1. May-August 2012
Año 4, No. 2
Accelerated advance of Mexico
in Ports and Transportation
Infrastructure
Should Latin American Ports be
Chasing the Mammoths of the
Sea?
Latin America & World Top
Container Ports 2011
See more... See more... See more...

2. CONTENTS
May
August
2012
Upcoming
Events
New Members
LatinAmerican Port News
Mail
November 26-27: Third LatinAmerican
Public-PrivateAnnual Seminar in Viña del
Mar, Chile
Container Management Interview to Pedro Brito,
former Minister of Ports of Brazil and Director
of the National Water TransportationAgency,
Antaq
Editorial
Portada
Logosímbolo de III Seminario
Anual Público Privado
Latinoamericano en Valparaiso-
Viña del Mar, Chile.
Diseño
Julian Pineda
www.miroamarillo.com
studio@miroamarillo.com
- Now is the Port of Rio de Janeiro: Article of
the Chairman of Latinports, Richard Klien
LATINAMERICA& THE
WORLD
- Mundo Marítimo of Chile, Interview to Julian
Palacio, Executive Director of Latinports
- The Executive Director of Latinports, Speaker
in Important LatinAmerican Events
- LatinportsAchieves ImportantAgreement in
Mexico
- Octuber: Colombia Capital Projects
& Infrastructure Summit in Bogota
- November: Third LatinAmerican
Public-PrivateAnnual Seminar in
Valparaiso so
- December: TOC Container Supply
ChainAmericas 2012 in Panama
- Port of New Orleans, United States
- Mardique Port Society, Colombia
- Inland Port Magazine of United States
Highlights Presentations of the President of the
Port of New Orleans and the Executive Director
of Latinports, in the Magdalena River Event
- Chile Leader in Logistics and Competitiveness
in LatinAmerica
- Inter-oceanic Canal in Nicaragua?
- Modern Logistics for River Terminals
- Legal Certainty in Concession Contracts:A
Call to Good Sense
- Accelerated advance of Mexico in Ports and
Transportation Infrastructure
- LatinAmerica & World Top Container Ports
2011
PRESIDENCY & EXECUTIVE MANAGEMENT
LOGISTICS, COMPETITIVENESS & PORTS OF
LATINAMERICA
- Prime Minister of China Proposed
at ECLAC a Forum for High Level
Cooperation with LatinAmerica and
the Caribbean
- Should LatinAmerican Ports be
Chasing the Mammoths of the Sea?
- Widespread and Disproportionate
Increase of Sea Freights:AWorld
Cartel?
MARITIME TRANSPORTATION &
PORTS
- LatinAmerica may take the Lead of
World Economy altogether withAsia:
Carlos Slim
- Reorganization of Iberian Ports?

3. Mayo - Agosto 2012
S Editorial
On the third anniversary of the incorporation of Latinports this August, results
are more than encouraging as practically we have tripled the number of members,
now exceeding 40 in 12 countries, have developed three international events
and supported more than ten, given more than 20 lectures in different countries
of America and Europe promoting the excellent positioning of Latin America
nowadays and of the port sector in particular, having edited 12 newsletters in
three languages, produced Latinports Mobile to consult our webpage in devices
such as iPhone or iPad…. And most important of all, we have disseminated
to the world the advantages of port privatization in Latin America and the
importance of public-private joint work to develop port logistics within our
region (“Public Ports Operated by Private Initiative: A Winner Model” as defined
by our chairman, Richard Klien of Brazil). Based on the above, the Latinports
brand has positioned as spokesman to the world of Latin American port strong
development.
Other than the event represented by the Newsletter commemorating our
successful third year, this edition involves great importance for reasons as
meaningful as the presentation of the Port of New Orleans as new member of
the Association, thus demonstrating the interest of the principal economy of
the world in the development of Latin America, in general, and of our ports, in
particular, and launching our third great annual event to be held in Valparaiso-
Viña del Mar in commemoration of the centenary of the start of construction of
the port., Chile in the month of November, focused on logistics. All this obliges
us to reward even more all persons who have accompanied us in our task.
Finally we invite you to consult our web site completely updated, from your
mobile devices.
Thank you so much for your support and, until the next!
jpalacio@latinports.org
www.latinports.org
Julian Palacio
Executive Director

4. Mayo - Agosto 2012

5. Mayo - Agosto 2012
NOVEMBER 26 & 27: THIRD PUBLIC-
PRIVATE LATIN AMERICAN ANNUAL
SEMINAR IN VIÑA DEL MAR, CHILE
After the great reception of our previous annual
events in Cartagena and Brasilia, now is the turn
for Viña del Mar. Developing our great annual
event in Chile is of special significance as we must
remember that this country was the first to start
port privatization and decentralization in Latin
America, an example that has been successfully
followed by most of the countries of the region.
However, after almost 20 years of this important
advance for the foreign trade of our countries, it
is important to make a stop and look towards the
future, and nothing better than doing this in Chile, a
country that continues innovating all its sectors and
results have caused it to be a leader in logistics and
competitiveness within the region, as was recently
emphasized by the World Bank and the Institute of
Competitiveness of Aden.
Thus, on Monday 26 and Tuesday 27 of November
at the Hotel Sheraton Miramar of Viña del Mar will
take place the Third Public-Private Annual Latin
American Seminar, focused on a highly topical
issue as the Empresa Portuaria Valparaiso and
the Ultramar Group, and with the support of the
national authority Sistema de Empresas SEP and
the Maritime and Port Chamber, where during two
days we will refer to topics such as Latin American
Leadership worldwide, the repercussions of the
extension of the Panama Canal and the size of
ships arriving to the region, the inland logistics
centers and port sustainability; besides, experiences
and perspectives of the most important container
terminals will be shown, such as Valparaiso, Santos,
Callao, Cartagena and . On the last day of the
seminar there will be guided tours to Terminal

6. Mayo - Agosto 2012
CONTAINER MANAGEMENT INTERVIEW TO PEDRO BRITO,
FORMER MINISTER OF PORTS OF BRAZILAND DIRECTOR OF
THE NATIONAL WATER TRANSPORTATIONAGENCY,ANTAQ
Pacífico Sur Valparaiso, TPS, and to the Special Area
of Logistical Support. of Valparaiso, ZEAL.
This will be an excellent opportunity for an update
in port logistic matters and to prepare ourselves for
the challenges that gives us the global economic
situation. All this within the fabulous environment of
the traditional Viña del Mar.
You will find more information on the event
(program, registration, hotel registry, etc.) in the
webpage www.latinports.org
You may also contact Emilia Peró epero@emew.cl
or Julián Palacio jpalacio@latinports.org

