Latinports Newsletter October-December 2013

October-December 2013
Year 5, No. 4

West Africa: The Land of Opportunities
(A Risk for Latin America?)

Ranking of Container Terminals in
Latin America in the First Half of
2013
More...

All Change at the Top:
The Heavy Hand of Politics
Interfers in Brazil’s Ports Again
More...

To Hike Maersk Latin American
Hipping Rates
More...

CONTENTS
October
December

2013

Editorial
ANALYSIS

- Poor connectivity threatening Latin America’s
commercial growth

VIEWPOINT
- The Necessity of the Large-scale Port in Chile
THE INTERVIEW
- APM Terminals’ CEO: Giant Vessels a ‘Burden’ for
Ports

EXECUTIVE COMMITTEE AND MANAGEMENT
- Executive Committee: Objectivs 2014
- Executive Director’s Presentation in TOC Miami

LOGISTICS AND COMPETITIVENESS
- Ranking of Container Terminals in Latin America
in the First Half of 2013

West Africa: Six of the
World’s Fastest-growing
Economies

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

- All Change at the Top: The Heavy Hand of Politics
Interfers in Brazil’s Ports Again
- Mexico and Brazil are Holding Back the Growth of
Latin America in 2013
- West Africa: The Land of Opportunities
(A Risk for Latin America?)

WATERWAYS
- National Confederation of Transport of Brazil
Launches Study on Waterways Modal

CONTENTS
October - December 2013

MARITIME TRANSPORTATION

- Vessel Sharing Agreement for Crowley and
Seaboard
- Hapag-Lloyd Evaluates Association with Chilean
Shipping Company
- The Suez Channel Wins Competitiveness Thanks
to Shipping Lines P3 Alliance
- Maersk Line Sees Shipping Overcapacity for Five
Years
- To Hike Maersk Latin American Shipping Rates
- Compañía Chilena de Navegación Interoceánica
built 9,000 TEUs vessel

EVENTS
- LatAm Ports & Logistics Summit, Panama

LATIN AMERICAN PORT NEWS

Mail

Editorial

Julian Palacio,
Executive Director
of Latinports


With this edition of New Year’s Eve we fulfil an important cycle in Latinports
communications, because beginning in 2014 we will disclose the most relevant
economic and port-maritime regional news through a much more modern and
practical system which consists of distributing real-time via our website www.
latinports.org , a summary of the news as they are occurring, giving the option
to delve into them to those who so wish to do it. In this way we will be much
more agile.
As far as the situation of Latin America refers in the year 2013, was marked by
many and diverse factors that affected one way or another to foreign trade and
hence to the port sector: the market entry of ships of more than 18,000 TEUs
as a result of carried out orders makes about five years, when the shipping
industry believed that the market would continue to grow at rates of the annual
10% not foreseeing the huge crisis that soon incurred the European Union and
United States, which only begin to recover; alliances of the most important
maritime lines, reducing touches and disproportionately increasing the freight
charge to solve the consequences of the crisis; the rapid growth and potential in
the countries of West Africa; the slowdown in Latin America’s economies and
the clamor of international organizations because the countries in the region
accelerate its investments in infrastructure of various modes of transport and
increase the multimodal transportation, guaranteeing them growth through a
significant reduction of costs; the advance of Chinese investments in the region
and the stagnation of the U.S.; and more. On these issues we will discuss in
detail in this edition.
Worries greatly that the Report of Competitiveness 2013 of the National
Confederation of Industry from Brazil, reported at the close of this edition
(mid-December), which compares 15 countries of the world with similar socioeconomic characteristics and positioning in the international market, it has
placed the main economies of Latin America in the last places in the General
Classification (Argentina 15th, Brazil 14th, Colombia 13th and Mexico 12th)
as in the assessment of particular Infrastructure and Logistics (Colombia 15th,
Argentina 14th, Brazil 13th and Mexico 11th). Something comforting, however,
the fact of that Chile has been located in the block of the most competitive, in
a 6th place (5th in Infrastructure and Logistics), after Canada (1st), Korea South
(2nd), Australia (3th), Spain (4th) and China (5th), and over South Africa (7th),
Russia (8th), India (9th), Turkey (10th) and Poland (11th).
Notwithstanding the foregoing, seems that in 2014 the things will start to
improve and that we aim you from this column, with the hope that the fruits
of investment in transport infrastructure begin to be reflected in the growth of
GDP as a result of a greater competitiveness of our foreign trade.
Happy holidays and a great year 2014 to all of you!

Analysis


POOR CONNECTIVITY THREATENING
LATIN AMERICA’S COMMERCIAL GROWTH

While the growth rates of national economies
in Latin America have declined in recent years,
is still expected that the two largest economies,
Brazil and Mexico, recorded an increase of more
than 3% yearly, while also expected significant
growth in Colombia (4.7%), Chile (5.1%) and
Peru (6.3%). This growth is one of the four
factors identified by the specialist in insurance of
cargo transportation, TT Club, in its last analysis
of country-by-country market the region: market
opportunities in transportation and logistics.
At the beginning of the month of October, the
Senior Club insurer, Dan Negron, presented
the results at TOC Americas of Miami, which
collected Mundo Marítimo. “Two examples of
strong economies are Colombia and Peru. The
latter has increased five times their trade exporter
over the past decade, while Colombia registered
a growth rate of GDP held in the region of 5%
in recent years. Both countries mean vigorous,
fundamental driving forces behind international
trade have classes”, explained Negron.

This economic growth is one of the four factors
set out in the analysis of TT. The other three
are: Government policy, better connectivity and
distribution channels. It is clear that various
government policies, particularly the privatization
of ports and the free trade agreements, are very
important in terms of increasing trade. However,
Negron said that the need for greater investment in
national infrastructure to improve the connectivity
of the transportation within the region and the
need of supply chain logistics services to be more
organized, are at risk of preventing business
growth to reach their full potential.
While the Latin American ports are organised
increasingly better, the infrastructure used
to move goods to and from the locations
of production and domestic consumption
have not modernized at equal pace. “In
addition to this need for capital investment to
improve connectivity, functions of deposit,
transportation by road, consolidation of cargo
and other related services tend to be carried out
by individual operators or by the same exporters.
“Therefore, systems are often not fully


integrated and cannot be a supply chain efficient
unified”, Negron said.

Improving port efficiency goes through
improved land transport

The pending task in port infrastructure

When we talk about saving the first thing that
comes to mind is to buy cheaper, but the truth
is that the cheap is expensive. Franc Pigna, CEO
of Aegir Port Property Advisers, company that
advises on the purchase of port assets, counted
in TOC Americas about solutions that can make
more bearable the much-needed port expansions
and thus leaving the task pendent, as reported
Mundo Marítimo. Moreover, Pigna says that in
terms of infrastructure and port operation,
“the region is varied, with places such as Venezuela,
which has an infrastructure of ports that represents a
great challenge, and Colombia, where privatised ports
development and have worked very well, since the private
sector is in compliance with international standards for
the operation.” There are also ports with very good
operation in Chile and Mexico and challenges in
Argentina, as well as to some extent in Brazil”.
This speaks of a variety in terms of “efficiency in
Latin America”.

Greater costs investment in port infrastructure
are due to canons of lease, concession, etc. Many
times, these high costs slow down new projects
and expansions, putting at risk all of the large
operation and affecting the logistics chain. One
of the main reasons why is decided to expand
a port is the need to improve productivity,
together with increasing the efficiency of the
entire logistics chain and, of course, increase
the ability to transfer. If Latin America wants to
compete in the big leagues, you must invest and
reduce costs. The expansion of ports and make
its operations more efficient is based on the
need to reduce the costs of handling of the load.
According to the report “Doing Business Report
2013” of the World Bank, in 2012 a container
exported from Latin America was close to
US1.353 on average, a value that exceeds the
cost of the OECD’s US1.028. Imported into the
region worth US1.549, substantially more than
the US1.080 container of the OECD.


