Latinports Newsletter July-September 2013

July-September 2013
Year 5, No. 3

Arturo López:
Chairman of the Executive Committee of
Latinports 2013-2015
A Glorious Sunset:
Vision of Former Chairman of
Latinports on the New Brazilian
Policy of Ports
More...

Top 10 Port Operators Worldwide

More...

Successful Outcome of TOC
Americas in Miami
More...

CONTENTS
July
September

2013

Editorial
VIEWPOINT

- A Glorious Sunset:
Vision of Former Chairman of Latinports on the
New Brazilian Policy of Ports

ANALYSIS
- Brazil and Mexico: Who is the Hare and Who the
Turtle?
THE INTERVIEW
- Ecuadorian Press Interviews the Executive
Director of Latinports on the Possible Transfer of
the Port of Guayaquil
CHAIRMAN AND EXECUTIVE DIRECTION OF
LATINPORTS
- Arturo Lopez Chairs Executive Committee in
Miami
- Lectures of the Executive Director
OUR MEMBERS
- Port of New Orleans Elected as Principal Logistics
Leader of the United States
- Puerto Solo of Buenaventura Enter to Latinports

Cover

Arturo López of Mexico,
New Chairman of Latinports
(2013-2015). He is the
President of the Altamira
Port Terminal and Founder
of the Association of
Terminals and Port
Operators of Mexico.

Design
Julian Pineda
www.miroamarillo.com
studio@miroamarillo.com

LOGISTICS AND COMPETITIVENESS
- Top 10 Port Operators Worldwide
- “Latin America will Leave Underdevelopment in
15 Years”: Carlos Slim
- Eclac Lowers Calculation of Latin American
Expansion of Brazil and Mexico
- Latin American Productivity Challenge

CONTENTS
July- September 2013

WATERWAYS IN LATIN AMERICA
- Uruguay and Argentina Agree Deepening Dredging
of Shared River
- Last Quarter of 2013: Key for the Future of the
Magdalena River

MARITIME TRANSPORTATION AND PORTS

- New Scenario Maintains the Port Sector Active
and Profitable at International Level
- The Largest Vessel of the World Arrives to its First
Destination
- The P3 Alliance: How Will it Affect Ports?
- Chinese Merchant Vessel makes its First Voyage
Through the Arctic

LATIN AMERICA AND THE INTERNATIONAL
TRADE AGREEMENTS
- The Pacific Alliance Represents 50% of Latin
American Trade
- Mercosur Needs to Reinvent

EVENTS
- Successful Outcome of TOC Americas in Miami

LATIN AMERICAN PORT NEWS

Mail

Editorial

Julian Palacio,
Executive Director
of Latinports


Last August we reached our first four years of existence with great
developments and a very promising future, as is the future of Latin
America. We have almost 50 members from a dozen countries, have
developed four large annual events in different cities of the region
(Brasilia, Cartagena, Viña del Mar and Cancun) and, above all, we have
released worldwide the benefits of the Latin American Port System,
based mainly on public ports with private management terminals, and
also their relevance for the development of the foreign trade of our
region, considered the region of the future for its great comparative
advantages and its relatively stable economies. For the first time, an
association involves at the same level two fundamental actors of
the activity: governments (ports) and private sector (terminals). And
results have been seen.
We are decidedly working to offer, as of the first semester of next
year, specialized attendance courses at different countries of the
region, starting with Mexico, in order to cover in several modules the
entire set of activities of the port business, with vision of the future.
The objective is strengthening our executives (and subsequently the
middle management) in different areas, preparing them to face the
challenge required by international trade. In our next newsletter we
hope to give you more details on these courses.
Profiting of the representative attendance of Latinports members to
the TOC Americas held in Miami, event supported by our association,
at the close of this edition we held in this city the first meeting of the
executive committee with the new chairman, Arturo López, in order
to program our activities for the year 2014. We will inform in detail
the results of this meeting in the following issue of this newsletter.
Until the next!

Viewpoint


A GLORIOUS SUNSET:
VISION OF FORMER CHAIRMAN OF LATINPORTS ON THE NEW
BRAZILIAN POLICY OF PORTS

Richard Klien, of Brazil’s Multiterminais based in Rio de Janeiro and of Santos Brasil in Santos, shares his
views on the new policy for Brazilian infrastructure and its effect on container terminals.

President Dilma Rousseff decided that it was
time for major reform tos peed up investments
in Brazilian Ports, boosting capacity to support
the growing economy and lowering port costs.
Yhus, on the 20th anniversary of Brazil’s Port
Modernisation Law, a new regulatory framework
was approved by congress by enacting
Presidential Provisory Measure 595/2012 into
Port Law 12.815/2013.
Under the old Port Law of 1993, all public
terminals were tendered for privatisation.
Following 15 years of massive investment, the
country’s 14 public container terminals are now

globally competitive and a source of national
pride. They have enabled containeraised trade
to expand from one meter boxes in 1997 to 5.5
meters boxes in 2012.
Under private management, container terminals
have been transformed into modern, state-ofthe-art facilities handling increasing numbers
of 300-330 meters long post-Panamax vessels,
compared with 210 meters Panamax vessels at
the time of privatisations.
Berths have been extended and deepened from
around 11 meters to 15-16 meters, and in a


range ports including Santos, Rio Grande, Rio de
Janeiro, Imbituba, Itajaí and Itapoá, for example,
terminals are equipped with modern handling
technology able to handle 8.000+ teu vessels,
such as the 8.208 teu MV Cosco Vietnam, wich
are now calling in Brazil on a regular basis.
This has required an investment of over $5
billions as today’s prices and further investments
will be required for the foreseeable future, not
least because of the boom in Brazil’s foreign
trade following privatisation. This has increased
from $100 billions to around $500 billions –a
rate exceeding not only that of Brazil’s GDP but
also that of global trade-.
In addition, Brazil’s modernised and expanded
facilities have increased container vessel
productivity five-fold since 1997. “Although
we are not big by global standards, we are
very proud of the fact that we’re not a kid any
longer”, said Klien.
Necessary Expansion
During the next decade Brazil is going to need

M/N Cosco Vietnam

extra capacity, wich, with the exception of the
new BTP and Embraport terminals coming
on-line in Santos, means modernising and
expanding the country’s existing container
terminals. Conservative estimates judge that this
will require and additional investment of US$5.5
billions to increase capacity from 12 millions teu
today to 25 millions teu in 2021.
The port of Rio de Janeiro is a good example
of expanding existing facilities, with its three
terminals intending to invest around $500
millions. Libra and Multiterminais’ container
terminals at Rio de Janeiro’s Caju quay will
extend their quay wall from 1.300 meters to
2.000 meters -1.600 meters for containers and
400 meters for ro-ro vessels-.
When completed, this will be the largest
continuous quay in South America, able to
berth four post-Panamax container ships
simultaneously and doubling capacity at the
port to 2 millions teu and 326.000 vehicles per
annum. Sepetiba’s Tecon is planning to increase
its capacity from 400.000 teu to 700.000 teu
by extending its quay from 540 meters to 800
meters.
In addition Paranaguá, Salvador and the existinc
container terminals in Santos –Libra, Santos
Brasil and Ecoporto Santos (formerly Tecondi)are well all keen on expanding their quays and
adyacent yard áreas.
Berth extensions to 400 meters+ and deeping
on the quay walls to 15-16 meters, as well as new
gantries able to handle vessels with 20+ rows
of containers, have become a requirement to
service the larger vessels plying the ECSA trade.
Theaadditional capacity generated by terminal
expansions will reduce unit costs, enabling


terminal to reduce box rate charges to shipping
lines.
Another requirement will be to widen and
deeping the access channels and turning basins
to accomodate these vessels. The federal
government is wholly commited to and has
earmarket financial provisions for the dredging
programms. Currently, the Ports Ministry is
seeking the environmental licences to tender
phase two of the dredging programms, with
projected completion at major ports slated for
the end of 2014.

Multiterminais

A Rainbow of Opportunities
The aim of the new Port Law is to rapidly
expand capacity via private investment in
both public and private ports. To accelerate
investments, it redefines private and public ports.
Private terminals are those erected on freehold
sites outside of the “public port area”. Public
ports and their privatised terminals are those
situated on government land managed by the
existing Port Authorities (Companhias Docas).

Their main policy ammendments are intended
to promote construction of new terminals and
expansion of existing facilities:
· First, private terminals will be able to handle
thirt party cargoes and will be allowed to
construct facilities outside “public port areas”.
Embraport in Santos, for example, owns a
freehold area partially outside the public port
area, while BTP is within the public port
managed by CODESP.
· Second, existin privatised terminalsin public
ports, situated on public land within the
“public port area”, may submit expansion
programs with investment commitments to
the Port Ministry for approval, thus obtaining
an early extension of their contracted 25+25year leases.
· Third, new tender bids within the public ports
will be awarded to the bidder with the lowest
prices or with the maximun volume capacity.
Details are still being worked out in the wake
of public hearings on the planned terminal
tenders in the Port of Santos (state of Sao
Paulo) and Belém and Vila do Conde (state of
Pará).
Small areas are being tendered as large
consolidated terminals, as is the case of Saboó
quay next to rebranded Ecoporto Santos
container terminal on the right bank of the
Santos estuary. The ensuing competition between
new terminals and expanded existing ones should
bring about a reduction in port costs, making
Brazilian exports more competitive.
Creative Solutions Welcomed
A number of solutions to expedite operatios are
currently being implemented. The new Port Law


port of Rio de Janeiro, according to Klien, “we
are facing up to the challenge, building a huge
parking building, freeng up much needed yard
space for container and Project cargos”.

Santos Brasil.

instituted obligatory 24/7/365 office hours for
customs and other public authorities to match
the uninterrupted operations of container
terminals. However, few importers or exporters
still use the gates during the night. Potentially
this provides a lot of extra growth capacity.

On-site predelivered inspection (PDI) services
will be enhanced, prompting delivery of
imported cars directly from the parking building
to auto dealers, potentially reducing delivering
time for two weeks to 3-4 days. Other terminals
along the coast in a similar situation may follow
suit.
“The only certainty in the logistic business is
this: increase quality and reduce costs every day.
We are working hard at this”, Klien concluded.