7. Mayo - Agosto 2012
Brazil’s Agency for Waterway Transportation
(ANTAQ) was created by Law 10.233/01 to
implement policies formulated by the Ministry
of Transport and the National Council for
Integration of Transport Policies (CONIT). These
policies comprise the regulation, supervision and
inspection of the activities and provision of water
transportation and port infrastructure and the use of
waterways by third parties.
Today, ANTAQ’s main purpose is to look after
the legal and institutional safety of the water
transportation sector, with the objective of assuring
the continuing inward flow of private investment
that has been received by the sector since the Ports
Act was published in 1993. One of the subsequent
benefits of the Act has been the upgrading and
modernization of much of the ports and terminals
sector to the same levels of efficiency, productivity
and service as some of the best in the world.
However, as the facilitator of access to Brazilian
ports, and in order to continue to increase the
efficiency of the sector, it is incumbent upon
ANTAQ to give priority to waterways. After all,
operations depend as much on efficient port access
as they do on the logistics chain.
Another function is to provide and maintain a clear
and modern regulatory framework, particularly in
relation to port concessions, in order that they will
continue to be as successful as those in other sectors,
such as the electricity and, more recently, the airport
sectors.
Yet another important function of the agency is to
prepare plans for port and waterway concessions,
I believe that the intermodal integration of logistics
corridors, with priority for waterways and railways,
is ANTAQ’s most important task and arguable the
most challenging. Intermodal integration is already an
established feature of the world’s largest ports, which
is why they are so efficient. The ports attracting the
largest volumes of cargo are those in which cargo
arrives (and departs) via the most efficient mode
or combination of modes, whether by road, rail or
waterway. The greatest challenge for Brazil’s port
logistics sector is to secure intermodal integration,
with all its attendant gains for export and imports
alike.
Another important challenge is to consolidate coastal
navigation, which in Brazil is still in its infancy,
resulting in unnecessary costs within the logistics
chain. Today, 60% of cargo in Brazil is transported
by road, but if and when the country increases its
investments in its waterways, the intention is for
this transportation mode’s share to increase from its
current 13% to around 29%. The same goes for the
which will provide guidelines for those interested
in investing in new ports and terminals along the
Brazilian coast and river shores.
ANTAQ is a unique regional organization. Can
you explain its origin and aims?
And what are the challenges?

8. Mayo - Agosto 2012
railway sector, which is anticipated to increase from
25% to 32% in the next 15 years.
These modal shifts will assure better intermodal
integrations while increasing ports’ efficiency, as well
as benefiting coastal navigation. In addition, there
will be significant environmental benefits: a ship or
a barge convoy that replaces hundreds of trucks will
emit much less CO2 per ton of cargo transported.
Redefining ANTAQ’s study and research programs
in order to strengthen its role in guiding the port
sector is another challenge facing the agency. It is
currently in discussions with port authorities about
launching a new environmental management
quality index, and is additionally preparing a soon-
to-be-launched satisfaction index for Brazilian port
users. Furthermore, a number of studies are being
developed that will provide support to the port
sector in its efforts to continue to attract investments
whilst increasing efficiency. Increasing the efficiency
of Brazilian logistics is a prime objective for the
agency.
I served in a number of ministerial roles, including
State Minister of National Integration and, more
recently, as Minister of the Ports Secretariat of
the Presidency of the Republic between 2007 and
December 2011.
During my periods as minister, I was responsible for
a number of initiatives that I believe have proved to
be responsible for a significant transformation of
the Brazilian port environment: one of which was
dredging. At the time when President Lula appointed
me head of the newly created Special Ports
Secretariat (SEP) in 2007, Brazil had not dredge its
ports for more than 10 years and, in some cases, for
more than 15 years. As a result, I created the National
Dredging Plan and, with the participation of foreign
companies, contracts were awarded not only for
deepening but also for maintenance dredging.
The plan eventually encompassed Brazil’s 20 most
important ports and the resultant improvements in
access made coastal navigation feasible, as well as
creating the conditions for the development of hub
centers in ports such as Santos, Rio Grande, Suape,
Pecém and Itaqui.
These in turn, brought about an important reduction
in port costs and charges, which resulted in the
country’s exports becoming more competitive and
our imports cheaper. The end result was that cargo-
handling capacity in Brazilian ports increased by
30% overall, which in Santos, for example, it leg to a
doubling not only of throughput capacity but also of
the size of vessels that the port could handle.
In addition to dredging, I was responsible for a
number of infrastructure improvement works, to
the tune of US$5 billions, as part of the President’s
Growth Acceleration Plan (PAC). These works
included the construction of breakwaters in the
Port of Rio Grande access channel; construction of
new mooring berths at the ports of Santos, Itaqui
and Vila do Conde and the expansion of the Port
During your previous ministerial appointments,
what systemic improvements were you
responsible for in the Brazilian port and logistics
sectors and how relevant are they proving to be
today?

9. Mayo - Agosto 2012
Pedro Brito, right, with the executive director of Latinports, Julián
Palacio, during the last annual event of the association in Cartagena,
Colombia
of Rio de Janeiro, amongst others. Moreover, we
also launched an investment program for passenger
terminals that will welcome tourists during the 2014
World Cup and the 2016 Olympics.
Another important measure that will increase
efficiency, at the same time as helping to reduce costs
and waiting time for vessels at Brazilian ports, is the
Port Without Paper (PWP) project, set up jointly
with the Federal Data Processing Service and all port
authorities. Following its implementation, ports will
be able reduce the time taken to clear goods from
an average 5.7 days to 2.5 days, which, although still
a long time compared with large international ports,
brings us closer to them.
change that is still having efficiency and productivity
advantages today.
Long-term strategic planning did not exist for the
Brazilian port sector when SEP was created, and
within the PAC program we instigated partnerships
and contracts such as those with the Federal
University of Santa Catarina, with support from the
Port of Rotterdam. Together they are concluding
long-term plans for Brazil’s port sector that define
investment horizons both public and private for the
next 20 years, with specific steering plans for the 10
largest Brazilian ports.
This long-term planning is vital for the sector’s
development because it establishes strategic targets
for the next few years, indicating what investments
the government needs to make and at what time
investments need to take place; this is something that
will change Brazil’s port environment forever.
I would also like to highlight the progress we have
made in increasing professionalism throughout the
ports industry. Trained port and logistics directors
were appointed in both the public and private
facilities, and they have been able to give new vision
to Brazil’s port strategy. Replacing political appointee
directors at dock companies with professionals was a
Progress in professionalism

10. Mayo - Agosto 2012Mayo - Agosto 2011

11. Mayo - Agosto 2012
NOW IS THE PORT OF RIO DE JANEIRO:
THE PRESIDENT OF LATINPORTS,
RICHARD KLIEN,ARTICLE
The city of Rio de Janeiro has just received the title
of the World Heritage Urban Cultural Landscape of
Humanity, awarded by UNESCO. This landscape
integrates urban life and the richness of the Bay
of Guanabara with its sheltered waters and natural
access channel. The port was installed here as
promoter of economic activity for the states of Rio
de Janeiro and Minas Gerais, sharing with other
people, accumulating in the successive cycles of
regional development the following:
• In the 19th century, the opening of ports to
friendly nations in 1808 with the arrival of the court
of Portugal to Brazil, promoted growth with the
establishment of industries, the construction of
roads, the creation of the Bank of Brazil and the
Board of Commerce;
• In the 20th century, reopening of the port in
1910 started a new economic cycle altogether with
the works of modernization, improvements in port-
city integration, expansion of the port complex of
Rio de Janeiro, bases for supporting the so-called
Marvelous City.
• In this beginning of the 21st century, collecting
the benefits of the Law for the Modernization of
Ports, issued in 1993, an expansion of activities
occurred by means of tenders that would transfer
the operations of port terminals to private initiatives,
and with the commitments of large investments in
modern equipment, systems and training of human
resources.