Against improvements in ports, Pigna
highlighted the need to optimize “the financial
behaviour of all your assets, but mainly of the largest
and most strategic: his real estate”. In his opinion,
efficient land management will succeed in
freeing up resources to invest or simply to
increase the return on the shareholders. Among
the proposals of the experts is the incorporation
of technology in processes that today are made
manually, as the cargo and documentation
revisions. Pigna stands out that automation “of
certain processes makes them almost instant, which
saves time and simultaneously makes it difficult to
corruption”. In addition, emphasizes the specialist,
Governments must collaborate with the task,
facilitating coordination among different public
agencies, adopting the “single window” systems,
that is already under way in several countries.
Also, another problem that is deeply rooted
in the root of the port business in the region
is logistics. A dichotomy between the wide
variety of ports and operators and system
failure connection between ports and centers
of production and consumption occurs. The
ground logistics ends boycott the proper
functioning of the port, as the high transport
costs and frequent delays tarnish eventually
dock work. Therefore, improvement of port
efficiency is to improve land transport.
“By requiring high investment, historically the port
infrastructure has always been backward in comparison
to the technological advances of the boats. In the past
10 years, the advances in technology of ships has
accelerated to such an extent that it has exceeded the
capacity of the port authorities maintain a day”, says
Pigna. In addition, he notes that “in the past 30 years,
the majority of Governments has experienced increasing

budgetary constraints from all angles of the governmental
responsibilities, such as defense, social benefits, education,
among other topics. This has been an inadequate capital
base to deal with the growing problem of maintenance,
modernization and expansion of the respective port
structures”.
Since port infrastructure goes two steps
further back than the rest of the aspects of
modernization, this has forced, and will continue
to “forcing Governments to explore different ways of
financing port infrastructure, it will be more and more
through the private sector, fueling the corporatization of
the port authorities and, in some cases, privatization, so
to access private capital markets”.
Without losing sight that in Latin America’s
biggest challenge is the gap of infrastructure
investment, as Pigna points out, and that the
answer at this point lies in “invest, invest,
and invest,” another key issue within this socalled holistic vision, is the coordination of
the various actors of the logistics chain. This is
critical within the same public sector so there
is consistency between the requirements of
customs, who monitor the border crossings,
and even those who govern the provinces and
municipalities. As Pigna says, “in the short term
the challenge in the region will be adequately finance
the modernization and expansion of the interface ‘sealand’, mainly in ports”. In the medium term, the
challenge will lie in taking charge of the logistical
bottlenecks located behind the ports and the
Interior land due to the inadequate (and often
free) road and rail infrastructure and storage
and distribution centers located inside near the
industrial bases. And long term, the challenge
will be in thinking as an integrated region and
streamline logistics and transport resources to


create a modern network of logistics.”
As we can see, there are many pending tasks
and challenges are multiple, so the only recipe
for success is to go by parts, take it easy and go
the way of safely. However, the time to act is
now if that Latin America does not want to lose
the ground gained on the road to development.
Pigna says it loud and clear: “it is critical that the
region begins to make serious efforts with respect to
economic integration. Today’s competition is not between
nations but between regions, logistics chains and global
cities. This is the Latin American challenge: creating an
integrated economic bloc that can take advantage of its
competitive advantages. A great step forward is developing
a regional system of taxes, rates, automated customs and
cargo processing”.
Latin America could increase its exports
reducing internal transportation costs
Latin American countries can significantly
increase its exports, especially from poor and
remote towns that still have not received the
benefits of the recent commercial boom in the
region, if they concentrate their efforts on the
reduction of the costs of internal transport,
according to a new study of the Inter-American
Development Bank (IDB) reported by Diario
Financiero Online. In the document entitled “Too
far for export: The costs of internal transport
and regional disparities in Latin America and
the Caribbean” discussed the tribute imposed
by the infrastructure of transport by truck from
the region, precarious exporters and unbalanced
geographically.

The study concentrated on Brazil, Chile,
Colombia, Mexico and Peru, concludes that
countries in the region could significantly
increase its exports if they reduce transportation
costs by investing judiciously in the expansion
of the network of paved roads and in promoting
the use of less expensive rail and river routes.
A reduction of just 1% of transportation
costs would allow an increase in exports of
4% in Mexico and up to 7.9% in Colombia,
according to the model of the authors. Biggest
beneficiaries of a more developed and efficient
transport infrastructure would not be in Sao
Paulo, Mexico City, Bogota, Santiago or Lima,
but in the Center-West of the Brazil, South of
Mexico, the Peruvian Andes, South-Eastern
Colombia and southern Chile, said Trade
Economist of the IDB Mauricio Mesquita
Moreira, Coordinator of the study. The report
estimates that exports of those areas that still
have not received the benefits of the recent
commercial boom in the region, increase
between 10% and 45%.
In the five countries studied, exports are
overwhelmingly concentrated in a few
municipalities, often prosperous, enjoying
immediate access to ports. Other municipalities,
most distant, they are usually in rural areas with
a lower transport infrastructure, they are less
competitive because they face higher logistics
costs. In Brazil, for example, it exports only
19% of the municipalities, which account
for just 27% of the country’s territory. In
Colombia and Peru, only exporting 24%


municipalities. In Chile and Mexico, the export
base is much broader (exported 69% and 39%
municipalities, respectively), but the majority of
exporters are concentrated in a few cities: top
ten municipalities generate 74% of exports in
Chile and 69% in Mexico. generan 74% de las
exportaciones en Chile y 69% en México.

This landmark report, prepared by the
Integration and Trade Sector of the IDB, is
part of the constant effort that is carried out
to deepen the understanding of the political
authorities about the consequences that have
high costs of transport for trade. It follows
the publication, five years ago, the report titled

“Releasing the arteries: The impact of the costs
of transport in trade in Latin America and the
Caribbean”, devoted to the examination of
the impact of the high costs of international
freight on the competitiveness of the region’s
exports. In both reports came to the conclusion
that, although the region has made to open
markets, domestic and abroad, today are not
the traditional tariff or non-tariff barriers that
lock the exports of Latin America, but the
cost of shipment of the goods. The primary
reason is the insufficient volume of investments,
especially in means of transport alternative
and cheaper, as the railways and waterways.
In some cases, this failure can be attributed to
budgetary reasons, but many times, due to the
difficulties faced by public institutions to design,
evaluate and carry out investments in transport
infrastructure. A reform of regulations, which
allows Governments to increase investment by
the private sector is also required.
All these difficulties hinder the development
of promising infrastructure initiatives
undertaken by all countries covering the study.
Are they national logistic plans of Brazil,
Chile and Colombia, and programs of roads
of Mexico and Peru which, if carried into
practice completely, will positively influence
the transportation costs and, eventually, benefit
more remote and less developed regions.


Viewpoint

THE NECESSITY OF
THE LARGE-SCALE PORT IN CHILE
Mundo Marítimo interview with the Minister of Transportation and Telecommunications of Chile,
Pedro Pablo Errázuris.

“We have a historic opportunity to set a solid base

carry out a preliminary assessment of the actions

that will allow us to ensure a strengthened, and healthy

of the Government on this matter: “I think there it

economy without the obstacle of the possible lack of

has really been a gigantic process of transformation, i.e. we

infrastructure for dynamic international transactions to

had been long without concession of new berthing fronts”

future generations,” said the Minister of Transport

said, highlighting the risk that spread considering

and Telecommunications of Chile Pedro Pablo

the temporal distance between the concession

Errázuriz during development in Santiago on the

of a terminal until its fully operational. In this

workshop of the International Transport Forum

regard emphasized that rather than culminate the

(ITF) in November - thereby giving account

Government, “Let’s have concession 8 State ports,

of the interest that the Government has had to

new fronts of berthing: Coquimbo, San Antonio,

modernise port capacity of the country - theme

Valparaíso, Talcahuano, more growth of San

that spoke with Mundo Marítimo.

