highest
of the world in the last 20 years. A scenario that was
also described in detail in her article “China, 30 years
of economic growth”.
It seems some believe this growth does not stop, as
according to the study Power Transitions: Strategies
for the 21 Countries, of the University of Claremont
(United States), the economic expansion of China
will firmly continue during the years to come and
will displace United States as the first world power
in the first half of this century for Latin America
and the Caribbean, as it is considered the second
most important business partner of the region.
For Enrique Dussel, professor of Universidad
Autónoma of Mexico (UNAM), the presence of
China in Latin America will increase ever more
as “the region has strong economic foundations
that have maintained it unaffected in current crisis.
Besides, worth noting is the high and increasing
commercial deficit of the region with China that
amounted to 50,000 million dollars in 2008, caused
by imports”. The academic added that transnational
Chinese companies have demonstrated diverse
strategies to enter and remain in the Latin American
market. “In the first place, the central Chinese
government is constantly diversifying its reserves
in energy and commodities for the future, and in
second place, thanks to treaties and agreements
signed by the region with China, the Asian country
has accomplished important investments without
limitations, as has been done in Brazil, Peru and
Mexico”, emphasized Dussel.
However, the boom of the commercial exchanges
between countries of the region and China has not
been equal for all. Venezuela and Central America
have been affected by imports of manufactured
products and are not being displaced from the

January-April 2012
The demand for Latin American commodities by
China will help the region to overcome the effects
of the global crisis although it yet implies great risks
despite last advancements in Europe, stated the
authorities of the International Monetary Fund the
beginning of March in a seminar on macroeconomic
policies in Punta del Este, Uruguay, reported the
agency Reuters.
China, and its voracious appetite for agriculture
commodities and metals exported by the region, has
contributed so that Latin America may better resist
than on other occasions the present turbulences in
market of the United States. In a communication,
the coeditor of the book “China in the 21st Century:
Economy, policy and society with an emerging
power”, José Luis León-Manríquez, said that “China
has occupied some empty spots left by the United
States, as Washington is more concerned with
other matters, such as the war against terrorism, its
interventions in Afghanistan and Iraq, the nucleation
of North Korea and Iran, and the need to rebuild
the Atlantic Alliance”. León-Manríquez added that
although the presence of China in Latin America
does not seem to come from a political strategy
seeking to displace the United States as regional
power, it is also foreseeable that while the energetic
sources continue lacking and the world’s oil reserves
decrease, rivalry between the first and second crude
oil consumer will increase. This battlefield is not only
Latin American, but also of the Middle East, Russia,
Africa, the Caspian and any other place with oil.
Other countries that have benefited from the
presence of China in the region are Chile, Brazil,
Argentina and Peru, thanks to the positive
commercial balances and the increase of direct
investment. In the column of opinion “Towards a
greater proximity China-Chile”, the director of the
Institute of Latin American Studies and professor
of international economy at the University of
International Business & Economics (China), Zhao
Xuemei, said that in the case of Chile, the accelerated
growth of exchange of products is because of
four principal reasons: mutual complementariness
of exchanged products; the importance of the
economic opening; the coincidence in the application
of strategies to diversify external markets by both
countries; and a very stable relationship of both
nations in the political environment. Xuemei added
that between China and Chile exists a mutual need
of products such as fishmeal, agro-feed, forestry and
wine sales that are considered very important for
the economic growth of China. “In the meantime,
Chinese exports to the South American country
concentrate basically in the sector of manufactured
goods, such as electrical appliances and computers,
among others. In this scenario, the bilateral
commerce presents favorable results for both parties,
with the consequent economic and commercial
approach”, she stated. The footprint left until now by
the Asian giant in different Latin American countries
is clear and ever more notorious; and despite today
its growth projection with the global economic crisis
is the lowest in eight years according to the report
presented by its own Prime Minister, Wen Jiabao,
China will continue looking at the region as one of
its principal future commercial partners.
Chinese Demand will Help Latin America to
Overcome the Crisis

January-April 2012
the developed world. “China will continue being a
fundamental element in the demand of our products;
news are encouraging”, said the IMF director for the
Western Hemisphere, Nicolás Eyzaguirre, in a press
conference. However, the official recommended
to the region not to overlook the entry of foreign
capital, as it is a latent threat in times in which the
United States and Europe maintain their interest rates
low and a wave of capitals arrives to Latin America
seeking high returns.
Also, the region must be vigilant in the face of the
forecasts that anticipate a deceleration of Chinese
economy. In this line, the deputy manager of the
IMF, Min Zhu, said that if the situation in Europe
should worsen and Peking does not adopt the
necessary fiscal measures, growth of Chinese
economy could go back up to four percentage
points. Instead, if the necessary measures are applied
on time, this deceleration would significantly shorten
to one percentage point, he explained.
According to Educamericas, the rise of China as
commercial power has caused concern in view of
the fact it may become a threat to exports from other
countries. Several studies have found that actually
there could be adverse effects, mainly for Mexico
and Central America. However, there could also be
positive effects resulting both from the high growth
of China, with annual average rates higher than 9%,
as to the fact that it concentrates one fifth of the
world population, which causes this market to really
represent a commercial opportunity.
A study developed by the Center of Economic
Studies of El Colegio of Mexico for the School of
Economics of the University of Chile, analyzed
the effect of China through different channels: as
a market, as a competitor, and as a supplier. As a
market, results obtained show that all groups of
Latin American countries are elastic in presenting
for their exports the entry-demand of China equal
or higher to those of the remaining regions of the
groups of countries being considered, with the
exception of the countries of East Asia. This implies
it is not possible to speak of “lost opportunities” in
the Chinese market for Latin America.
This analysis allowed evaluating how China became
a serious competitor for Latin American exports.
Opposite to that expected according to the emphasis
of certain press on a “Chinese threat”, on the
aggregate it was not found that the imports of
Latin American commercial partners made from
China have displaced the imports they do from
Latin America. Upon analyzing the effect of China
as supplier, only a positive effect was found for
the exports of countries from the South Cone: an
increase of imports from China is associated with
an increase of exports to third party markets. This
analysis was done in an aggregate level and as such
significantly permits to consider general balance
effects. For example, a country may lose markets
in certain sectors because of the larger Chinese
presence as competitor, but may win markets in
other sectors both because of economic integration
and to the presence of inputs and capital goods at
lower costs.
A Chinese Threat to Latin American
International Trade?