12. Mayo - Agosto 2012
Results of Brazilian ports modernization
are shown especially in the movement of
containers, in accordance with the global
containerization trend of 70% of the general
cargo transported worldwide, and in contrast
with the participation of 20% in the decade
of the 70s. Adopting the model set forth by
privately operated public ports, private leasers
of container terminals obtained more than five
times the movement of containers in a joint
action with port authorities (in the case of Rio,
the Compañia Docas de Rio de Janeiro), thus
decisively contributing to the development of
international commercial trade.
Considered as one of the main logistics cargo
corridors of the country, the state of Rio de
Janeiro is inserted in the so-called National
Logistics Network, established in 2001,
where Rio occupies the fourth place in cargo
movement figures with a market participation
of 6.4%. The port movement of Rio amounts
to 8 million tons, of which 65% correspond
to containerized cargo and vehicles. Worth
mentioning is the high aggregated value of
its cargo amounting to US$2,063 per ton.
Comparatively, Santos entered US$1,497 per ton
and Paraguaná US$864 per ton, and the national
average being US$593 per ton.
Acknowledgment of this driving development
potential moved a great coalition pro-port as
of the first edition in 2006 of the program Port
of Rio-21st Century, until its branches that
carried on the current version. A meeting of
shareholders for the preparation of the master
plan of the Port of Rio was decisive. The
Commercial Association of Rio de Janeiro,
the Federation of Industries of the State of
Rio de Janeiro, the Foreign Trade Association
of Brazil, the Brazilian Association of Port
Terminals, the Commission of Ports, the Union
of Port Operators, the Union of Sea Navigation
Agencies and other unions, altogether with
the Federal Government (represented by the
Secretary’s Office of Ports of the Presidency
of the Republic and by the Compañía Docas
of Rio de Janeiro), the State Government
and the Prefecture of Rio assure project
constitutionality.
Below is the article written by the Chairman of the Executive Committee of Latinports, Richard
Klien, for the July-August edition of Brazilian Business, a publication of the Brazil-United States
Chamber of Commerce:

13. Mayo - Agosto 2012
Estimates are that over the next 5 years, investments
in logistics centered in the port for an amount of
US$1.5 billions may include more than US$0.5
billion in private investments at port facilities. Public
projects, with a significant contribution of resources
of the Growth Acceleration Plan promote the
adequacy of sea and land accesses to the port (in
roads and railways). As an ultimate result, cargo
currently moved must double and reach US$40
billion in 5 years.
In accordance with the progressive increase of
containerships, profits of scale are continuously
pushed in sea and port operations. In the case of the
Port of Rio, special adequacy of container terminals
has repercussions in dock restructuring for roll-on/
roll-off vessels. Expansion projects developed by
the container terminals Libra Rio and Multi-Rio
and of vehicles Multi-Car in the Cais Do Caju
recently approved by the National Agency of Water
Transportation, Antaq, facilitated the simultaneous
berthing of up to 4 containerships Super Post
Panamax. The line of docks will be increased to
1,600 meters, with a growth of 522 meters.
In attention to the increasing demand of the auto
industry, which has new installed manufacturers and
others in way of implementation at the states of Rio
and Minas, the roll-on/roll-off terminal operated
by Multi-Car will add a second berthing dock 180
meters long, doubling its operational capacity. Vehicle
storage will be enlarged by constructing garage-
buildings, moving from the capacity of 326,000
vehicles/year to 450,000 in a second stage. With
an extension of 1,960 meters joining the container
and vehicle terminals, the Cais do Caju, after the
expansion works that started in 2012, will be the
greatest continuous deep-draft dock of the country,
making possible to quadruple current movement of
containers and doubling vehicle capacity.
It also registers an important increase in the demand
of other port services, notorious offshore support
activities on the way of the dock of San Cristóbal,
extending to the dock strip of Gamboa, up to
Warehouse 14, in an extension of 1,800 meters.
The main fact generating this demand is the
development of the activities in the oil platforms of
the Bay of Santos, overlooking the new identified

14. Mayo - Agosto 2012
potential for oil extraction, besides the already
signed commitments with Petrobras for the normal
activities of the ocean platforms.
In the seafront of the dock of Gamboa, which
corresponds to warehouses 7 to 13, reinforcement
works have been programmed for more viable
dredging services down to a depth of 13 meters.
This depth guarantees the connection up to the main
access channel of the port, which will maintain the
operation conditions of the existing multiple-use
terminals, serving the general non-containerized
cargo movement (steel products and printing
paper imports, among other), and will facilitate the
reception of wheat import vessels to the back area
of the dock of San Cristóbal.
Among expansion plans worth noting is the
passenger terminal, a strategic project for the plans
of the city, in view of the increasing flow of sea
cruisers ships and the 2016 Olympics. To extend
the terminal a new Y-shaped berthing dock will be
built for additional and simultaneous berthing of up
to six large vessels. More than double the number
of tourists is expected to be supported at the Port
of Rio, more or less 1.5 million passengers per year,
compared to 650,000 at present. On the occasion
of the Olympics the port may receive, as in floating
hotels, visitors from worldwide to accompany the
31st Olympic Games.

15. Mayo - Agosto 2012
cargo in Latin America, or the Panamanian ports
that because of their strategic location having access
to the Panama Canal, make these the ports with
the greatest movement of containers, basically by
transshipment”.
“Therefore we must be very careful with the ‘white
elephants’ as because of locations and market
economy, not all ports of the region have the
condition to receive mega-containerships in the mid-
term. Although a must is that we must be prepared
to receive ever larger vessels, as suggested by
ECLAC, we must be aware of our real potential and
act accordingly.
ECLAC investigators have alerted that South
American ports do not address the future,
as they are working to the limit of their
infrastructure. Which is, in your opinion, the
working capacity of South America? Are there
notorious differences between countries?
“In Latin America we are used to act when we are in
deep water. Although I agree with ECLAC that most
Latin American countries are working to the limit
of their infrastructure, I must recognize that actions
are being taken in this respect, although sometimes
without sufficient criteria. One thing is Santos, the
port moving the largest amount of foreign trade
In its edition dated July 23 and under the title “It is Imperative to Prepare Ourselves to Receive ever
larger vessels”, the executive director of Latinports refers to the reality of ports within the region.
Below you will find the interview given to Mundo Marítimo:
Julian Palacio has more than 30-year experience in ports and worth mentioning is his work as Latin American Coordinator of
the American Association of Port Authorities (AAPA), projects such as the Multimodal Port Society of Río Magdalena River
(Colombia) and consultancies for the Peruvian firm, Andemar. The Colombian executive, current executive director of Latinports
(Latin American Association of Ports and Terminals), spoke with Mundo Marítimo on the challenges
ahead for Latin American ports
MUNDO MARÍTIMO OF CHILE
INTERVIEWS JULIAN PALACIO,
EXECUTIVE DIRECTOR OF LATINPORTS

16. Mayo - Agosto 2012
Likewise, greater logistics coordination has
been urged for port development and work.
What is the public-private coordination balance
and which are the most urgent challenges to be
overcome?
Public-private cooperation is ever greater but there is
still a long way to go. This is the task of Latinports,
which motto is “Governments and private sector
working together for the port logistics development
of the region”. The most urgent challenge of this
relationship is developing adequate transportation
logistics and infrastructure, on which we continue
being way back compared to developed countries.
Therefore, I agree with the former minister of
promotion of the first government of President
Zapatero of Spain, Magdalena Álvarez, who
regarding foreign trade states, ‘little does a good port
serve without good internal connectivity”. “It was
precisely during a recent event on containers logistics
at the National Entrepreneurs Association of
Colombia I proposed the creation of a Ministry of
Transportation Logistics and Infrastructure, based on
the positive experiences in countries such as South
Korea and Germany. The discussion is now open”.
Which are the present tasks of Latinports and
its future projects?
“The main task in our short but fruitful existence
has been bringing closer relationships between
public and private sectors, and also disseminating the
advantages of decentralization for the port sector
and privatization of operations, which is defined
by the chairman of our executive committee,
Richard Klien of Brazil, as ‘Public Ports with Private
Operation: A Winner Model’”.
Consequential to the needs of the sector, our
current approach for the mid-term is transportation
logistics and infrastructure, or in other words, internal
connectivity. Finally, working in all that the port
sector of the region may require”.

