January-April 2011Year 3, No. 1

The Book of the Minister of Ports of Brazil

A Logistics Analysis of Brazilian PortsMUCH TO SAIL:

LATINPORTS PRESENT AT PORT FINANCE INTERNATIONAL BRAZIL IN JUNE

SUPER-PORT OF AҪU, BRAZIL IN THE TOP 10 OF INFRASTRUCTURE WORKS

HUTCHISON GROUP ENTERS LATINPORTS THROUGH ITS MEXICAN AFFILIATES

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CONTENTSJanuaryApril2011

The Book of the Minister of Ports of Brazil: Much to Sail: A Logistics Analysis of Brazilian Ports

Latinports present at Port Finance International Brazil in June

Super-Port of Aҫu, Brazil in The Top 10 of Infrastructure Works

Hutchison Group Enters Latinports through its Mexican affiliates

New Sustaining Members

News of Latin American Ports

Training

Mail

Editorial

CoverGantry Cranes at the Container Port Terminal Lázaro Cárdenas, Mexico

Layout and DesignJulian Pinedawww.miroamarillo.comstudio@miroamarillo.com

CONTENTS EditorialJanuary-April 2011

2011 started specifically prolific for latinports. the hutchison Group, the largest port operator worldwide formally entered through its Latin American affiliate in Mexico, and new sustaining members incorporated from the United States and Europe. Besides, we have been invited to participate as lecturer in representation of the Latin American port sector in a number of important regional and global events: TOC Asia in Tianjin, Euromoney Seminars in Miami, Andean Infrastructure Summit in Bogotá and Argus Americas Coal Summit in New Orleans (averaging a monthly conference), although because of agenda problems we had to apologize for not being able to attend the first two conferences. In May and June we will give our support to the XII Congress of Ports of Brazil and the Port Finance Infrastructure Brazil, this last event where the executive director of Latinports will make a presentation on the Declaration of Brasilia 2010: Evaluation and Perspectives of the Port System in the Region. We then will start organizing our association’s specialized seminars starting with the so-called Navigation and Flood Control on the Magdalena River, to be held in July in Bogotá, supported by the Colombian Logistics Association, which will be the first of a series of seminars that will be developed every year, in a series of countries, on different port activity topics.

In view of the great impetus the association has had, at the end of February the executive director met in Rio de Janeiro with the chairman of the executive committee, Richard Klien, in order to plan a hectic 2011 and consolidate the achievements obtained for our next great annual event, which will be held in Bogotá in October, jointly with the Superintendence of Ports and Transportation of Colombia. During this trip the executive director of the association had also the opportunity to meet with the former minister of ports, Pedro Brito (candidate to director of the National Agency of Waterway Transportation, Antaq) who stated his satisfaction with the work developed by Latinports and reiterated all its support.

This acknowledgment from the port and infrastructure sector to Latinports fills us with pride and obliges us to be ever more proactive in favor of its strengthening in Latin America, and for this reason as of this edition we will present the new image of the bulletin, more modern and functional, so our members are kept permanently informed of the evolution of ports in our region.

Unitl next time!

jpalacio@latinports.org

www.latinports.org

Julian palacioexecutive director

The Book of the Minister of Ports of BrazilMUCH TO SAIL: A Logistics Analysis of

Brazilian Ports

With the inscription “With appreciation and Great admiration for your Work”, former minister, Pedro Brito, delivered to the executive director of Latinports the book written and published before the end of his outstanding management, that concluded with the government of President Lula on December 31st, 2010. As was well noted in the preface of the book by the legendary former minister of finance, Antonio Delfim Netto (responsible of the so-called “Brazilian economic miracle” of the past decades), “the title is rather modest, as its analysis is not restricted to the port systems, but goes beyond, and in reality totally and extensively handles the logistics problems of the entire Brazilian physical infrastructure, involving seaports and their access, the insignificant use of waterways navigation for the transportation of cargo, the lack of a minimum coordination for planning road and railroad networks, and the expansion of the airport system”… that, we add, are in general the same within all Latin America, thus the book acquires a regional importance.

This corroborates that expressed by former minister Antonio Delfim Netto, the fact that the book starts with a chapter called “Logistics: The Key Word” and that, in a declaration of an advanced and unusual openness, beyond politics, minister Pedro Brito dared suggesting that the Secretary’s Office of Ports started and developed by him, transforms in the Ministry of Logistics, as this area is divided among several ministries “which does not seem sensible”.

pedro BritoMinister of Ports of Brazil 2007-2010

January-April 2011

Below you will find some sentences of the book that will make the Latin American port sector think:

logistics: the key Word:

- In almost all Europe there are logistics centers in which railways, roads and mainly waterways connect, and cargos are redistributed according to their destination, for export or distribution to the internal market, harmonically, as a well- assembled orchestra.