January-April 2012
TREATY CONSTITUTING THE
ALLIANCE OF THE PACIFIC:
MEXICO, COLOMBIA, PERU AND CHILE
Chile, Mexico, Peru and Colombia have given the
final push to the Alliance of the Pacific, having
accomplished during an unprecedented virtual
summit of its presidents last March 5th, an
agreement on the treaty constituting this initiative for
regional integration, informed the Diario Financiero
DF of Chile. “We have realized the fundamental
points in order to sign the treaty that brings to life the
Alliance of the Pacific”, stated Colombian president,
Juan Manuel Santos, who was the leader of the
videoconference from the Executive Headquarters
in Bogotá. Santos and his colleagues of Mexico,
Felipe Calderón; Chile, Sebastián Piñera, and Peru,
Ollanta Humala, have virtually met to put an end to
the procedures towards establishing the Alliance of
the Pacific, an initiative in which their countries have
been working since 2011. The appointment, the third
of this mechanism of integration in the making, also
had as observers the presidents of Panama, Ricardo
Martinelli, and Costa Rica, Laura Chinchilla.
During a videoconference of just one and a half
hours, the four presidents arrived at an agreement on
“three fundamental points” for the establishment of
the Alliance of the Pacific that had been identified
last December 4 during a Summit in the Mexican
city of Mérida. There, Piñera, Calderón, Humala
and Santos agreed to give preference to matters on
the movement of persons, businesses, migration
facilitation, commerce and integration, and services
and capitals that were left in the hands of “technical
groups”.
The Alliance of the Pacific is a proposal of a
commercial block, an initiative of the former
president of Peru, Alan García, who at first extended
the invitation to his counterparts of Chile, Colombia,
Mexico and Panama with the purpose of deepening
in the integration between these economies and
defining joint actions for commercial bonds with
Asia Pacific, based on the existing bilateral trade
agreements between the member states. The
intention of this alliance is to encourage regional
integration, and also a greater growth, development
and competitiveness of the economies of their
countries, and at the same time to progressively
advance towards the objective of accomplishing
the free circulation of goods, services, capitals and
people.
Presidents Martinelli of Panama, Piñera of Chile, Calderón of México,
Santos of Colombia and Humala of Peru

January-April 2012
(Predictor of the World Financial Crisis in 2008)
ACONCAGUA BIOCEANIC CORRIDOR
(CHILE-ARGENTINA):
VIABILITY TO BE DETERMINED IN
SEPTEMBER
Segunda online of Chile informed last March that
Presidents of Chile, Sebastián Piñera, and Argentina,
Cristina Fernández, agreed to continue the evaluation
process of the technical studies required in relation
to the project of the Aconcagua Bioceanic Corridor
and its 52-km railway tunnel between the Andes
and Mendoza, thus having given instructions to
the binational entity analyzing these documents
to determine, within a 6-month term ending next
September, the feasibility to develop works. Likewise,
they announced that to speed up the process, the
binational entity shall start preparing a base proposal
for a call to bid for companies interested in the
project.
iThe above is part of the Joint Declaration signed by
both presidents during the official state visit to Chile
of the President of Argentina, the central objective
being strongly advancing in the projects of physical
and commercial integration between both nations.
“The Aconcagua Bioceanic Corridor and its
railway tunnel at low altitude have given a crucial
step towards realizing the announcement done by
the presidents of Chile and Argentina. Expected
objectives have been accomplished, which
encourages with greater force to expect the call
for bid for the binational works”, expressed Hugo
Eurnekian, vice-president of the Argentinean
company Corporación América, that altogether with
Empresas Navieras of Chile, Mitsubishi Corporation
of Japan, Geodata of Italy and Contreras Hermanos
of Argentina, have proceeded with the project
entering a private investment of more than US$3
billion. Eurnekian added that “President Fernández
gave great support to the low altitude tunnel”, in
reference to the speech of the President last night
at a dinner in her honor, where she stated that “the
dream of our Liberators San Martín and O’Higgins
will come true when we will be joined together by
the physical integration of the tunnel under the
mountain range, thus leaving in the past the old
paradigm of Argentina in the Atlantic and Chile in
the Pacific”.

January-April 2012
WORLD SHIPPING CRISIS:
HAMBURG SÜD UNIFIES SERVICES IN
SOUTH AMERICA WITH MSC
AND MAERSK INCREASES FREIGHTS
As of January, Hamburg Süd unified with the
Mediterranean Shipping Company MSC its services
in the route Mediterranean Sea-East Coast of South
America, thus both companies now have eight
vessels with a capacity of 5,900 TEUs (seven of
MSC and one of Hamburg Süd). The restructuring
of these lines was necessary, according to Hamburg
Süd, because of existing market conditions, affected
greatly by a greater offer of sea transportation in
relation to demand and to the consequent reduction
in freights. Let us remember that last November,
as a result of the world crisis, CMA had already
associated with CMA-CGM for two years on their
traffic between Asia, Northern Europe, South Africa
and the South American routes, effective as of this
month of March.
On the other hand, Maersk, the principal shipping
line of the world holding 16% of the market is
reducing its fleet in 9% and increasing freights (in
Brazil, for example, average increase is of 30% for
different destinations such as Europe, Asia, Middle
East and the United States, which will most surely
occur with the other Latin American routes). The
increases are the result of its tariff restructuring
policy seeking for a profitable business after a year
2011 in which the company entered losses for
US$602 million in its global operations.
“2012 will be a critical year for world navigation”
stated to Valor the general director of Maersk in
Brazil, Peter Gyde, who also added that currently
at world level almost 6% of container vessels are
standing and that in the beginning of 2011 this
percentage was almost 12%.
Fleet reduction by Maersk will be facilitated by
an agreement of shared vessels with the French
container company CMA CGM, both companies
merging a number of their services, some of them in
Latin America.

