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Latinports Newsletter May-August 2011

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May-August 2011 Year 3, No. 2 Reactivation of Navigation on the Magdalena River, Colombia: A Country Project Minister of Ports of Brazil, Leonidas Cristino, announces investments for US$3,500 million in the sector. Main container ports in Latin America and its future with the expansion of the Panama Canal Pedro Brito, former Minister of Ports of Brazil assumes as Director of the National Agency of Waterway Transportation, Antaq See more... See more... See more...
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Page 1: Latinports Newsletter May-August 2011

May-August 2011 Year 3, No. 2

Reactivation of Navigation on the Magdalena River, Colombia: A Country Project

Minister of Ports of Brazil, Leonidas Cristino, announces investments for US$3,500 million in the sector.

Main container ports in Latin America and its future with the expansion of the Panama Canal

Pedro Brito, former Minister of Ports of Brazil assumes as Director of the National Agency of Waterway Transportation, Antaq

See more... See more... See more...

Page 2: Latinports Newsletter May-August 2011

CONTENTSMayAugust2011

Training

News of Latin American Ports

Mail

Main Container Ports of Latin America and its Future with the Expansion of the Panama Canal

II Public-Private Annual Seminar of Latinports and I Colombian Congress of Ports next December in Cartagena

BNAmericas interviews the Executive Director of Latinports: The mega-containerships and its effects in Latin American ports

Pedro Brito, former Minister of Ports of Brazil, assumes as Director of the National Agency of Waterway Transportation, Antaq

Reactivation of navigation on the Magdalena River, Colombia: A Country Project

Minister of Ports of Brazil, Leonidas Cristino, announces investments for US$3,500 million in the sector

Editorial

CoverMagdalena River, Colombia

Layout and DesignJulian [email protected]

Page 3: Latinports Newsletter May-August 2011

CONTENTS EditorialMay - August 2011

It Is wIth great satIsfactIon we record the happy coIncIdence that whIle the exIstIng MInIster of ports of BrazIl, leonIdas crIstIno, announces InvestMents for the sector aMountIng to us$3,500 MIllIons, former minister, Pedro Brito, starts off as director of the Water Transportation National Agency (Antaq). As we said in our previous issue, Dr. Brito was in charge of constituting the Special Secretary’s Office of Ports, SEP, of Brazil at a ministry level and to consolidate it in a three-year period of time as one of the most important and highest production portfolios of his country, during which time Brazil moved from place 61 to place 41 in logistics worldwide performance, mostly attributable to the port sector (Logistics Performance Index (LPI) of the World Bank). Being SEP the entity formulating policies and Antaq the implementing entity, it now corresponds to Minister Cristino and Director Brito to propitiate the development of a joint strategic plan to encourage growth of the Brazilian port sector, an issue in which both are determined for the benefit of the activity.

We are also pleased to record the beginning of specialized periodical seminars, which will start in Colombia with one on waterways, showing the need of integrating modal waterways to transportation logistics, and the realization of our second public-private Latin American seminar in Cartagena, jointly with the Superintendence of Ports and Transportation, which will undertake the first Colombian congress of ports to commemorate 20 years of the port law in this country, one of the first countries in taking this great step in Latin America. Also, we are proud to highlight the invitation presented by Lloyd’s List Global Ports Conference to represent Latin America in the event on emerging markets worldwide to be held in London on November 30-December 1st of this year.

Finally, in order to maintain a permanent updating of the Latin American port community in its desire for training, we present a series of large-scale events cosponsored by Latinports in different countries and for each of the upcoming months.

Until next time!

[email protected]

www.latinports.org

Julian palacioexecutive director

Page 4: Latinports Newsletter May-August 2011

Reactivation of Navigation on the Magdalena River, Colombia: A Country Project

the coloMBIan governMent has decIded to Bet on rIver transportatIon Between the central part of the country and the atlantIc coast, as a way to make more competitive its precarious transportation logistics almost 100% concentrated on roads, in a region with the most rugged topography of the continent (the Andes Cordillera and its three large branches) and with the largest distances between the main productive center and the seaports. Distances of more than 1,500 km have to be traveled by road to transport most of today’s principal export product of the country, oil, its main deposits located southeast of Bogotá, in a region known as the Llanos Orientales. Something similar occurs with the second most important export product, coal, with its main beds in the center-eastern part of the country, and distances of up to 1,000 km to the ports. Not to mention import commodities with destination to the main productive centers of the country, located in the central area.

“I do not want any more road destruction” stated President Juan Manuel Santos just a few months after his inauguration last year, thus giving frontal support to port development and river transportation that has been promoted during the last eight years by a mixed, mostly privately-owned company, the Sociedad Portuaria Multimodal del Río Magdalena S.A., which has just now signed a 25-year concession agreement with the national government for the most Mediterranean river port of the country to become the port of Bogotá and that of the central part of the country, as was described not long ago by the general director of the Corporación Autónoma Regional del Río Grande de la Magdalena (Cormagdalena). This high official was not far from reality as the current distance of almost 200 km between Bogotá and Puerto Salgar, through a mountainous territory and one lane road in each direction, represents a winding travel of more than five hours that will now be reduced to less than half, in a three-year period of time, with the new highway Ruta del Sol, currently under construction, as its technical route reduces distance to one fourth in time and its modern design includes two lanes, tunnels and viaducts, which will substantially increase operating speed.

convoy sailing up the Magdalena river, colombia

May - August 2011

Page 5: Latinports Newsletter May-August 2011

Being the port of the central area of Colombia implies having a hinterland with more than 50% of the foreign trade of the country, which will enable its surroundings to become the principal industrial-logistics activity area of the country, thus transforming national transportation logistics and therefore becoming the most ambitious project in its history. “One needs to think big” said the President in reference to his decision of granting the concession of the river with the purpose of bringing its minimum navigation depth to a permanent depth of nine feet in low waters, thus achieving a great reduction in multimodal transportation costs, mainly for cargo volumes and long travels.

this process shall involve three stages:

- Early Operation (end 2011-beginning 2012): Studies and necessary resources are available to guarantee a minimum permanent depth of 4.5 feet for the first 150 km of the river, upstream, tender process currently underway. This depth that was achieved in the high Mississippi more than a hundred years ago will enable transporting 500,000 to one million tons per year in the short- and medium-term.

- First Phase: Six feet of minimum permanent depth in low waters, the study of channeling works now underway to end in September, in order to award works next year and terminate works one year later (2013). Thus, the river may transport in the mid-term between two (2) and five (5) million tons per year.

- Second Phase or Final Phase: The river concession through private initiative or public-private association, consisting of permanent channeling works to guarantee a permanent minimum depth of 9 feet in low waters, and its award to be finalized prior to the end of this government in 2014. In the mid- and long-term the river will be in a condition to transport more than 10 million tons per year.

releasing this important project at national and international levels, the colombian government, altogether with the asociación colombiana de logística (colombian logistics association), acolog, and the asociación latinoamericana de puertos y terminales (latin american association of ports and terminals), latinports, shall realize a specialized event in august, for which you may obtain more information in the training section of this bulletin.