Vicente and in addition what we are working and

It is the early change of administration in La Moneda
(presidential residency), thet allowing the Minister to

hope delivered to grant: Iquique, Puerto Montt,
Chacabuco and almost ready to be awarded,


Antofagasta. “When we go will have about 80 million

today, I think that the great virtues of San Antonio are

tons of capacity under construction, doubling the existing 40

deeper waters, boasts a large Esplanade and a very happy

million”, said. Investment that exceeds the US 1.8

with this vocation of the port community and that has a

billion to which is added the advances of studies

relative advantage”. About Valparaiso, indicated that

of the Grand Scale Port (PGE in Spanish), which

“also has a community minded port, but a little less. It has

could, according to the Minister, estimated tender

one slightly more complicated, but not so much connectivity

is in 2015.

more”. However, he pointed out those aspects,

A need after 100 years

noting that a point where Valparaiso has advantage
over San Antonio is in its workers that they have

The Minister Errázuriz stresses that “it was critical

“an attitude, always, more positive”. In this sense, he

to expand capacity” and that this “had to change the

stressed that “there is a challenge of improving labour

way of looking at things and look towards the future”.

relations in San Antonio”, holding in this regard that

He argued in addition that: “is merit of the team from

“if one is to embark on a big investment, it has to have a

the Ministry have put the issue on the table and having

better working relationship”.

both companies of San Antonio and Valparaiso, begin
quickly to carry out all the necessary studies to be able

Planning for 30 years

to bid”, fact that acquires great value considering

In addition the Minister told La Tercera that part

that “after 100 years is again necessary to build sheltered

of the portfolio planning in charge will result

waters”. He explained that current port capacity,

in delivery in December, to President Sebastian

most which will operate from 2017 and already

Piñera, of the National Plan for Port Development,

they are running, they allow to have one port

a letter of navigation in port development for the

capacity between 2022 and 2025, time that will be

next 30 years. “The idea is that front of berth is not

cornering ability. “Then in that minute should have a

only regarded, but how to get to the port, the development

new port and PGE is that alternative. The port capacity

of railways, highways, in general, the port connectivity.

that will be then in the macrocentral area is equivalent to 4

Within this plan, responsibility is given to the ports of

million TEUs and these ports will involve between 3 and

presenting a more comprehensive look at the works, which

6 million additional TEUs”, he said.

will not only remain with the concern of berthing ships,

Regarding the advantages and disadvantages
between one and another project to develop first
the GEP, the Minister warned that both are in
very preliminary stages and their characteristics
may vary. However, he said that “if I had to say it

but how to get the cargo to the port”, said Errazuriz.


The Interview
APM TERMINALS’ CEO:
GIANT VESSELS A ‘BURDEN’ FOR PORTS

Handling ever larger ships in today’s ports is
like trying to “squeeze buses into a parking
lot designed for cars,” said to Port Finance
International APM Terminals’ CEO, Kim Fejfer,
in the middle of November interview. To take
up the challenge, operators need to invest in
equipment and it is a burden that “has to be
shared with our customers,” he told.
Headquartered in The Hague (Netherlands),
APM Terminals is part of the Danish
conglomerate A.P. Moller-Maersk, which also
owns Maersk Line, the shipping company that
operates the world’s largest containerships, the
18,000 TEU Triple-E vessels. But more than
50% of its business comes from other shipping
companies.
Between July and September, the port operator
handled 9.3 million TEUs, its highest quarterly

throughput ever. “There is a couple of factors,”
he explained. “First and foremost, the market
has grown by almost 4%, so slightly better than
in previous quarters. Then we have worked all
year on improving productivity and efficiency
and some of the efficiency gains that we have
worked hard on have really come out in the last
quarter. The last component is the portfolio.
For a couple of years now, we have focused on
investing in high growth markets and some of
these investments in capacity are starting to show
in our accounts.”
Trends
“We expect the market to continue to grow,”
Mr Fejfer said. “We also see that the container


shipping lines continue to have a tough game
in terms of the balance between supply and
demand. And we see that the vessels that are
coming in are getting bigger and bigger. Ports
are built a little bit like a parking lot that has the
size to handle cars, while what we are receiving
and handling now is more like buses. So we try
to squeeze buses into a parking lot designed for
cars.”
“Of course we have to find ways to improve the
productivity. That is what our customers demand,
because it is getting more and more expensive,
as vessel sizes increase, to lay at berth. We’re
trying to see how we can utilise our berths in an
optimal way because bigger vessels claim more
berth capacity. So a lot of this will require more
equipment, more investment. And this burden
that has been imposed on this industry has to
be shared with our customers. APM Terminals’
CEO could not say whether the burden would
weigh equally on port operators and their
customers. He did admit, however, that it would
have an impact on tariffs. “That is of course one
way where it will show,” he said. “But there is
more to a relationship between the shipping lines
and the port than a simple tariff,” he insisted.
“The value that lies in the business between
shipping lines and port operators is very much
related to the network of the shipping lines. With
the bigger vessels and with the rise in fuel costs
that we have seen over the past years, the value
of reliable service, high productivity and the
availability of port capacity at the right locations
are much more important than the simple tariff
discussion,” he said. “At the end of the day, if the
port is creating joint value, if we can find good
solutions with the shipping lines, where we work
together on this big issue, then hopefully both
parties can win in the end.”

Productivity
“An increase in productivity can be achieved in
many different ways,” Mr Fejfer noted. “The
dialogue between shipping lines and port
operators in the planning is very important
for productivity, and that’s a win-win situation.
Also, improving safety performance, which
we focus a lot on at APM Terminals, is driving
a lot of efficiency in the business. “We have
a partnership approach with our customers,”
insists APM Terminals’ CEO. We meet at a
strategic level several times a year with each of
the customers and we go through the business,
each port in the portfolio, discuss what is
going well, what is not going well, and the
opportunities where we can work together in the
future.”

Strategy
APM Terminals has focused more on
emerging markets in recent years and it
plans to sustain its momentum. “We continue
with our strategy, which is based on what we
call ‘earning the customer’. We want to invest
our money in the locations where there is a
customer need and that is obviously in the
markets that grow the highest. It is our job to
identify where the bottlenecks are and where
therefore new capacity is needed”. In the port of
Santos, Brasil Terminal Portuário (BTP), a joint
venture between APM Terminals and Terminal
Investment Limited (TIL), received its first
commercial vessel call in August.