Finite space of many ports imposes a need for
creative planning to increase capacity. In the

Analysis

BRAZIL AND MEXICO:
WHO IS THE HARE AND WHO THE TURTLE?
Thomas Catan, The Wall Street Journal
Americas
The divergent paths of the emerging markets may
be followed through the two largest economies of
Latin America: Mexico and Brazil. This is a story
similar to the fable of the hare and the turtle.
During the last decade, Brazil experienced a
boom as a result of the sale of commodities to
China. Its expanding middle class indulged with
the inexpensive credit from the central banks of


developed countries, as they tried to reactivate
their economies. Brazil grew at a yearly average
rhythm of 3.6% during the last ten years, having
reached a maximum of 7.5% in 2010. The Real
strengthened. All usual excess signs were evident:
Brazilian tourists filled the stores of New York
and Miami, while the media reported US$30
pizzas and US$35 martinis in São Paulo.
In comparison, Mexico showed a lackluster
growth, partly because of its involvement with the
weakened economy of the United States. It has
also suffered its own avalanche of problems: laws
prohibiting foreign investment in the energetic
sector, a dysfunctional tax code, a defective
education system and an outdated economy,
dominated by a handful of quasi-monopolies. It
was also the victim of a wave of violence linked
to drug traffic, which drove away both tourists
and investors. The average economic expansion
of Mexico was 2.6% per year in the last decade,
while the peso slightly depreciated.
The tortilla has now turned. Brazil continues being
punished by investors that expect the Federal
Reserve of the United States will start dismantling
extra easy credit policies, and by China, whose

appetite for commodities starts to decrease. Brazil
threw away part of its bonanza, having invested
little in roads and other infrastructure areas that
would support its development. Its government
has followed a state economic model, which has
reduced competitiveness for many companies
abroad. While the companies and households
accumulated debt, future growth stopped even
more. This resulted in a significant gap that must
now be financed with foreign capital.
In the meantime, Mexico used its lean years to
reform its economy, which includes a reform
of legal laws, the education system and the
telecommunications, finance and energy sectors
of the country. If these reforms are completed,
economists foresee that changes will drive the
expansion potential of Mexico at a time in which
its principal commercial partner, the United States,
accelerates its recovery. At the same time, Mexico
has maintained a relatively small commercial
deficit that may be easily financed by long-term
foreign investment in companies and factories.
The country does not depend of variable shortterm foreign cash flows, and thus, it has been less
affected by turmoil that has recently shaken Brazil
and other emerging countries.


However, Mexico may still disappoint. Its
economy contracted slightly in the second quarter,
while Brazil has registered stronger months than
foreseen by analysts. The history of the two largest
economies of Latin America helps to show why
emerging markets are following divergent paths.
During the last five years, developing countries
such as Brazil, Russia, India, China and South
Africa – the so-called BRICS – were the motors
of global growth when industrialized economies
were fighting the repercussions of the crisis.
To drive its weak economies, central banks of the
United States, United Kingdom and Japan acquired
bonds to reduce their interest rates to historical
lows, which sent a wave of cash towards emerging
markets that offered higher returns. Now the Fed
is giving signs that this year it will start withdrawing
its acquisition program of US$85 billion in bonds
per month, a trend that is reversing and the money
is now leaving the emerging markets. The list of
victims is starting to show. Countries with large

financing needs, they have great commercial gaps
and fiscal deficits. During the last weeks, India,
Turkey, Indonesia, South Africa and Brazil have
suffered large capital outflows.
Others, including Mexico, Philippines, Poland and
South Korea have suffered minor cash exodus. In
general, they tend to be countries with smaller
commercial gaps and relatively lower levels of
indebtedness, both at public and private levels.
These are also countries that export manufactured
goods to recovering economies as the United States
and Europe, instead of commodities to China. As
opposed to BRICS, its trend has been growing
slower over the past years and not accumulating
large commercial unbalances or debt. They did
not become dependent of China and are not
vulnerable to its deceleration. Besides, they have
the potential of benefiting from its commercial
bonds with developed economies.
We may call it the vengeance of the turtles.

The Interview
ECUADORIAN PRESS INTERVIEWS EXECUTIVE DIRECTOR OF LATINPORTS.

“The Port Needs the City and the City Needs
the Port”
The Executive Director of the Latin American Association
of Ports and Terminals (Latinports), which in Ecuador brings
together the Under-secretariat of Ports and the Association of
Private Terminal Ports, visited Guayaquil. He knows very well
the business in Ecuador, as he was counselor in port matters
during previous periods. He believes the existing port has for a


while.
GUILLERMO LIZARZABURO CASTRO
lizarzaburug@granasa.com.ec
Julián Palacio’s eyes see the port of Guayaquil
differently. His vision contrasts with that of the
Spanish consultant company, Ineco. He, knowing
the port business of Latin America and the world,
believes it is not convenient to transfer international
port activities to any other area. Ineco, on the
contrary, prepared a proposal now assumed by
the Ministry of Transportation and Public Works
(MTOP, in Spanish) and promoted by a number of
authorities; EXPRESO collects his vision.
The proposal of Ineco is included in the Strategic Mobility
Plan 2013-2037. The plan proposes that the terminals of
Guayaquil remain for cabotage and tourism. The new port
would be in Posorja or Chanduy (at the mouse of the Guayas
River).
You have lived several processes, what do you
think of this proposal?
I was port manager in Colombia and negotiated
the concession of the port of Santa Marta, in the
Caribbean coast, next to Barranquilla. At the time
the Government delivered us the port and among
many things gave to us the design of a new berth, as
the “port was at the edge of congestion”. When this
was analyzed and months went by the result was the
decrease of cargo (in storage yards). What was really
happening was not the decrease of cargo, but that
the port was more efficient. I was port manager for 8
years and the berth was not built. The case of Santa
Marta is typical. We found out that the problem was
not lack of space, it was inefficiency. Each time more
sophisticated equipment is being manufactured and
operators are ever better trained. Now they do not

have to travel to other countries to receive training
as in several countries simulators exist, and I believe
Ecuador also has them.
Being in a strategic area, as Guayaquil, is the
hinterland an added value for the port as well as
knowledge, or what is its relevance?
The hinterland is the term used to refer to an area of influence
of a port, that is, very close to it is the principal consumer, the
industry, services, and production center.
For the success of the port business local cargo
is important and what better local cargo than that
of a city; I understand that Guayaquil has 50% of
the foreign trade of the country, as this port has an
effective cargo that gives it life by itself, it does not
have to look for cargo. Therefore, the port already
survives and may then dedicate to find more cargo.
If a port is built on a certain location with good
technical characteristics but no important area of
influence, it would be useless. If there is no cargo
it will not be good because ports are not magnets.
Hutchinson, the principal operator worldwide, where
the company has the lower results and where they do
less well is in Freeport, Bahamas, because business
there is only transshipment, it is marginal, it arrives
and departs. The hinterland is a key issue.
Hutchinson had the concession of the port of Manta but
abandoned it. Now they are looking for a new partner. Until
now finding it has failed.
Is it advisable to make an investment, a new
port, if there is already one that is operating
well?
For example, Rotterdam, displaced by (ports of)
China as the most important port of the world,
has lineally speaking an extension of almost 100


kilometers and a capacity to extend another 100
km, they are not thinking of moving, but rather
developing its present extension. I believe the
port of Guayaquil is one of the few cases in Latin
America with a capacity of one hundred percent
(of growth) in round figures. If you take a look to
its plan, these are the results. Current ports have an
extension capacity and the famous hinterland. When
multinational companies wish to invest they prefer to
buy an operating port and not building a new one. In
the case of Guayaquil it is one step far from the city.
It is not less expensive to build a new port and
transfer the cargo there. It is more expensive. Land
transportation is much more expensive. Vessel
freights are lower. It is preferable to travel a longer
distance by ship. Why has Maersk not developed the
port at Posorja? Maybe numbers were not correct.
What attracts the most are numbers and Guayaquil
has so much expansion capacity that I do not see the
need of moving the port to another location; rather
than beneficial, it will be harmful.
n Guayaquil, the most important port is Libertador Simón
Bolívar, concessioned to Contecon, but there are other 13 private
ports (including two tuna ports) and another grain port, also
in concession (Andipuerto). Both handle 70% of the cargo of
Ecuador.
Entrance to the port of Rotterdam is through
a 40 km channel, and that of Guayaquil has 93.
Do entry channels make them less competitive?
In developed countries, if ports were in the wrong
placed they would have been changed. Rotterdam
has not moved its port and it was the first sea port of
the world until recently. Many ports of the world are
river ports: Houston, New Orleans, Hamburg, and
Antwerp. There is a very curious case and it is Tiajin,
in China, it is 1,600 km from the coast (in one of

their mouths) and moves 450 million tons, 13 million
TEU (containers). It is the fourth port of the world.
It continues operating and growing. River ports are
sheltered.
Sheltered ports are in interior waters, therefore are not affected by
winds or waves. They operate all year round.
How do ports located on small spaces become
more competitive?
An example is Rotterdam; things are handled by
robots, this is technology. There are companies
that concession dredging. Paraná-Paraguay has
concessioned the operation of the Paraná River
of 3,000 kilometers from Brazil to Buenos Aires,
covering five countries. Barranquilla is located at the
mouth of the river, very similar to Guayaquil. Twenty
years ago the Magdalena River moved two-times the
cargo of Paraguay-Paraná. This one was dredged,
concessioned and today they move 20 times more
cargo than the Magdalena. Colombia is now working
to concession the river. It is being deepened upstream
at a cost of 400 million dollars, plus 200 additional
millions for its maintenance during 10 years. Only
critical points will be dredged. In the future, possibly
concessionaries will charge tolls to vessels.
In Guayaquil, the trade chamber and ship agents, have called
for dredging of the access channel to the port of the city. The
idea is to bring the draught up to 10 or 11 meters to allow postpanamax ships to arrive, which can carry between 4,000 and
5,000 containers. The most contentious site is Los Goles. Rocks
must be crushed.


kvillavicencio@eluniverso.org

“To Transfer the Port is Practically a Death
Certificate”
The Executive Director of the Latin American Association
of Ports and Terminals, Julián Palacio, assures that the area
of influence or hinterland is what gives weight to the port of
Guayaquil. He spoke by telephone with this Newspaper.
Katherine Villavicencio