17. Mayo - Agosto 2012
After two days of conferences on efficient port
infrastructure models from other countries within
the framework of the FTA, the National Association
of Entrepreneurs of Colombia and the Business
Alliance for Secure Commerce organized their own
event. “Efficient Models in World Trade” was held in
Barranquilla, where several tasks are pending for the
local and national governments, as well as the private
sector. The conference featured presentations from
representatives of the ports of Le Havre, Hamburg,
Houston, New Orleans, the Latin American
Association of Ports and Terminals, Latinports,
and the Inter-Port Police of the United States. A
major topic was the importance of rehabilitating
the Magdalena River. “Achieve minimizing cost of
internal transportation with the rehabilitation of
the Magdalena waterway will be the only way in
which the country may give a great leap towards
competitiveness,” was one of the conclusions of
international experts at the conference.
Two old friends, Gary LaGrange, president of the
Port of New Orleans, and Julián Palacio, executive
director of the Latin American Association of Ports
and Terminals, Latinports, were among the speakers.
LaGrange advised that the best way of improving
port infrastructure is developing a maintenance
program for the access channel, particularly in
Barranquilla, where funds are required to make a
continuous dredging of the river. On the other hand,
he said, a specialized port in containers and bulk is
a must, as well as cruisers to promote tourism. “I
applaud the initiative with the concession of ports,”
said LaGrange. “In the case of New Orleans, there
is a consortium totaling five ports on the Mississippi.
We all work together. I insist that if Colombian
ports work together they may achieve what we have
done, 500 million tons per year.” LaGrange stressed
that the Magdalena has great potential. “The Master
Plan being developed must be monitored very
closely because I believe results will be very good in
INLAND PORT MAGAZINE OF UNITED STATES
HIGHLIGHTS PRESENTATIONS OF THE PRESIDENT
OF THE PORT OF NEW ORLEANSAND THE
EXECUTIVE DIRECTOR OF LATINPORTS, IN THE
MAGDALENARIVER EVENT
Magdalena River to Become Main Artery of
Colombia

18. Mayo - Agosto 2012
Julián Palacio said he is convinced that the Magdalena
waterway is the only thing that will give an important
development to the region, provided it operates the
best way possible and moves a great amount of
cargo at very affordable cost. “Barranquilla is at the
mouth of the Magdalena River, which must be the
main artery of the country as stated by the President
of the Republic,” said Palacio. “This gives it an
enviable position in a country with a badly located
industry. Any country would like to have a waterway
like the Magdalena River and we have it. In cases like
New Orleans or Rotterdam, rivers are the logistics.
When we speak of Rotterdam, the main European
port, 85% of its bulk cargo is moved through
waterways. When we question what is happening
the face of the FTA,” he said. “Therefore, among
my recommendations is dredging, and identifying
what is produced there for exports, as in the United
States there is high demand for specialized coffee. At
present we are receiving at the port exports from the
largest coffee processor of Colombia.”
here, where we have a Rhine, a Mississippi, or a Seine
and do not use them. The river is already discovered.
What it needs is making it work.” He concluded, “The
cost-by-kilometer of deepening the river is much
cheaper compared to any road, and maintenance is
cheaper and benefits are much larger”. In agreement,
the President of the Republic, Juan Manuel Santos,
announced the allocation of US$400 million for the
upstream channeling Works for the Magdalena River.
The work will be based on preliminary studies engaged
through the US Trade and Development Agency and
the last studies with the participation of Rob Davinroy,
of the US Army Corps of Engineers, Missouri
District. On the other hand, the Master Plan for the
port of
Barranquilla that groups several terminals, about
to be formally presented by the Dutch consultants
Rotterdam Maritime Group and Pharos, estimates
the potential of the river, both ways, for the mid-
term between 10 and 30 million annual tons (oil,
coal, grains, fuel and containers). This has attracted
important international shipping lines, such as Seacor
Holdings, which operates in the Mississippi River.
President Santos concluded, “We are going to make
the Magdalena River the main artery of Colombia”

19. Mayo - Agosto 2012
On May 25th, in a panel shared with the
Administrator of the Panama Canal, Alberto
Alemán, who referred to the effects the extension of
the Canal will have for foreign trade, the executive
director of Latinports, Julián Palacio, presented a
lecture called “Effect of Post Panamax Vessels in
Latin America”, where he said that even though
ports of the region must prepare to receive ever
larger vessels, they must also be careful with the
white elephants as ports were not a magnet attracting
shippers because of its depth, but that deepening
access channels should be in accordance with
market demand and the niche where ports belong.
To reinforce their point of view he referred to that
expressed in the book of the former minister of
ports of Brazil, Pedro Brito: “The Emma Maersk
(the largest containership at present) does not call at South
American ports, not because of the limitations of our ports,
but above all for a matter of global trade logics that flows
predominantly east-west, in the Asia-Europe-United States
axis. North-south flows are complementary and of a restricted
participation in container-transported global trade”, and
concluded stating “…Each port must be prepared for vessels
demanding so and not for eventualities to receive once a year a
ship of 15,000 TEUs as the Emma Maersk”.
At the opening of the event, where the main table
was shared with the Vice-minister of Infrastructure
and the Manager of Logistics, Infrastructure and
Transportation of the National Association of
Entrepreneurs of Colombia, ANDI, and the
executive director of Latinports stated:
At times in which Colombia is internationally perceived as a
high level economy and considered within the group of emerging
countries with currently the best performance and perspectives,
the name of the forum cannot be more revealing: “Ports and
Containers: Logistics and Competitiveness”. Logistics is key
to competitiveness, where ports and inland transportation
must meet an outstanding role, working altogether with the
government and private sector. From there comes the slogan of
the Latin American Association of Ports and Terminals:
“Governments and private sector working together for port
logistics development of the region”.
Despite the great changes of the country in economic, political
and social matters during the last ten years, according to
figures clearly sustained by the Center of Economic Studies
of ANDI, it is no secret that in matters of transportation
infrastructure, Colombia is one of the most backward countries
of the region, and even worse, most of our industry is located
inland and almost all depends on road transportation, the
most costly of them all and which causes the most serious
damages to the infrastructure of roadways and the environment.
However, since there is no evil that lasts a hundred years, I must
EXECUTIVE DIRECTOR OF LATINPORTS
SPEAKERAT IMPORTANT
LATINAMERICAN EVENTS

20. Mayo - Agosto 2012
emphasize the decision of President Santos to reactivate other
modes of transportation as the railroad and the river, mostly
used for long distances in developed countries.
By rationalizing transportation and using modes in a
complementary manner, according to its vocation, the main ports
of the country would be optimally connected at both oceans with
the most important industrial and national consumer centers,
and logistics nodes would be developed inland. One of the most
rapid ways to achieve this is through public-private associations
which require prompt and essential regulations.
However, in reference to international transportation,
ECLAC in a recent study states that containerships currently
with 13,000 TEUs average capacity worldwide (South
American average is approximately half) will be arriving at
the region between 2016 and 2020 with an operating draft of
During a meeting held the beginning of August in
Mexico between the executive director of Latinports,
Julián Palacio, and the executive director of the
Association of Port Terminals and Operators,
ATOP, Jaime Aguilar, they agreed on the joint
celebration in that country of the great annual event
of both organizations during May 2013. This event
is of great importance for Mexico as it will celebrate
20 years of the issuance of the Law of Ports, the
first year of the reform of this law, the national
government has shortly been in office, and the new
chairman of Latinports is the founder and current
Vice-president of ATOP.
15-16 meters, thus concluding that these forecasts are interesting
to alert on the need of an efficient planning in the mid-term
for the port logistics industry, in which its timely execution will
enable preventing possible bottlenecks and negative impacts on
regional economy. Nevertheless, I must alert on white elephants,
as not all ports will be in conditions of receiving these mega-
containerships because of locations and market economy.
In addition, in the panel introduction on
Experiences and Perspectives of Containers Sea
Terminals in Colombia, the executive director of
Latinports suggested the creation of a Ministry of
Transportation Logistics and Infrastructure, as part
of the solution to the backwardness of the sector
among Latin American countries.
LATINPORTSACHIEVES IMPORTANT
AGREEMENT IN MEXICO