- By itself, a port makes no sense if it is not part of a network, a chain, a system.

ever Greater Vessels:

regulatory framework:

- When investment is consistently being done in infrastructure, in improving and building causeways, railways, ports and waterways, foundations are naturally created enabling, at once, the development of integrated systems and the application of logistics intelligence and the network concept that leading countries are already adopting.

- …the entrepreneur only invests its money if it is entirely convinced that legislation and rules are fully consistent and lasting… Investment in ports is always a long-term bet, something within a five-decade horizon.

institutional roots:

- We must overcome our historical tendency of valuating more form than contents, superimposing means to ends, privileging the process and not the objective.

“…and nobody died”:

- My objective conscience is that there is no way of building a 100% efficient structure if there is no technical team formed by qualified professionals based on an executive point of view based on training and specialized in the sector.

- I remember well an observation of Dilma Rousseff, then Minister of the Civil House (today President of the Republic), who gave us great support in the project of only establishing technical teams. After the process was concluded and changes were consolidated, she said: ‘You established your teams based only on technical criteria, without yielding to political pressures, and nobody died.’

- The ‘Emma Maersk’ (the largest container carrier of the world that may transport between 13,000 and 15,000 TEUs), does not arrive at South American ports not because of the limitations of our ports, but above all for a matter of global logistics, that flows predominantly in an east-west sense, in the Asia-Europe-United States hub. North-south flows are supplementary and have a restricted participation in the global trade of container transportation.

- Each port must be prepared for demanding vessels and not for the eventuality of receiving once a year a 15,000 TEU vessel as the ‘Emma Maersk’. The size of the largest vessel to be required by the port of Santos, that is the largest Latin American port, will be the Super Post Panamax, a Santa type of the German shipper Hamburg-Süd, with 8,600 TEUs, and for this are being prepared the Brazilian ports.

January-April 2011

- I am absolutely certain that good results obtained during the first three years of work of the Secretary’s Office of Ports must give credit to the possibility we had of arranging technical teams, without political interference.

a new logistics matrix:

- In Europe and other parts of the world, waterway transportation is even more important than road transportation, and we must think in making this transformation in Brazil, where road transportation has a greater weight despite being more expensive and more contaminating… This involves changes in the transportation matrix that will increase efficiency, decrease logistics prices and be less contaminating for the environment, both with the railroad as with the waterways. It is clear that a large investment must be done for this to become a reality, but there is no other way, and the social and economic benefits will compensate this.

removing obstacles:

- When will the operator feel encouraged to install larger and more modern equipment? When the port, as of its infrastructure point of view, justifies this investment (dredging and access to ports – railways, roads and waterways – among other).

- The Secretary’s Office of Ports promoted the dredging concept according to results, which means the company that is awarded the tender for deepening the dredging will have the contractual responsibility of taking care of its maintenance for a term of up to six years… That is, deepening and maintenance at the same time are facts, and this will guarantee that the depth is maintained for the following years by means of a unique tender and a unique contract.

- Another important legal change allowed the participation of international firms in dredging tenders, which was not possible before. Marketing does not limit to works at public seaports, as waterways must be dredged…

- One of the main challenges imposed to the Secretary’s Office of Ports was the definition of priorities, considering the inevitable limitation of resources and the need to recover lost time. We then started with what was more urgent, the obstacles that impeded the development of the Brazilian port sector, independent from the medium- and long-term planning we were starting to develop. In port logic there is a clear concept: when one obstacle is eliminated, another one appears, that is, a queue of obstacles exists.

January-April 2011

in short, planning carried forward:

- It is possible that the greatest legacy the Secretary’s Office of Ports has given the country in its first three years of operation is long-term strategic planning. The goal imposed on its technicians was challenging: thinking how the Brazilian ports should be in the next 20 years, based on the objective demands of the country’s economy and the interests of society… In response to this demand, the Secretary’s Office of Ports decided to prepare the National Plan for Port Logistics for the next two decades.

- Worth mentioning is another study for the Project of Access to the port of Santos, which today is congested by the circulation of almost 15,000 trucks per day. It is absolutely unthinkable to triple this flow to 45,000 trucks based on same access

unblocking frontiers and investigating opportunities in the ports of Brazil

With the support of Latinports, the Brazilian Association of Port Terminals and United Kingdom Trade & Investment, this two-day conference will present a deep understating of innovative financial solutions and the practical advice around the challenges and opportunities in the dynamic sector of Brazilian ports. Industry experts will center in the ports of Brazil and on their expansion and development plans, while investigating growth and investment opportunities – and paying attention to challenges and risks.