January-April 2012
In March issue the editor of Container Management,
Geoff Adams, stated that “once more, the shipping
lines are looking to reduce capacity as some markets
are slipping away”, and he quoted Neil Dekker,
author of the quarterly Container Forecaster of
Drewry, who last November predicted in this
publication that an excess capacity in key routes
would cause that some containers shipping lines
would not cover costs.
In confirmation of the latter, the NOL Group
announced in February a net loss of US$478
million for 2011, thus causing that the executive
director of the Group, Ng Yat Chung describe
the performance of containers transportation as
disappointing. “Excess capacity and higher fuel
costs have negatively affected the entire containers
transportation industry. We are urgently resolving
costs and all the other factors under our control
to improve our performance,” he said, adding that
despite recent improvements in freight rates, results
are still uncertain because of global economy.
The company recognized that the containers
transportation industry continues facing an excess
capacity and that if these conditions should continue,
financial performance will continue being weak.
The last and ambitious plan to rescue the Eurozone
and rescue Greece has been received by many with
caution, instead of seeing it as the “start-up” needed
by European economy to return once again to a
real growth, which increases the possibility of a
return travel for the stability of the region, which
could be seen by the commerce of Asia-Europe
routes operating below average during a considerable
time. Adding the spectrum of the first ten Triple-E
(18,000 TEU capacity) vessels that will enter the
horizon in the year 2013-14, one could ask if
rebalancing offer over demand will be enough and
see if the lines liberate from the worst, or if this is
just the beginning of more in the future. This is what
Dekker had to say in November: “The largest sea
transporters are looking for scale economies with the
ever bigger super post-Panamax vessels, but in doing
this, the industry has a great risk of introducing too
much capacity at the same time and ruining the
already fragile balance between supply and demand”.
Editorial of Container Management on the Difficulties of Shipping Lines

January-April 2012
Upgrading port terminals is the challenge assumed
by the government of Nicaragua since January
10, 2007, convinced it will emerge in front of its
strongest competitors of the Central American
region. More information in www.epn.gob.ni
The president of EPN, Virgilio Silva vsilva@epn.
gob.ni presented the Monkey Point port project in
the Caribbean, at the Andean Infrastructure Summit
held the end of March in Bogotá.
CWith an investment of almost US$1,000 millions
and a 33-year concession that started last year
when the government of Costa Rica awarded the
construction and operation of the Terminal of
Containers Moín – TCM, the Dutch multinational
APM Terminals will build in Limón, Costa Rican
Caribbean, a breakwater of 2.2 km to counteract
weather conditions that prevent the normal
operation of a modern port. Dredging will also be
done by APM Terminals and the access channel
now 10.5 meters deep will be 18 meters deep, which
EMPRESA PORTUARIA NACIONAL OF
NICARAGUA, APM TERMINALS MOÍN
OF COSTA RICA AND PORTMAGDALENA OF
COLOMBIA ENTER LATINPORTS
will enable receiving much larger vessels, with a
capacity of up to 8,500 containers, generating scale
economies and reducing costs. TCM will have 1,500
meters of dock and 5 berths with 9 gantry cranes.
Works will start in 2013 and the first stage must be
in operation in 2014. More information in www.
apmterminalsmoin.com
The general manager of APM Terminal Moín is
Captain Paul Gallie Paul.Gallie@apmterminals.com
This new corporate member of Latinports is a
waterway and sea terminal, of the Free Zone (Zona
Franca) group of Barranquilla, providing services to
offshore vessels, specialized in handling liquid bulk
cargos, especially chemical products and petroleum
by-products. Located 20 km from the mouth of the
Magdalena River, it has a natural shelter facilitating
navigation and port operations. At present it moves
approximately one million tons of cargo. More
information in www.portmagdalena.com.co
Manager of Portmagdalena is Patricia Montoya,
pmontoya@portmagdalena.com.co

January-April 2012
CONFERENCE OF THE EXECUTIVE DIRECTOR
OF LATINPORTS AT THE ANDEAN & CENTRAL
AMERICAN INFRASTRUCTURE SUMMIT
Enero - Abril 2012
UPCOMING EVENTS
Altogether with the general director of Corporación
Autónoma Regional del Río Grande de la
Magdalena, Cormagdalena, the executive director
of Latinports, Julián Palacio, on March 29 in Bogotá
made a presentation on the Advances of the
Navigation Project in the Magdalena River, a follow-
up of the first specialized seminar of Latinports held
in September of last year on this matter.
It was really satisfactory for Cormagdalena and
Latinports being able to announce that the joint
effort of the Colombian government and the Latin
American Association of Ports and Terminals began
to bear fruit: what in the September seminar was
only expectations, in March became a reality with
the announcement of the President of the Republic,
Juan Manuel Santos, of the availability of resources
for the amount of US$400 million to realize the
most ambitious infrastructure project in the history
of Colombia: navigation from and to the center of
the country.
May 21- 25
Riu Plaza Hotel, Panama
Maritime Week Americas 2012 will take place in
Panama, one of the largest maritime centers
worldwide, now the core of some of the most
interesting changes impacting world navigation
industries, ports and bunkering.
The executive director of Latinports, Julián
Palacio, will participate with a conference called:
Economy of Post-Panamax Vessels: Will the
Largest Survive? (The Effect in Latin America),
and will act as moderator of the Regional
Port Round Table Session: Challenges in an
Uncertain World.
For more information on this event please click
on www.maritimeweekamericas.com or contact
events@petrospot.com