21. Mayo - Agosto 2012

22. Mayo - Agosto 2012
ACCELERATED ADVANCE OF MEXICO
IN PORTS AND TRANSPORTATION
INFRASTRUCTURE
Alejandro Chacón, General
Coordinator
Ports and Merchant Marine
Wherever one looks, investment needs –and plans–
for infrastructure add up to thousands of millions
of dollars and materialization of these investments
is currently the highest of all times, even though
there is yet a long way to go. In the case of Mexico,
in June 2011 Business News Americas, in its document
Infrastructure Intelligence Series, mentioned that in the
beginning of 2008 the Mexican Government created
the National Infrastructure Fund amounting to
US$3,900 million to finance projects for US$25,000
millions in that sector during the following five years.
In the case of the ports, an article in the latest edition
for Latin America of Container Management advises
that Mexico’s volumes of containerized cargo have
grown steadily, and this growth is projected to
continue over the coming years. To meet demand,
the Mexican government is rolling out a major port
infrastructure development program to increase
capacity for both containers and other types of
cargo. In 2011 total port investment, public and
private, amounted to US$692m, 7.7% higher than in
2010. Of this, US$270m was private investment, an
increase of 24.4% over 2010.
A number of major projects are under way. A
new privately-funded container terminal is under
construction at Manzanillo and is due to be
completed later this year. The terminal will be
operated by Contecon Manzanillo, a subsidiary of
ICTSI, the Manila-based global terminals operator. It
will be developed in three phases and is scheduled to
begin operations in November 2013, with a capacity
of 450,000 TEU in its first year. When complete, it
will have a handling capacity of 2 million TEU per
year.
Port Infrastructure Development Program

23. Mayo - Agosto 2012
Elsewhere, Chilean company SAAM Puertos
has won the tender for a multi-purpose terminal
at Mazatlan, Sinaloa, and will invest US$30m to
modernize and operate the existing facility. It will
benefit from other infrastructure projects in the
region, such as the Durango-Mazatlan highway,
which is expected to be ready by the end of 2012.
infrastructure works built on 25 ha of reclaimed land,
with almost US$60 million of public investment.
The new facilities have doubles the port’s capacity
and have enabled it to receive larger vessels.
Another major project, the expansion of the Port of
Veracruz, is expected to begin this year. This will be
a massive task requiring a total investment of over
US$3.6 billion, of which US$2.2 billion will come
from the private sector. A tender will be launched
in the second half of 2012 for the construction of
a new container terminal, with four berths totaling
1,440 m in length. This will increase the port’s
container capacity by over 2 million TEU a year. The
goal is to meet demand for maritime transportation
in t he Gulf of Mexico and the Atlantic, in particular
trade moving to and from central Mexico. The
project will eventually comprise 37 berths in total
across a number of different terminals (containers,
bulk minerals and cars, among others) and will
include a logistics zone.
In addition to its plans for Veracruz, the government
is aiming to develop port facilities elsewhere. In
the Port of Guaymas, in the state of Sonora on
the Pacific Coast, a first phase of development will
focus on the creation of dry and liquid bulk handling
capacity. During the second phase, a multi-modal
container terminal will be built. A specialized car
terminal is to be constructed at Lázaro Cárdenas
on an area of 40.4 ha, with the capacity to handle
750,000 cars a year. Investment will be close to
US$37,5 million. Finally, a new terminal for handling
stone materials, mineral bulks and/or general cargo
will be built in the Port of Altamira. The facility will
have a total area of 11.8 ha and a 300 m dock. The
investment required here is estimated at around
US$10m.
Another bidding process has been concluded
in Tuxpan, in the state of Veracruz, for the
development of a container facility with a capacity
of 500,000 TEU a year. The winner, SSA Mexico,
will benefit from the new Mexico-Tuxpan highway,
which will also go into service this year. Investment
for this facility, which will boost Tuxpan’s capacity by
22%, amounts to US$260m.
A number of other bidding processes are currently
under way, including one for a specialized bulk
terminal in Puerto Madero, Chiapas, which will profit
from several mines in the surrounding area. The
port will export an estimated 500,000 tons of copper
and titanium annually to Asia. In Topolobampo,
Sinaloa, a tender process will conclude shortly for
the construction and operations of a facility to
handle copper and its derivatives. It is estimated that
an annual volume of 360,000 tons will be exported
from Arizona to China via Topolobampo. At the
same port, on February 20th, 2012, President
Felipe Calderón inaugurated a number of new

24. Mayo - Agosto 2012
to Mazatlán, from where it is placed on a truck chassis
and delivered onto river barges in Brownsville in one
day, and from there these barges may be transported
to Pittsburgh, thus saving large amounts in freights
(two for the cost of one). Instead, transporting one
container directly from China to the United States
must be loaded with only 20 tons to meet limits
established by U.S. highways.
Another great advantage of logistics for this new
trade route is that the Port of Mazatlán is located
on the Tropic of Cancer, about 2,400 km north
of the Panama Canal. Brownsville is located just
north of the Tropic of Cancer, as most of China,
and consequently vessels may save almost 5,000 km
from going south, besides the delays and costs of the
Canal. In addition, Panama is located far from the
east, south of Miami, more than 1,600 km east of
Brownsville. For the Texas-China trade this means
almost 6,500 km of extra navigation time, possibly14
days.
A Mexican truck from Mazatlán to Brownsville will
make the trip in one day and the river barges in the
United States currently represent the greatest cost-
benefit relation for inland transportation, connecting
Mexico with the eastern coast of the United States at
half cost by railroad and one third costs by truck.
This new inter-oceanic highway is programmed to
be completed soon, in advance to the opening of the
new Panama Canal. All U.S. shippers in the Midwest
or the Northeast that depend on the trade with
countries of the Pacific basin, should use this new
trade route as an alternative to the Panama Canal and
to the costs and the ever more crowded ports of the
East Coast of the United States.
Until here the extract of the article of Joseph J. Linck in Inland
Port.
The U.S. magazine Inland Port, in its section Smart Business
of its last edition, has an interesting article written by Joseph P.
Linck (former director of the Port of Brownsville) called Inter-
oceanic Highway of Mexico to Compete with the Panama
Canal and Extend the Area of Influence for the Waterways
of the United States, of which we transcribe its most interesting
excerpts:
The huge and rugged mountains of the Sierra Madre
west of Mexico have always been insurmountable
barriers dividing the ports of Mexico Pacific of
Texas and the United States, in general. However,
not any more. An incredible new bridge called
Baluarte, the longest in North America, has finally
connected the Pacific Coast of Mexico with Texas,
through a modern highway called the Inter-oceanic
Highway. This important work is expected to be in
operation this year and will finally connect the ports
of Mazatlán and Lázaro Cárdenas on the Pacific
with Brownsville and the system of waterways of the
United States.
Unlike the United States, mass Mexican roads
routinely carry 40 tons of cargo (two-fold the
United States), and are the main mode of cargo
transportation of the country, easily competing with
the railroad. These fully loaded trucks may enter the
United States at Brownsville because of the state
Law of Ports that allows overloaded trucks within
the corridor, and also loading and unloading same.
The navigable waterways of the United States may
attract heavy 40-ton containers from China and
deliver them at the east coast of the United States, in
Pittsburgh, via Brownsville. Also, a container may be
loaded in China with 40 tons of cargo and shipped
Mexico-United States Inter-oceanic Highway