EXECUTIVE COMMITTEE AND MANAGEMENT
OBJETIVES 2014

On October 2nd at the Intercontinental hotel in
Miami, on the occasion of the TOC Americas
held in this city, the Executive Committee of
Latinports met with the presence of President
Arturo López and the members Jorge Lecona
of Hutchison, Mexico; Melvin Wegner of
the Ultramar Group, Chile; Andreas Klien of
Multiterminais, Brazil; and Jorge Luiz Mello
of the Companhia Docas do Rio de Janeiro,
Brazil. The main conclusions with regard to the
objectives for 2014 were:
- Realization of general and special courses
for executives
- Trend of the shipping industry and its
effect on the ports of the region
- Oversizing of terminals?
- Port models and recruitment of employees
document (ECLAC, Unctad, World Bank,
IMF,...)
- Achieve the same tax advantages that have
the shipping terminals in Brazil, by offering
a logistics package
- Public-private approach
- Strengthen relations between ports and
terminals in the region through attending
international seminars (networking)
Latinports and exchange of personnel for
training employees

EXECUTIVE DIRECTOR IN TOC MIAMI:
NEW ERA FOR US-LATIN TRADE?
Under this suggestive title executive director
of Latinports, Julián Palacio, showed at the
beginning of October as trade between Latin
America and the United States had been
declining dramatically as, according to ECLAC,
the latter has lacked a trading strategy toward its
neighbors. Meanwhile China has been rapidly
gaining space, growing 22 times in 12 years
(2000-2012) with US265.000 billion in 2012.
The same situation occurs in investments, where
China already surpassed the European Union
as a second investor in the region, product of
its growth from 25 times in the same period
(US245.000 million in 2012).
Concluded Julián Palacio wondering whether it
was suitable for the United States to continue
ignoring the significant growth and positioning
of Latin America, a region that for the President
of China, Xi Jinping, “is entering a golden age”.
In late November, almost two months after
the presentation of the Latinports’ executive
director in Miami, the Minister of Trade of
Costa Rica, Anabel Gonzalez, showed similar
figures in the 7th China, Latin America and
the Caribbean Business Summit, describing
them as “impressive”, commenting at the same
time that the construction of an environment
conducive to business must be accompanied
by actions that, as this Summit, to promote a


Cover of The Economist in December 2010
better approach to enterprise-level to provide
knowledge and mutual understanding, and
that lead to the increase, diversification and
sophistication of trade flows. The Minister
added that in 2012 China was the main investor
globally, so one of the objectives in the future

for Latin America and the Asian giant is to
encourage investment flows, in accordance
with Emol.com article picked up by Latin Business
Chronicle.


LOGISTICS AND COMPETITIVENESS
RANKING OF LATIN AMERICA’S

CONTAINER TERMINALS IN THE FIRST
HALF OF 2013

958.280 (-5,0%); 6) Callao, Peru: 885.411 (1,7%);
7) Guayaquil, Ecuador: 788.794 (0,7%); 8) San
Antonio, Chile: 604.906 (9,9%); 9) Buenos
Aires (not include Exolgan), Argentina: 549.300
(10.8%); 10) Caucedo, Dominican Republic:
545.512 (6.3%). The following five ports are:
11) Lazaro Cardenas, Mexico: 532.762 (-9.1%);
12) Valparaiso, Chile: 485.734 (-2.4%); 13)
Montevideo, Uruguay: 480.959 (27.7%); 14)
Veracruz, Mexico: 434.874 (14.5%); y 15)
Buenaventura, Colombia: 387.633 (-3.1%).
Latinports considers it necessary to mention that in this
ranking Colón (1st), Balboa (3rd) and Cartagena (5th),
are transhipment ports mainly, so the five main

ports of the region moving containers of
foreign trade, are: 1) Santos, Brasil; 2) Manzanillo,
Mexico; 3) Callao, Peru; 4) Guayaquil, Ecuador; y 5)
San Antonio, Chile.

A report by ECLAC and transcribed by Mundo
Marítimo, said the ranking that it recorded the
movement of containerized produced in the
main ports of the region, indicates that, at
the level of countries, those who managed
to be within the Top 5 of the list were (in
TEUs figures): 1) Brasil: 4.098.241; 2) Panama:
3.277.845; 3) Mexico: 2.410.094; 4) Chile:
1.908.780 and 5) Colombia 1.420.258.
Meanwhile, the 10 ports that at the level of
the region recorded higher TEUs movement
were (in parentheses 2013/2012 variation): 1)
Colon, Panama: 1.675.989 (-5,3%); 2) Santos,
Brasil: 1.604.478 (7,0%); 3) Balboa, Panama:
1.592.768 (-4,7%); 4) Manzanillo, Mexico:
1.035.457 (9,7%); 5) Cartagena, Colombia:

Montevideo: Greater growth

ECLAC also pointed out that the port of
Montevideo, expanded 28% and totaling 480,000
TEUs in the first six months of 2013, was


the port which grew most in the movement
of containers in the first half of this year,
among the most important ports in the region.
Montevideo terminal growth was greater than
that recorded Buenos Aires (11%), which was
the second most increased their movements
totaling 590.000 TEUs. The growth of
Montevideo and Buenos Aires took place within
a framework of reduction of port activity in
Latin America, due to the slower growth of the
world economy. However, in early November
the Argentine Government banned from his
country’s export goods to make transhipments
in ports of Uruguay, whereupon the movements
of the port of Montevideo would fall a 26%
and would disappear 150 container calls, as it
considered the Uruguay Center of Navigation.
ALL CHANGE AT THE TOP:
THE HEAVY HAND OF POLITICS
INTERFERS
IN BRAZIL’S PORTS AGAIN
The latest political tremors have seen ports
minister Leonidas Cristino leave the stage to be
replaced by a safe pair of hands, as rival factions
jockey for position, wrote Container Management
CM in its November edition. Latinports transcribed
this extensive article for sharing that political port-sector
management is endemic not only of the Government of
Brazil but of all Latin American countries in general,
and to call the Govrnments’ attention in the sense that, if
not taken urgent measures in relation to the appointment
of technical and not political in the sector, as do Brazil,
very possibly will continue losing competitiveness compared
to development countries and even facing emerging
countries as Africans on the East Coast.
The massive upheaval that this year has seen the
ongoing transformation of the Brazilian ports

sector -wich is supposedly destined for some
US$23.8 billions of new investment- has seen
another eartquake, with Ports Minister Leonidas
Cristino standing down from the controversial
post and handing over the reins to economist
Antonio Henrique Silveira.
It seems that once again the heavy hand of
politics has intervened in the Brazilian ports
landscape. Some might argue that Cristino
lost his position as an indirect result of the
riots that plagued the country’s streets during
the Confederation Cup soccer tournament
in June this year and the subsequent dive in
popularity of the country’s President, Dilma
Rousseff. Many might also argue that a change
was needed to dispel the “air of animosity”
between the Specias Secretariat of Ports SEP
and port communities, an that an early change
in attitude has alrady come abot, with new port
concessions being written up for 25 years (plus
25) insted of the 10 years duration that Cristino
and his teem has been advocating for some
concessions. Warner Moreira, technical director
of the Association of Brazilian Port Terminals
ABTP, said that Silveira was a “técnico”
appointment and not a “político” one, and
that this was definitely “a good thing”. He told
CM: “Silveira is an economist, but he has been
following the port leasing process very closely


as he has been contracted by Glesi Hoffmann,
President Rousseff ’s chief of staff and head of
the Casa Civil (the President’s executive office)
and he has thrown himself into the processeven
further since Cristino left his post. Silveira has
an open mind and people are hoping for a new

Antonio Henrique Silveira,
New Minister of Ports of Brazil
way of looking at the tenders. Cristino was not
popular with many people”.
Until his promotion to the presidency of
SEP, Silveira who has an impressive academic
pedigree in Bahia and Rio de Janeiro -had
been working as an economics advisor to
the government, in particular the Federal
Economists Foundation. One veteran Brazilian
port expert and official, who declined to be
named, said that Silveira could be seen as
“safe and honest pair of hands” and that this
economics and financial background might be
useful for keeping an eye on expenditure and
investments, especially with so much corruption
during the period when Alfredo Nascimento
was Transport Minister (2007-2011). He said:
“Bringing in Silveira from the finance ministry
would seem to indicate that Dilma is going to