Puerto Salgar Terminal

May - August 2011

Page 6: Latinports Newsletter May-August 2011

In an IntervIew to valor econóMIco, the MInIster-chIef of the secretary of ports (sep), leônIdas crIstIno, stated that the government is “advancing” in the opening of tenders for the construction of four new ports and terminals: Port of Manaus, Porto Sul in Bahia, a port of Deep Waters in Espírito Santo, and the multiple-use terminal of Vila do Conde in Para. All these ports are in the study stage for edict launching, which will occur by the end of the year. The most advanced are the port of Manaus, with a basic project and now its technical and economic viability phase being concluded, and that of Vila do Conde, of which the public hearing on the tender for the lease areas was already done at the company Docas do Para. These two ports represent an investment of US$1,350 millions.

In this interview, Cristino denied that the government is studying privatizing the port system and reaffirmed that the present model will be maintained. The legal structure of the sector foresees the concession of public ports to private initiative, through a tender, up to 50 years, and the authorization as private terminals, without time limitations, provided the entrepreneur has its own cargo. According to Cristino, the government is not preparing any alteration in the regulatory framework.

Part of the private initiative states port flexibility, eliminating tenders for port construction in order to accelerate infrastructure investments. At present, to avoid tenders is only possible when the entrepreneur has its own cargo in amounts higher than that of third parties and uses the port in a way of up-righting its main business, as for example, Petrobrás

Minister of Ports of Brazil, Leonidas Cristino, Announces Investments for

US$3,500 Million in the Sector

leônidas cristino, Minister of ports

May - August 2011

Page 7: Latinports Newsletter May-August 2011

and Vale. If the purpose of the business is providing services for third-party movements, the rule will be the tender. Brazil has 129 private sea ports and 34 public sea ports. “What is included in the Law we will continue doing in the near future. In the mean time there is no intention of change”, declares Cristino. “The national port system is that of a public port with private operations. However, if there is need for a port, the federal government has the legal structure to award the authorization to build a private-use terminal, provided it has its own cargo in an amount higher than that of third parties and that the cargo is of the same type. That is obvious”, stated the Minister.

According to the analysis developed by the Agriculture and Livestock Confederation of Brazil (CNA), some of the states of the north and northeastern regions ceased producing 3 million tons of soy and corn during the last harvesting because they lacked nearby sea ports with evacuation capacity. CNA is one of the associations fighting in court against Decree 6620 of 2008 that established the need of having own cargos in amounts higher than that of third parties in order to waive tenders. One of the claims is that this norm would prevent investments within the sector. Cristino does not agree. He believes private investments occur as public power makes the appropriate thing with contributions, a rare issue until the creation of the SEP in 2007.

private sector will quadruple government Investment

Until 2014, SEP will invest US$3,500 million in 66 works, through the Acceleration for Growth (PAC) Program. “Estimates establish that private initiative will invest approximately US$15,000 million during this period of time”, stated the Minister. Regarding the overdue portfolio of PAC 1, until 2010, the SEP declared having concluded 45% of civil works and almost 70% of the National Dredging Program, which is to deepen the main national ports, the greatest obstacle of the sector, allowing the traffic of large vessels.

More than US$300 million of the amount foreseen up to the year 2014 shall be destined to a logistics intelligence program, which according to Cristino must increase operation efficiency up to 25%. There are three basic actions: installation of the VTMS (Vessel Traffic Management Information System), a tool that will undertake virtual monitoring of vessel traffic; the ‘Paperless Port’, an online platform to integrate bureaucratic procedures for an approximate total of 20 actors involved in foreign trade operation; and the Intelligent Cargo that will link the industry, the treasury and the port, in such a way to send merchandise only when there is availability on vessels. The objective is to prevent overcrowding and to optimize logistics flow.

During a recent visit to the port of Santos to accompany the implementation of the Paperless Port, Cristino confirmed that the program will be implanted on August 1st (original term was April 2010). Also was announced launching at the beginning of August the tender for the VTMS of Santos, the first port to have the system to aid in navigation control, basically during bad weather days. It will be formed by monitoring towers installed along the estuary and a processing and supervising central of its transmitted data. The first VTMS

May - August 2011

Page 8: Latinports Newsletter May-August 2011

tender was cancelled since the equipment could not be included in the Reporto, a federal government exemption program to acquire machinery for port modernization. “I already talked to the Minister Fernando Pimentel (of Development, Industry and Foreign Trade), so we may use the Reporto for the Intelligent Cargo and the VTMS”.

During his visit to Santos, the Minister informed having received from the National Water Transportation Agency (Antaq) the design for the new physical borders of the port’s dock. The new layout almost doubles the port area under the

jurisdiction of the Company Docas del Estado de São Paulo (Codesp), which will be of approximately 15 million square meters. The request for the expansion was filed more than one year ago by Codesp, which depends on this to proceed with the project of expansion of the port, called Barnabé Bagres. According to Cristino, if no problem exists with the new design, it is the intention of the Secretary’s Office of Ports to send the minutes of the decree to the Presidency of the Republic by the end of July.

Port of Santos, Brazil

May - August 2011

Page 10: Latinports Newsletter May-August 2011

great dIsplay has Been gIven By the specIalIzed press of BrazIl on the appoIntMent and sworn In of forMer MInIster pedro BrIto, initiator and developer of the Special Secretary’s Office of Ports, SEP, as director of the Water Transportation National Agency, Antaq. Proposed by the President, Dilma Rousseff and ratified by the Senate, Pedro Brito assumed his functions as of the end of June. According to information from the press, his appointment was well seen by the port community and professionals linked to the sector, and, according to Tribuna, this is the opportunity to increase the integration between the two bodies that command sea transportation cargo in the country. During his work at SEP, Brito adopted measures that were not always defended by Antaq, says the publication, and an example is, according to the text, that he always defended that port terminals must be public but developed by private initiative as of concessions. Tribuna adds

that the “two great challenges” of Pedro Brito’s management as director of Antaq shall be the integration of the modal waterway to the logistics scenario of the country and the need of the sector to have well defined regulatory frameworks.

The new director of Antaq also emphasized on the need to make the awarding procedures more agile in order not to hinder the expansion of the sector. “We are not entitled to commit investments based on bureaucratic delays”. For Brito, joint work with SEP will propitiate developing a strategic plan to encourage port sector growth in the next 20 years. The new Minister-Chief of SEP, José Leonidas Cristino also has the same idea of joining efforts, says Tribuna. In his speech during the swear-in ceremony of the new director of Antaq,

Pedro Brito, Former Minister of Ports of Brazil, Assumes as Director of the National Agency of Waterway

Transportation, Antaq

pedro Brito, antaq director

May - August 2011

Page 11: Latinports Newsletter May-August 2011

he emphasized the opportunity for the integration of the two bodies. “He (Brito) shall have the function of regulating, monitoring, but above all, the extraordinary function of harmonizing. If we all want the same thing, we will work together”.

According to the article of Valor, Brito’s plans also include the need to involve the so-called dry ports within the scope of port policy. Today, those bonded warehouses depend on Federal Rent, which makes difficult the performance of a port-logistics strategy.