25. Mayo - Agosto 2012
Based on the above, Latinports decided to investigate the
characteristics of this highway, and found surprising facts
described below:
Federal Highway 40 or the Inter-oceanic Highway
starts at Reynosa, Tamaulipas, just east of the Port
of Brownsville, Texas, and ends at Federal Highway
15, at Villa Unión, Sinaloa, near Mazatlán and the
Pacific Coast. It is called Inter-oceanic because, once
finished, the cities of Matamoros, Tamaulipas, on
the Gulf of Mexico, and Mazatlán, Sinaloa, on the
Pacific Ocean, will be linked. Its total length is 1,145
kilometers.
The critical stretch between Durango and Mazatlán,
about to be completed, of 230 km, goes through
the western part of Sierra Madre, and has 90 km of
tunnels, viaducts and impressive bridges (63 tunnels
and 115 bridges in the most rugged mountain area)
and an estimated initial cost of US$1,260 millions.
The most representative bridges are Neverías, 320
meters long and 101 meters high, and above all the
aforementioned Baluarte, of 1,124 meters long and
402 meters in its highest clear part, which will be one
of the longest and highest of the world, and further
the highest suspension bridge. Once this project has
been completed by the end of the year, travel time
between Durango and Mazatlán will be two and a
half hours, which represents a savings of four hours.
This important work of engineering, besides
facilitating trade, will benefit 21 million persons
residing in the northeast of the country.

26. Mayo - Agosto 2012
Intermodal Logistics Terminal of Hidalgo
The concept of port regionalization is inciting ports
and terminal operators to look at the hinterland to
support their core terminal business. TILH is an
inland port facility owned and operated by HPH
(80% stake), which opened in 2012. It is located in
the southern part of the state of Hidalgo about 50
km north of Mexico City, one of the world’s largest
metropolitan areas with a population of more than
21 million people. HPH is the dominant container
terminal operator in Mexico, handling about 50%
of the country’s container port throughput in
four major terminal facilities (Ensenada, Veracruz,
Manzanillo and Lázaro Cardenas).
Mexico City as an origin or destination accounts for
40% of all the container cargo handled by HPH,
generating about 700,000 TEU per year. In recent
years, significant developments have taken place
in the northern part of the metropolitan area with
several large retailers and manufacturers establishing
distribution facilities in the area. The site includes a
standard greenfield logistics zone of 127 hectares
(Logistics Activities Zone Hidalgo; 80% owned by
the Mexican trucking company Unne) co-located
with an intermodal terminal facility covering 53
hectares, with an additional 10 hectares allocated to
customs. Securing land was a complex endeavor that
took 3 years since the ownership of the rural land
was collective and required a process where it was
transferred to the state and then to private interests
(HPH and Unne). Recognizing the potential of such
a facility and its logistics zone for employment and
regional development, the public sector contributed
by building an access road, a bridge and utilities
(electricity, water and sewage).
TILH is a grounded intermodal facility where
containers are stacked trackside (see above
photo), which is different from the standard
North American chassis-based storage. The initial
intermodal capacity of the facility is about 200,000
TEU and once all expansion phases are completed,
the capacity would increase to above 1 million TEU.
In its current setting, the terminal provides 4 rail
sidings of 600 meters directly connected to the rail
network of two of Mexico’s largest railways; KCSM
and Ferromex. Because of its geography, the Mexico
City metropolitan area has a scarcity of large surfaces
of flat land, implying that the TILH site required
significant modifications (mostly infill and grade
adjustments) to make it suitable for intermodal

27. Mayo - Agosto 2012
operations. The main value propositions of the
facility are:
• Modal shift. Like many developing countries,
the share of trucking for inland distribution in
Mexico is very high, which is linked with congestion,
energy consumption, air pollution and delays. The
expectation is that the inland port will favor a modal
shift of a share of the cargo bound to Mexico
City to rail, thus improving the cargo capacity (rail
economies of scale) and the use of a more energy
efficient mode. One of the key advantages of the
facility is its direct connectivity to both the Pacific and
Atlantic maritime ranges where HPH operates port
terminals. Veracruz on the Atlantic side is about 500
km away while Lázaro Cardenas and Manzanillo on
the Pacific side are about 600 km away. This distance
is at the threshold of commercial competitiveness for
rail services.
• Custom clearance and dwell time. Importers
have the option, through bounded deliveries,
of having the custom clearance deferred to the
inland port instead of at the gateway port. This
can lower inspection costs as well as delays. Inland
terminals having abundant storage space can also
offer convenient dwell time, implying that they can
partially act as a warehouse for their customers since
a container at the inland port can be considered as
part of the inventory of a nearby distribution center.
• Load center. As a facility integrated to the
maritime ports it is linked to, TILH acts as a
deconsolidation (for imports) and consolidation (for
exports) center. This can be effective to attract and
retain customers as well as improving the quality of
the transport service since the HPH port terminals
and TILH are one functional transport chain. In
addition to the inland accessibility from ports on
the Atlantic and Pacific sides (longitudinal flows),
TILH has the potential to become a load center for
the NAFTA trade (latitudinal flows), which remains
dominantly serviced by trucks. Its access to the
Lázaro Cardenas - Laredo - Kansas City corridor
offers a strategic commercial opportunity.
• Metropolitan accessibility. A logistics cluster
(intermodal terminal and nearby distribution centers)
offers a platform that is better placed to service a
metropolitan area (Mexico City) than direct truck
services from port terminals, particularly if well
connected to an urban highway system. There are
also more opportunities to deconsolidate the cargo in
loads that are more suitable to urban demand (high
frequency) and driving conditions (congestion).
Since TILH represents a novel intermodal model for
Mexico, it is facing the challenge of securing regular
rail services to its facility.
(Taken from The Geography of Transport
System)

28. Mayo - Agosto 2012
With the publication in the Official Diary last June
11th, entered in effect the decree by which provisions
of the Law of Ports of Mexico are amended,
supplemented and repealed, approved by Congress
on April 25th. In the meantime, concessions, permits
and contracts partially assigning the rights and
obligations of the terminals granted prior to the date
this decree entered in effect, will continue using these
as for which they were granted until the conclusion
of its validity or its extension, whatever the case.
The Secretary’s Office for Communications and
Transportation, SCT, made known that this decree
details more aspects of the definition of public
and private use terminals, and also the guidelines
for investors and the integration of a planning
committee. In this sense it is specified that for its use
the marine terminals and port facilities are public in
the case of containers and general cargo, or if the
obligation exists of placing them to the service of
any requestor, while these will be individuals if holder
uses them for its own purposes, and third parties if
by means of a contract, provided services and cargo
are of a similar nature to that originally authorized
for the terminal.
This resolution also establishes that the port authority
will be in charge of promoting competitiveness of
Mexican ports within their facilities and its services
and tariffs, based on the interests of the nation.
In addition, it will promote different types of
transportation services converging at national ports
in order to interconnect efficiently, and that services
by which ships, persons and goods are assisted
in navigating between ports or national sites be
efficiently provided.
The SCT specifies it may authorize for only one time
the extension of the area of public use terminals
and port facilities, which have been subject matter
of partial assignment of rights, registered at that
office. Thus, surfaces may grow up to an additional
berthing position with a maximum length of 350
meters, and its corresponding ground surfaces. These
extensions will be granted provided there are at least
two terminals or port facilities of the same kind for
different operators in a port, as was made clear by
said office.
Port planning will be in charge of a Planning
Committee, formed by the Port Administrator, the
Harbormaster, a representative of the Secretary’s
Office of the Environment and Natural Resources
and by the assignees or port service providers. This
committee shall be acquainted, among other matters,
with the master port development program and
its modifications; the assignment of these areas,
terminals and port service contracts undertaken by
the port administrator; as well as any other matter
affecting the long-term operation of the port.
The Secretary’s Office for Communications and
Transportation Diffuses Law of Ports Reform