Attendance expected is of 150 delegates from ports and related sectors. Besides, it will be an excellent opportunity to get to know potential enterprise and business partners such as government officials, senior executives from port authorities, port and terminal operators, and the legal and banking industry, involved either in investing in ports or in providing investments.

the executive director of latinports, Julián palacio, will present a conference on the evaluation and perspectives of the port system in the region, based on the conclusions of the declaration of Brasilia 2010.

conditions. It is therefore urgent to change the access matrix to the Port of Santos, reducing the presence of trucks and increasing the participation of other transportation systems, mainly waterways, duct routes, and railways, and above all, with the creation of logistics platforms outside the port. Then, in the case of Santos, access will be the great obstacle in the immediate future.

- Lack of planning in the past obstructed the development of the Brazilian port sector. Today, Brazil has implanted an unprecedented planning system for the medium- and long-term that, in a coordinate, integrated and harmonious manner with a series of other orders will represent a gain in logistics efficiency that the country needs to conquer in order to compete in equal conditions with the best ports of the world.

Latinports Present in Port Finance International Brazil in June

January-April 2011

Lecturers will also be, among many others:

• Fernando Fialho, Director General, National Agency of Waterway Transportation – Antaq• Sérgio Paulo Perrucci de Aquino, City Secretary of Port and Maritime Affairs, Santos• João Emilio Freire Filho, Adviser to the Board, Associação Brasileira dos Terminais Portuários• Walter Kemmsies, Chief Economist, Moffatt & Nichol• Michel Donner, Port & Maritime Consultant (formerly World Bank)• Robert Grantham, Commercial Director, Port of Itajai

According to the firm Competitiveness Group Long Term Assets, contracted by the magazine América Economía, the port of Açu, with an investment of US$5,500 million (similar to the expansion of the Panama Canal), is ranked seventh among the main infrastructure works in the region. Located in the municipality of São João da Barra, in the northern region of the state of Rio de Janeiro, the Super-port Açu, of the EBX group, is a private, public use port terminal, which stands out as the largest investment in port infrastructure of the Americas.

In its construction phase, the development will have up to 30 locations for the movement of products such as steel, oil, coal, mineral ore, liquid bulk, and general cargo. With an initial depth of 21 meters, and a possible expansion to 26 meters, the super-port will have a 2.9 km extension bridge (already finished), that will enable berthing the largest size vessels of the world such as Capesize, VLCCs and Chinamax.

• Marc Evertse, Port of Rotterdam International (PORint), Sr. Project Manager• Jean-Marc Daniel Aboussouan, Infrastructure Chief, IDB – Inter American Development Bank• Gustavo Gusmao, Senior Manager Corporate Finance - Public Sector, Ernst & Young Terco• Marcos Pinto, Ocean Engineering Department, USP (University of Sao Paulo)

For more information and to obtain a copy of the agenda, please contact

patrick@portfinanceinternational.com

www.portfinanceinternational.com

The endeavor foreseen to start operating in 2012, is being constructed since October 2007 and its projection was based in the modern and efficient concept of port-industry. In the nearby area of the super-port will be built an Industrial Complex within an area of 90 km2 where will be installed different types of industries as steel industry, a thermal power plant, cement, and metallurgical pole industries. Next to the bays of Campos, Santos and Espíritu Santo and with easy access to the more developed regions of the country, the Super-port of Açu shall serve as logistics center for the central-western and southeastern regions. The super-port will have an enormous adjacent Industrial Complex for the installation of different types of industries such as steel, mineral ore pellet plants, and an oil treatment unit, besides an area for storage and movement of products.

Complementary services will also be offered provided by specialized firms in the issuance, intermodal integration, and storage and customs clearance. This modern concept, known as one-stop-shop, offers to firms installed within the Industrial Complex all services necessary for the production and flow of its products. Besides, the

Super-port of AÇU, Brazil, among TOP 10 of Infrastructure Works

January-April 2011

the industries may have electricity to be supplied by the thermal power plant of MPX, company of the EBX group that will act in synergy with another company of the group in the installation of thermal plants, the first phase on 2,100 MW coal and the second phase on 3,300 MW gas. A logistics corridor of 45 km, formed by transmission lines, water, gas and telecommunications pipelines, railroad and road, will connect the Super-port of Açu with the city of Campos, located north of the state of Rio de Janeiro, 286 km from the city of Rio de Janeiro.

hutchison port holding hph, one of the most important port operators worldwide, makes a strong entry to Latinports through its affiliates Internacional de Contenedores of Veracruz (International Containers) ICAVE, and Lázaro Cárdenas Terminal Portuaria de Contenedores (Container Port Terminal) LCTPC, both from Mexico, where is located the main office of the organization for Latin America.