January-April 2012
CWA-Expo Carga is the platform where 18
thousand experts of the foreign trade and cargo
transportation sectors converge to enter businesses
between America, Europe, Asia and the rest of the
world. This event gathers:
8. Private initiative
9. Chambers and Associations
10. Governmental Agencies
For more Information click in www.expo-carga.com
or directly contact Verónica Velásquez vvelasquez@
gfidaltex.com Telephone 52(55) 54425760 Ext. 188
Context and international containers transportation
trends may be seen in this forum, and also strategies
and challenges in the face of the free trade
agreements – FTA, emphasizing on national reality,
and the different points of the logistics chain, such
as port activity, management and security in internal
transportation, and development of containers yards,
among other topics, as vital axis of a good containers
logistics.
For more information please communicate with
forocontenedores@andi.com.co
June 5-7, 2012
World Trade Center, Mexico, D.F. PORTS AND CONTAINERS FORUM –
LOGISTICS AND COMPETITIVENESS
National Association of Colombian
Entrepreneurs - ANDI
July 5-6, 2012
AR Hotel, Bogotá

January-April 2012
Latin American Port News
Argentina
Arabs Plan to Invest US$300 Million in the Port
of Buenos Aires
According to Infobae.com, investors of the United
Arab Emirates entered into an agreement during
the visit to Buenos Aires in March, jointly with
a delegation of entrepreneurs. The president of
the Directory of Dubai Ports World, Sultan Bin
Sulayem, was part of the delegation headed by the
Minister of Foreign Affairs, Sheikh Abdullah bin
Zayed Al Nahyan. When the agreement works
begin, a thousand jobs will be generated, which will
enable having a state-of-the-art infrastructure for
2015.
The port modernization project was prepared
by Terminales Río de la Plata (TRP) – Argentinean
operator of the Dubai Port World network –
altogether with the General Port Management,
the Secretary’s Office of Transportation, and the
Ministry of Planning. The new project will enable
providing Argentinean foreign trade with scale
economies for sea transportation, preventing
transshipments in other ports of the East coast
of South America, which causes delays and cost
overruns in the chain of value.
Terminales Río de la Plata (TRP) is located in Puerto
Nuevo, Buenos Aires, and has the concession of the
port operation. With an operative area of 430,000
m2, fully adapted and refurbished, TRP operates
24 hours/day, 362 days/year. In 2011 US$25
million were invested in the Cruise Terminal Benito
Quinquela Martín, opened in 2011.
Dubai Port World is one of the principal port
operators worldwide, with 45 containers terminals in
29 countries.
The Argentinean Chamber of Shipping Lines
and Assemblers, CAENA, in Spanish, quoted by
Infobae.com, announced that the sector will seek to
potentiate support to offshore operations, hoping
to increase the presence of its own vessels and ships
destined to sea and/or waterway transportation for
liquid, liquefied gases and solid cargos.
CAENA commits to work in several lines of
action with the intention of potentiating the
national maritime business: on one hand it will try
to underpin the signing of a Merchant Navy Law
National Shipping Lines Investments for US$50
Million

January-April 2012
Brazil
Container scanner is still controversial
Latin American Port News
of origin. This has generated great controversial
within the sector. In Brazil, according to article
contents, shippers consider that the measure will
lockup foreign trade and have disastrous impacts
on costs and times of operation. On the other
hand, port terminals and exporters consider this
supervision will make commercial exchange more
transparent. This article informs that Santos Brasil,
the “largest container terminal of the country”,
invested US$11,2 million in the acquisition of
five supervision equipment. According to Mauro
Salgado, director of Santos Brasil, the company is
already prepared for changes and investment will
speed up cargo verification processes. “We are not
forecasting negative impacts for the operation”, he
stated. The same viewpoint is shared by the general
manager for logistics of the Curimbaba Group,
Fabrizio De Paulis. “It increases security of exported
cargo. I do not believe this procedure will cause
delays.”
However, previously the president of Maersk
Line for Latin America and the Caribbean stated
that “in the practice, the implementation of this
law is not possible as supervision may not be
physically done. Every two years the United States
has been postponing the limit date. Now the date
is 2014, and we do not believe it may be a fact
prior to 2016, 2018”. However, Sérgio Salomão,
of Abratec considers that “the American law was
an inspiration of the Treasury, but requirement
will be of a general character, both for exports
and for imports, and not only for the United
States”. Finally, the article says that the inspection
of a container entering the terminal is not a full
security guarantee, as until it is loaded onto the ship
it may be, in theory, manipulated. “At the Special
Secretary of Ports, SEP, (in Spanish), we defended
the traceability of the container and the cargo
that combines the joint criteria attained between
assemblers and shippers unions, and on the other
hand, to contribute to consolidate a foreseeable
system that will multiply the presence of the
Argentinean flag at the Paraguay-Paraná Waterway.
“This sustained effort points out to the expansion
of employment sources already produced by the
sector. At today’s values, and a sustained growth,
partner companies of CAENA generate more
than 2,000 direct jobs for embarked Argentinean
crew members. The average monthly gross salary is
approximately US$5,000, positioning the industry as
one of the most buoyant sectors and these workers
among some of the best paid of the country”, stated
a communication of the entity. This sector also
generates approximately 20,000 indirect jobs related
to naval workshops, suppliers, maritime agencies and
other entries.
An article of the newspaper Valor published the
end of April, entitled ‘Container Scanner is still
Controversial’ highlights the determination of the
government of the United States to enforce 100%
of sea import containers to be scanned at the ports