The Government of Ecuador states that in the
future the port of Guayaquil will be saturated
and must leave its current location to be located
between Posorja and Chanduy, is this proposal
viable?
I do not directly know the approach of the
government, I know there is a study and that
something has been said in this regard. But if I am
asked if the port should leave Guayaquil, I would
say no. Guayaquil has sufficient capacity to grow
for many years (…). The fact of being very close to


the city is also a great advantage. The problem now
is the draft, but this may be solved with permanent
dredging that is what occurs in the large ports of the
world and is much cheaper than a new port.
What are the implications of building a new
port?
Building a new port at the mouth of the river, I
understand at a distance of 100 kilometers from
the existing port, implies that for cargo to arrive to
Guayaquil it has to be transported (by road) those
100 kilometers, which is extremely expensive. If what
they want is to reduce costs, what will happen is an
increase of costs for foreign trade. Now, Posorja is
much deeper, certainly yes, but one must also think
a little in market economy and must see which is the
future of Ecuador in the 20, 30, 50 years to come
and if a very deep-water port is justified for some
vessels that eventually will not require it.
Then, it is not a guarantee?
Very large vessels arrive at the ports of very
important countries of the world; one may say half
a dozen or less. The fact of having a very deep-water
port does not mean that very large vessels will arrive,
even less if the economy of the country is not that
important at global level and if a country as Ecuador,
except for oil, does not have production of minerals
that implies very large shipments.
The proposal is building new facilities and
leaving these for cabotage and tourism
Yes, but in Ecuador and Latin America in general,
mobilization of cabotage and tourism is very little.
Having a port exclusively for cabotage and tourism is
not justified. If we see the port of Miami, the most

important of the world in tourism is the same port
for cargo… I insist; if one thinks about completely
moving the port, it is almost a death certificate for
the existing port of Guayaquil.
Post-panamax vessels will start circulating in
2015 and one thinks of relocating it in the future
based on this.
The ports and vessels must continue growing, but
one must not think of the maximum capacity for the
post-panamax, as it has to be seen from the point
of view of market economy. One must see how
many containers will be arriving to or departing from
Ecuador per shipment, and this greatly depends on
the size of the vessel.
Now, a vessel unloads about 350 containers in
Guayaquil; a post-panamax transports more
than 10,000.
Exactly. And at this time in the largest ports of Latin
America only 8,000 TEUs vessels are being received
(20 feet containers). With dredging I believe the
situation of the port will work for several years to
come and is significantly less expensive.
ECLAC ranking for 2012 placed the port of
Guayaquil as No. 8, what factors add up for this
position?
The most important is there is cargo in the port
hinterland (area of influence)… In the case of
Guayaquil the greatest advantage is that the city of
Guayaquil is perhaps the most important industrial
center of Ecuador and entering and departing from
it most of the foreign trade of Ecuador.


CHAIRMAN AND EXECUTIVE
DIRECTION OF LATINPORTS
ARTURO LOPEZ CHAIRS EXECUTIVE
COMMITTEE IN MIAMI
On the occasion of TOC Americas held in Miami
from September 30 to October 3, presided by
Arturo Lopez of Mexico, the executive committee
of Latinports was held at this city with the presence
of the executive director, Julián Palacio and the
following members of the association: Jorge Lecona,
president of Hutchison for Latin America; Melvin
Wegner, president of the Neltume Investments
(Ultramar Group) of Chile, Jorge Mello, president of
Companhia Docas do Río de Janeiro, and Andreas
Klien of Multiterminais, Brazil.

Julián Palacio took advantage of this opportunity to
meet with the Minister of Canal Issues, Roberto Roy,
and with the new Vice-president of Planning and
Market Analysis of the Panama Canal Authority (and
member of the executive committee of Latinports),
Oscar Bazán.
Buenaventura XXI Century: Colombian
Gateway in the Pacific

LECTURES OF THE EXECUTIVE
DIRECTOR
II International Construction Congress in
Panama

Upon his return from TOC Americas in Miami, the
executive director of Latinports stopped in Panama
at the invitation of the Colombian multinational
cement company Argos and presented the
conference “Port Development in Latin America”.

As moderator of the panel of maritime shipping
lines, the executive director of Latinports,
Julián Palacio, participated in the symposium
“Buenaventura 21st Century: Colombian Gateway
in the Pacific”, held in Buenaventura, Colombia
in August, where he had an entertaining and
enlightening debate with the managers of CMACGM and Evergreen.


OUR MEMBERS
PORT OF NEW ORLEANS NAMED TOP
LOGISTICS LEADER IN THE UNITED
STATES

Inland Port, in its edition for the third quarter
of 2013, reported that the important economic
magazine Business Facilities, ranked the Porto of
New Orleans No.1 on its listo f top logistics
leaders, outpacing all other port metro áreas in
the United States.

“With its proximity to the center of the U.S. via
a 14,500-mile inland waterway system, six Class
1 railroads and a nexus of interstate highways,
New Orleans is the porto f choise for the
movement of everything from steel, rubber
an manufactured goods to commodities like
coffeee”, said Jack Rogers, Editor-in-Chief of
Business Facilities.
Porto of New Orleans President and CEO, Gary
LaGrange, said the ranking is appreciated but
not surprising. “It is an honor to be recognized
by a respected economic development
publication such as Business Facilities”,
LaGrange said. “Howevwer, the Port’s superior
connectivity is no secret to shippers and our
customers worldwide.”

PUERTO SOLO OF BUENAVENTURA ENTER TO LATINPORTS

As of October the Sociedad Portuaria Puerto Solo
of Buenaventura, on the Colombian Pacific will
be part of the corporate members of Latinports.

This multipurpose port project with emphasis on
containers and hydrocarbon already has a 20-year
concession with the possibility of extending it for


10 more years, granted by the National Agency of
Infrastructure and has its corresponding prefeasibility
studies and designs. It has a privileged location
between the containers terminal TCBuen (with
which it may eventually integrate) and Sociedad
Portuaria de Buenaventura, with an approach depth
of 16/18 meters and a turning basin of 700 meters,

a berthing line of 1,500 meters and a total area of 150
hectares for storage and logistics activities. This project
is of great importance because of the recent creation
of The Pacific Alliance, which capital in Colombia
is precisely Buenaventura as was decided by the
President of the Republic, Juan Manuel Santos.

LOGISTICS AND COMPETITIVENESS
“TOP 10” PORT OPERATORS
WORLDWIDE

PSA International, Hutchison Ports, APM
Terminals and DP World continue being
the four principal actors in terms of TEU
movements but with variable levels of activity, as
stated in the annual report of the global terminal
operators of Drewry Maritime Research, quoted by
Mundo Marítimo. DP World and APM Terminals
remain very active in terms of acquisitions,

liquidations and development of greenfield
projects, Hutchinson is somewhat less active in
this matter and PSA even less, and ICTSI and
TIL also remain relatively active in terms of
portfolio expansion, states the report. There
is a clear focus towards growing opportunities
in emerging markets by the international port
operators seeking to expand.
In the meantime, large shipping lines have
been selling their participations in terminals
to obtain more liquidity – but maintaining
majority control. Business involving CMA CGM
Terminal Link and MSC/TIL has been the most
significant. As a result, most shipping operators
have seen little changes in terminal investments,
adopting a holding policy rather that an
expansion one, states Drewry. Many actors
not currently under the category of Drewry
as international terminal operators are rapidly
growing and have a great interest in international
expansion, including China Merchants,
Gulftainer, Bolloré and Yildirim. Others as GPI,
SAAM Puertos, Ultramar and Ports America are
also making selective expansions or seeking to
participate in new projects, as mentioned by the
report.


“Within the select club of international port
operators there is an extensive variety of
strategies and levels of activity. Some operators
remain active with their current investments,
while others are seeing little changes. More
activity of mergers and acquisitions is highly
probable, especially investments of the shipping
lines. Besides, now waiting are a number of avid
new actors, some of which will qualify very soon
as international operators”, said the editor of the
report, Neil Davidson.

“LATIN AMERICA WILL LEAVE
UNDERDEVELOPMENT IN 15 YEARS”:
CARLOS SLIM
Carlos Slim, permanent president of the Carso
Group, assured that “Mexico and Latin America
have an income per capita of 10 thousand
dollars, and since it is expected to grow 4
or 5 percent, in 10 years we will arrive to 15
thousand dollars and will break the barrier of
underdevelopment”, Milenio informed at the
annual Mexico 21st Century meeting, organized
by Telmex Foundation, Slim assured it would be

Worth mentioning is that most of these large
world operators are present in Latin America.


interesting to have a model of a country without
utopias, but based on reality, that may leave
underdevelopment at a time it has an appropriate
social-political environment.
“Advantage must be taken of these periods of
abundant and inexpensive financial resources in
the long-term to overcome all the backwardness
we have, which will allow us to accelerate our
growing level 4 or 5 percent, as I mentioned,
but there must be a development scheme with
at least a 15-year vision in order to know where
to make greater emphasis and encourage this
development”, explained the businessman. He
detailed that one must have a clear vision of this
new civilization, what goals we may reach and
what instruments we have to use to attain them;
“of course, the core of all of this is education
and on the other hand a quality employment,
both competitive and remunerated”.

ECLAC REDUCES CALCULATION OF
LATIN AMERICAN EXPANSION AS PER
BRAZIL AND MEXICO

He stated that for all countries it is very
important to create an economic, political
and social environment allowing to encourage
investment and also to create new activities
to generate new jobs. “In five or ten years
new jobs will be in information technology,
information activities, education, health, tourism
and entertainment; there are billions of persons
in the world that are left out of modernity
and in self-consumer conditions and we have
to incorporate them to the market, education
and modern work”, he emphasized. We must
see what is coming and what is happening in
an environment where technology continues
advancing at an accelerated rate, added the
entrepreneur, as there are billions of people
communicated, but today the greatest effort of
all countries is a universal access to bandwidth
and internet and what this may offer free of
cost.
Latin Business Chronicle, quoting Reuters,
informed that ECLAC cut in July its growing
estimates for Latin America and the Caribbean
to 3.0 percent in 2013 as it expects a lower
expansion of Brazil and Mexico, in the midst
of the moderation of internal demand and
weak exports in the region. In a document, the
Economic Commission for Latin America and
the Caribbean (ECLAC) reduced 0.5 percent
points its expansion forecast for the block and
noted some weaknesses as the high dependency
on exports to Europe and China, and the
increasing growth of the current account
deficit.
“The growth fall compared to the last estimate
(3.5 percent last April) is mostly due to
the low expansion of Brazil and Mexico”,
explained ECLAC in its report. The multilateral
organization emphasized that Brazil, the


principal economy of the region, will grow 2.5
percent this year from a previous estimate of 3.0
percent. The entity also cut its growth forecast
of the Mexican GDP to 2.8 percent for this
year, from a previous provision of 3.5 percent.
ECLAC maintained its 3.5 percent growth
calculation for Argentina in 2013.
The organization emphasized that the region

shows some weaknesses that could affect it
in the short- and long-term, compared to the
present negative external scenario, therefore it
is necessary to extend and diversify the sources
of expansion, said the executive secretary of
ECLAC, Alicia Bárcena. “We need a social pact
to increase investment and productivity and to
change the patterns of production to grow in
equal conditions”, she stated.