Based on the tItle: ́ the Mega-contaInershIps wIll not arrIve to latIn aMerIca In Many years’, below is the interview of Catherine Setterfield to Julian palacio:

BNAmericas spoke with Palacio and asked him how necessary it was for regional ports to prepare for the expansion of the Panama Canal.

palacio: Yes, undoubtedly a preparation is necessary, as well as investments, but not in the wrong magnitudes. What I refer to is that the mega-containerships will not arrive to Latin America in many, many years, due to a matter of market economy. Developed countries are in the east-west route. Then these large ships will arrive at four or five ports of the world following this route. The north-south route will have larger size ships. Latin America cannot point out to having the largest ships

of the world as they will not arrive. In Colombia, Peru, Chile, and even Brazil, there is not enough cargo to receive these ships.

Therefore, large investments are not justified if these ships will not arrive in a very long time. Even more, I would say that investments in dredging should be measured for the ships we expect in the next 10-20 years. I insist, it is important to invest in dredging, but we must know until where and not to extremes.

Bnamericas: Then the idea of a great port pole in South America is a myth?

palacio: The Pacific area of South America is not going to have an important port hub because of market economy matters. Callao, in Lima, moves 90% of the foreign trade of Peru; thus, it has an important support. But it will always be smaller compared to transshipment ports in Panama.

BNAmericas Interviews the Executive Director of Latinports: The Mega-containerships and its

Effects on Latin American Ports

May - August 2011

Page 12: Latinports Newsletter May-August 2011

Bnamericas: In what do you believe this money should be used if not in port expansion?

palacio: If they have the money, what they really need is to correct an important failure that is transportation in Latin America. Inland transshipment costs are excessively expensive. For example, it is cheaper to move cargo from China to any country of Latin America than moving cargo from a port to the interior of the country. Then something is really going wrong.

Bnamericas: What countries do you believe are delivering the best model in relation to their preparation?

palacio: My example is Brazil. Although Brazil was way back in matter of ports, as of the creation of the Special Secretary’s Office of Ports, which in fact is a Ministry, they are now preparing in an appropriate manner. Pedro Brito said when he was secretary (of ports), which he was until December 31st, that Santos is the largest and most important port of Latin America, and is now preparing to receive ships of 8,000t-9,000t. Brazil is the most developed country in Latin America; it is an economic global power and as such it is being seen. Then, is Brazil wrong or are other much smaller countries of the region wrong?

Bnamericas: Would you say there is a weak link in Latin American ports?

palacio: Yes, in many parts. I believe Central America is extremely behind schedule in this matter. Nicaragua is way behind, as well as El Salvador and Guatemala, which has not yet started privatization. And if ports are not privatized, they will never get to have the appropriate ports.

In Costa Rica, on the other hand, they are preparing to receive ships between 15,000 and 18,000 TEUs. How may Costa Rica, a small economy, think about dredging to receive ships that will never arrive? This money to be spent in dredging would be needed for other things, for example, transportation

infrastructure. In the case of El Salvador, they are more aware, they are thinking in a more down-to-earth way. They see this will not be a matter for the short- or medium-term. Bnamericas: Some have said there could be a market in Central America for feed services, do you agree?

palacio: Also, I do not believe much in this; these are very small markets. Works are being done in matters of short sea shipping, and they want to do what Europeans are doing on this matter. But the European economy is years far from that of Central America. Also to be considered is the amount of cargo that will be moved. Only if governments will subsidize it, I do not see a private port taking short sea shipping matters seriously in Central America. Bnamericas: In January of this year some of the ports of the Pacific within the region met to form the commercial block Copasud. What do you think of this idea?

palacio: I personally do not believe much in this. The leader is the Peruvian government, altogether with, for example, Sociedad Portuaria de Buenaventura, 100% privately-owned. Then, these are two completely different approaches. The general manager of Sociedad Portuaria de Buenaventura may make decisions that the Peruvian government may not make. In this case, the day the general manager is replaced, guidelines continue being the same because the owners are the same. But the day that the President of Peru changes, the day that Ollanta Humala or Keiko Fujimori is president, one never knows what may happen. (The interview took place shortly before the presidential election in which Ollanta Humala was elected president: Latinports). Then, the intention is interesting, but many things have to be done. If new associations continue being created, we may not be able to work in what we really need to do. I do not know how many results we may see in the short- or medium-term. Now is being created an association of countries of the Pacific, and it could be an extension of that. In this case, it might be interesting.

May - August 2011

Page 13: Latinports Newsletter May-August 2011

Bnamericas: The last time we spoke, Latinports had very short time of being created. Could you tell us what the organization is doing at this time?

palacio: At the end of August we will celebrate 2 years of our creation. And we now have more than 300 members from 10 countries of Latin America. We had a first event in Brazil last August on our first anniversary, with the presence of the Brazilian Minister of Ports and all the private associations. It was a very interesting event, an excellent starting point.

Bnamericas: Will you have any similar events this year?

palacio: This year we will possibly have an event in Bogotá during the second semester. We have not yet defined dates, although it will probably take place during the last quarter. We want to celebrate it jointly with the Superintendence of Ports.

Main Containers Ports of Latin America and the Caribbean in 2010 and its Future with the Expansion of the Panama Canal

According to containers port movement ranking of Latin America and the Caribbean, prepared by the Infrastructure Services Unit of Cepal, and recently disclosed, “… during 2010, the twenty main ports of containers of the region grew 20.9%, a figure much higher than that of 2009 when the activity contracted by 6.8%”. Another fact worth noting in this opportunity is that not only port activity recovered its pre-crisis levels, but furthermore 17 of the 20 main ports recorded more than two-digit growth rates, a fact that

although is excellent news for the region, brings forth the discussion of the need to improve port infrastructure to face this growth, and invest in the best port and connection logistics with the hinterland enabling an efficient distribution of cargo. The 2010 Ranking is lead on this occasion by Panama. The maximum position is headed by the Colon port complex, followed by Balboa at the Pacific entry of the Panama Canal. Third place is for Santos in Brazil, although worth noting is its 20.7% growth compared to previous year. The fourth and fifth places are maintained by Kingston in Jamaica and Buenos Aires, Argentina, respectively.

“…during 2010, the twenty main ports of containers of the region grew 20.9%, a figure much higher than that of 2009 when the activity

contracted by 6.8%.”

May - August 2011

Page 14: Latinports Newsletter May-August 2011

Source: Infrastructure Services Unit, Cepal 2011 (for the complete list including 100 ports, please consult www.cepal.org, link Divisions: Natural Resources and Infrastructure)

(1) Freeport was the only port of the region that decreased its cargo movement, because of fragility represented by it almost exclusive dedication to movement of transshipment cargos (Latinports).

(2) No official figures exist for Puerto Cabello and therefore its position within the ranking is relative (Latinports).