try and keep tight financial control over the huge
investments being planed through SEP”.
The same expert added that Cristino almost
certainly had to leave his post as head of SEP
as soon as the leader of de PSB party, Eduardo
Campos -one of his political mentors- decided
that the would withdraugh his party’s support
from President Rousseff ’s government coalition
(led by the Partido dos Trabalhadores PT or
Workers’ Party) and instead make plans to
stand against the incumbent in next Octuber’s
presidential elections. “It’s yet another example
of how ineficient our system is, with many
of the key posts at our ports, and in de
ports and transport ministers, being political
appointments”, explained the expert. “Once
again the port system has been thrown into
uncertainty and turmoil by something that has
nothing to do with the ports and everything to
do with scheming politicians”. He continued:
“It is so often the case that these people -and
cristino is one of them- know next to nothing
about the ports and transport system and
yet they end up making all the big strategic
decisions. One good thing about this turn of
events is that Silveira does seem to be a safe
pair of hands and has already given out some
conciliatory signals, such as agreement to
minimun 25-years contracts and having more
discussions with port communities in Paranaguá,
Salvador and Santos before moving ahead with
the tender process”.
When Campos threw his political bombshell
into the arena, Cristino was away on a diplomatic
mission to cuba, visiting the Mariel Container
Terminal, wich is being built by Brazilian
construction company Odebrecht. When he


returned from La Havana there were strong
rumours that he -and two of his other political
mentors, the Gomes brothers (Cid being being
the Governor of Pernambuco and Ciro a former
government minister)- might actually switch
parties so that he could continue in his role as
SEP president. But eventually he left -with noone quite sure if he jumped ship or was pushedand Silveira stepped into the breach.
Political Patronage
The CM source, who in the past had worked
for the government in the ports sector and
still works closeley with Brasilia, said that the
system of patronage was to blame. Only rarely,
in his opinion, did it throw up a “politico” like
Pedro Brito, the former Ports Minister and now
director-general of Antaq (the national water
transportation agency), who quickly gets to grips
with what is required to progress the port sector.
Many of those working for the Ministry of
Ports have been appointed by Cristino or his
aides and so will not have the political will to put
through difficult concessions, some of wich are
immensely unpopular in port circles. Some, such
as the one for an area that includes breakbulk
operator Rodrimar and car terminal Deimar in
Saboo, Santos are also subject to legal injuctions.
The source told CM: “Campos belives he can
be a serious candidate for the presidency, so he
and his allies at PSB are breaking their alliance
with PT to give him space to build a separate
campaign. “In some ways these sudden political
changes have, in fact, been building up since the
demonstrations against President Rosseff during
the Confederations Cup back in June. The some
extent the demonstrations created a shock to

the parties supporting Rousseff, who seemed
unassailable beforehand with 75% approval
ratings in the polls. Now that has sunk to 35%, a
number of of political allies are abandoning her
and her party”.
Interestingly, Marina Silva, the lider of Brazil’s
Green Party, who has an impressive 18% share
in the polls, has joined forces with Campos
to provide a stronger left-wing opposition
to Rousseff ’s PT party. Aecio Neves of the
PSDB (the party of former Presiden Fernando
Henrique Cardozo) is the third political force in
Brazil today. One immediate effect of Cristino’s
departure has been a far more conciliatory
attitude from SEP, Antaq and the government in
general to deep-seated and vehement opposition
to the plans drown up by EBP (Brazilian Project
Structuring Company) at the behest of the
government, Rousseff, Cristino and Hoffmann.
This has already resulted in Silveira, via SEP,
agreeing with Wilen Manteli, the powerful
and inluential president of ABTP, that the

Wilen Manteli, ABTP’s President


concession contracts currently being processed
should be for 25 years minimum and not 8-10
years that were being touted for some tenders.
Morera of ABTP confirmed that the vast
majority of contracts will now be for 25 years,
and observed that Silveira and Mantelli seem to
have “an affinity for each other” wich will be
good for the ports sector. He told CM: “It is a
new move by the government to back contracts
for 25 years -certainly all those in Santos- with
just one exception”. The one exception is the
tender for the new general cargo, car terminal
and container terminal that will be created by
the merger of Deicmar (car terminal), Rodrimar
(general cargo and container) and Citrosuco
(fruit juice terminal). It is understood that once
the contract of the Ecoporto terminal (formerly
Tecondi) runs out for a few years’s time, that
will go into the port with these three to form a
“super terminal” on the right bank of the port
of Santos.
Invest or Face Collapse: BNAmericas

With the introduction of greater competition
and an ambitious program of investments in
new infrastructure, Brazil seeks to overcome
bottlenecks that choke its port system, increase
cargo movement and reduce logistics costs.
The concessions of public ports will be
awarded to those who offer the largest cargo
handling capacity and the lowest cost for the
management.
For the granting of private terminals, the most
significant change is the elimination of the
requirement of having own to act as operator,
loading which extends the range of interested
to allow the entrance of companies that handle
others cargo.
However, there are risks on the road. The
changes have generated some resistance,
especially among operators with existing
contracts in public ports, since the Government
has opted for return to tender these terminals
rather than renew contracts or give them special
treatment. Experts fear a prosecution which may
complete much delayed the privatization process.
In this publication BNAmericas refers to two
comments on executive director of Latinports
in what refers to the program of investment and
persistent bottlenecks, which transcribe:

Meanwhile BNamericas, in Infrastructure
Intelligence Series of November 2013, with
respect to the ports of Brazil published
the study referred to in this subtitle, whose
Executive Summary we will transcribe:

“I have spoken to some of the main operators
in the world, and have expressed to me that
his primary interest is currently Brazil,” said
Julián Palacio, executive director of Latinports,
association that joins Latin American ports and
terminals – public and private –. Palacio argues
that while in the present the port development
in Brazil and Latin America is in the hands
of the private sector, “that is doing very well,


investment in complementary infrastructure and
connectivity corresponds to Governments and in
that they should concentrate on the short term”.
For more information on the complete study of
Infrastructure Intelligence Series, you can write
to info@bnamericas.com

MEXICO AND BRAZIL ARE HOLDING
BACK THE GROWTH OF LATIN
AMERICA IN 2013: STANDARD &
POOR’S
Standard & Poor’s Director of Ratings for Latin
America, Roberto Siphon-Arevalo explained that the
major economies yielded below expected during the second
half of the year significantly:
EFE report picked up by La Tercera and Latin
Business Chronicle.

The Latin American economy has evolved
steadily in 2013, but will close the year with
growth below expected initially product of the
brake which generates a worst performance of
Mexico and Brazil, estimated S&P. “The region
has developed relatively steadily throughout
the year, but in terms of GDP we hope that
closing 2013 on the low side of expectations”
as a result of which the main economies of
Latin America yielded below expected during
the second half of the year “significantly”, said

in early December Ratings Director for Latin
America of SP, Roberto Siphon-Arevalo. “Both
economies represent two thirds of the product
inside gross of Latin America, so if you do well,
the region tends to go well, but when going
bad, then also tend to impact negatively”, said
Siphon-Arevalo at a press conference.
In any case, the rating agency predicts that
things go “slightly better” during 2014 in the
region, due in part to that commodity prices will
remain at the same levels of this year. Even so,
S&P expert warned of the negative impact that
can have on the performance of Latin America
other external factors such as a possible China’s
economic growth at lower rate of expected or
US monetary policy.
In the specific case of Mexico, the rating
agency recalled that earlier year expected
that the economy would grow in 2013 at a
rate of 3%, but now predict the end of the
year around the 1.5%. The expert recalled that
this year the Government of Mexican President,
Enrique Peña, has sent to Congress several
projects pending structural reforms, which
included taxes and, above all, the energy. The
approval of the energy reform will be important,
but its implementation will become still more,
added Sifon-Arevalo, who was optimistic to 2014
and said that the Agency predicts a growth of
Mexican GDP of the 3.2%.
As for Brazil, ratings director of S&P for
Latin America recalled that earlier this year
they expected a growth of GDP of 3.2%,
but was later revised downwards around
the 2.5%, and even we are left short. SiphonArevalo said that next year the scene sounds


not too different, and the reforms that are
missing in the country still are not on the
political agenda, an issue which, as he warned,
is beginning to have an impact on GDP and
credit.
Asked about the situation in Argentina, the S&P
expert noted that the risk of a technical default
remains high, and recalled that recently his firm
downgraded the country note to CCC+ and
placed it on negative outlook for a possible new
degradation. “We have detected a deterioration
in most of the macroeconomic fundamentals
in the country and the scenario we envisage is
quite complicated, added Sifon-Arevalo, who
mentioned among other recent tax hikes on
foreign investment.
In its latest report on the region presented last
October, S&P had predicted that Latin America
would close 2013 with “lackluster growth”,
while for 2014 expected a “slight rebound”.