BRAZIL RECOGNIZES IT IS FACING A
“MINI CRISIS”

2.21% to 2.20%. Based on a report disclosed by
the Central Bank of Brazil, experts also raised
their inflation forecasts for 2014 from 5.80%
a week ago to 5.84% in current report, and
reduced economic growth for next year from
2.50% to 2.40%.
New forecasts are shown in the edition
published by the Focus newsletter, a study
prepared every week by the Central Bank among
economists and analysts of a hundred financial
institutions.

Brazilian economy is facing a “mini crisis”,
stated on Monday the Minister of the Treasury
of this country, Guido Mantega, quoted by
El Cronista. At a meeting with entrepreneurs
in São Paulo, Mantega added that despite
challenges of the recent exchange rate volatility
and a weak economic growth, both internal and
external, Brazilian economy remains solid. The
declarations of the Secretary of State coincided
with the forecasts of the economists of the
Brazilian financial market that raised its inflation
forecast for this year from 5.74% to 5.80%, and
reduced the economic growth estimate from

LATIN AMERICAN PRODUCTIVITY
CHALLENGE
Latin American competitiveness in global
economy continues blocked by the slow growth
in productivity. This is the conclusion of the
last global competitiveness report published
every year by the World Economic Forum
(WEF). The report highlights the healthy
rhythm of economic growth – that although
slower than the last decade, still exceeds that
of most advanced economies – and the solid
macroeconomic conditions that have led to
this growth. However, the region suffers an


investments in infrastructure in the region will
amount to 200 billion dollars in the coming
years.

infrastructure deficit and a lasting productivity
improvement.
LATIN AMERICAN ECONOMIES WILL
DEPEND ON INFRASTRUCTURE
INVESTMENTS
Infrastructure investment in Latin American
countries, where it is presumed that sector
development is 20 years behind compared to
China, will allow economic growth continuity.
So was stated by Latin American and Chinese
experts during the 5th Forum of Investors of
Latin America and China held in mid-September
in Peking, as informed by Latin Business Chronicle,
quoting Portafolio of Colombia, which in turn
quoted the news from EFE.
Many countries of the region prepare
different and important investment projects
to reach the required infrastructure and to be
competitive in the future, states the chief of
the Department of Infrastructure of the InterAmerican Development Bank (IDB), Jean Marc
Aboussouan. “The entire region has a great
potential”, stated Aboussouan, who calculated

For the Director of the Latin American and
Chinese Program of Inter-American Dialogue,
Margaret Myers, the momentum for the
development of infrastructure in the region
is something “Latin America wishes and
desperately needs” and China has considered
and developed financing options. “I believe
the lack of a good infrastructure for a rapid
development of the region is the main challenge
it has”, stated Myers.
Despite global deceleration, the economic
activity in Latin America during the last decade
has reduced poverty from 48 to 29 percent, and
increased its middle class in 50 percent (from
103 million persons to 152 millions). However,
to continue its economic takeoff requires
reducing the gap in matters of infrastructures,
such as transportation, telecommunications,
water and energy. “There is a lack of railways,
airports, ports, metro stations, buses, energy
plants that need to be developed. Governments
are starting to see that if they want their
economies to continue growing, they need
to support the sector and this is a great


opportunity”, stated on the other hand the
director of the company Samcorp, Lawrence
Lam. He considers this is a difficult decision for
governments that sometimes have to face the
opposition of groups of interest but it “has to
be done” and in the long term will also bring

new opportunities to said groups.
According to figures of the Latin American
Development Bank (CAF), the region requires
an increase in infrastructure investments from 3
percent of the GDP to 6 percent. The hundred
most important and urgent infrastructure
projects for Latin America and the Caribbean,
which average growth was 3 percent last year,
is expected to move to 3.5 percent in 2013,
requiring investments for 250 billion dollars, as
established by the Latin American Leadership
Forum held in May 2012 in Lima.

WATERWAYS IN LATIN AMERICA
URUGUAY AND ARGENTINA AGREE
DEEPENING DREDGING OF SHARED
RIVER
According to the report of Terra.com, the
Uruguayan government announced it has
agreed with its Argentinean peer to “elevate”
to 25 feet deep the dredging of the Uruguay
River at the border, decision that streamlines
the historical and intricate negotiation between
both nations in relation to shared maritime
routes. The Administration Commission of the
Uruguay River approved “elevating at both Party
States the Dredging and Beaconing Project”
to “23 feet of navigation (25 feet depth)”,
stated the communication of the Uruguayan
Foreign Ministry. The decision complies with an
agreement between both governments that was
reached in 2011 “contemplating all the technical,
economic, and environmental aspects” for the
“prompt concretion” through an international
tender for works.

Dredging will allow “arrival of overseas vessels
to port terminals of Fray Bentos”, which will
improve “competitiveness of ports there located.
It will also improve competitiveness of the port
of Paysandú for river transportation in smaller
ships and barges”, added the communication.
During the last years the historical port rivalry
between Buenos Aires and Montevideo
potentiated due to negotiations about dredging a
binational maritime channel, the Martín García,


at the shared Río de la Plata. While the Uruguay
River was an actor of the extended bilateral
dispute on the installation of a cellulose plant
in the Uruguayan margin, which maintained
frontier passages closed for several years, and

having brought the case to the Court of The
Hague, the latter resolved that the plant does not
contaminate and ordered periodical supervisions
by both countries.

LAST QUARTER OF 2013: KEY FOR THE FUTURE OF THE MAGDALENA RIVER

Executive Director of Latinports, Julián Palacio (right), aboard a tugboat on the Magdalena river, talks with the President of Colombia, Juan Manuel
Santos (center) and the General Director of Cormagdalena (left), during the launch of the project’s navigation upstream from the waterway.

The Colombian Government will award works
for US$600 millions for the improvement of the
navigability of the Magdalena River, announced
President Juan Manuel Santos in the National
Transportation Congress, according to news
published in Portafolio. “The river as a waterway
will stop being a dream and will become a
reality”, stated Santos.
According to the news, before the end of the
year it will be known the group that will make

the channeling works of 256 kilometers between
Barrancabermeja (Santander) and Puerto
Salgar (Cundinamarca) will be known, and also
which will be in charge of the maintenance
of the navigable channel until Barranquilla.
This has been considered a strategic project
for the country as it seeks the extension of the
navigable sector of the principal Colombian
tributary and achieving a minimum depth of 8
feet in order to transport cargoes of up to 7,200
tons per convoy.


Positive impact on the economy and the
environment
Works on the Magdalena River are important
for the country – and especially for seven
departments, which include the stretch to be
extended both wide and deep – not only because
competitiveness will be gained upon decrease in
transportation costs as it will allow moving from
2 to 8 million tons per year by the tributary, but
also the positive environmental impact upon
decreasing carbonic gas generation of trucks
carrying cargo today, as noted by environmental
authorities.
Argentina Advises
In September was entered in Bogotá the first
phase of the work plan of the Binational
Technical Adviser Commission ArgentinaColombia, by which Argentina advises Colombia
in the reactivation of the navigation by the
Magdalena River.

During the meeting, Augusto García, director
of Cormagdalena, socialized the process
and advancements of the project, stating the
importance of the infrastructure work leaded
by Cormagdalena with the total support of
the national government. Conclusions of this
activity were informed that the works of this
binational commission will continue, according
to the needs of Cormagdalena, on the following
issues:
- Accompaniment and advice in the bidding
process for the channeling works and
maintenance of the river.
- Accompaniment and advice in the revision
of the regulations to adjust them to the
conditions generated upon the future
reactivation of navigability.
- Need to define a policy for preventive
fishing activity in light of dredging
campaigns to be done.
- Exchange of experiences to strengthen
institutionalizing maritime and river
authorities on the river.

MARITIME TRANSPORTATION AND PORTS
NEW SCENARIO MAINTAINS THE PORT
SECTOR ACTIVE AND PROFITABLE AT
INTERNATIONAL LEVEL

So that everything stays the same, everything
must change. This law of life applies to
everything, including the containers industry. To
remain dynamic and profitable, the containers
transportation industry must adjust to satisfy
market needs, which is increasing the size of
ships and containers demand.
The senior analyst of ports and terminals of
Drewry Maritime Research, Neil Davidson, quoted


by Mundo Marítimo, highlights that “operators
of container terminals remain highly successful
and active, but changes are coming: changes
in the ownership of ships as shipping lines
when seeking cash flow are obliged to sell their
participations in terminals and, at the same time,
terminal operators seek expansion opportunities;
and changes in the operations and infrastructure
as ever larger vessels must be accommodated
not only in Europe and Asia, but worldwide”.
For the containers transportation industry to
remain competitive, it must not only accept these
changes but incorporate them, as in the midterm they shall define the market.
Larger vessels: More containers
Although there is a consensus regarding
containers demand will not increase at the
momentum it did in the decades of 1990 and
2000, it is expected that global port demand
will exceed 800 million TEUs per year in 2017,
with an increase of 5% per year, according to
Drewry Maritime Research. To place this growth
in context, 186 million TEUs represented in this

THE LARGEST VESSEL OF THE WORLD
ARRIVES TO ITS FIRST DESTINATION
The largest structure navigating over the
seas, the Triple E Maersk Mc-Kinney Moller,
completed its inaugural voyage at the port of
Rotterdam (Holland). The vessel of the Danish
company Maersk was built in the port of
Daewoo Shipbuilding and Marine Engineering
in South Korea, and may transport up to 18,000
containers of 6.1 meters, equal to 36,000 sedan
vehicles, accommodated in the steel structure

increase are more than the total cargo handled in
North America, Europe and the Middle East as
a whole.
At the same time, the size of vessels continues
to increase. The largest containership of the
world has increased fourfold in size since 1992
and the route Asia-Europe has doubled in the
last 10 years. This has triggered the creation
of greater alliances, being the most notorious
the association between Maersk, MSC and
CMA CGM. Most probably, the unrestrained
increase of vessels in secondary routes will cause
even more problems and challenges than the
monsters of 18,000 TEU in the Asia-Europe
route. The trend will not take long to reach
Latin American ports and the WCSA route, as
regional ports should not wait for larger vessels
and greater demand to knock at their doors to
take action on the matter… They must start
preparing as of now: more infrastructures are
the key for the future.