May - August 2011

Page 15: Latinports Newsletter May-August 2011

Regarding displacement from the first place of the Port of Santos by the group of Panamanian ports in each of the two oceans, the commercial development director of Companhia Docas do Estado de Sao Paulo (port authority of the Port of Santos), Carlos Helmut Kopittke, in an article on this particular matter published by the Brazilian paper Tribuna in the beginning of June, minimized leadership loss recognizing that growth of Panamanian ports shall be even greater with the expansion of the Canal, but that this is not a point of comparison with Santos as it corresponds to a totally different dynamics: while cargo movement of Santos corresponds to its hinterland, that of Panama corresponds to international transshipment. The high official concluded by highlighting, as done by Cepal, that the growth of 20% of the port of Santos in foreign trade cargo movement, in which it continues being leader by a large margin of regional statistics.

In relation to the effects of the expansion of the Panama Canal, the publication Valor of Brazil agrees that the estimated cost of US$5.25 billions may have an “impact on international sea transportation, especially in the containers segment”, as of the end of 2014, when works will be terminated. This because shipping companies may implant shippers with larger tonnage to operate through the Canal. Today, the Panama Canal is limited, regarding containers, to ships of 4.6 thousand TEUs, a capacity that will be more than doubled. The Panama Canal Authority (ACP) that manages the route states that the expansion shall allow passage of vessels of up to 13.6 thousand TEU although

among ship owners some believe this capacity may remain in about 10 thousand TEU, having in mind the size of ships that go through the new line, which may have up to 366 meters of length and transport, lengthwise, 19 rows of containers. Bulk transporters, today limited to 60,000 tons, may pass through the Canal ships of up to 170,000 tons. According to the text, the use of larger ships to cross the Canal will represent scale economies and cost reduction. Alberto Alemán, administrator of the ACP, foresees that the expansion program will change sea transportation game rules having influence on Latin America.

MaxIMuM sIze of shIps operatIng In latIn aMerIca(Jan hoffMan, unctad, May 2011)

Panama: Maersk with Maersk Stockholm and similar 8,600 TEU

Mexico: Maersk with Maersk Stockholm 8,600 TEU

Brazil: Maersk with Maersk Lima and similar 7,450 TEU

Argentina: Maersk with Maersk Lima and similar 7,450 TEU

Uruguay: CSAV with CSAV Maipo 6,316 TEU

Colombia: Hamburg Süd with Cap Valiente and similar 5,770 TEU

Ecuador: Hamburg Süd with Cap Valiente and similar 5,770 TEU

Chile: Hamburg Süd with Cap Valiente and similar 5,770 TEU

Dominican Republic: Hapag Lloyd with Buenos Aires Express 5,551 TEUS

Peru: MSC with MSC Lisa and similar 5,060 TEU.

The above shows that the higher capacity of ships received in Latin America at present are between half and one third of the Emma Maersk, the largest container ship of the world (Latinports).

Maersk Stockholm

May - August 2011

Page 17: Latinports Newsletter May-August 2011

cartagena, 6-7 december 2011hotel las américas

Last June 16th, the Superintendent of Ports and Transportation of Colombia and the Executive Director of Latinports signed an agreement for the joint celebration of the First Colombian Congress of Ports and the Second Public-Private Latin American Port Seminar, to be held the second week of December in Cartagena, Historical and Cultural Heritage of Humanity. Under the name of Best Practices in Sea-Port Node, a follow-up to port laws of the most important Latin American countries will be done, its modifications and projections, the legal certainty for concessionaires will also be discussed and a critical focus will be presented on the development of transportation infrastructure in the region. Furthermore, the results of the Special Secretary’s Office of Ports (SEP) of Brazil and the logistics approach of this ministry as state policy, unique in the region, shall be analyzed. The Colombian congress of ports to take place for the first time shall focus on matters of the highest importance for the logistics-port activity and how to accomplish excellence in the activity, including a visit to Sociedad Portuaria Regional de Cartagena, consecutively considered for the last five years by the Caribbean Shipping Association as the best containers terminal of the Caribbean.

this event, unprecedented in colombia, shall be attended by the Minister of transportation, germán cardona, the superintendent of ports and transportation, Juan Miguel durán, the chairman of the executive committee of latinports, richard Klien, and quite possibly the president of the republic, Juan Manuel santos.

tourism in cartagena:

Given the time of year in which the event will take place, very close to the start of the high tourist season but still with low-season hotel rates and an excellent weather, this is an incredible opportunity to take a short holiday with your family and enjoy

May - August 2011

Page 18: Latinports Newsletter May-August 2011

Training

the nostalgic Cartagena de Indias, declared years back by Unesco as Historical and Cultural Heritage of Humanity, as it has maintained intact its colonial and republican historical downtown (the walled city or the so-called “corralito de piedra”), with beautiful churches and stately homes, many of which have become boutique hotels and restaurants of the utmost quality.

Military structures such as walls, bastions and forts may be observed next to the well-preserved city. The walls were part of the plan of defense ordered by Philip II of Spain to strengthen the main port of the Caribbean Sea, a project that lasted almost two centuries, and during which the city received innumerable attacks of pirates, which ended in 1796. The walls may be walked entirely and do not be surprised if you find couples in love watching the sunset from places where cannons were formerly fired. You may visit the Fort of San Felipe de Barajas, protector of the city and originator of the most heroic defenses of Cartagena. When the sun

reactivation of navigation on the Magdalena river, colombia: a country project

september 7, 2011hotel Marriott salitreBogotá

Following the 25-year concession of what is to become the most important logistics node of the country because of its proximity to Bogotá, Latinports, jointly with the Asociación Colombiana de Logística and the Sociedad PortuariaMultimodal del Río Magdalena, and supported by some of the most important companies of the country, will develop this international event to demonstrate to the region the importance of the development

falls, another Cartagena comes to life full of bars, discotheques and night spots radiating the joy of the Caribbean.

Only 30 minutes from Cartagena one may discover Islas del Rosario, islands full of natural enchantment that make you live a dream where the peaceful and warm blue waters and white sand beaches make of this area a paradise island on earth.

More Information:

event: Please visit the webpage www.latinports.org and/or contact directly the executive director of Latinports, Julián Palacio, [email protected] Telephone (57 1) 7518145, Bogotá.

air transportation: The AviancaTaca Alliance, official airline of the event, offers national and international tickets at special prices.

of inland navigation routes as a need for transportation logistics competitiveness. Experts of the Engineer Corps of the Army of the United States, of the Paraná-Paraguay Waterway and of the World Bank, altogether with the Water Transportation General Director of Brazil and national experts shall promote a new reality in Latin America. This initiative, with the support of the national government and the entrepreneurial associations will serve as an example for similar entrepreneurship elsewhere in the region.

for more information please visit the webpage www.latinports.org and/or contact the executive director of latinports, Julián palacio [email protected] telephone: (57 1) 7518145 Bogotá.

May - August 2011

Page 19: Latinports Newsletter May-August 2011

II coaltrans colombia

20-21 september 2011ar hotel salitreBogotá

Supported by Latinports, Coaltrans Conferences of London returns to Bogotá in September to explore opportunities that have been described by some as “the wild west” of mining.As international investors examine the availability to invest in Colombia, the conference will welcome perspectives that national and international banks have of Colombia as a competitive place for investment, and will analyze tax policies and legal considerations to enable advantageous and profitable business decisions.