WEST AFRICA: THE LAND OF
OPPORTUNITY
(A RISK FOR LATIN AMERICA)
Despite its vast size, Africa currently accounts for only
a tiny fraction of world trade. However, things are
changing, with the west coast in particular becoming a
hub of activity, as Dan Blows writes to Container
Management.
The continent of Africa is home to some 15%
of the world population, spread across more

tan 50 countries, and is roughly the same size as
the United States, Western Europe, China, India
and Argentina combined. Currently, however, it
accounts for only 3% of global trade. That said,
it is in its second decade of sustained growth
and, according to The Economist, six of the
world’s fastest-growing economies are in subSaharan Africa.
Some countries have enjoyed growth in income
per person of more tan 5% a year since 2007,
among them Zambia, Ghana, Mozambique and
Uganda.
Its comes as no surprise, then, that the continent
represents a massive opportunity for the
container industry. As Drewry noted in July this
year: “In contrast with mature US and Western
European market, Africa is still deemed to offer
high growth potential due to comparatively low
levels of containerisation and rising demand for
for finished goods. Compound anual growth of
container traffic passing through the continent’s


ports already reach 12% between 2001-2012,
with even higer growth of 13% in North
Africa due to its location just off the arterial
routes between Asia and Europe. Container
handling capacity also increased up to an
estimated 37 million TEU in 2012”.

inhabitants, and by 2050 Nigeria is projected to
be the world’s six most populous nation with
287 million residents.

Much industry attention is focused on the
continent’s west coast, particularly Nigeria.
According to Steve Cameron, marine director
of RTI Forensic Engineering and an Africa
expert with decades of experience in the región,
the reasons for this are numerous. The country
is reach in natural resources and has a large,
young and rapidly growing population. Indeed,
by 2013 Lagos is spected to be the world’s third
largest city by population with around 25 million

WATERWAYS
NATIONAL CONFEDERATION OF
TRANSPORTATION OF BRAZIL
LAUNCHES STUDY ON THE
WATERWAYS MODAL

Of a total of 63,000 km of rivers and canals,
only 41.635 km are navigable and, of these, only
20.956 kilometers (50.3) are economically used.

The data are in the Regional Market of Tribune
column, based on survey of the navigation
inside of the National Confederation of
Transportation CNT. Among the main problems
of the waterways sector listed in the study, are
the absence of maintenance of waterways, the
lack of government investment, the high cost
of maintenance of the fleet and the excessive
bureaucracy. For the President of the CNT,
Clésio Andrade, if the modal waterways was
most widely used in Brazil, the national economy
strengthen.


The Tribune column adds that the port of Santos
has, on the waterway Tietê-Paraná, an important
link in its supply chain, uniting the interior of
the State to the Great São Paulo. And, currently,

studies exploring the rivers of the Baixada
Santista to facilitate access to its terminals.

MARITIME TRANSPORTATION
VESSEL SHARING AGREEMENT FOR
CROWLEY AND SEABOARD

Crowley Maritime Corporation’s liner services
group and Seaboard Marine Ltd. have
announced a new vessel sharing agreement that
will provide reliable, weekly service on larger
ships between South Florida, Costa Rica and
Panama.

the Chilean Compañia Sud Americana de Vapores
CSAV, about a possible alliance and/or an
eventually fusion. The Hamburg-based company
said that those talks are focused on “a possible
combination of business or any other form
of association would be of mutual interest”.
However, they explained that “at the moment,
is has not signed any agreement or declaration
of intent”. Similarly CSAV, through a statement
designates that it remains talks with various
players in the industry, including dealings with
Hapag-Lloyd AG for a potential combination of
load or other forms of association with respect
to the container business. As told by the German
company, CSAV expressed that “to date these
talks have not resulted in any agreement”.

HAPAG-LLOYD EVALUATES
ASSOCIATION WITH CHILEAN
SHIPPING COMPANY

According to Mundo Maritimo in early December,
Hapag-Lloyd acknowledged discussions with

In relation to their strengths, Hapag-Lloyd has
established itself on routes linking Europe with
Asia, while CSAV is in Latin America, aspects that
could be an opportunity to merge both shipping.
Hapag-Lloyd offers almost 100 line services,
a fleet with a total capacity of approximately


730,000 TEUs, and a stock of nearly 1.1 million
TEUs of containers, including one of the world’s
largest reefer container fleets.
In recent years, the Hamburg-based transport
group had taken contacts with Neptune Orient
Lines (NOL) of Singapore for an association. All
this with the ultimate aim of improving its cost
structure with a view to an eventual integration
of the shipping companies called P3 (Maersk of
Denmark, MSC, of Switzerland, and CMA CGM,
France). Hapag-Lloyd, whose integration with
the firm Hamburg Süd not reached agreement in
February 2013, it has ruled out becoming part of
this mega-Alliance.
THE SUEZ CANAL WINS
COMPETITIVENESS THANKS TO
SHIPPING LINES P3 ALLIANCE
Already begin to reveal details of the services of
the P3 Alliance formed by the big three of the
world such as Maersk, MSC and CMA CGM, in
Asia-Europe route, trans-Pacific (Panama Canal
vs Suez) and transatlantic, which is expected
to run in the second quarter of 2014, if there
is no regulatory hurdles. The Maersk Line
website reveals the outline of these three great
operational Alliance, which remains the same as
it had been announced last June, with 252 ships
for a total capacity of 2.6 million TEUs. Of this
amount, Maersk will contribute approximately
the 42% or 1.1 million TEUs, including their
new ships Triple - E, with MSC that represent
little more than one third and CMA CGM 24%.
However, an article of Capital, transcribed by
Mundo Marítimo, points out that each one of the

lines will be able to offer more sailings weekly
on their combined network that individually,
citing the example of eight weekly departures
between Asia and Northern Europe. Ports will
also has more direct services. In total, there are
13 weekly services between Asia and Europe,
five transatlantic services and 10 between Asia
and North America. Three of them will they go
through the Suez Canal, but it will only stay
a service through the Panama Canal that
links Asia with the United States Gulf and
which will arrive in the port of Manzanillo, a
reflection of the current limit of the size of
vessels that can use the Seaway.
According to the justification given by the
alliance for this service is that it will offer
the benefit of connecting to other markets,
including South America, Europe and the
Middle East. Also says the Alliance that this
service provides opportunities for load to
Houston through the route “all water”, against
the traditional railway route from the U.S. West
Coast.


MAERSK LINE SEES SHIPPING
OVERCAPACITY FOR FIVE YEARS
New vessels ordered before the downturn have flooded the
market.

trade and shipping companies’ orders for new
vessels were as much as 50 percent of the
existing fleet. The overcapacity has driven spot
rates on the main routes between Asia and
Northern Europe to loss-making levels. Maersk
Line cut its fleet container capacity by about 1
percent between the second quarter of 2012
and the same period this year, but it has not
announced any plans to cut further. Shipping
analyst Jacob Pedersen from Sydbank described
the current market as brutal. “If competitors
follow Maersk Line’s strategy and adjust capacity
it will benefit the entire industry via significantly
better freight rates,” he said. Among 12 big
container shipping lines, only two - Maersk Line
and France’s CMA CGM - reported an operating
profit in the first six months of 2013.