Hutchison Port Holding HPH has interests in more than 25 countries throughout Asia, the Middle East, Europe, America and Australia. Currently it operates more than 306 terminals and more than 50 ports around the world. In 2009, the Hutchison Group handled more than 65.3 million TEUs worldwide.

internacional de contenedores de Veracruz - (international containers associates) icaVe

the Atlantic basin, the eastern coast of North and South America, Europe and Africa.

ICAVE has become the main containers port operator of Mexico, having significantly increased its cargo movements, and operates today 80% of the containers of the port of Veracruz, which represents 20% of the containers handled at all Mexican ports.

lázaro cárdenas terminal portuaria de contenedores - (containers port terminal) lctpc

Located in the state of Michoacán, on the east coast of the Mexican Republic, LCTPC started operations on November 19, 2003. At present, LCTPC is in a construction and development phase of the largest container terminal of the Mexican Port System, in an unexploited land facing the water on the north canal of the port of Lázaro Cárdenas, which will have a total surface of 122 hectares, with 1,480 meters facing the water and a dynamic capacity of up to 2.6 million TEUs. This new terminal is developed in three large phases, of which the first one, unique in its type, started operations on November 28, 2007.

ICAVE, a maneuvering firm established as a result of port privatizing and restructuring program, started in Mexico in 1994 as the first port terminal operated by the private sector of the country. Located at Zone 2 of the port of Veracruz, it started operations in 1995 with the adequate infrastructure and equipment to handle all types of container cargo, serving as main exit to merchandises towards

Hutchison Group enters Latinports through its Mexican affiliates

January-April 2011

New Sustaining Members

Capacitação

lieBherr nenZinG crane co.liebherr port equipment

e-technoloGies solutions corp.e-tech simulations

Founded in 1949 in Nenzing, Austria, Liebherr-Werk Nenzing GmbH www.liebherr.com produces and distributes an extensive program of different lines of products, such as vessel cranes, gantry cranes for port and drilling platform cranes, as well as sea cranes, probe platform cranes, port gantry cranes, and also universal crawler cranes and lifting crawler cranes.

For more information please contact Anton Wasler at the Miami branch, e-mail anton.walser@liebherr.com or telephones 1-305-8890176 (fixed) and 1-305-7467155 (mobile).

port finance international BrazilJune 15-16, 2011,Rio de Janeirowww.portfinanceinternational.comcathy@portfinanceinternational.com

navigation and flood control on the magdalena river,July 8, 2011,Bogotáwww.latinports.org jpalacio@latinports.org

e-Tech Simulation www.etechsimulation.com is a division of e-Technologies Solutions Corp., U.S. company established in West Palm Beach, Florida, with more than 18 years of experience in providing tools for professional, academic, and technological training for the industry of digital libraries in Latin America and the Caribbean. It focuses exclusively on the simulation area developing and manufacturing simulators for different industries, among which is the port industry, as a training method for apprentices and improvement of experienced personnel.

For more information please contact Jairo Leiva, e-mail jleiva@etechsimulation.com or telephone 1-561-6973222.

January-April 2011

News of Latin American PortsBrazillogistics requires “strong investment” in Waterways and railways

In a recent interview to Brasil Econômico, the former minister of ports Pedro Brito, informed on port logistics obstacles and defended a change in the transportation matrix. For this purpose, the elimination of the obstacle caused by the low depth of ports, accomplished by the dredging program, the challenge of the government is the expansion of inter-modality transportation, altogether with the expansion of investments in waterways and railways. Jointly with this matrix change, Brito defends the creation of logistics support zones outside the port area for containers to go in and out in barges. “We must have good roads, and basically invest largely in waterways and railways”, stated Brito.

two ships that stopped in 2009 and 2010 as a result of the effects of the global crisis.

Log-In has an investment plan of US$0.8 billions to renew its fleet, which foresees larger vessels in substitution of present ones (two will arrive in September). Created in 2007, the company has shown since then an annual growth of 28% in volume. “We consider this market has a very strong potential of growth”, said the president of Log-In, Vital Jorge.

As complement, Valor highlights that almost 188 million tons that moved through Brazilian ports in 2010 were cabotage, which represented an increase of 6% compared to 2009. According to data of the National Agency of Waterway Transportation, Antaq, despite the growth of the cabotage fleet, the family of Brazilian vessels is still insufficient to meet the demand. That is why the number of authorization orders for charter vessels increased in 2010, having reached the amount of US$126 millions. Today the authorization for cabotage navigation of three companies: Marítima Navegação, Brasfels and Martin Leme Serviços, has been requested to Antaq.