400 meters long (length). It is expected that in
less than a month the second cargo vessel of the
Triple E series, which will be called the Majestic
Maersk and has already been delivered, will
arrive to Copenhagen (Denmark), headquarters
of the company and on this vessel will take place
a public exhibition.
To have an idea of the magnitude of this means
of transportation, it must be mentioned that its


structure is that of four soccer fields placed in
a row, and its height from the lower base of the
hull to the control tower antennas is 73 meters.
Although the vessel will remain most of the time
sailing, the crew has access to electronic mail and
to Skype to remain in contact with their families.
Another of the characteristics of this vessel is it
may be operated by a crew of only 13 persons,
although in exceptional cases it may have a
maximum crew of 34. The company said that in
the future average regular missions will have 22
crewmembers.
Notwithstanding these superlative figures when
speaking of this vessel, of which the company
ordered the construction of 19 more vessels
to replace its less efficient fleet, the Triple
E concept, as stated by a spokesman of the
company to El Tiempo, “relates to a greater
efficiency in the use of fuel, less emissions
of contaminant gases and a lower speed for
a greater performance, among other issues”.

Likewise, Louise Münter, communications
director of Maersk, said “the vessel will operate
at first trade routes between Asia and Europe,
but will not arrive to American destinations”.
The commitment of the Danish company,
which has almost 15 percent of the containers
transportation of the world and is the largest of
the sector, is that trade of goods in the coming
years will grow around 10 percent.
“It will take several years for large cargo
containerships, as the Triple E, to arrive to
Latin America, as the traffic of goods in this
region of the world is still small”. So was said
to EL TIEMPO by Domingo Chinea, manager
of Sociedad Portuaria of Buenaventura, who
assured that although economies such as Brazil,
Chile, Mexico, Colombia and Argentina have
grown, they receive vessels with a maximum
capacity of 9,500 containers. The Triple E, as
those just released by Maersk, “will arrive to the
region in about 20 years”, estimated Chinea.


THE P3 ALLIANCE: HOW WILL PORTS
BE AFFECTED?

The recent decision of Maersk Line, MSC
and CMA CGM to form a mammoth vessel
sharing alliance in the three major east-west
trades has stirred up shippers, but the port
sector must be equally concerned, Drewry
informed. As announced, this three megalines
intend to share vessels in the Asia-Europe,
Transpacific and Transatlantic trades from 2Q
14. A total of 255 ships will be operated in 29
loops with a combined capacity of 2.6 million
TEU. The ramifications of the consolidation
for the port industry are enormous. Each of the
three carriers already operates more ULCVs than
anyone else, so catering for their combined cargo
handling requirements will be on a scale never
seen before.
Not surprisingly, views are divergent on
whether the three will consolidate/rationalize
their port calls, therefore. Whilst economies
of scale are there for the taking, it will result in
tampering with the well-established berthing
windows of each schedule, and the feeder/

intermodal connections of each carrier, which
will, presumably, remain separate. Moreover,
all three have ‘family connections’ to terminal
operating companies, so choosing the best
port and terminal will not only come down to
the best for each job. Maersk is connected to
APM Terminals, MSC to Terminal Investments
Limited (TIL), and CMA CGM to Terminal
Link, and each has particular port preferences.
For example, APM Terminals has a presence in
Bremerhaven, where Maersk has more than 10
port calls a week, but not Hamburg, and MSC
prefers Antwerp over Rotterdam. The following
table shows this picture in more detail in the Far
East, Europe and North America.
For ports and terminals to be selected for the
P3 network, the main criteria will be the ability
to handle ULCVs efficiently, with little margin
for error. Quays will have to be long and deep,
and each terminal will have to be equipped with
cranes capable of spanning around 21-22 rows
across deck. A minimum of three to five of
these are required for the efficient handling of
the large box ships. The following table indicates
what is currently available at present in this
respect.
Will not include the vast majority of Latin
American ports


Although services from Asia to the US East
Coast via either Los Angeles or the Panama
Canal will be included in the P3 Alliance,
Container Management informed that Robert van
Trooijen, president of Maersk Line for Latin
America and the Caribbean, has confirmed that

P3 will not include Latin American ports with
the exception of Mexico’s Altamira and
Veracruz, as the Asia–Latin America and Latin
America-Europe routes are not part of the
operational alliance.

CHINESE MERCHANT VESSEL MAKES
ITS FIRST VOYAGE THROUGH THE
ARCTIC

(northeast) to the Behring Strait. Upon crossing
this strait, the freighter took the North-East sea
route bordering the northern coasts of Siberia
and then surrounding Norway, having arrived in
September to its port of destination, Rotterdam.
This polar shortcut by the Arctic, possible
during the summer months thanks to global
warming and melting is, according to Cosco, a
“golden route” that saves between 12 to 15 days
compared to traditional routes.

The first voyage through the Arctic of a Chinese
commercial freighter shows the polar ambitions
of Peking and opens the possibility for the first
world exporter to deliver its goods quicker, as
stated by experts, informed Mundo Marítimo that
got the news from AFP. Last August, a giant
Chinese freighter from maritime transportation
Cosco departed from the port of Dalian

The North-East sea route, in which Russia


facilitates navigation by imposing rental of the
icebreaker, should have an ever more important
role in international exchanges. “This will
potentially transform the scheme of world
trade”, stated Sam Chambers of the SinoShip
magazine. Around 90% of Chinese commercial
exchange is done by sea and in this country
some persons consider that seven years from
now, between 5% and 7% of international
trade of the second economy of the world
could transit by the Arctic. The opening of
the Arctic “will considerably reduce maritime
distances between Chinese, European and North
American markets”, explained Qi Shaobin,
professor of the University of the Sea of Dalian,
quoted by the Chinese press.
For China, the new North-East sea route
allows preventing delays at the Suez Canal
and reduces in several thousand kilometers its
journeys to Europe, its first commercial partner.
Savings, especially in fuel, will be considerable.
Last year, China exported to the European
Union 290 billion Euros (US$ 386.6 billion) in
merchandises. Peking expects that this polar
shortcut will also benefit the development of
the northeastern ports of the country. On
the other hand, China, the first consumer of
energy worldwide, covets the large hydrocarbon

reserves which would house the Arctic. These
resources are ever more accessible because of
the decrease of the polar cap.
Peking is playing its cards in this region and,
after several years of a diplomatic campaign,
it obtained in May the status of observer at
the Arctic Council, an intergovernmental
cooperation forum. “The opening of the new
sea transportation route shows that China is
more involved in matters of the Arctic Ocean”,
confirmed Zhang Yongfeng, researcher based
in Shanghai, specialized in sea transportation.
However, the immediate scope of polar
shortcuts downplays. “In the short-term, the
economic interest on sea transportation is not
truly great”, he states. “The navigation period
of the passage is relatively short and port
infrastructures along the way are incomplete”,
explains Zhang. In fact, traffic through arctic
waters is yet incipient if compared with
traditional routes via the Panama Canal (15,000
movements per year) or the Suez Canal (19,000).
The volume of goods transported by the NorthEast route should multiply in the coming years:
from 1.26 million tons last year, it will move
to 50 million tons in 2020, according to the
Federation of Norwegian Shipowners.


LATIN AMERICA AND THE
INTERNATIONAL TRADE AGREEMENTS
THE PACIFIC ALLIANCE REPRESENTS
50% OF LATIN AMERICAN TRADE

fuel and mining, agriculture and manufactured
products; therefore its offer is complementary
to the Asia Pacific markets. The strong trade of
the block is supported, for example, in Chile
with 22 trade agreements with more than 60
countries. Colombia and Mexico, as such, have
12 Free Trade Agreements (FTA) with 30 and
40 markets at global level, respectively, while
Peru has 15 trade agreements with 50 countries.
Worth noting is that the Gross Domestic
Product (GDP) of the four countries of the
group represent 35% of the total GDP of
Latin America and the Caribbean, and its
average growth rate was 5% in 2012, higher
than the 3.2% entered worldwide during that
year.

Latin Business Chronicle, news taken from El
Mercurio/GDA, informed that the economic
weight of the Pacific Alliance (PA) in Latin
America stands on various facets, especially
when speaking of trade, as the block integrated
by Chile, Peru, Mexico and Colombia
concentrated 50% of flows to and from the
region in 2012. Besides, the countries of the
Alliance represent 26% of total flows of Direct
Foreign Investment of Latin America and the
Caribbean.
According to last year registrations of each
member country of the group, consolidated
exports of the economic group to the world
amounted to US$556 billion, while imports
amounted to US$551 billion. Thereby, half of
regional trade involved markets of the Pacific.
The principal exports to countries of the PA are

As an economic block, Colombia, Chile,
Mexico and Peru add up a total population
of more than 209 million persons, which
represents more than 36% of Latin American
total. Likewise, the GDP per capita of the
Alliance arrives to US$10,011.
Panamá sees the Pacific Alliance as a
Development Factor of the Canal
On the other hand, La Prensa informed that
Vice-minister of Foreign Affairs of Panama,
Mayra Arosemena, emphasized during the
Ibero-American Summit in Madrid the
importance of the Pacific Alliance as user
of the Panama Canal and the interest this
integration project has beyond the continent.
In an interview with Efe, the Vice-minister


enter as full-right member to the commercial
block of the Pacific, to which Costa Rica will
join in the first place after ratifying its agreement
with Colombia.

affirmed that the Pacific Alliance is acquiring
“a global importance” and therefore many
countries want to participate as observers,
such as the European Union, Australia, or
New Zealand. Panama only lacks signing a
commercial promotion treaty with Mexico to

MERCOSUR NEEDS TO REINVENT

Mercosur arrived to its 45th Presidential Summit
with the challenge of overcoming its persistent
conflicts and asymmetries, and advancing in
the negotiations of the agreement with the
European Union (EU), a step that would also
revive its regional leadership, threatened by

The Alliance will become the second world user
of the Panama Canal, and the Vice-minister
declared it is of the utmost importance for
them. “Panama became the transit zone between
Asia and Europe and therefore we are a country
that accepts foreigners as part of our lives”, she
stated. She also assured that the Pacific Alliance
has as one of its axes facilitating and greater
cooperation among Central American countries,
giving the example of Honduras and Guatemala
that are now in the process of complying with
necessary requirements to enter into this treaty.