Maersk Line, the world’s biggest container
shipping company, sees no quick fix for
overcapacity in the industry that it says will
continue for at least five years. The company,
part of Danish oil and shipping group A.P.
Moller-Maersk Group, is a bellwether of global
trade as its ships make up 15 percent of world
container shipping capacity.
The shipping industry has been battling
overcapacity since the financial crisis because
new vessels ordered before the downturn have
flooded the market. “We will without doubt in
five years time from now have an industry with
plentiful capacity,” Maersk Line Chief Executive
Soren Skou told the Reuters Nordic Investment
Summit. “We cannot create demand by lower
prices. It is more important to remove capacity,”
he said.
When the economic crisis hit in 2008, global

Soren Skou, CEO Maersk Line
Before the crisis, Maersk Line and other
container shipping companies had growth in
demand for seaborne containers of more than
10 percent a year. But those days will not return,
Skou said. “Growth in the container industry in


the future is more related to global economic
growth,” he said. He said he expected global
demand for seaborne containers to increase 2-3
percent in 2013.
To cope with the tough market conditions,
Maersk Line managed to reduce total costs per
container by 12.7 percent in the second quarter
from a year earlier. The decrease was mainly
driven by lower fuel costs and logistical route
efficiencies. Maersk Line uses about 8 million
tonnes of fuel a year for its 596 vessels, costing
around $5 billion. The hunt for lower fuel
consumption has been high on the agenda in
recent years.
The company has ordered 20 Triple-E class
mega vessels with a capacity of 18,270
containers each. The vessels use 50 percent less
fuel per container than the average for container
ships on routes between Asia and Europe. “And
they are 20 percent more fuel efficient than
Emma-class ships that are the biggest and most
efficient at the moment,” said Skou. Maersk
Line operates eight E-class ships. Three of the
Triple-E class ships have already been delivered
to the shipping company from Daewoo
Shipbuilding & Marine Engineering’s shipyard in
South Korea.
TO HIKE MAERSK LATIN AMERICAN
SHIPPING RATES
According Robert Jan van Trooijen, Maersk’s
CEO for Latin America, the company plans
to raise its Latin American shipping rates by as
much as 30% this year to staunch losses and to
pay for 16 ships being built for the región. The
decision follows Maersk’s struggles to recover

Robert Jan van Trooijen,
Maersk’s CEO for Latin America
from the world economic downturn.
Latin America accounts for around 14% of the
world container trade and Maersk has some
15% of the region’s market. Brazil represents
approximatly 20% of Maersk Line’s Latin
American business. “The ports in Brazil still
have a long way to go before they become
competitive”, Van Trooijen added to Reuters,
as Container Management informed. “Ideally, a
container should move through a port in 12
hours at most. In Brazil, the average is 14 days”.
This, he said, has more to do with bureaucracy
and custom-clearence activities in the so-called
back yards rather than servce at the dock, an
área controlled by Maersk’s logistics department.
Even where the docks are modern and eficient,
ports in Brazil remain too small for Maersk’s
largest and most efficient ships. The SAMMAX
vessels (7.450 TEUs capacity) being built for
Latin America, while among the largest to visit
Brazilian ports, have half the carrying capacity
of Maersk’s biggest ships that service Asian,
North America and European ports, he said.


CHILEAN INTEROCEANIC
NAVIGATION COMPANY SIGNS

CONTRACT TO BUILD 9,000 TEU
VESSEL

The Chilean Interoceanic Navigation Company
(CCNI in Spanish) announced that it has
signed a contract with the Shipyard Hanjin
Heavy Industries Construction, through Andes
Navigation, to build a ship for approximately
US$89 million. According to the company, the

9,000 TEUs vessel will have a cutting-edge
design and a more sleeve, as well as to achieve
low fuel consumption. In the same letter also
explains that the acquisition of the ship will
be financed with a loan with the German
bank Norddeutsche Landesbank Girozentrale
(“NordLB”), called the Facility Agreement,
worth up to US$ 66.000.000. It is estimated that
the loan to take place jointly with the delivery
of the ship by the shipyard, at the end of the
month of may 2015, showed CCNI. Note that
the construction contract, also includes a direct
credit of the shipyard for a value up to US$ 4
million in favor of Andes Navigation.

Eventos

The 1st LatAm Ports & Logistics Summit
is a BNamericas event with the support of
Latinports, and will highlight the main port and
logistics projects in Latin America, the framework
in which they develop, the factors that will shape the
business environment, and the trends occurring
within the sector. This event will unite government
& port representatives, logistics suppliers, shipping
companies, terminal operators, port equipment &
technology suppliers, banks & investors as well

as legal & insurance firms. It is expected to host
over 35 speakers and 150 C-level executives over
the two days. Key topics to be discussed at the
1st LatAm Ports & Logistics Summit include:
the Panama Canal expansion and its impact on
maritime traffic and port competitiveness in
Latin America, Intermodal transportation &
Inter-oceanic Corridors, new Hub Ports in South
America, Mexican Port Strategy, Railways and
Ports in Latin America, Risk Management and
financing port infrastructure, new technologies
enhancing port efficiency and competitiveness
Latinports’ executive director, Julian Palacio,
will participate in a panel on Port Policy in
Latin America on March 26.
You will find more information about the event
on the website www.latamportssummit.com or
via e-mail to events@bnamericas.com


Latin American Port News
Brazil

Port authorities will have new management
model
Valor, in an interview with the Minister of ports,
Antônio Henrique Silveira, stressed that he “will
need to test their knowledge of distinguished
Economist - that is his reputation in the Palace
of Planalto - to carry out the reform of the port
sector”. Silvera rejects the idea of creation of
a new State-owned enterprise and anticipates
that the Secretariat of ports SEP, is going to
hire a consulting firm to design a new model
of management of the port authorities for
application in Santos, Rio de Janeiro and Para.
According to the Minister, for the short term,
the SEP plan is to report a table of maximum
tariffs that can collect practical pilots in the
ports. And it points out that the Government
can still make changes in lease bids, including a
rediscusion of risks in contracts. The text also
highlights that Silveira clarifies that, even if he

is willing to consider all claims, a premise must
be observed: the purported to reform port
efficiency should be reflected throughout the
chain and not just on the margin of the port
operator.
The report mentions criticism of the design
of the container terminals and asks why the
Government favours the creation of new
terminals instead of expanding the existing
ones, to which Silveira replied: “it is true that
container vessels come from such rapidly
increasing, which brings the need for sufficient
docks to berth of these ships; but also have
to take into account the following: what is
the situation of competition in the relevant
market?...Santos has five terminals size medium
to large; in Santa Catarina and Paraná, in a
relatively small space of the coast, there is a
profusion of container terminals in ports that
can compete with each other. “It is necessary to
design a model of bidding on that, eventually,
we have advantages over the current Terminal.
However, we must ensure that the efficiency of
port operation gain passes to the rest of society.
That is the big point. I can’t take an attitude
of an enlargement that bring efficiency to the
terminal only and does not reflect the rest of the
logistics chain. If not, I only would give greater
margins to operator”.


Six first port projects are approved according to
new regulations

Antaq, federal regulator of waterways of Brazil,
in November gave green light to six new port
projects totaling US 151 million in investments.
These ports are the first to be approved under the
new legislation of the sector, to which followed
them by others within the framework of the
program of 50 port concessions that the Federal
Government promotes. The new ports can operate
without making any difference between its own
cargoes and others. Approved initiatives include
the project of US 43.3 million, Porto Velho, in the
Northern State of Roraima. At the conclusion of
the works, Porto Velho would mobilize 4 million
tons of grain a year.