29. Mayo - Agosto 2012
Reforms to the Mexican Law of Ports greatly favor
current operators, stated to BNamericas Hugo Cruz,
lawyer of Bitaz Consultores. “Reforms are biased
towards protecting current terminal operators”,
stated Cruz.
The criticism target for the analysis of the industry
has been Article 10 of the Law, which establishes
that terminals are public, even though they may refer
to containers or general cargo terminals in the hands
of private operators. Besides, terminals are available
for any user requiring access. In virtue of the law,
extension and access to these public terminals will
be done by public tenders that will be granted by a
planning committee. This means that companies
wishing to move products through a port will have to
enter a bidding process, stated Cruz.
There is also great concern in how the planning
committee is formed. Although it is constituted
by three government officials, all current suppliers
of services within the terminal are entitled to
approve or reject the expansion plans and the
entry of new entities, he added. “The fact of
having placed the decision in the hands of those
affected does not seem logical”, stated Cruz, who
added this deprives the government from port
development responsibility. Prior to the reforms,
operators established a committee that delivered
recommendations on the expansion plans or the new
operators. “Now they decide who gets in and who
does not”, stated the lawyer.
As general director of ports between 1996 and 2003,
Cruz participated in drafting the original law as legal
representative of the decentralized organization
Mexican Ports. Prior to the enactment of the original
law, “ports were limited, they lacked important
investments and were under the control of the
unions”, he stated. The objective of the original
law was to open the sector to private investors
addressed to transforming ports into enterprises
with international levels of productivity, according
to Cruz. These goals “were fully achieved with this
law”, stated the lawyer.
Even though Cruz has criticized reforms, he
recognizes that the law required modifications.
Nevertheless, reforms go against the original spirit
of the law. “It will terminate the opening of the port
sector to private investment, as was contemplated
by the original law; it is a counter reform”, he
emphasized.
Specialized magazine T21, in its June edition,
highlights the reform to the Law of Ports, subtitling
that “After 19 years without amendments, the
legislature issues changes to the Law of Ports that
according to legislators with four substantial changes
will modernize the port system with the participation
of the public and private sectors”. Below is the
opinion of private operators in the article:
Do the reforms to the Law of Ports favor
present operators?
The Opinion of the Operators

30. Mayo - Agosto 2012
Jaime Aguilar, director of the Association of
Terminals and Port Operators ATOP, assures that
the investor now benefits with 20-year extensions
of the contracts: “Those certainty conditions were
to be given, but now the law facilitates this even
more, being one of the greatest achievements”.
He adds that the reform is not going to provide
automatic extensions, but now, requirements
are much clearer for those who believe having
the right to request a postponement. “Finally, to
grant extensions or not will be the power of the
authority”. But the modification will reinforce the
legal certainty of who have bet for investment”,
he states. Also, Article Seven of the new Law of
Ports authorizes for only one time the extension
of the area of the terminals and public use port
facilities, up to one additional berthing position
with a maximum length of 350 meters and its
corresponding ground surfaces, provided there are
at least two terminals or port facilities of the same
kind for different operators at a port.
On the other hand, León Fregoso, president
of ATOP, states that this also gives certainty to
current investors with already 20 years at the ports.
For Germán Tirado, Coordinator of Institutional
Relationships of Hutchison Port Holdings (HPH),
the size of current vessels would require extending
port terminals: “This is something exponential, as
terminals are a physical structure that may not be
stretched. The idea is not seeking concentration at
only one terminal, as previous terminals will compete
in equal circumstances with new ones, and that is
very relevant”.
Prior to the new Law existed the figure of the
Operations Committee, an organization that had the
entire responsibility to approve the Master Plan of
Development in charge of the Port Administrator,
who would submit it to the Committee, and
many ports adopted that assignees would have a
representative, that is, only one vote. “We hope that
now the right of seniority will be really recognized to
assignees, an important part of the port community,
being the one that invests the larger part in the
port”, comments Germán Tirado. It was a problem
of justice, adds Jaime Aguilar. “With this Planning
Committee, the first thing we will see is an order in
the system of ports”.
Jaime Aguilar, Executive Director
Association of Terminals and Port Operators

31. Mayo - Agosto 2012
Summarizing, he ends stating that in the article of
T21 many organizations coincide that the reform
to the Law of Ports encourages productivity and
competitiveness of Mexican ports, faces international
and regional competition that might displace
Mexico from the main sea routes, promotes and
legally ascertains investment of private resources
for modernization, expansion and technological
upgrading of Mexican ports, and promotes the
exploitation of national infrastructure so the different
transportation modes used in the logistics chain may
converge in ports
Investment in infrastructure during the government
of president elect of Mexico, Enrique Peña, will
be much more than that of present administration,
stated in a press conference César Duarte, president
of the National Conference of Governors (Conago,
in Spanish) as reported the end of August by
BNamericas. “The infrastructure investment trigger
that might be seen in the country by President
Enrique Peña may be three or four times more of
what we have seen in the past years”, stated Duarte
during the meeting of the Conago of the central
region of the country.
Governors of the central region of Mexico
gathered to define infrastructure projects that
will be incorporated in the next budget and to
analyze strategic initiatives for the National Plan of
Infrastructure for 2013-2018. Resources are now
available to triple current infrastructure budget, which
will come mainly from private parties’ investment
of Public-Private Partnerships (PPP), according to
Duarte. A perfect example of the importance of
the PPP corresponds to the construction of the
Durango-Mazatlán highway for US$1,880 million,
which materialized “without using one penny of
the federal budget”, and using private investment of
concessionaries, informed Jorge Herrera, president
of the area of infrastructure of Conago (see Inter-
oceanic Highway Mexico-United States at the
beginning of this article).
Although the national PPA law was approved in
January of this year, all governors attending the
meeting emphasized the importance of approving
regulations, situation that is still pending. Other
challenges faced by the sector consider introducing
plural-annual budgets to reduce uncertainty
surrounding long-term projects, and a law to “assure
that works being developed may continue, despite
government changes”, concluded Herrera.
Investment in Infrastructure will Triple During
the New Government
Enrique Peña, Elected President of Mexico