January-April 2012
Investments in the sector:
Priority for Waterways:
Approximately US$16 billion in investments are
being entered or planned by the Brazilian port sector,
as announced by the general director in charge of the
National Water Transportation Agency, Antaq, Tiago
Lima, during his participation in the Intermodal fair
held in Sao Paulo in mid-April. Projects correspond
to the construction of port terminals (US$10,5
billion investments for new private ports and US$5,5
million for public ports terminals). Newspaper
Tribuna added an important news based on current
context: Brazil has 34 public ports and 129 private
ports, emphasis in the article being placed on public
ports and informing that most investments on these
Noticias Portuarias Latinoamericanas
from its origin to its destination”, states the partner-
director of the consultant firm Agência Porto,
Fabrizio Pierdomenico, who was Port Planning
and Development Secretary of SEP. He believes
that despite having to assume an additional cost
all countries exporting to the United States, Brazil
has yet another “but”. “It continues being unequal
for Brazil because of our tax load. Our concern is
who will have to pay the costs of the investments
undertaken by the terminals”, he states. “It is evident
that the terminal will review the costs”, says Salomão
from Abratec.
facilities shall be applied to the southeastern region
that will receive US$2,5 billions; the northeastern
sector will receive US$1 billion; the north sector
US$0.8 billion. Santos will receive US$1,85 billion,
with the implementation of the terminals of
Embraport and Brasil Terminal Portuaria BTP,
which will start operations next year.
The Secretary of National Transportation Policies
of the Ministry of Transportation, Marcelo
Perrupato, defended a pact supporting the waterway
mode, covering the entire country. According to
Perrupato, the increase in navigation “should be
addressed as a national priority” by the Brazilian
society as a whole, as was informed by Tribuna.
He also commented that the federal government
is looking to balance the national transportation
matrix, mentioning that the National Logistics and
Transportation Plan is determined that in 2025, 33%
of Brazilian cargo will be transported by road, 32%
by railroad, and 29% by waterway. The remaining
(6%) would be for other type of transportation.
Marcelo Perrupato

January-April 2012
New Manaus Terminal is expected to Start
Operations in 2014:
President of the Republic Announces
Investment in the Cuban Port of Mariel
Valor, on a special publication on the Free Zone of
Manaus emphasized its momentum on the growth
of the city that moved from 250,000 inhabitants in
1997 (when the free zone was created) to 2.2 million
at present within its metropolitan area. Today, the
Industrial Pole of Manaus on the Amazon River,
a little more than 1,000 kilometers from its mouth,
hosts more than 600 companies and more than
5,000 commercial users, becoming the economic
and cultural center of the Northern Region of
Brazil.
In the case of the port, currently insufficient,
its relief will come as of mid-2014, when the
construction of a new cargo terminal must be
completed, at a cost of US$230 million and to
be operated by concession to private enterprise,
doubling the capacity of the two existing terminals.
Prior to the visit that President Dilma Rousseff
would do to Cuba on January 31, the different
Brazilian newspapers informed that the central
point of her visit was to announce the financing
of the BNDES for the extension of the port of
Mariel, jornais relataram que o ponto central da visita é o
anúncio de financiamento do BNDES. The Chamber of
Foreign Commerce, CAMEX, approved liberating
the amount of US$230 million to finance works,
project that will include a total of US$600 million.
This value is equal only to the Brazilian part of
the works of the port, and in this region Cubans
pretend to install an industrial pole. According to
Valor, Mariel is the highest Brazilian commitment
in Cuba. Investment in this project to export goods
and services represents 70% of the entire funding in
the last 15 years of the BNDES in operations with
Cuba as final destination.

January-April 2012
According to Tribuna, Log-In with 25% of the
market in the area, projects a growth of at least 10%
per year in the next four years. In the five years it has
been working in cabotage, the company has had an
average growth of 27% per year in movement of
containers and large-size clients were conquered by
the advantages represented by the modality, such as
maritime transportation security for product integrity.
Log-In has 11 vessels: eight container ships and three
bulk carriers.
million in 2011 to 8 million in 2013”, explaining
the increase in capacity will be the result of a
series of extensions, purchase of last generation
equipment, and the entry in operation of new
private projects such as Embraport, DP World and
Brasil Terminal Portuario BTP, the latter controlled
by Europe Terminal that, according to Serra, will
start operations in October 2012. The president of
CODESP recalled that current port operators such
as Santos Brasil, Libra and Tecondi, made important
investments that will result in an additional growth
increase.
Cabotage Companies are Reliant on Sector
Growth
Article of Brasil Econômico on transportation and
logistics highlights the containers segment quoting a
comment of the former secretary of policies of the
Ministry of Transportation, and current executive
director of Agência T1, José Augusto Valente,
according to which “the false discussion existing
in the country that public ports are saturated and
are locking the growth of economy, is being buried
by reality”. According to the specialist, since 2003
there have been logistics and port blackouts that
are never confirmed; “on the contrary, ports will
double their containers capacity in the next four
years”, affirms Valente, thus emphasizing a crucial
point to revert negativism in various matters on the
sector. The article tells that Brazilian foreign trade
increased almost fourfold in eight years (2002 to
2010) and that containers moved from 2 million in
2002 to 4.5 million last year, commenting that these
numbers show that port logistics has supported the
expansion of economy and foreign trade, although
better productivity and service indicators would be
desirable.
On the other hand, Estado published an interview
with the president of Companhia Docas do
Estado de Sao Paulo, CODESP, José Roberto
Serra, according to who “Santos, the major port
of Latin America, will double its capacity in 2013,
mobilizing the same amount of containers than
all other Brazilian ports together, moving from 3.2
Ports will Double Their Containers Capacity in
the Next Four Years