On the other hand, the operators with Brazilian banner Mercosul Lines and Log In, partners of a service called “Cabotage Manaus”, started weekly stops in Itajai, with operations at the APM Terminal. This service originally stopped at the port of Imbituba, south of Brazil. The reasons for changing were expressed by Mr. João Batista Momesso, Commercial Manager of Mercosul: “the change to Itajai was due to its geographic position and to the concentration of services providers within the region, which will enable the line to offer door-to-door logistics solutions for all Brazil”. The rotation of this service shall be from now on: Itajai, Manaus, Paranagua, Santos, Suape and Pecem. They expect to handle an average of 2,500 containers per month, mainly including cargo produced in the state of Santa Catarina, such as frozen chicken, tiles, paper and cellulose.

cabotage increases and attracts multinationals

According to an article of the informative Valor, growth of cabotage made it again a viable option for companies with large volumes and now bets for logistics rationalization. Challenges now are to increase offer of ships and improve port infrastructure. “Cabotage potential is huge; depends of availability of operators investing on more lines”, affirms Darlan Carvalho, logistics director of the internal market of Brazil Foods, currently transporting by ship only 4% of the 2.5 million tons moved through the internal market every year. “If there were more sea route capacity, this ratio would undoubtedly increase”, stated Carvalho. The newspaper informs that the containerships fleet dedicated to cabotage on a regular frequency in the Brazilian coast is of 20 vessels and most of them are planning to expand this year: Maestra will have two more units this semester; and Aliança will reactivate

January-April 2011

News of Latin American PortsAnother cabotage operator made its inaugural stop at the port complex of Itajai. . Maestra Navegação e Logistica, a company fully controlled by Triunfo Investments. Maestra Atlántico (former Lloyd Atlántico) made its first call on April 7 at Terminal Portonave, and very soon will be joined by Maestra Mediterráneo (former Neptunia Mediterráneo) and possibly two more ships. The intention of the line is to provide services to the ports of Itajai, Santos, Suape and Manaus.

revised investment forecasts for 2011 in the country, moving from US$86.5 millions to US$117 millions, paying special attention to the terminal of Imbituba.

A note from Tribuna stated that operational increase for the company reflects the strong growth of Brazilian foreign trade, the valuation of the Real, and its investments in infrastructure, technology and manpower. Valor brings more details of the quarterly balance sheet of Santos Brazil, highlighting that net income for the quarter amounted to US$221, and the Ebitda reached US$60 million (an 88% growth). According to the publication, the executive director of relationships with investors of the company, Marcos Tourinho, stated that the company raised US$52 millions the Ebitda forecast for 2011, for a total of US$306 millions.

Besides, Tribuna informed that the Containers Terminal of Santos Brazil closed March with two historical productivity records: an average of 60.71 movements per hour/vessel, and 23.94 movements per hour/crane, which were the result of investments in personnel training and advanced technology, according to the company.

expansion plans of libra at the port of santos

The informative Tribuna highlighted the comment of the president of Libra Terminais, Wagner Biasoli, on the intention of the company to increase its operations in the port complex of Santos: “Libra wants to expand and any other area of the Port of Santos is important in this process”. Consistent with the above, Biasoli stated that the company will challenge the area of Prainha for container movement, located on the left margin of the port of Santos, for which it was already authorized to study its implantation, as well as NF Motta, LPC-Latina and Locafrio.

press highlights Growth of the terminal of containers santos Brazil

Release of results of the group during the first quarter had a positive welcome in the publications Valor, Folha, A Tribuna and Brasil Econômico. A report of Valor highlights the increase of 50% income as a result of the growth in cargo movement. An article of Folha, calls attention on the volume of movement, good part at the port of Santos (227,000 containers in the quarter, which represent a 31% growth compared to the same period of 2010). Brasil Econômico also highlights the investment of US$ 117 million foreseen for this year.

Valor presents comments of Richard Klien, president of the management council, and of the director of relationship with investors, Marcos Tourinho. “It was an excellent result, not only economic-financial, but also operational”, stated Klien; according to him, results were mostly of a higher volume of containers mobilized, especially at the terminal of Santos, but also contributed the readjustment in tariff prices of services provided as imports storage of containers. Both Valor and Brasil Econômico make a note of quarterly liquid profits, which amounted to US$27 million, compared to the US$3 millions of last year. Investment during the period amounted to US$28.5 millions. Folha, Valor and Brasil Econômico also informed that the company

January-April 2011

News of Latin American Ports2010 originated in the different services provided to the oil and gas industry, in ten years this percentage may reach 50%”, forecasts the president of Wilson Sons, Cesar Baião.

controversy for previous license to triunfo for a mega-terminal in santos

The Port Terminal Brites, of the Triunfo group, received a previous license for its construction in a land of 190 hectares in the left margin of the Santos channel, although it may be possible it will have difficulties to obtain the authorization from the National Agency of Waterway Transportation, Antaq, as according to the informative Valor, the law of ports foresees that only companies owning a minimum cargo may build private terminals, which is not the case of Triunfo; in addition, according to Tribuna, the Management Port Council, CAP, of the Port of Santos will recur to the Brazilian Institute of the Environment and Natural Resources, Ibama, to suspend the environmental license for the installation of the terminal, as the area where it will be constructed is strategic for the port and may not be separated from the expansion projects being studied (“such area may not be treated independently”, stated the president of CAP, Sérgio Aquino, who will also recur to Antaq to prevent the independent issuance of the authorization).