initiatives as the Pacific Alliance, as informed
by Latin Business Chronicle with news from
EFE. The block formed by Argentina, Brazil,
Uruguay, Venezuela and Paraguay (suspended
a year ago), was created 22 years ago, but the
internal disputes and stagnant negotiations with
other blocks, as the EU, have diminished the
relevance of its integration proposal. “Mercosur
has to reconsider what the years of stagnancy in
negotiations really suppose because, otherwise,
these opportunities will be profited by the
countries of the Pacific Alliance”, formed by
Chile, Colombia, Mexico and Peru, declared
recently the State Secretary of Commerce of
Spain, Jaime García-Legaz.
According to experts, the ideological tone
assumed by Mercosur in the last years has
caused this block to fall behind important


commercial negotiations. “Evidently, political
changes occurred in member countries have
included changes in the viewpoint of trade (…)
Two examples are the decision of Argentina
of not complying with certain clauses and the
entry of Venezuela to Mercosur”, assured the
economist and researcher Hernando Zuleta,
professor of the Colombian Universidad de los
Andes. The dynamics of Mercosur, an economic
zone with 270 million inhabitants (70 percent
of total South American population) has been
further affected by exchange and commercial
restrictions, which manifest in closed or
protectionist measures among partners. “Many
times, foreign trade of the block operates as in a
centralized planned economy. This, which is fatal
in terms of efficiency, facilitates negotiations:
‘Send me meat and I will send you oil’”, stated
Zuleta.
Under these terms, Mercosur, that within
its economic and political model has “not
demonstrated an interest in opening its
borders”, could strengthen under the “natural”
leadership of Brazil, the largest Latin American
economy, said, on the other hand, Martín Ibarra,
president of Ibarra y Araújo, consultant firm in
international businesses. However, for Zuleta
“during the last years Brazil has not been the
main character in adopting changes” but, on
the contrary, Argentina was the “determinant”

in matters as the suspension of Paraguay and
the entrance of Venezuela. A recent report of
the National Industry Confederation (CNI)
of Brazil assures this country and its partners
of Mercosur will remain “isolated” if no
alternatives are procured to sign new commercial
agreements. Brazil “risks losing more space in
its exports markets if it does not fully enter the
global game of seeking new international trade
partnerships”, stated CNI when referring to the
Pacific Alliance, “countries that altogether have
35 percent of Latin American Gross Domestic
Product (GDP) and 3 percent of world trade”.
The same report considered that all above
mentioned countries have free trade agreements
with the United States and the EU, in which
Brazil is not included and that only has “22
preferential agreements, most of them of little
relevance”. Comparing Mercosur with the Pacific
Alliance, García-Legaz believes the latter, despite
being only one year old, “is a winning alliance of
countries betting on strong institutions, market
economy, and free trade”. Lack of progress in
commercial matters of Mercosur is of great
concern above all to Uruguay and Paraguay, the
two minor economies that seek to extend and
diversify its markets and that have started to see
an alternative in the Pacific Alliance, in which
they have already been admitted as observers.


Events
SUCCESSFUL OUTCOME OF
TOC AMERICAS IN MIAMI

Victor Gallardo
of containers.
The 2013 version of the conference and
exhibition TOC CSC (Container Supply Chain)
Americas was as its predecessors, a total
success. More than 400 international delegates
attended the two axes conferences (cold chain
and containerized logistics chain), highlighting
a large Latin American audience from Mexico
and the Caribbean to Chile, which meant more
than 50% of total assistance to the conferences,
thanks to the efficient management of the TOC
representative for Latin America and director
of the publication Mundo Marítimo of Chile,
Víctor Gallardo.
During the event, held on October 1-3 in
Miami, sponsored by the Port of Miami and the
support of Latinports, attendees could learn
about and share with the principal actors of the
containers transportation industry, also having
the opportunity to discuss the best practices to
handle perishable cargo and the logistics chain

Executive Director of Latinports among
Top Rapporteurs
As in previous years, the 2013 version had an
important quota of world-category rapporteurs
who presented important topics on the
industry, as for example, in reference to large
containerships and mega hubs. The executive
director of Latinports, Julián Palacio, presented
an interesting conference on the decline of the
commercial relationship of the United States
with Latin America and the boom of China in
relation with the region.
Conferences were complemented with
traditional networking activities and an
exhibition hall that was a complete success.
Visitors were able to see and compare
equipment and services among more than
70 exhibition companies. Worth noting was
that the event had the important presence of
representatives of manufacturers of cutting


edge equipment, recognized worldwide, and
the important participation in the exhibition
of ports and operators of the region. Visitors
to the exhibition could also enjoy for the first
time the conference TECH TOC, technical
seminars on technology, productivity and port
services, where renowned specialists shared their
knowledge of the business with those present.

Miami Airport Convention Center

TOC CSC Americas 2014

After the success of Miami 2013, the next
organizer will be the Colombian Port of
Cartagena, where will take place this important
event in October 2014. More than 30 stands
have already been reserved and more than
100 persons have pre-registered one year in
advance. Do not miss the TOC CSC Americas
2014 conference that promises to be the most
successful to date.

Wait for...

Organized by TOC Events Worldwide
With the sponsorship of the Panama Canal
and the support of Latinports


Latin American Port News
Argentina
Buenos Aires Receives the Largest Vessel that
has Arrived to Latin America

Brazil
Tender for 50 New Private Terminals in Brazil

The tender process has started for the first 50
private use terminals (TUPs) that are to be built
in Brazil under the new Ports Law, with a majority
of them to be constructed in the North Region,
Port Finance International informed. Representing a
private investment of approximately $4.9 billions,
the 50 new terminals are expected to handle 105
million tonnes a year of general cargo, containers,
solid and liquid bulk.

On July 25 this year the largest vessel ever to
call at the Port of Buenos Aires and in South
America, the 322 meters long Cap San Nicholas,
owned by Hamburg Süd, was handled at the
APM Terminal 4 facility in buenos Aires. This
was the first of six 9.700 TEs capacity Cap San
class vessel that will be introduced by Hamburg
Süd’s Asia/South Africa/East Coast South
America service.

Brazil’s President Dilma Rousseff unveiled the
list of tenders on July 3rd: 27 terminals will be
set up in the North Region (totalling $ 0.8 billion
in investment); 12 terminals in the Southeast
Region ($2.1 billions); five in the South Region
($68.2 million); three in the Northeast Region
($2 billions); and three more in the Central-West
Region ($19.5 million). The National Agency of
Water Transportation (Antaq) has already received
123 requests to operate these new TUPs. The
government says that if other companies express
their interest, it may include them in the process.
The deadline for submission of proposals is August
5th and the issuance of permits will begin on
September 21st. The process will last no more than
120 days, says the Brazilian government. Once a
building authorisation is granted, the concessionaire
will have three years to start operating the
terminal. The initiative aims at increasing Brazil’s
port capacity and increasing competition.


Chile

Chile Announces Development of Investments
for more than US$1.8 billion in Projects for
Modernization of Ports

According to a communication of the
Presidency of the Republic, the program started
in 2011 includes awarding concessions for 8
of the 10 state ports: Iquique, Antofagasta,
Coquimbo, Valparaíso, San Antonio, Talcahuano,
Puerto Montt and Chacabuco. “We are
improving competitiveness of the country
and repositioning Chile as a leading site in the
regional market of ports”, explained the Minister
of Transportation and Telecommunications,
Pedro Pablo Errázuriz.
Materialization of the greatest modernization
program of port infrastructure since the
approval of the Law for the Modernization of
the State Port Sector of 1997 was presented by
the President of the Republic, Sebastián Piñera,
altogether with the Minister of Transportation
and Telecommunications, Pedro Pablo Errázuriz,
in Valparaíso. “We have consolidated a
successful model of growth starting concession
processes at 8 of our 10 state ports, with

investment projects higher than US$1.8 billion”,
explained Minister Errázuriz. The chief of
Transportation stated in detail that through this
program of investments the capacity of cargo
transfer of the country will increase in more
than 40 million tons, assuring that the different
regions will have the port services they require
in the short- and medium-term. “In this way we
are improving competitiveness of the country
and repositioning Chile as a leading position
in the regional market of ports”, explained the
authority.
The infrastructure modernization program
started in 2011 with the award of concessions
for the ports of Coquimbo, San Antonio
and Talcahuano, investment amounting to
US$543.9 millions. In 2013, Terminal 2 of
the Port of Valparaíso was granted, a project
with investments of US$507 millions. In the
meantime, in the coming months the tender for
berthing fronts is under process at the ports
of Iquique, Antofagasta, Puerto Montt and
Chacabuco, with investments amounting to
US$556 millions.
Pedro Pablo Errázuriz explained that this
program is framed within a global process
of the Ministry of Transportation and
Telecommunications that has enabled giving
a turn to port planning, by incorporating a
strategic and integral view to resolve the needs
of today, but especially to face requirements
for the next decades. In this sense, Errázuriz
anticipated that this semester will be presented
the National Plan for Port Development (PNDP,
in Spanish). “This is the instrument that will
allow assuring investment plans of the port
system as a whole, including road and railway


solutions, and also extension zones and logistics
support. The PNDP will mark the route for
the development of the port industry for the
next decades as support for national economic
growth”, added the Minister of Transportation.
Large Scale Port
Errázuriz furthermore confirmed that works
are rapidly underway in the project of the Large
Scale Port to be built in the Region of Valparaiso
in response to the growth projected for port
demand in the central macro-zone, that is, from
the regions of Coquimbo to the Maule. In this
respect, he stated, there are location options at
the coast of Valparaíso and San Antonio, and
the decision to be adopted on the construction
site of the new port will be made according
to the equilibrium between technical, logistics,
economic and social factors. “In particular, as a
country we need that the new terminal complies
with the highest standards of design and port
equipment; with safe and efficient turning areas;
with good roads and railway connectivity, and
besides with the capacity to grow at reasonable
prices, among other characteristics”, stated
Minister Errázuriz.