Coke coal now being in fierce demand around the world, Colombia thus offers a real opportunity to supply the Market with good quality coke coal. Coaltrans Colombia will deal on how the Colombian coke coal industry may take advantage of world demand, how mining operations may best be coordinated, and how proposed infrastructure

port finance Internationa Brazil

5-6 october 2011convention center rio stock exchange rio de Janeiro

The first International Port Finance Conference in Rio de Janeiro 2011 will enable participants to obtain extensive knowledge on innovative financing solutions and also to supply important practical information for actions within the port sector. The purpose of this event is discussing financing and developing options for the port sector, thus becoming a unique opportunity to meet with potential business partners, as well as high management level executives (government and port authorities, terminal operators, legal and financial sectors). Besides, the conference will focus on the work of Brazilian ports and its expansion and development plans, investigating also those of the ports of South America with a view towards investments and business expansion.

development plans make of Colombia a competitive player for coke coal world markets.

one of the panels, called ‘a look to colombian ports’, will be presided by the executive director of latinports, Julián palacio, on september 21st.

For more information please visit webpage www.coaltrans.com and/or contact Christian David-Griffits, Commercial Manager, [email protected] Telephone: 44 207 7798946 London

the executive director of latinports, Julián palacio, will be one of the lecturers on the opening day, october 5th, with the presentation of the declaration of Brasilia 2010: evaluation and perspectives of the regional port system.

For more information on the event please consult webpage www.portfinanceinternational.com and/or contact directly with [email protected] Telephone: 44 207 0173411 London

May - August 2011

Page 20: Latinports Newsletter May-August 2011

toc container supply chain americas

15-17 november 2011.hotel el panamapanama

Highlighting the growing influence of Latinports in the Latin American port sector, as was perceived during TOC Americas 2010 that took place in November in Rio de Janeiro, the TOC Worldwide Events of London appointed the Chairman of the Executive Committee and the Executive Director of Latinports, Richard Klien and Julián Palacio, respectively, in its advisory committee for Latin America. Both of them, altogether with professional expert analysts of the industry, such as Carlos Urriola, president of the Caribbean Shipping Association, and Paul Gallie, new Projects Manager of APM Terminals for Latin America, supported the TOC Container Supply Chain Americas organization in designing the agenda of the most important containers event of the continent.

As Panama proceeds with its historical expansion of the Canal, TOC Americas returns to the country for the third time in its 12-year history with a new name and an extended agenda. The new image of the Containers Chain of Supply of TOC Americas 2011 has all the analysis and discussion topics that delegates have expected on the evolution of container traffic, sea transportation and ports of North and Latin America, but with an added dimension of and from producers and retailers, which cargo loads containers, ships, ports and terminals.

The Containers Chain of Supply is extending throughout the global portfolio of TOC-Events, with the mission of facilitating dialogue among cargo owners, logistics suppliers, port transportation and industries, so all parties may work better together in the face of undoubted challenges.

These challenges involve not only seeking the most efficient flow of containers, predictable and profitable from origin to destination, but at the same time being the way to reduce the environmental and social impact of the large volumes of commerce of today’s containers.

The development of Panama is about to change the face of world logistics for merchandises and the regions, the surge of Latin America in the creation of a new generation of world consumers and exporters, and North America continuing to develop its port of entry and its strategic corridor, in the face of the recovery of its imports and the increase of its exports; thus, there will not be much more to talk in November.

Not less important is how all moneys from the funds of such a required improvement for the infrastructure in the Americas, becomes once more an obstacle so that ports and terminals and their connection to land transportation networks accommodates to the continuous increases in volumes and size of liners. How to obtain financing and how to strongly work on the existing infrastructure, will be another of the topics of discussion in an extensive three-day program.

May - August 2011

Page 21: Latinports Newsletter May-August 2011

lloyd’s list global ports conferencenovember 31-december 1st, 2011londonengland

Informa Maritime Events in association with Lloyds List shall develop this leading event of the industry with the main actors of the sector discussing the last developments in emerging market investments, global tendencies and construction of infrastructure.

Attending this event will help understand and obtain answers to key questions that will define the sector of the ports of the world, including:

• Tendencies in the global port sector – providing sustainability and growth.

• The changing phase of liners – the era of mega-ships.

• Growing markets and opportunities – where are the ‘hot points’?

• Investments in emerging markets – Africa, Latin America and India.

the chairman of the executive committee of latinports, richard Klien, will participate as lecturer in the panel ‘challenges and opportunities for latin american ports, on november 15th.

For more information please visit webpage www.tocevents-americas.com and/or contact Sam Whelan, Conference Producer, at [email protected] Telephone: 44 207 0175675 London

• Increment of demand for short sea shipping and connection with feeders.

• Tendencies towards small scale evolution and investment in ports

• Port concessions – contractual and financial issues.

the executive director of latinports, Julián palacio, will make a presentation on “Investments in latin american ports”.

For more information on the event please visit webpage www.lloydsmaritimeacademy.com and www.informamaritimeevents.com or contact directly Shelley Bullen at [email protected] in London.Telephone 44 (0) 20 7017 5720

II public-private annual port seminar of latinports and I colombian congress of ports

6-7 december 2011.hotel las américascolombia

see detailed information in the special article above on this particular matter in this same edition.

May - August 2011

Page 22: Latinports Newsletter May-August 2011

expobizz Montevideotrading, logistics and packaging

8-10 december 2011latu park of exhibitions Montevideo

The progressive positioning obtained by Uruguay as logistics operations center is the value proposal of this international fair, specialized in foreign trade, logistics and packaging, to be held at the LATU Park of Exhibitions of Montevideo. The World Confederation of Businesses (WORLDCOB) of Houston, Texas (USA) and MERCOSOFT CONSULTORES of Uruguay are the organizers of this convention, with the participation of Latinports as strategic partner.

The objective of this important event is the generation of new businesses among its 3,000 associated companies in 60 countries and other leading participating companies of different sectors of the market and the world. Three activities will be developed: BUSINESSMATCH (Business Appointments), a system required to establish business appointments with other companies of related or different

items. SHOWROOM (Room of Exhibitions), a fair that will enable participating companies to have the possibility of selling their products and/or services at a module or stand. EXPOROUND (Round of Exhibitions), an opportunity to expose and make known offered products and/or services.

Besides Latinports, several organizations have now joined as international strategic partners, such as the Federación de Agentes de Carga de América Latina y el Caribe (ALACAT) (Federation of Latin American and Caribbean Cargo Agents), Chamber of Commerce, Industry and Production of the Republic of Argentina, Colombian Logistics Association, National Chamber of Exporters of Bolivia, National Chamber of Customs Dispatchers of Bolivia, National Chamber of Industries of Bolivia, Costa Rican Association of Logistics and other important organizations of Brazil, Mexico and Chile. This convention is expected to exceed 2010 figures, where were represented 250 participating companies and generated US$50 millions in business intentions.

For more information we invite you to visit webpage http://www.expobizz.com and contact Lisette Menacho, Communications Manager, WORLD CONFEDERATION OF BUSINESSES, telephone +1-713-339-9900, Houston, Texas, USA.