Nevertheless, the company will look for shipping partners in the modalities of cargo for transportation in order to fit into national legislation; in addition, the decision of betting for an exclusive structure for cabotage is also a form of Triunfo not to compete with containers in public-use terminals as they are struggling for a long-time market at the port of Santos, as the idea is to service a less valued niche in times of movement peaks. According to the plans of Triunfo, Brites must be a mega-terminal

Wilson sons invests in the expansion of the terminal in salvador

According to the president, Cezar Baião, the company is planning to invest more than US$400 million in 2011 and 2012 to sustain the strategy of growth supported mostly in the oil and gas segment, without including potential acquisitions. “It is an investment in organic growth” said Baião, and the strategy will continue focused on the attention to Brazilian foreign trade, through port terminals in the domestic market by means of offering logistics services, and the oil and gas segment, which is ever more gaining space. “While company income in

On the other hand, according to the informative Tribuna, Libra Logística signed with the companies Komatsu, Wobben and Brasken annual contracts for a total amount of US$17.5 millions, to handle its logistics exports chains in Santos, Cubatão and Campinas, respectively, which will invest approximately US$37.5 million. In the particular case of Santos (Teval), 100,000 square meters of storage will be gained. As of April, Brasken is sending thermal-plastic resins to Teval and Cubatão; Wobben Windpower, which produces equipment for wind power plants, may store an average of 40 wind vanes; and the Japanese Komatsu, on the other hand, manufacturer of tractors, backhoes and other heavy equipment, has already obtained 18% savings in its costs.

In addition, worth noting is the historical productivity record of the terminal that, according to Container Management-Latin America of April, on February 6 reached a peak of 105.6 movements per hour, much higher than the January 85.4 movements (average that month was 48.4 movements). This was the result, according to the company, of the acquisition of two new dock cranes ZPMC that have been in operation there since December of last year.

January-April 2011

News of Latin American Portswith a capacity to move 870,000 containers, two million tons of solid grains, and 4.5 million tons of ethanol, for which an investment has been foreseen of one billion dollars. Expectation is to generate 1,200 direct employments and start operations in 2013.

In exports, one year ago costs of a container from Brazil to China was US$1,300, and today there is no difficulty in getting it for US$800.

Bolivian cargo registers a strong growth at port of arica

Bolivian cargo transportation at the port of Arica, located in the northern region of Chile, substantially increased in the last years. In 2010 Bolivian cargo increased 19% having moved to 1.5 million tons, which represent 73% of port transfers during the year. This figure must increase even more with the termination of the renewal of the Arica-La Paz railroad.

The port moved a total of 2.13 million tons of cargo last year, with a growth of 20% compared to 2009. Handling of 130,884 TEUs during the year represented an increment of 20% compared to 2009.

at its peak performance in 2010, itajai approached one million teus

With a record of 954,036 TEUs handled in 2010, it surpassed the forecast 800,000 TEUs for the end of this year. This volume represents 61% increase compared to performance of 2009. The total number of full containers handled increased 98%, while unloading empty containers increased almost 15%. Total export containers increased 50% while empty containers increased 117%.

megaships of maersk line start arriving to the country

Maersk informed that its new fleet of megaships will start arriving to Brazil in May: six ships with a nominal capacity of 8,000 TEUs and 1,707 refrigerated container jacks to be used in the Asian traffic. The first one to arrive will be the Maersk Lima, to the port of Sepetiba in Rio de Janeiro, and then to Santos. The fleet will be completed in August and besides Sepetiba and Santos, a stop is guaranteed in Paranagua.

Today, Maersk has traffic to Asia on a weekly basis jointly with Hamburg Süd. A total of 12 containerships (half from each shipper), with a nominal offer of 5,500 TEUs, but upon substitution of the 12 ships, the service will increase 37% regarding space offer, thus reaching 90 thousand TEUs.

Currently, the market has an excess offer of capacity and pressure on freights, as prior to the crisis of 2008 several ship owners placed orders to shipyards and most vessels are being delivered this year.