Colombia

ICTSI and PSA Join Forces for Buenaventura
Project

International Container Terminal Services
Incorporated (ICTSI) and PSA International
(PSA) disclosed the signing of an agreement
to jointly develop, construct and operate a new
container terminal at the Colombian Pacific
port of Buenaventura, Alphaliner informed
in mid-September. The agreement involves
PSA’s investment in Sociedad Puerto Industrial
Aguadulce S.A. (SPIA), an indirect subsidiary of
ICTSI, which holds the 30 - year concession for
the so-called ‘Aguadulce Port Project’ granted by
National Infrastructure Agency. Under the terms
of the agreement, PSA indirectly acquired a
45.64% share in SPIA. ICTSI and PSA will thus
be equal partners in the terminal development
vehicle, whereas local partners continue to
hold the remaining 8.72%. Aguadulce will be
the third container terminal at Buenaventura,
adding to Port Society of Buenaventura, into
which DP World this year bought in, and to the
2011-launched TCBuen Terminal.

Contrary to all previous terminals at
Buenaventura, which have been built on the
southern side of the tidal bay on which the city
is located, the Aguadulce terminal will be built
further north. This means that all surrounding
infrastructure such as roads and electricity
supply have to be developed in parallel. An
official launch date for the new terminal has not
been provided, but a construction period of two
to three years seems realistic for a greenfield
development.


Pacific invests US$1 billion in infrastructure

Portafolio informed that through the firm Pacific
Infrastructure, controlling 41.4 percent of
outstanding shares, Pacific Rubiales Energy are
currently investing $1 billion in the country,
only in infrastructure. It is also promoting a
possible mega-work in the railway sector that
if successful, would imply a similar amount
for an important investment in this system.
So was affirmed by the president of Pacific
Infrastructure, Juan Ricardo Noero, who states
that, in particular, this will amount to US$ 500
million for Puerto Bahía, a new import and
export terminal of liquids with storage facilities
and cargo handling for 3.3 million barrels.
Besides, 400 million dollars will go to Olecar, a
130 km pipeline, with an initial transportation
capacity of 300,000 barrels per day, connecting
the facilities of Puerto Bahía and Coveñas. No
coal will be transported, but it will handle three
types of cargo: containers, general cargo and
bulk cargo.
The firm is also promoting the project for
a railway interconnecting Cartagena and
Barranquilla with the hinterland, and its final
plan could takeoff in the short-term. Total

short-term investments of the company, states
Noero, amount to $1 billion in expansion works
for the target sector. The company also reached
an agreement with the International Finance
Corporation (IFC), branch of the World Bank,
to enter as partner with an investment of $150
million. This allowed the IFC in August to hold
27.2 percent of the subscribed capital of Pacific
Infrastructure. “We believe that the best way
for the development of the country is through
projects that make life easier for consumers, as
the construction of roads, ports and railways
generates employment, investment, confidence,
lower transportation costs and will attract other
industries to our businesses, especially in the
Department of Bolívar”, he said. Resources of
the private bank and funds of capital are also
being used to finance investments as they are
aware that large-size works, especially roads and
ports, are moving forward.

Ecuador
Third concession process of the port of Manta
will start in November

Mundo Marítimo, quoting the newspaper Hoy
of Guayaquil, informed that delivery of the


concession of the port of Manta (for the
third time) is in the process. It is foreseen that
for November 2013 the tender is presented
seeking a new partner, stated Roberto Salazar,
president of the Port Authority of Manta (APM,
in Spanish). The winner must invest US$ 30
million specifically in equipment and machinery.
“What is good is that with or without an
operator partner, the Government is investing
in Manta, because it is clear that this port
has a tremendous potential that has not been
appropriately used”, added Salazar.
The Government will finance the improvement
of the deep-water port of Manta with US$80
million. Works will start in October 2013 and
will end in 2015, parallel to the future call for
bid, the third in this order, for the delegation
to a private operator of the management of
facilities, which must invest US$30 million
more. The work plan includes two phases: the
first includes an investment of US$10 million
to repair international docks No. 1 and No.
2, plus the dock of the industrial fishing fleet.
The director of the Ministry of Transportation
and Public Works in Manabí, Ever Ceballos,
said that works will be awarded in October and
immediately, between October and November,
works will start at the port. The second phase,
at a cost of US$70 million, will start the
first semester of 2014, as soon as first phase
works are finished. It includes the extension
and reinforcement of the 200 to 550 meter
breakwater and the international dock No. 1,
200 to 550 meters long. Parallel to these works,
dredging will start between the international

docks (fishing and port access docks), and the
Port will then have a depth of 15 meters at
international berths. Works must be completed
in 2015. Port operations will not be interrupted
while reinforcement and expansion works are
being executed.
One of the difficulties of the port of Manta
is its degree of foreign trade. In 2012 imports
amounted to 706 metric tons (6.65%), while
exports moved 54,600 metric tons, 0.6% of
non-oil cargo. Among the four public ports,
Guayaquil is first in imports, followed by Manta,
while in exports Manta is the last. In 2012, 387
TEU arrived by Manta, representing 0.45% of
the country and 477 departed, equal to 0.1%.
The mayor of Manta, Jaime Estrada, stated the
port is not going to fight for cargo with its peer
of Guayaquil. “We must not forget that with
the construction of the Refinery of the Pacific,
all equipment will be entering through Manta;
movement will be vertiginous”.
One of the polemic points of the port of Manta
is its draft established in 12 meters deep. Salazar
stated that repowering works having started,
Panama and post-Panamax vessels will be
entering the port of Manta. The port specialist,
Johnny Medranda, considers repowering
the port is right. “Manta, for its geographic
characteristics, must be the deep-water port of
Ecuador”.


Guatemala
The Interoceanic Corridor of Guatemala
declared as national interest work

of paved route and railway, which will cross 46
municipalities of 7 departments, and will have
electricity and pipeline services, among others. In
the meantime, René Vicente Osorio, president of
Corredor Tecnológico, stated that before the end of
the year they will be paying to 3,500 entrepreneurs
the rights of way and the sale of land for the amount
of US$255 million. They are already being trained
in managing the money they will receive for profits,
which is estimated in 13 percent, he said.

México

Mexico announces $46 billion transport
investment program

According to Global Ports, quoting Diario de
Centroamérica, the President of Guatemala, Otto
Pérez Molina, declared of national interest the
initiative of building the Interoceanic Corridor of
Guatemala during the presentation of the project,
which will have an initial investment of US$8
billion. This is one of the greatest dreams we have
had for several years, said the president, and assured
that works will have a great impact in the economy
of services, which will make it more attractive. This
interoceanic canal will have a 5-year construction
process, and a 37 percent increase of world trade is
expected, which will be transported by waterway via
the Panama Canal.
Gustavo Martínez, general secretary of the
Presidency, explained that the project involves
the construction of port terminals in Izabal and
Santa Rosa, with an extension of 322 kilometers

Mexico’s President Enrique Peña announced
a transport infrastructure programme worth
US$46 billions of public and private investment
over the next six years, Port Finance International
informed. “In terms of ports, the goal is to have
four world-class ports, to strengthen the capacity
of the port system so as to support the country’s
various economic sectors, while encouraging the
development of merchant shipping and coastal
navigation,” Nieto said.
This ammount will not go only to ports but
also to roads, railways, and airports. They form
part of the Transport and Communications
Infrastructure Investment Programme 20132018, which is designed to “turn Mexico into
a global logistics centre of high added value”.
That programme “will trigger investments – both


public and private – into this sector, of almost
US$0.1 trillions,” said the Mexican president.
Of that amount, US$46 billions will go to
transport infrastructure, while US$55 billions
will be spent on telecommunications, including
on improving internet access. In all, the
Transport and Communications Infrastructure
Investment Programme 2013-2018 amounts to
US$101 billions. But President Peña said that a
total of US$316 billions would be injected into
infrastructure projects over the next six years.
Besides the Transport and Communications
Programme, he included in that figure various
investments in agencies such as the stateowned petroleum company Pemex, the Federal
Electricity Commission (CFE) and the National
Water Commission (Conagua).

“For this dream to come true many conditions
had to be fulfilled, and today these conditions
have arrived at its most mature point, as is the
need for humanity of maritime trade”, said
Wang in an interview at the end of the event.
“One country after another and one sector after
another have been transforming”. The project
has political, financing and engineering risks, said
Wang, without looking into it. The government
of Nicaragua estimates the cost in US$40 billion,
that is, more than four times the gross domestic
product of the country in 2011. It would
Chinese multimillionaire assures it will attract
investors to the project of the Nicaraguan Canal compete with the centenary canal of Panama
that is now undergoing its expansion at a cost of
US$5,250 billion, and with a project of Honduras
Wang Jing, the Chinese multimillionaire
of building a railroad with Chinese help to
supporting the project of US$40 billion to open
connect its Atlantic and Pacific coasts.
a canal through Nicaragua, said to Emol.Economía
he is attracting global investors for a project that
has been considered for more than 150 years, as
The Congress of Nicaragua granted Wang a
reported by Latin Business Chronicle. Works in the
50-year concession on the rights to build the
canal should start the end of 2014 and conclude
canal. The Central American country has tried
in a term of 6 years, stated Wang, president
to build an interoceanic canal in a number of
of HKND Group of Hong Kong, a closed
opportunities since the mid-19th century, without
corporation for infrastructure development
success.
owned entirely by him, at an information press
conference in Beijing. He did not identify any of
his investors.

Nicaragua


“Many obstacles”

“There are many obstacles”, said Margaret
Myers, director of the program for China and
Latin America of the Inter-American Dialogue,
based in Washington. “In the first place, is
there a need for a canal? An important obstacle
is probably attracting enough investment”.
Another barrier: China and Nicaragua maintain
no diplomatic ties – Nicaragua recognizes
its rival, Taiwan – which may be a barrier for
some Chinese companies to enter the country.
The solution of the HKND is managing all
government contacts through a fully controlled
affiliate based in Holland, said Wang during
the interview. “The concession was granted
to a basically unknown company”, said
Esteban Polidura, analyst for Latin America
of the Deutsche Bank AG in Mexico City.
“Considering what we have seen until now, the
probability for this project to become a reality
is, in my opinion, very low.
Wang, 40 years old, said he is “very optimistic”
regarding HKND being capable of attracting
enough investors to pay for the project.
Among these are international banks and
other financial companies, investment firms,
plus transportation, logistics and electrical
companies, he said. The government of
Nicaragua gave HKND “many guarantees and

many benefits” in areas including the use of
lands and fiscal incentives, said Wang, further
adding there is no relationship between the
HKND Group and the Chinese government.
“In the face of unprecedented challenges, we are
advancing with confidence”, said Wang during a
ceremony held in Managua with President Daniel
Ortega, according to a transcription on the
website of Xinwei. “Let us hold our hands at the
rhythm of human self-improvement”.