May - August 2011

Page 23: Latinports Newsletter May-August 2011

News of Latin American Portspresident of the Brazilian association of port Terminals affirms the Government Discourages port Investments

Valor published an article of the president of the Brazilian Association of Port Terminals ABTP, Wilen Manteli, criticizing a resolution issued by the Heritage Secretary’s Office of the Union, determining the appraisal of the port terminals of the country by “assignment of physical spaces in public waters”. Manteli states that the country is “living a setback in the port sector”, but that this setback is in the field of taxes. He then explains that with this resolution the government is causing entering investments more expensive and creating tributes “instead of using its force to encourage investments as an engine for economic growth”.

At the end, the article affirms that the “port sector is confused. There are so many bodies interfering and inflating the regulation system of this activity that the investor does not know who to pay attention to or recur”. To amend this distortion would suffice that the public power would respect the attributions of SEP and Antaq. “Formulation of policies for the sector is competence of the first entity, and the second entity must implement these policies, such as the regulation and inspection of port activities”, states Manteli. He draws attention on the importance of the sector for the competitiveness of Brazilian companies and economic development, and suggests this may not be done by increasing port taxes, as will be the case.

In a further article, Valor refers to the resolution imposed by a series of demands for leasing port terminals and restricts profit margin of entrepreneurs, quoting recently elected director of Antaq, Pedro Brito, who in opposition to

Argentinatecplata on course for 2012 opening

According to Container Management, implementation of phase one of ICTI’s 40 ha Tecplata project, at the port of La Plata 60 kms south of Buenos Aires, is reported to be well under way. The 450,000 TEU capacity terminal, will have two to three berths on 600 m of quay initially which will be extended by 220 m to 820 m in the second phase.

Brasilgovernment plans the concession of 45 ports

The Agency Estado informed that the federal government prepares a new model for the port sector that foresees a “different management philosophy” of that currently existing for Brazilian ports. This is because “now all the operation has already been privatized” in the so-called public ports, the Executive is preparing guidelines for transfer of port management to the private sector, besides building new complexes in all the country on an “urgency regime”. According to the text, “novelty is now moving to private initiative the organized concession ports” and “who wins will manage and operate everything within the port, under the supervision of Antaq”, in reference to tenders to be opened for the concessions. The entity has now identified 45 areas considered as priority to receive private investments and the process will begin with the tender of a new terminal in Manaus, where the port situation is considered “critical”.

May - August 2011

Page 24: Latinports Newsletter May-August 2011

Movement of containers in santos arriving at its full capacity

Based on a study of the IDB published by Tribuna, the projection of Companhia Docas do Estado of Sao Paulo (Cosep) for 2011 amounts to 3 million TEUs (an 11% increment compared to 11% of 2010), fairly close to the static capacity of the complex which is currently of 3.1 million TEUs. The study adds that only during the three first months of this year, movement increased 18.2% in relation to the same period of 2011, adding up to 650.146 TEUS. The newspaper then emphasizes that the port of Santos will arrive soon to its limit, if forecasts are real. According to the strategic planning and control director of Cosep, Renato Barco, a “yellow sign” is on. He comments there will be “a little more comfort in 2014”, when BTP and Embraport terminals start operating. With these two developments completely functioning, containers movement capacity at the port of Santos will move to 8.1 million TEUS in 2014, and demand will arrive at 4.25 million (52% of the total).

According to Tribuna, on a possible collapse of port operations prior to entering in operation the new facilities, Barco affirms that Codesp is attentive to the numbers and assured there is no reason for great concern as the two new terminals are about to complete construction. Opposed to the executive of Codesp, a group formed by cargo importers and exporters from all the state (Comus) is worried with the operation of the port for the next two years and calls the attention on the times of stay for containers in the yards and the increasing movement costs in the complex of Santos. According to them, productivity increase in port terminals may intensify with customs transit of containers into secondary areas.

News of Latin American Ports

national agency of waterway transportation will revise the port leasing Model

The new director of the Water Transportation National Agency of Brazil, Pedro Brito, informed the entity will revise the Technical-Economic Viability Studies of the port leasing model. “We shall revise and adapt what is important to favor private investment in ports, which is what we want to cause the flow of the growth of Brazilian economy”, stated Brito in a report to Tribuna.

In a meeting promoted by Antaq, the former minister of ports, Pedro Brito, presented the new model for the “economic-financial rebalance of leasing contracts”, which foresees regular revisions to the contracts every five years, both for new and old leasing contracts. In addition, the manager of public ports of Antaq, Jair Galvão, put the example that “a flood affecting leasing areas and equipment would undoubtedly be a fact justifying the economic and financial revision of the contract prior to its legal term of duration”.

criticizing the private initiative against the resolution, the organization does not want to control earnings. “Of course, that does not fit. We will revise procedures”. The article adds that according to sector entrepreneurs, the norm created last year limits the inland rate of return of the business between 8% and 9%, which according to the president of ABTP, Wilen Manteli, “is an intromission in the life of the entrepreneurial sector based on no legal base whatsoever”, adding that the obligation of companies to reveal the origin of cargo in order to participate in a tender “is a professional secret”.

May - August 2011

Page 25: Latinports Newsletter May-August 2011

News of Latin American Portslogistics gains importance in operations of santos Brazil and libra

Valor highlights that business of the two groups, besides loading and unloading operations of merchandises at the port, has the purpose of gaining muscle with a network of assets that will enable selling an integrated solution to client through logistics. For this purpose the companies created specific divisions during the past years, which represent 18% of the billing of Santos Brazil and 16% of Libra.

This report makes evident that Santos Brazil is the leader of the sector with a larger capacity. Its commercial director, Mauro Salgado, comments that logistics operations eliminate inefficiencies that result when the process is atomized in a network of different companies, besides the preference of the market that prefers talking to only one individual to manage the entire chain. Salgado adds that a “great emblematic example” is the contract with Mercedes Benz, detailing that the company was already importing through the port terminal of Santos Brazil, and entered into a contract six months ago to manage its cargo flow involving the plant in Sao Paulo and including the truck assembly line.

Regarding the plans of Libra, with an assets portfolio including two export sites at Bajada Santista and a dry port in Campinas, the report of Valor informs that the group expects to increase its billing ten times in a five-year term. According to the president of Libra Logística, Eduardo Leonel, besides organic growth, leap will be entered through acquisitions and mergers. According to the executive, “the main focus is storage areas so we may have a fairly robust net, with maximum one day travel by road”. He does not doubt the time will come when logistics activity will assume the same percentage of importance than that of the port activity within the group.

oMx will start building puerto castilla in the beginning of 2012

With an investment of US$300 millions, the Chilean company OMX Operaciones Marítimas, subsidiary of the Brazilian group EBX, expects to start construction at the beginning of 2012 of its multi-purpose unit Puerto Castilla, in the northern III Region. The facilities will have three terminals and may receive post-Panamax and Capesize ships, the latter with a capacity of 170,000 deadweight tons (DWT).