January-April 2012
Terminal Pacífico Sur (TPS) and Empresa Portuaria
Valparaíso (EPV) signed on January 9 the
modification of the contract that will enable starting
extension works at Site 3, one of the measures
considered in the port’s Plan of Expansion,
enabling to maintain its competitiveness in the
years to come. The project of extension of Site 3
that will become the first extension of the berth
front of Valparaíso in more than 80 years, includes
an extension of 120 meters and the structural
reinforcement of sites 4 and 5, leading these to an
antiseismic condition. Execution of works will allow
serving two Post-Panamax ships simultaneously
and accompanying the growth of shipping lines or
attract others, opening job positions for this activity,
and thus maintaining competitiveness of the Port of
Valparaiso.
It is considered that once engineering studies and
maneuvering simulation have been concluded, and
after receiving the approvals and corresponding
permits from the corresponding authorities, works
will start the first quarter of 2013 and will last
about 18 months. The general manager of TPS,
Francesco Schiaffino, stated “this initiative shows
our commitment to maintain the competitiveness of
the Port of Valparaiso through the execution of a
creative and ambitious project”. The executive added
that “our challenge is that this Terminal continues
being a key player for the city, the region and the
country, as we are convinced that Valparaiso has
all the conditions for a long-term and sustainable
projection, as a modern, large scale port pole”.
On the other hand, the general manager of EPV,
Harald Jaeger, expressed that “we are satisfied with
the signing of this modification to the contract with
TPS, as the works at Terminal 1, which will further
include the next tender for Terminal 2, will enable
Valparaiso to have two highly competitive terminals
Tribuna highlights that in the past years a reactivation
is being tested, including the arrival of the actors
to the market, but, to grow even more, besides the
13% participation in the country’s cargo movement,
“a push is required” according to the text. Cabotage
was already strong in Brazil but it weakened in the
70s and 80s because of lack of investment and the
intolerance to delays in time of high inflation.
Log-In will launch on July 1st a cabotage
transportation service integrating two regions:
Northeast and Southeast in North Brazil. The
intention of the company is having a vessel with
1,700 TEU capacity that will basically serve better
electrical appliances to the area of Manaus and that
may increase the route in 10,000 TEU. The company
will focus on ports of the Northeast as Suape, Santos,
and Rio de Janeiro.
According to the Minister of Ports, Leonidas
Cristino, the new version of the National Plan of
Port Logistics will encourage cabotage navigation.
The Terminal Pacífico Sur of Valparaíso
and Empresa Portuaria Valparaíso, sign an
extension agreement
Chile

January-April 2012
Minister of Transportation Committed with
the Support to the Project of the Magdalena
Waterway:
The Magdalena River Must be Assumed
as the Great Supplier and the Axis for the
Development of Massive Transportation to and
from the Interior of the Country:he Minister of Transportation, Germán Cardona,
committed his support to a project for the
navigability of 256 km of the Magdalena waterway
addressed to transport goods from the central
region of the country to the coast. The initiative of
US$400 million is being executed by the Corporación
Autónoma Regional del Río Grande de la Magdalena
(Cormagdalena) and is also supported by President
Juan Manuel Santos, as informed by the Ministry of
Transportation. “It is time for the Magdalena River”,
stated Cardona. “The possibility exists to materialize
the idea of seeing in this river artery the best way
to transport heavy products from the center of the
country to the Caribbean”.
for Chilean foreign trade, and fully satisfy the
projected regional demand for the next years”. The
extension of the concession will last until December
31, 2029.
Until now, almost US$21 million have been invested
in the preliminary works for the project. The
National Institute of Roads, INVÍAS, in Spanish,
stated it will manage and assign all the necessary
financing to improve traffic connectivity with the
Magdalena waterway. The river that extends 900 km,
at present has only 700 navigable kilometers and
improving the waterway will be the quickest way to
transport oil to the Caribbean coast and would also
help to eliminate approximately 1,200 heavy load
trucks from the roads of the country.
Minister Germán Cardona and the director of
Cormagdalena, Augusto García, as well as the
executive director of Latinports, Julián Palacio,
referred to this matter during the Andean
Infrastructure Summit that took place in Bogotá the
end of March.
The regional investment agency, ProBarranquilla,
informed that the National Association of
Entrepreneurs –ANDI, proposed the definition and
execution of a Plan of Development that will make
of Barranquilla the Region-City it is called to be,
Colombia

January-April 2012
Barranquilla Prepares for the Implementation
of the FTA with the United States:
Waterway Ports of the United States and
Europe Present their Experiences
taking advantage of the new circumstances of the
eleven free trade agreements entered into or about
to be entered into by Colombia, and the new Law of
Royalties that allows executing zonal infrastructure
projects to integrate specific territories, linking them
to those new international markets. The proposal
includes the generation of communication corridors
where efficient road infrastructure converges,
excellent cargo terminals, very good operation
conditions of the airport, and a greater development
of the port area, in such a way the city may offer
optimal levels of logistics services, generate
employment and economic growth, accomplish
a greater development, and may better sell its
industrial possibilities. The initiative was presented
by transportation and road engineer, Edgar Higuera,
executive director of the Chamber of Great Users
of Logistics Services of ANDI, during a meeting
promoted by ProBarranquilla and the Metropolitan
Area of Barranquilla with the elected mayors of the
city districts and entrepreneurs of the sector.
The expert bases on the fact that today Barranquilla
is the largest and most developed city of the Great
Caribbean Basin, not only in relation to Colombia
but also of the countries that form it, as it has more
industrial areas, more universities, more areas of
production, a river that connects it with the interior
of the country, a basic infrastructure, and a great
airport. However, in terms of logistics, Barranquilla
also has bottlenecks that affect its competitiveness.
Studies of ANDI show that between 20% and
30% of the logistics costs are generated at the sea
terminals and especially in what is known as the
overcosts of the ‘last mile’. Higuera added that
Barranquilla has to necessarily look to the Magdalena
River, explaining that the river must be assumed as
the great supplier and the axis for the development
of massive transportation from and to the interior
of the country, but also as a city of excellent
urban reference, thus generating a parallel plan of
development enabling to clearly see that Barranquilla
is a city-port with a majestic river artery integrated
around a great park.
At the main waterway-sea port of Colombia, located
at the mouth of the Magdalena River, the week
before last of April several events were held on
the Free Trade Agreement with the United States,
to be implemented on May 15 of this year, where
possibilities for Barranquilla were discussed, one of
the main cities of Colombia.
The United States was represented by Houston and
New Orleans, and Europe by Rotterdam, Le Havre
and Hamburg, all located at the mouth of the most
important rivers of their corresponding countries.
The executive director of Latinports, Julian
Palacio, made a presentation titled “Rehabilitation
of the Magdalena Waterway: a Response to the
FTA implementation, showing that only with the