As of the end of 2010, prices of services with Asia and the East Coast of South America have fallen, after recovery started in 2009. In the case of Brazil, one year ago a container imported from China would cost US$4,500 and today it may cost US$1,900. According to data of the consultant Datamar, Brazilian sea imports from Peking grew 42% between February 2010 and February 2011, having reached 51,337 TEUs.

Chile

January-April 2011

News of Latin American PortsThe Project seeks connecting the railway network of Carare with the Central Railroad, thus forming a network that would transport almost 30 million tons of coal per year. The railway starts at the central department of Cundinamarca, passing by the departments of Boyacá and Santander, and finally arriving to the south of the department of Cesar before connecting with the coast in the northern regions. The Carare project shall imply an investment of approximately US$670mm. The Central Railroad, after its failed concession of 2008, will require approximately US$1,160mm. Both lines will have only one operator and the initiative will be one of the most ambitious of the national development plan of Colombia, forming the biggest railway network of the country, emphasized the vice-minister in her presentation, adding that “we expect having this great project structured in a couple of years and then advance with the tender”.

Buenaventura containers terminal enters in operation

Operations of the new terminal (TCBuen) started in January, and for its first year estimated capacity is 260,000 TEUs, increasing 30% the total capacity of the port of Buenaventura. The last development of the global terminal operator TCB of Barcelona represented an investment of US$250 million for the first phase of four estimated phases of TCBuen, becoming the second largest port of the Colombian Pacific Coast. Next May 13th will be the formal inauguration of the terminal, with the presence of the President of the Republic, Juan Manuel Santos.

ministry of transportation will develop public-private association for railway network

The Ministry of Transportation of Colombia is preparing a public-private association Project (APP) for the amount of US$1.830mm for a railway network that will allow transporting coal to the ports of the Atlantic, stated the vice-minister of Transportation, María Constanza García, during the event BNAmericas-Andean Infrastructure Summit that was recently held in Bogotá.

arica will implement a community port system by september

The Chilean port of Arica plans to implement the first version of a new community port system by September of this year, as informed by the state-owned firm Empresa Portuaria Arica. The Community Port Arica (CPA), formed by a number of public and private entities involved in the port, is investing approximately US$148,000 to develop the first phase of the prototype of the system, being the first public port of Chile in implementing this type of system.

The first phase will allow monitoring cargo traffic so the CPA may identify congested points in the port. Software will further enable to track containers for Bolivian imports and offer tutoring to users of the port and clients of the logistics chain, detailing the process to handle cargo and the agencies involved in each phase. The goal of EPA is that clients may track their own cargo at any point of the logistics chain, and besides to handle accounts, request quotations, deal with government agencies such as customs, and process payments online.

Colombia

January-April 2011

News of Latin American PortsAtlántico, Japdeva, has criticized the award of the concession. The National Chamber of Banana Growers also presented a demand against the Nation and requested the government to annul the concession, as informed by the local newspaper, La Nación. The chamber claims that the government did not have the proper technical, financial and environmental studies for the initiative and that cost of the new terminal will raise tariffs 130% compared to present tariffs at the terminal Moín-Limón.

The Minister of Public Works and Transportation, Francisco Jiménez, defended the concession at the time and stated that feasibility studies had been completed and that the bidding process was developed in accordance with the legislation.

This project is the second private port, large-scale initiative that advances in the last month, as the government authorized Americas Gateway Development Corporation (Amega) not long ago to start the second phase of studies for a transfer terminal of US$900 millions, also in the province of Limón.

Government authorizes amega to start designs of the transfer terminal at moín

The government of Costa Rica completed the last steps required for Americas Gateway Development Corporation, Amega, to begin the second stage of the studies for a new transfer terminal next to the port of Moín, in the province of Limón. Amega received final approval after the appointment of a governmental counterparty for the project and after accepting that a trust contracts an independent engineering consultant to act as auditor.

The government will appoint an independent auditor within the next three weeks, which will be contracted through a trust established by

apm terminals will start construction of containers terminal in 2013

On March 1st the President of the Republic, Laura Chinchilla, signed a concession agreement with APM to build and operate the new port, and in the next 18-24 months the Dutch firm must complete the final designs and obtain environmental permits for the project. The new port shall be an important part of the logistics corridor of the north Caribbean area and will have a key role in the development of country competitiveness, stated Chinchilla at a press conference.

The National Council of Concessions (CNC) awarded the tender to APM, the only bidder for the project, after extending the initial date of award programmed for the end of January. The economic offer includes a port tariff lower than the reference price approved by the national public services regulator, Aresep. During the next 120 days following the date of award, APM must complete certain conditions of the contract, constitute the local company, capitalize it, change the tender guarantee for a construction guarantee, and an extensive series of administrative matters.