“We already have the environmental approval, which means we have the green light to start projects. We are currently negotiating long-term contracts for the use of the port, and if these are successful, we expect to start construction the beginning of next year. “The construction will last two years”, stated to BNAmericas the manager of Puerto Castilla, Jorge Ronda. OMX has prequalified four companies for the construction of the port and is developing a turnkey tender focused on terminals of copper concentrates and coal for the port. “There has been great interest of Chilean and international construction companies to build the port, but we cannot develop a tender process with 20 participants. The selected companies will have 75 days to present a formal offer that will include detailed engineering, acquisition of equipment and construction”, added the executive.

The port is designed to import up to 6 million tons of coal and export 2 million tons of copper and 10 million tons of mineral ore. Port facilities will supply the Castilla coal-fired power plant of 2.1GW, its installation in charge of the sister company of OMX, MPX Energia.

Chile

May - August 2011

Page 26: Latinports Newsletter May-August 2011

News of Latin American Ports

the prime Minister of canada attended the signature of the trust agreement by the canadian amega

Business News Americas informed that the general director of Americas Gateway Development Corporation (Amega), Aubrey de Young, entered into a trust agreement with the government of Costa Rica for the construction of the new transfer terminal to be located next to the port of Moín. The press conference held prior to the signing was attended by the Canadian Prime Minister, Stephen Harper, and the President of Costa Rica, Laura Chinchilla.

The Costa Rican government must now select an independent auditor for the Project and in the meantime, Amega will start working in the studies and designs for the port Project appraised in US$900mm, to be concluded in August 2012. Once designs have been presented, the government has three months to revise the plans and call for bid.The transfer terminal will have a capacity to handle 2 million TEUs per year with a dock 1-km long, a 19m deep access channel to the port of Moín and a berthing for three containerships with a capacity of 15,000 TEUs each.

On the other hand, the manager of Puerto Castilla stated that the government of the III Region north of Chile is working so the international passage of San Francisco may be an alternative to the passage Los Libertadores that links Santiago with Mendoza, Argentina. Los Libertadores, located in the V Region of the central zone, is the main international passage to Argentina and handles about 5 million tons of cargo per year, which represents 70% of the land cargo transportation between the two countries. “In winter it is closed most of the time, therefore plan B is currently the passage Cardenal Samoré in Osorno, one thousand kilometers south, where weather conditions are even worse. Therefore, we have been working in the regional government to eventually make of San Francisco the plan B”, stated Ronda.

Modernization of the Chilean side of the passage must be completed by mid-2012; on the other hand, works in the Argentinean side have been completed. The project involves paving 109 km of Route 31-CH, as well as the passage itself, and will require an investment of approximately US$34.6 million, according to the website of the governor’s office of the III Region. Once works have been completed in the new route, trucks leaving Cordoba, in Argentina, may transit to the new port to make shipments through the Pacific instead of going to Rosario or Buenos Aires, stated Ronda.

Costa Rica

May - August 2011

Page 27: Latinports Newsletter May-August 2011

News of Latin American Ports

port of singapur will manage the container terminal of Mariel

According to Reuters agency quoted by Container Management, the Port Authority of Singapur PSA, through PSA International, has silently signed the management of a containers terminal in construction at the port of Mariel. The terminal is part of a more extensive plan for the development of Mariel Bay, 45 km west of Havana, in the potentially most important Caribbean port for hub cargo. Also, Container Management quoting official sources in its July-August 2011 edition adds that the agreement was to manage the port and does not imply any investment by PSA International.

Mariel is one of the most important ports along the northern coast of Cuba and is destined to replace Havana, the main port of the country, in the years to come. Having in mind that the terminal foresees to start operations in 2014, when the largest vessels will start transit through the Panama Canal, currently in expansion, it is believed that PSA International will then participate in the planning of the terminal. The Mariel terminal that will have to begin with 700 m of dock is ideally located to handle cargo from the United States, if the commercial embargo to this country is eventually raised, and would receive U.S. food exports. Plans for 2022 are called to make of Mariel the base of logistics facilities for the exploration and exploitation of offshore oil, the terminal of containers, and the facility for general cargo and food in bulk, and also the Special Economic Zone of Development for light manufacture and warehousing.

concession granted for the most important inland port of the country

Described by the director of the Corporación Autónoma Regional del Río Grande de la Magdalena (Cormagdalena) as “the port of Bogotá”, last June 10th the national government signed a 25-year concession contract with Sociedad Portuaria Multimodal del Río Magdalena S.A.(Multipuerto Salgar), a public-private entity, mostly privately-owned and established eight years ago. Studies contracted through the U.S. Trade Development Agency (USTDA), the consultant firm TEC Inc., altogether with its U.S. associates Nathan Associates and Pacon Americas, and its Colombian associate Emdepa Consultoría, developed last year with excellent results the Rehabilitation Study for the River Terminal of Puerto Salgar. This terminal, located 190 km from Bogotá by road (170 km and only two hours of travel, once the double-lane highway, now under construction, is completed) and 880 km from Barranquilla by the Magdalena River is meant to become the main transportation node of the country, according to the president of the Colombian Chamber of Infrastructure, Juan Martín Caicedo, as “it is the only one in the country where the river, railroad, road, airport and pipeline converge”. Precisely, through the pipeline that will arrive to Puerto Salgar (currently it is only at a distance of two kilometers), one of the main products to transport downstream is oil that is produced in the Llanos Orientales, southeast of Bogotá, and that has made of Colombia the third Latin American producer of this product, after Venezuela and Brazil. Likewise, coal will be transported from the mines located only 70 km from the port. Starting early operation is foreseen for the last quarter of this year.

Cuba

May - August 2011

Colombia

Page 28: Latinports Newsletter May-August 2011

News of Latin American Ports

concessão para novo terminal em lázaro cárdenas enfrenta possível cancelamento.

According to BNAmericas, a tender for the construction of a second containers terminal in the port of Lázaro Cárdenas, on the Pacific coast of Mexico, will be probably cancelled. The Federal Court for Fiscal and Administrative Justice ruled that the tender was not valid but, the Secretary’s Office of Communications and Transportation (SCT, in Spanish) instead of stopping the tender process, took the case to the Court of Appeals. “The probability that this ruling is firm is very high”, states the analysis done by the port operator Hutchinson Port Holdings HPH that has been operating the first containers terminal of the port as of 2007.

Mexico

Brazil has donated US$800 million to finance infrastructure and port facilities construction now underway, jointly with the Odebrecht group, the largest construction and engineering company of that country. According to presidential counselor Marco Aurelio García, US$400 million have been disbursed, and another US$200 million have been approved, the balance amount is being studied. The port of Mariel will handle vessels with more than 15m draft, compared to 11m of Havana and will have a capacity to handle between 850,000 and one million containers per year, compared to 350,000 at Havana.

May - August 2011

contracted study on short sea shipping transportation

According to the report of MBW Mexican Business Web, as of mid-June the consulting firm IDOM was granted the ruling in the tender for the development of the “Study to analyze the viability of short sea shipping transportation within Mexico and to North America, and its implementation strategy”, which will be ready in approximately 6 months. The tender, in which also participated the consulting firm AT Kearney, was summoned by the General Coordination of Ports and Merchant Marine.