January-April 2012
In the last report of the Unit for Infrastructure
Services of the Economic Commission for Latin
America and the Caribbean (ECLAC), the port
of Cartagena, formed by Sociedad Portuaria
Regional, Contecar and Muelles El Bosque), with
a movement of 1,853,342 TEUs, was placed fifth
among the 100 best ports of Latin America and the
Caribbean, having displaced Buenos Aires. The two
first places were for Panama (Colon and Balboa),
the third for Santos, Brazil, and the fourth place for
Kingston, Jamaica. Cartagena is followed by Buenos
Aires, Manzanillo (Mexico), Callao, Guayaquil and
Freeport (Bahamas).
Americas Gateway Development Corporation
(Amega) will start the phase of proposals of its
project for a transshipment terminal of US$1,100
million in Costa Rica, stated to BNamericas its
general director, Aubrey de Young. The project
denominated Megaterminal Transbordo Atlántico
(MTA) consists in a deep water terminal for
transshipment of containers that will be located in
Moín, on the Caribbean coast of Costa Rica.
Amega has the exclusive right to be the leader of the
project from the stage of proposals up to a public
tender for a 30-year concession to build and operate
the port. The proposal phase includes detailed
technical, environmental, commercial and financial
rehabilitation of the waterway from the center of
the country, as announced by the president of the
republic, Barranquilla will become the capital of the
FTA, as was baptized by the minister of commerce
on this same occasion.
Despite the ports of the region have grown 11%
in 2011, its global participation scarcely maintains
in 7%. Asia moves more than 50% of containers
transported by sea worldwide and China, in
particular, represents 29% of world trade with 164
million TEUs last year.
Cartagena Displaces Buenos Aires from the
Fifth Place in Containers Traffic
Amega Starts the Phase of Proposals for the
Transshipment Terminal of Moín
Costa Rica

January-April 2012
Cuba
According to the agency Reuters, during a visit of
President Dilma Rousseff to Cuba on January 31st,
she said that Brazil may make a great contribution
to revive fragile Cuban economy, and in reference to
the Port of Mariel, 45 km from Havana, she added
that “we participate not only in the construction
of the port, but also in bringing a cooperation
I consider strategic for Brazil and Cuba”.
Modernization works of a containers terminal being
built in the port of Mariel with Brazilian funding are
being done by the Brazilian company Odebrecht
and must conclude in January 2013, with works
including special development areas with industries
to export and supply the Cuban market.
President of Brazil Inspects Works at the Port
of Mariel:
studies. “The final schedule of this stage indicates
a period of 12 months, but we expect that with
the help of the government will be able to bring
forward this term. Amega will announce important
agreements in the next few weeks, said De Young.
The transfer terminal will have the capacity to move
2 million TEU per year with a 1-km dock, a 19m
access channel to the port of Moín, and berthing
for three container vessels of approximately 14,000
TEUs. The MTA project will be located next to
a container terminal that is being built by APM
Terminals, although apparently the two terminals will
not be in direct competition as the Amega terminal
will serve a different market and will undertake cargo
transshipment of up to 14,000 TEU from larger
container vessels to those currently serving or to any
future ships.
The transshipment terminal is also attractive for
other Central American countries, according to De
Young. “Our project is really a strategic regional
contribution, because it will not only handle national
cargo but locates other countries in a place from
where they can have access to the world”, stated the
executive.
Costa Rican Vice-president, Luis Lieberman, has
affirmed that the government wishes the bid for the
project be opened and granted prior to presidential
elections of 2014.

January-April 2012
El Salvador
Ecuador
Port of Manta opens Concession Tender:
Autonomous Executive Port Commission
Foresees Receiving Offers in November for the
Concession of Port La Unión
On April 30 the Port Authority of Manta APM
declared starting the process for the “Management
concession of public port services to be provided
for infrastructure and facilities at the multi-purpose
deep water terminal of the Port of Manta”.
According to the APM, general conditions for
these specifications are available on the port’s
webpage and may be downloaded prior registration
and payment of the not reimbursable amount of
US$10,000. Further on, APM will organize visits
to the port and will prepare an Information Room
where only interested parties that have acquired the
bid documents will have access and who have also
entered into the Commitment of Confidentiality.
The national port operator of El Salvador, the
Autonomous Executive Port Commission, CEPA,
expects to receive offers for the concession of the
Port of La Unión in November of this year, said the
manager of concessions of the authority, Rolando
Díaz during the Andean & Central American
Infrastructure Summit held in Bogotá the end of
March.
The International Financial Corporation, CFI,
started working in January with consulting firms to
prepare bases for the concession tender that could
extend for up to 30 years. The US infrastructure
consulting firm Moffatt & Nichol is developing
technical and engineering analysis.
CEPA expects to publish the tender bases in August,
thus offers will be received in November and the
contract would be awarded in December. Once
entering into the contract, which may probably occur
in January of next year, the new concessionaire
may start to operate almost at once, which is one
of the principal advantages of the project, stated
Díaz. “Definitely an interest exists. It is a continuous
process to approach potential interested parties. As
the process and preparation of bases advance, the
opinion of the market must be seen”, stated the
executive who also added that CEPA has received
expressions of interest from operators such as
APM Terminals, the Spanish Containers Terminal
of Barcelona, the operator of the Colombian port
of Cartagena, SPRC, and the Chileans SAAM and
Ultramar. Interested parties will have to demonstrate
having a liquid capital of minimum US$40 million
and port operation experience moving at least
600,000 TEU per year.

January-April 2012
Interoceanic Corridor Seeks Investors:
Law Enacted for Public-Private Associations
The port of La Unión had a cost of US$183 million
and its construction by the consortium Toa-Jan De
Nul was completed in June 2008. The multipurpose
port specializes in handling containers, with a
capacity of 850,000 TEU in its first stage and 1,7
million TEU after the second and third development
stages.
The company Corredor Interoceánico de Guatemala S.A.
seeks investors for fuel transportation between the
two oceans, each with an extension of 336 km. In
addition to the interoceanic corridor that will cost
US$7,800 million (50% more than the extension
of the Panama Canal), which is a response to
the trransportation demand originating in Asia
(particularly China) will require the constuction of
two megaports, one on each ocean. In mid-April
Project directors were in Bogotá for this purpose,
as was informed by the Colombian newspaper, La
República.
On January 15, the President of Mexico, Felipe
Calderon, enacted the Law of Public-Private
Associations (PPA), which has as central objective
to multiply infrastructure investment, through the
association between public and private sectors,
law presented since 2009 to the Congress for its
analysis. The president assured that the PPA law
and the modifications related to the infrastructure
construction and provision of public services, will
provide greater security and legal certainty to the
private players that want to participate in complex
infrastructure projects that expedite the response to
the need of the country’s infrastructure, and also a
greater efficiency in the use of public resources.
The administration of President Calderón presented
to Congress a package of reforms of diverse legal
orders to promote Mexican economic growth
and development encouraging the increment of
infrastructure investment to historical levels. The
government is currently investing 5% of the Gross
Domestic Product in matters of infrastructure,
compared to the 3% entered in 2000.
Guatemala
México