Chile
Spanish companies show their interest by tunnel
that connects Chile and Argentina
EMOL.com reported that the Spanish
companies of the building business ACS, FCC,
OHL and Acciona expressed their interest in the
project in the Paso de Agua Negra, consisting of
two parallel tunnels that will connect Argentina
and Chile through the Andes. The project is
valued at 630 million euros (US 852 million)
and according to the binational entity for the
project, Ebitan, in the list of the 23 companies
interested in participating in the construction

of the same figure ACS through its subsidiaries
Hochtief and Dragados, FCC construction,
OHL and Acciona Infraestructuras and Copasa.
Among the firms involved in the tunnel are also
Daewoo or Hyundai Engineering, China Railway
Construction Corporation.

Expected project, strategically located within
the central strip of the two countries, would be
awarded in 2014. Agua Negra tunnel has been
considered priority for both countries since
it attracts traffic that does not compete with
any transits of contiguous steps. Comes with a
step system Christ the Redeemer of the MendozaValparaiso connection and when it is built also
concur in their support to relieve congestion
on it or during this temporary closures due to
winter storms.
The project consists of two parallel tunnels,
one for each direction of traffic: descending
from Argentina to Chile and up from Chile
to Argentina, from 13.9 kilometres in length.
Argentina and Chile share one of the longest
borders in the world, which also runs along the
Cordillera de Los Andes. Agua Negra pass is one
of the 13 road steps that Chile and Argentina
have agreed so that they receive preferential
budget service. The tunnel will be built to
seismic recommendations, according to the
source.


Colombia

Millionaire revolution in road transport
infrastructure

The jewel of the crown of this initiative is the
fourth generation of roads concessions (4G),
which consists of 47 projects totalling 25 billion
dollars over the course of eight years, said the
economic newspaper Portfolio citing EFE. Thus
the Government aims is to remove Colombia
of the position 126 deals around the world
in quality of roads, according to the Global
Competitiveness 2012-2013 Report of the World
Economic Forum.
The first part of this ambitious programme
was launched at the beginning of November
by President Juan Manuel Santos and the head
of the National Agency of Infrastructure (ANI
in Spanish), Luis Fernando Andrade, with the
opening of nine bidding processes to build a
total of 1234 kilometers of roads whose value
amounts to about 5.840 million dollars. That
is, without a doubt, the most ambitious project

that has had the country in its entire history
andby far. Perhaps it is the largest project and
more ambitious that is getting underway in
Latin America, said Santos in the release of
these concessions that have expressed interest in
participating 69 companies, about half of them
Colombian, but also from Spain, Brazil, Chile,
Mexico and United States.
In this model Public Privat Partnerships PPP will
have special importance because the contractors
will first elaborate the way designs and will
receive environmental licenses to then, now
yes, to build them and start charging tolls. The
President of the Inter-American Development
Bank (IDB), Luis Alberto Moreno, said that
to make Colombia a successful country in
the next 20 years is watching the long-term
competitiveness with a vision that integrates
public-private participation. A recent study
by the consulting firm Serfinco noted that
the participation of private investment in
infrastructure construction has increased in
the last ten years, from 0.1% in 2000 to 1% in
2011, but to make it more dynamic will need
a greater efficiency of the State on issues as
agility of contracting entities for the granting
of concessions and times for delivery of
environmental licenses, among others.
In any case, the Government with this revolution
in roads aims to overcome the backlog in
infrastructure that adversely affects the
competitiveness of the country, immersed in a
process of conquest of markets. This policy has
taken strength during the current Government
with trade agreements signed with the United
States, the European Union (EU), South Korea,
Panama, Costa Rica, Canada and Israel, among
others, as well as the creation of the Pacific
Alliance which includes Colombia, Peru, Mexico
and Chile.


The backwardness of Colombia in infrastructure
is not only with developed countries, but with
its own neighbors, as in a Serfinco calculation
on roads surfaced per 100 square kilometers,
Colombia was 1.2, less than half the average for
Latin America, which reached 2.5, and light years
away from the average of 50.3 of the countries
of the East and Pacific Asia. The consequences
of the bottleneck, as has called Santos to
the backwardness of the country on its road
network has been verifyied by the Colombian
Infrastructure Chamber, according to which the
cost of transporting a container by land from
Bogota to the port of Cartagena, distant cities
some thousand kilometers, is $3,200, while
carrying it from Cartagena to Shanghai (China)
on the other side of the world, it costs one-third.
Realized this plan of transformation of
highways will benefit not only international
trade in the country but for the whole of the
economy, because in addition to the gain in
competitiveness, the Government estimates
that about 400,000 jobs will be generated in
rural areas of 24 of the 32 departments in
the country during the construction phase.
In the whole of the Gross Domestic Product
(GDP), these millions of dollars investments
will provide 1.5% during the construction of
the roads and close to 1% when they go into
operation, a result not insignificant for a country
which this year aims to grow more than 4%.

Mexico
Federal Government expects approaching
double port movement in 2019
El Sol de Cuautla, quoted Mundo Marítimo,
reported by putting into operation the first

stage of the second terminal specializes in
container in Manzanillo, the Secretary of
Communications and Transportation of Mexico,
Gerardo Ruiz, said that the country will double
its port movement at the end of the present
administration, once is projected to move from
4.8 million to 8 million containers, and increase
from 283 to 500 million tons the movement of
cargo in port terminals. The country has over 11
thousand kilometers of coastlines and 16 ports
with broad logistical capacity, so it represents
an area of opportunity for the development
of the merchant marine and climate for port
potential to contribute more to the growth of
the Mexican economy, boosting employment in
addition.

The official said beside the President Enrique
Peña that if well the Mexican Merchant Marine
has reached this year a record by 3.4 million
tons, there is still a great potential for growth
in this sector. He stressed that in the ports of
Manzanillo, Lazaro Cardenas, Veracruz and
Altamira, mobilizes 95 percent of the containers
that are managed in the country. Therefore, he
said, it’s imperative to expand the capacity of
the ports, because otherwise the possibilities
of the development of our international trade


would severely restricted and, consequently, the
economy of the country.
Ruiz explained that from now the port of
Manzanillo, considered to be the most important
in the country, will increase its capacity to
handle containers of 1.9 to 2.5 million per
year, with the generation of a thousand 500
direct jobs and 3,500 indirect. He explained
that on a surface close to 46 acres, were built
two docks with a length of 360 meters each,
allowing the berth of large super post panamax
type vessels. This new Terminal has four lastgeneration automated gantry cranes, as well as

new yard cranes that will allow time for loading
and unloading of containers to be reduced
to less than half. It features new areas of
storage and one intermodal, which can match
up to six trains of 350 meters each, as well as
necessary warehouses, maintenance areas and
administrative offices. Also, will be delivered
urban road distributors which allow quick and
safe access to the port area, builted at a length of
more than 9 km, seven branches of ascent and
descent, three footbridges and green areas. Once
finished the first stage, will be held two more
during this federal administration.

Mail
Congratulations. The
newsletter is excellent.

Congratulations on the content
of the newsletter.

Very interesting your
magazine.

Rodolfo Sabonge
Former Planning &
Commercial Development
VicePresident
Panama Canal Authority

Martin Gustavo Ibarra
President
Araujo Ibarra Associates
Bogota, Colombia

Paul J. Gallie
General Director
APM Terminals Moin, S.A.
Limon, Costa Rica

Very interesting
publication.
Juan Camilo Saldarriaga
President
Starcrop Ltd.
Colombia-UK

I appreciate the coverage provided
by Latinports to the new process
of delegation preparing for the
port of Manta.
Roberto Salazar
President
Manta Port Authority
Ecuador

I found very interesting your
newsletter and useful for our
work.
Rolando Terrazas 
Director Southern Region Projects
Latin America Development Bank
CAF

Latinports Newsletter October-December 2013

Latinports Newsletter October-December 2013

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