The new terminal of containers in the Eastern province of Limón, will be located about 10 km of existing ports Moín and Limón, and involves a construction area of 1,500 square meters. It will have a capacity to receive Panamax vessels of up to 65,000 tons of cargo and will have a capacity to handle 3.7 million TEUs in four stages, starting with 1.3 million TEUs. The terminal will require an investment of US$992 millions.

Nevertheless, the project has faced certain opposition from the time it was awarded to AMP and the union of workers of the port authority of

Costa Rica

January-April 2011

News of Latin American PortsThe port of La Unión had a cost of US$183 millions and its construction ended in June of 2008, in charge of the Toa-Jan De Nul consortium. The multipurpose port specializes in handling of containers with a capacity of 850,000 TEUs in its first phase and 1.7 million TEUs in a second and third phase of development. A previous intent to concession La Unión failed in 2009 after the Assembly rejected a bill establishing a concession model. For this reason Cepa started partially operating the port in June of last year.

project of puente atlántico of the panama canal authority (acp) will cost us$350 millions

The ACP entered the bid of a consultancy to finish the design of a new and very long cable-stayed bridge on the Atlantic bank of the Panama Canal. The consultant will deliver final designs, construction specifications and estimate the cost of construction that should not surpass US$350 millions. The award of the tender is foreseen for the end of April and aims at the construction tender of the bridge in February 2012. The contractor will have 270 labor days from notice of award to work execution.

Height of the structure must be 75 meters over the canal, considering the possibility of a fourth set of locks and a life of 100 years. The project also involves the design of access roads at each side of the canal, besides other bridges that might be required as part of those routes.

cepa will finish port concession of la unión in July 2012

The Autonomous Port Executive Commission of El Salvador, national port operator, expects to finish the concession of the port of La Unión in July 2012. A bill has already been presented to the Legislative Assembly to concession the port, which must be analyzed by the special treasury commission in a short time and, once the project is approved, the authorities will start preparing the tender documents.

The objective of the government is to concession the port to an international operator for it to become an international pole of cargo. Port operators such as DP World, APM Terminals, Ports of America and SAAM have shown interest in the initiative.

Amega. Disbursement will be included in project development costs of the company that will invest US$15 million to complete detailed designs covering technical, legal, financial and environmental issues of the project, besides preparing drafts of the tender basis for the new terminal. Amega expects to complete studies in May 2012, and once designs are presented, the government has three months to revise plans and launch tender for the concession.

The transfer terminal will require an investment of approximately US$900 million will have a capacity to handle 2 million TEUs per year and a 1 km-long dock, a 19 m deep access channel to the port of Moín and a berthing place for three containerships with a capacity of almost 15,000 TEUs.

El Salvador

Panama

January-April 2011

News of Latin American Portsor expansion projects, in areas of rapid growth worldwide.

In March of this year, APM also signed an agreement with the government of Costa Rica for the construction and operation of a containers terminal in the eastern province of Limón.

Government considers declaring of public interest a port of us$3,500 millions

The government of Uruguay is about to declare of public interest a private initiative for the construction of a deep water port in the department of Rocha, the first semester of this year, which will be part of a bioceanic corridor that will receive cargo from Uruguay, Brazil and Paraguay, and its detailed feasibility studies are expected to be presented to the government by the end of March. The Compañía Oriental de Desarrollo e Inversiones (Eastern Company for Development and Investments), a firm representing the consortium that operates the Spanish port of La Coruña, formed by ACS, OHL and others, presented the private project of US$3,500 millions to the president José Mujica on December 31st.

contract of north dock Would close By the end of the year

The Peruvian agency ProInversión awarded on April 1st the concession of the terminal to a consortium of which its leader is the Dutch port operator APM Terminals that expect to close the concession contract for the Peruvian port of Callao in a month or two. The group, which also includes the Dutch firm Callao Port Holding and the Peruvian firm Central Portuaria, received the award thanks to the tariff offered for special port services, exceeding the offer of the only other competitor, a group formed by Hutchison Port Holdings (HPH), Port Investment Limited and Sino Invest.

The concession contract sets forth an investment of US$749mm for the terminal, including the modernization and improvement of berth sites 1, 2, 3, 4 and 5 of the port of Callao, the port with the largest activity of the country. APM Terminals operate containers facilities in 34 countries, and currently work in 13 projects of new terminals

With appreciation and great admiration for your work

pedro BritoFormer Minister of Ports Brazil

We received very positive comments in the surveys, and you were quoted as one of the most interesting lecturers

carrie shapiroConference ProducerArgus Americas Coal SummitNew Orleans, USA

Peru

Mail

Uruguay

January-April 2011

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