January-April 2012
Perú
Record in Port Investments in the Last Six
Years:
Callao Consolidated as Leader Port of the South
American Pacific in 2011
APM Terminals Callao Doubles Productivity
Ports of Mexico have received an investment of
more than US$3,000 million since President Felipe
Calderón entered office in 2006. Total investment,
including both public and private funds, is the
highest that has been materialized during any
government in the last 25 years, stated Calderón in
February.
The port of Callao consolidated as leader port
of the South American Pacific having moved 1,6
million containers in 2011, exceeding in 20% the
1,3 million containers of 2010, as informed by the
Economic Commission for Latin America and
the Caribbean (ECLAC). Thus, according to the
Maritime Bulletin of ECLAC, the main Peruvian
port exceeded the port of Guayaquil that moved
1,4 million containers last year and positioned in the
second place. The third and fourth place were for
the Chilean ports of Valparaiso and San Antonio
with 973,000 and 854,000 containers moved,
respectively, followed by Buenaventura of Colombia
that moved 748,000 containers.
According to Container Management of the end of
February, in the seven months since assuming
control of the North Terminal on a 30-year
concession joint venture between APM Terminals
(APMT) and Peru’s Central Portuaria, the facility,
now operating as ‘APM Terminals Callao’, has seen
productivity more than doubled to 26.5 moves per
hour per crane, while gate turnaround time has
decreased by 49% to 28 minutes.

January-April 2012
Successfully Completed Binational Pilot Test for
Multimodal Road – River Traffic
According to the agency Andina, a pilot test of
international community customs traffic Peru-
Ecuador-Peru was successfully completed having
achieved the reduction of fuel transportation from
20 to 6 days to its final destination, was informed by
the Andean Community (CAN), a test promoted by
the General Secretary of the entity. This test that was
done upon request of a private enterprise, involved
the transportation of 60,000 gallons of biodiesel
to a mining camp through a different route than
the traditional one. The route started in the city of
Talara (Piura), passing by Huaquillas (Ecuadorian-
Peruvian border), Cuenca and Puerto Morona in
the Ecuadorian forest, and arriving at the town of
Sargento Puño, in the Peruvian forest. Coordinations
were done with customs of Peru and Ecuador
for the approval of the operation of Community
Customs Traffic and the qualification of roads,
border crossings and passes.
Test allowed verifying that while fuel supply of the
camp by waterway from the city of Iquitos (Loreto)
lasted 20 days having to travel 753 kilometers, the use
of the new route, combining roads and waterways,
reduced costs and time to six days at most. The
General Secretary of CAN, Adalid Contreras, stated
this experience of Community Customs Traffic is
a concrete example of the use of the community
customs norm, where boundaries are broken and
people are integrated, saving time and economic
resources. A similar experience has already been
done between Colombia – Ecuador – Colombia,
using the land custom offices of Ipiales (Colombia)
and Tulcán and San Miguel (Ecuador), and then the
Putumayo River taking goods to Leticia (Colombia).

January-April 2012
Mail
I wish to congratulate you for the great effort
done by Latinports.
Franc Pigna
General Director
Aegir Ports Property Advisors
USA
Congratulations for the excellent presentation
of the bulletin and for featuring us in it.
Fernando Reveco
Development and Project Manager
Ultramar Group
Chile
I attended your conference on investments in
ports in Latin America last December in
London and our company is interested in
having more Information on containers ports.
Harald Sperlein
KfW IPEX-Bank GmbH
Frankfurt, Germany
It was a great privilege to meet you all along
this port route and even more to learn from
the events you have promoted in Latin
America. Thanks for the permanent support
to the challenges of our sector.
Fernando Fialh
Former Executive Director
National Water Transportation Agency
Brazil

January-April 2012
We are interested in port projects developed
in Latin America. We have a program
that promotes world investment expansion
of Korean shipping lines and we see a great
opportunity in your region.
Hye Kyeong
International Logistics Research
Department
Korea Maritime Institute
Seoul, Korea
Thanks for the information; very complete
Leonardo Delgado
General Manager
Almacenes Generales de Depósito del
Banco Popular (Bonded Warehouses of
Banco Popular)
Alpopular
Bogotá, Colombia
We will share with all our affiliates this
material of great interest to our guild.
Antonio Felfle
President
Port Association of Barranquilla
Colombia
I read the last bulletin of Latinports and
found it really interesting and varied, with a
great amount of valuable port Information.
Mauricio Esteban
Manager
Soluciones Financieras, Solfin
Bogotá
A very good document. Congratulations
Carmen Martín
Superintendent of Logistics & Ports
MPX Colombia

January-April 2012
LATIN AMERICAN ASSOCIATION OF PORTS AND TERMINALS
LATINPORTS
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SUSTAINING MEMBER (Companies related to the port industry or ports
and terminals from other regions of the world): ___
Company:
Address:
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Telephone:
Website:
Legal Representative (Contact Person):
Position:
E-mail:
Brief Description of the Company:
As corporate (sustaining) member we agree to pay the annual dues of
US$2,500 (US$850) within 30 days following presentation of the invoice.
SIGNED:
NAME AND POSITION OF PERSON
FILLING OUT THE FORM:
DATE:
Please return this form filled out to jpalacio@latinports.org

Latinports Newsletter January-April 2012

Latinports Newsletter January-April 2012

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Latinports Newsletter January-April 2012