Panama

The country seeks becoming the higher
capacity logistics center of the region
The maritime industry of Panama is marking
new strategies to face the coming challenges
with the opening of the extended Canal, in
2015, which requires millionaire investments in
infrastructure and technologies of the sector,
wrote Panama America. The president of the
Maritime Chamber of Panama, Willys Delvalle,
stated the sector promotes a competitive market
structure, free supply and demand, legal security
and clear rules of the game as framework to
promote investment.
Among the projects in phase of execution, he
stated, the auxiliary maritime industry will have


two multipurpose docks, on the Atlantic and
Pacific, to extend services that to date have
been seriously restricted due to lack of exit
to the sea. According to Delvalle, dock 3 of
Cristobal on the Atlantic was concessioned to a
private enterprise for the development of one
of the projects, which is well advanced and may
be used very soon, although no details were
given on the amount of the investment.

have less waiting time and this will oblige the
sector of auxiliary maritime industries to develop
more rapid and efficient services, and “without
an adequate port this will not be possible and we
would have to see the business departing to other
ports”, stated Delvalle.

The other project is located on the Pacific,
where a new terminal will be built within an
area adjacent to the old one, next to the Bridge
of the Americas, at the port area of Balboa,
which will be developed by the Port & Harbor
Marine Service Corp. with an investment of
US$17 million, he stated. This multipurpose
dock called Mystic Rose-Terminal will provide
services of supply and transfer of fuel, cargo
and passenger transportation, ship repair
and maintenance, boat service for boarding
and landing, construction and operation of
warehouses and workshops, among others.

The national maritime industry contributes 28%
of the national GDP, where the contribution
of the auxiliary industry is vital. The auxiliary
industry is formed by a large number of
companies, which creates an important source of
employment, and also represents an important
channel to export Panamanian products and
services. The companies forming this industry
provide the services of provisioning (food
provision), marine electronics, marine security,
maintenance and repair, fumigation, logistics,
inspection, change of crews, and many more.

Expectations
“We expect these will not be the only docks
to be build, as because of existing limitations,
this activity has only grown 30% of its capacity
and has a great expansion potential with the
extended Canal”, indicated Delvalle during
his recent taking office. “In Panama we have
very limited time to provide services to ships
in transit compared to other ports, as they
are being served when they await crossing the
Panama Canal”, he said. He assured that the
expansion of the interoceanic way will not only
see the arrival of vessels, but these will also

Components

Daniel Isaza, president of the Logistics
Entrepreneurial Council, stated that one of the
sectors working with great difficulties is the
company that provides different services and
supplies to the ships passing by Panama. “At
present they do not have an appropriate port for
its needs. Investments to be done on the Atlantic
and the Pacific will be of the utmost importance
for these companies to be more competitive
and to improve service quality”, stated Isaza.
He also sustained that another sector foreseeing
large investments is the construction of logistics
parks and free zones. “These entries are basic
for future mega-vessels that use our ports and
our extended Canal so they may consume 100%
Panamanian products and services”.


Perspective
“If we get clients that use maritime means to
transport their merchandises use Panama as
logistics platform for the transformation and
distribution of their products, and that they
may provide added value to their merchandise
(labeling and repackaging), undoubtedly, the
volume of containers through our port will
considerably increase”.

Panama Canal bets on new projects to
potentiate the logistics cluster

The Panama Canal is betting on the
development of new businesses, said Mundo
Marítimo transcribing and article of Capital
Financiero. Vessel transit from one ocean to
the other will not be the only service provided
by this company in the 21st century and
the range of options being considered to
diversify services portfolio is extensive: from
a containers port in the Pacific to a postPanamax shipowner service in the Atlantic.
Roberto Sabonge, Vice-president of Market
Research and Analysis of the Panama Canal
Authority (ACP, in Spanish), spoke to publicize
the feasibility studies of all activities being
considered and that may add value to the route
much sooner than most realize.

The study of the port of Corozal, for example,
will be ready in August and will be presented
to the consideration of the board of directors
of the ACP for it to make a final decision on
this matter. But until now everything seems to
show that works will be done. If the direction
gives its approval to the project developed in
aforementioned terms, construction of these
works will start in 2014 and its first phase,
estimated in US$700 million, would be ready
in 2016. “The terminal of Corozal will have
a capacity of almost 4 million TEU when
finished. The first phase includes most of the
dock, with a capacity to layer up to five vessels,
and this phase will have a capacity of 2.9
million TEUs. The second phase is where the
Canal offices are now, which is all the part of
engineering that has to be moved from there”,
stated Sabonge. Given the location chosen,
this new containers port will be connected
to the railroad. The ACP has promoted this
project having in mind the increase in demand
expected after the opening of the third set
of locks. “Capacity of Panama Ports is now
practically taken over and estimates are that
with the extension there will be more demand.
So the important thing is to be ready for this”,
he said.
There is yet no decision on how works will be
financed, but the alternatives being considered
are the same that were considered for the
extension of the Canal: multilateral and
other sources. Another study now ongoing is
evaluating the convenience of developing a roro (roll-on/roll-off) terminal at the west side of
the Canal, through the Pacific entrance, next to
the port of Rodman that is administered by the


Port Authority of Singapore (PSA, in English).
“A ro-ro terminal does not need much dock,
it does need area, but not dock. It would only
require a ramp to raise and lower vehicles and
heavy equipment. And it does have a large area
in the back that we are considering for vehicle
storage and distribution. This will also hold the
hangar area for distribution of automobile or
heavy equipment parts”, clarified the official.
But this is not the only thing considered for the
west side of the Canal. They are also preparing
a study on logistics parks, which object is to
measure the need and the demand currently
existing for this type of projects. Another
project that would have a relevant impact in the
development of the west side is the “waterway
railroad”. The possibility is being considered
of “being able to move containers on barges.
The purpose of this is precisely integrating any
activity at the west side, including the existing
port of Singapore. PSA has a problem to
access the Atlantic, a connectivity problem, it
is isolated. And a way to resolve this problem
is with barges”. The idea is that, with the third
set of locks as of 2015, existing locks will also
serve for this type of things. Similar systems
operate in Europe and the United States in
certain navigable routes.
“Traffic through existing locks will decrease,
as the largest vessel will start passing by
the extended Canal. And this time and the
availability of existing locks is precisely
what we wish to take advantage of for the
transportation of containers on barges (…)
Barges will contribute to repositioning and will
also serve as a complement to the railroad. The

barge would be a waterway railroad”, stated
Sabonge. Establishing in Panama a bunker
station for vessels is another of the services
considered. With environmental regulations
being implemented worldwide and entering in
force in 2015 and then in 2020, vessels will be
obliged to look for cheaper and cleaner fuels.
In fact, an investigation is already being done
to develop changes in propulsion systems of
vessels for the use of natural gas. “And we
see that Panama would be a good location to
sell and distribute natural gas to vessels, this is
something that is now beginning. So it is good,
if this step will be taken, to be there when this
begins, to consolidate this on time as one of
the services that would be provided by Panama
to the maritime community”, he commented.
Repairing post-Panamax vessels in the Atlantic
is another objective of this new horizon for the
Panama Canal. This study of the shipowner
service will be submitted this year. Studies were
done in the first year. In the second year, once
activities have been defined, comes the master
plan of the lands of the Canal now available for
a better development of the logistics cluster.
“There are lands in the Atlantic, also in the
western part. And there are lands in the middle
of the lake, all that are banks and some islands.
So we are extending the subject of studies, not
only for things located at the entrance, but also
for all the areas inside the lake that could have
a commercial use and generate an economic
activity”, he concluded.


Connection Panama Pacific-Centenary Bridge

The connection of the Special Economic
Panama Pacific Area (Aeepp, in Spanish)
and the Centenary Bridge was one of the
“unforgivable logistics” included in the Strategic
Plan of the Government 2010-2014, but
until now this promise has not been fulfilled.
However, this reality will start changing soon.
The tender for the contract of the construction
of the first interchanger of this project will be
opened in September, as announced by Abdiel
Escobar, director of Contract Administration
of the Ministry of Public Works of Panama
(MOP, in Spanish).
“Construction of a direct beltway road from
Howard to the Centenary Bridge may reduce
40%-50% driving time to the bridge and would
provide a modern, uncongested highway speed.
The project will require the construction of two
new crossings in the intersections of the old
Pan-American highway and the principal and
western accesses of the Howard road”, reads
page 40 of the government plan presented
to the country in December 2009 and that
included investment of US$1 billion in logistics
infrastructure, allowing bringing the country
closer to the goal of becoming the multimodal
center of the region, at the logistics hub of the
Americas.
The Panama Pacific – Centenary Bridge
connection was programmed to be developed

in three phases, explained Olmedo Alfaro,
general manager of the Panama Pacific Agency
(PPA). The first phase was the construction
of the road from the AEEPP to the PanAmerican Highway, already finished. The
second was the Panama Pacific interchanger,
design already done but that has a delay of
almost two years of execution of the original
development plan of AEEPP. And the third
is the road that will join this interchanger
with the Centenary Bridge, crossing areas
of the west coast of the Panama Canal up
to the western access to this bridge. Despite
being an “unforgivable logistics”, the MOP
did not include the interchanger or the road
in its investment budget for 2011, or 2012, or
2013, or 2014, because it simply was not in its
priority list. “Road rearrangement and other
investments now being done throughout the
Republic required almost all the staff of the
ministry and we had to prioritize”, explained
Carlos Ho, director of the Office of Special
Projects of the MOP. But the Panama Pacific
Agency (PPA), considering the importance of
the works for the connectivity of the country,
decided to find resources for its financing
with London & Regional Panama (L&RP),
the company now developing the Master Plan
of the old military base of Howard. And
that placed the project again in the agenda of
works of this administration. “The PPA, with
moneys we have put for the purchase of lands
and payment of contingency prices, is placing
the seed capital in an account of the MOP for
works to start and not to leave the coffers of
the State”, explained Henry Kardonski, general
manager of London & Regional Panama.

Latinports Newsletter July-September 2013

Latinports Newsletter July-September 2013

Empfohlen

Empfohlen

Weitere ähnliche Inhalte

Andere mochten auch

Andere mochten auch (16)

Ähnlich wie Latinports Newsletter July-September 2013

Ähnlich wie Latinports Newsletter July-September 2013 (20)

Mehr von latinports

Mehr von latinports (20)

Kürzlich hochgeladen

Kürzlich hochgeladen (20)

Latinports Newsletter July-September 2013