HPH indicated that the port authority arbitrarily modified its master development plan in order to continue with the tender of the second terminal.

The SCT called the tender for the construction and operation of the second terminal in Lázaro Cárdenas in February of this year, and set the reception of offers for August. The 30-year concession implied developing an area of 850.000m2 that could be extended to 170.000m2, and the construction of a specialized containers terminal, which would require an estimated investment of US$500 millions and a capacity to move 2 million TEUs per year.

The development plan of the port allows extending the first terminal in three specific phases, and HPH’s argument is that at the time the second tender was done, times of execution of the development plan were not respected, which could affect its present investments. Unless the tender is suspended, the port authority will face compensation demands by bidders that have “committed efforts and resources in a legally flawed process”, according to HPH.

Page 29: Latinports Newsletter May-August 2011

apM terminals sign a 30-year concession for the terminal in callao

In its last edition, Container Management informed that a new contract for the development and operation of the Terminal Muelle Norte (North Terminal) was signed last May 12th by President Alan García and representatives of APM Terminals and its local partner, Central Portuaria SAC, at the Presidential Palace in Lima.

Peru

Uruguay

News of Latin American PortsLuis Pérez, consultant of IDOM, commented that one of the decisive factors to be granted the tender was the experience of the consulting firm in the sea sector and in this type of similar studies in Europe, where developed projects have been the Marco Polo program and the MEDA Mos. In Mexico there exists the experience of short sea shipping transportation in several initiatives: besides cabotage for oil products, there is the experience of the railway-ship service of Coatzacoalcos to Mobile, in the United States; the Peninsular Line from Puerto Progreso to Panama City; and the recent operation of the Nafta Gulf Bridge, from Veracruz to Mobile.

The purpose of the tender study was to determine the viability and competitiveness of Short Sea Shipping Transportation (SSST) in the Mexican case, both for inland (cabotage) and foreign trade with North American countries, for cargos currently being transported by land (road and/or railroad), placing an emphasis on containers. Likewise, SSST routes must be proposed, both cabotage and international routes, for the transportation of detected volumes, considering any legal, commercial, environmental and infrastructure restrictions that have prevented the development of SSST. It will also include logistics factors and costs generated by land transportation regarding the movement of merchandises indirectly affecting national economy, with the purpose that these, in each case, be redirected to promote SSST.

In case the above is viable, the study will establish the viability of the SSST and will present public policy recommendations for its promotion and instrumentation, evaluating costs and benefits for proposed measures, suggesting an instrumentation plan to operate detected routes.

May - August 2011

the ports of the country may be saturated in the coming years

According to the informative Valor of Brazil, an article regarding the economic growth of Uruguay in the last years establishing the dependence on the economy of the country in relation to Brazil, states that currency revaluation and infrastructure bottlenecks are two of the main threats for the growth of the country in the coming years. The Brazilian publication adds that port matters “raises fears among the private sector”, detailing that in June the movement of containers in the port of Montevideo set a historical record having reached 80,040 TEUs, and that the growth for the first semester was 45% compared to the same period of previous year. “We see a saturation of current structure for 2015” commented Roberto Mérola, director of Schandy, holding controlling

Page 30: Latinports Newsletter May-August 2011

News of Latin American Portsan expansion project for the port of La Guaira in the state of Vargas, which cost will be US$400 millions. The expansion will allow the port to receive vessels transporting up to 6,500 TEUs, which represent an increase of more than three times its current capacity. Works will be executed by the Portuguese constructor Texeira Duarte and involve the incorporation of 23.7 hectares to the port’s existing area, thus the port will receive 600,000 TEUs per year as of 2016, when the project will materialize.

the Ministry entered into an agreement for us$400mm for the expansion of the port of la guaira

The Ministry of Transportation and Communications of Venezuela entered into an agreement with the Government of Portugal to start

Montecon, the biggest port operator of Montevideo with approximately 200,000 TEUs per year. One of the main bottlenecks, according to Mérola, is the existence of only one dock having a depth of more than 34 feet. The last tender for the expansion of the port that took place last year, had no offers.

Congratulations. I share with you that the logistics matrix is today the big issue.

rodolfo garcíaExecutive Vice-presidentMaritime Port Chamber Valparaíso, Chile

Congratulations for the Latinports report!It is very well and will help us a lot to know what is happening in Latin America.

antonio carlos sepúlvedaPresidentContainers Terminal, Santos BrazilSao Paulo, Brazil

Mail

Venezuela

May - August 2011

Page 31: Latinports Newsletter May-August 2011

Thanks for the information. Very interesting the criteria of the former Minister of Ports of Brazil

Iliana gonzálezExecutive DirectorAssociation of Private Port Terminals, ASOTEPGuayaquil, Ecuador

I believe – and several persons have told me – that it was a very interesting interview, as we do not always have the opportunity to publish such a decisive and well-argued opinion.

Catherine SetterfieldInfrastructure EditorBusiness News AmericasChile

I really appreciate, above all, being considered an addressee of information related to waterway issues. Much is yet to be strengthened in the design of solutions that favor developing logistics channels by means of competitive costs. It is the challenge for all and once again receiving relevant information will be the best contribution.

José QwistgaardGeneral Director Water Transportation Ministry of Transportation and Communications Peru

I read with great attention your interesting report in BNAmericas. I hope your good advice is read not only by entrepreneurs that regularly visit this site, but also by leaders. Inland transportation costs receive little attention in our region, with the exception of Brazil, and few governments have a good vision of how logistics costs are established and most have such partial approaches that they do not see the global scene. Every day we are seeing examples and the saying that ‘trees do not let see the forest’ is something real in our region.

antonio zuidwijkConsultant (Former Murchison)Argentina

May - August 2011

Page 32: Latinports Newsletter May-August 2011

With a warm greeting, congratulations for advancements and achievements, reflected in the relationship with Hutchinson Ports Holding.

héctor lasernaGeneral Manager Terminal of Liquid Bulk of Santa Marta, TerlicaSanta Marta, Colombia

Sending our congratulations on the job as head of the Latin American Association of Ports and Terminals.

rubens MarkusBrazilian Association of Port Entities and Waterwatys ABEPH

Rio de Janeiro, Brazil

A very interesting report.

fernando revecoDevelopment and Projects ManagerUltramar Group

Santiago, Chile

An excellent report, congratulations. You have worked really hard

domingo chineaGeneral Manager Sociedad Portuaria Regional de Buenaventura

Colombia

We are pleased that you continue sending us such good news.

lorena castañedaProject Manager & Marketinge-Technologies Solutions Corp.West Palm Beach, FloridaUSA

Thanks for the bulletin; very interesting.

edgar higueraExecutive Director Chamber of Logistics Services National Association of Entrepreneurs of Colombia

Bogotá, Colômbia

I appreciate your message with the informative bulletin of Latinports, with matters very well analyzed and circulated among the Unions of Port Operators affiliated to our federation and to the Management Manpower Bodies of the Brazilian port community.

william cady Jr.Executive Director National Federation of Port Operators, FENOP

Brazil

May - August 2011


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