32. Mayo - Agosto 2012

33. Mayo - Agosto 2012
CHILE: LOGISTICS AND
COMPETITIVENESS LEADER
IN LATIN AMERICA
Chile has been mentioned as the country with the
best logistics of Latin America, followed very closely
by Brazil and Mexico, according to a report of the
World Bank. Chile moved to place 39 among155
countries, whereas Brazil moved to place 45 and
Mexico to place 47, as per the report Connecting
to Compete 2012: Commercial Logistics in World
Economy. The list is based on six factors: efficiency
of the process to dispatch goods through customs,
infrastructure quality in relation to trade and
transportation, facility to organize competitive price
shipments, competence of logistics services, and
the frequency of shipments arriving on time to their
destinations.
Chile, Brazil and Mexico also positioned within the
10 nations of medium-high income obtaining the
best results, altogether with South Africa and China;
however, during the last three years improvements
in countries logistics have been stagnant. “This will
probably reflect in certain conditions that have left
aside logistics reform priorities of governments, as is
world recession and the crisis of the sovereign debt
of Europe”, states the report.
The infrastructure related to trade, especially roads, is
still an obstacle for the logistics performance and the
same occurs with the quality of railroads and port
infrastructure, according to the report. Infrastructure
is the principal motor for progress, as well as a
close cooperation between public and private
sectors, stated in a communication Mona Haddad,
sector director of the Department of International
Commerce of the World Bank.
An article of El Tiempo of Bogotá of the end of July
states that Brazil, in the last 15 years has become one
of the seven largest economies of the world (today
is the sixth) and, after the United States, is the power
of the continent, registering according to several
analysts a stagnancy because of internal and external
factors that may even cause a revision of its growth
model based on its natural resources. And the fact
is not that the South American giant is falling. What
consulted economists agree is that the scarce tenths
This country suffers because of the European crisis but,
according to analysts, the upturn will come in 2013.
Brazilian Economy Decelerates

34. Mayo - Agosto 2012
of growth it will has in 2012 and 2013 are bad news
for a country that has been an “advantaged student”
in relation to what was happening with mortgage and
financial crisis in the United States and afterwards
with several European countries.
Sebastián Briozzo, director of sovereign ratings
of Standard and Poor’s, said to EL TIEMPO that
Brazilian economy “was never as extraordinarily
good as affirmed, but also has not been as bad as
they want to make it appear in the last months”. The
analyst considered that a growth around 3 percent
in the last 10 years and an upturn of 7.6 percent
in 2010, “Brazilian landing has been given in a
deceleration environment of partners such as China,
but also because of the accelerated adjustments of
its economic authorities. In this respect, Alfredo
Coutiño, director for Latin America of Moody’s
Analytics, stated to this paper that “the stagnancy of
Brazil in the first two quarters of 2012 is explained
mostly by the aggressive monetary policy of the
first half of 2011”, including strong increases in
the rates of the central bank, added to restrictive
monetary conditions that affected industry and
credit. Therefore he says that for the time being,
“the patient must be alleviated and then savings
and investment will generate” to give course to the
economy, which may last several months.
According to Portafolio of Colombia, the U.S.
newspaper states that currencies are solid and stable,
inflation is controlled, credit ratings are high and
Governments know how to act in difficult times.
And the fact is that Brazil after being the ‘pretty girl’
in economic matters does not have today many
reasons to smile: less employment generation,
expressed in the creation of 1,04 million jobs in the
first semester, 25.9 percent less than during the same
period of last year; a 70 percent average fall in the use
of installed capacity during the four first months of
the year, a growth in the Gross Domestic Product
of only 0.2 percent for the first three months of
the year compared to previous quarter, and a fall of
0.2 percent in industrial production up to last April.
However, one of the most worrying indicators of
Brazilian economy is the deterioration of its credits
portfolio, as the number of unpaid debts grew 19.1
percent in the first semester, compared to the same
period of 2011.
In the meantime, the recent announcement by
Brazilian President, Dilma Rousseff, of reducing
taxes and maintaining investments and allowances
for the poorer gives hope that, unlike the austerity
recipe applied in Europe, will enable the regional
giant to retake its course.
Colombia and Peru are the New Economic
Tigers of Latin America: The Wall Street
Journal

35. Mayo - Agosto 2012
INTER-OCEANIC CANAL IN
NICARAGUA?
At the close of this Edition, the last day of August, in the first
page of the newspaper El Tiempo of Colombia, appeared a
headline based on an interview with the outgoing Minister of
Finance of the country: “The Colombian Economy Surpassed
to the Argentina”. Explains the important official that the
gross domestic product of the country currently is US$362.000
million and Argentina US347.000 million, which becomes
Colombia the third Latin America economy after Brazil and
Mexico.
It also refers to the political and social situation of
Colombia. “The confrontation with FARC continues
active, as well as drug trafficking. But thanks to the
strengthening of the army, the decrease in terrorist
acts and kidnapping, and the persecution to the drug
capos, Colombia seems to have convinced foreign
investors that changes are here to stay”, concludes
WSJ.
The U.S. newspaper recalls that some years back the
only investment possibilities considered viable were
in Brazil, Mexico and Chile. “This has changed: a
new group of countries in the region is emerging as
a viable alternative”, states the paper. According to
The Wall Street Journal and WSJ, both Colombia
and Peru are in a growth boom. “Last year
Colombia grew 5.9 percent and Peru 6.9 percent.
For 2012, Colombia’s GDP is expected to expand
4.7 percent and Peru’s 5.5 percent, according to the
International Monetary Fund”, it states. Likewise,
the WSJ report brings forth the fact that Colombia,
and also Peru, have investment grade from the three
main rating companies of the world. “Only Chile
surpasses them within the region and its ratings place
them on a par with Brazil and Mexico, and some
other countries”, it adds.

36. Mayo - Agosto 2012
Approved by the National Assembly, President
Daniel Ortega signed in July the law for the
construction of a great inter-oceanic canal in
Nicaragua, an alternative to the Panama Canal,
informed AFP. The project – a dream pursued
by Nicaragua since its independence – proposes
opening a canal by any of the six possible routes of
more than 200 km that are to be determined by the
feasibility study.
According to the government, the canal will cost
about 30 billion dollars that will be financed by
countries that have shown an interest in executing
works, such as Russia, China, Brazil, Venezuela, Japan
and South Korea. The purpose of this “monumental
work” is to encourage a “sufficiently rapid progress
of the nation to eradicate poverty”. The initiative
also foresees the creation of the Authority of the
Great Canal, with a board of directors sitting six
members appointed by the president and ratified by
Parliament, who will be elected at first for a period
no longer than ten years, the term foreseen for the
development of works. The entity will be financially
and administratively autonomous to manage funds
with countries or interested foreign firms and also to
manage works.
Latin Business Chronicle, quoting La Prensa of Panama,
informed that the government of Nicaragua
authorized the Dutch consortium Royal Haskoning-
DHV and Ecorys to develop the prefeasibility
studies for the construction of an inter-oceanic canal
through the San Juan River, in limits with Costa Rica.
The agreement was signed between the recently
appointed minister president for the Authority of
the Great Canal, the vice-chancellor Manuel Coronel,
and the Dutch consultants, who stated to La Prensa
that funds for the feasibility study were donated by
Holland and that the consortium of said country
was chosen as it offered “the shortest time” to
do it. This study “will enable the Authority of the
Canal to make a final decision on the route” to be
used to promote this ambitious project, stated the
chancellor’s office. Although the San Juan River is
of Nicaraguan sovereignty it is the borderline with
Costa Rica, thus its right margin is Costa Rican and
the San José authorities have warned that a project of
such size may not be developed without the approval
of Costa Rica, based on existing border treaties.
Publimetro of Colombia highlighted that according
to the Nicaraguan government, the project would be
complementary to the Panama Canal and therefore
not merely a competition. The publication adds that
the most optimist estimates of the government state
the canal could be ready in 2019 and would have a
capacity to receive 416 million tons, thus representing
almost 4% of world cargo. As of 2025 the canal
could receive 573 million tons, that is, 4.5% of world
sea cargo.
President Ortega, according to Publimetro, expressed
that Nicaragua is the best place to build a canal
because the environmental impact would be less and
this country has extensive availability of waters and
low lands. Regarding the Panama Canal, Nicaragua
considers it is saturated despite its expansion, because
it will not be capable of receiving the ever larger
vessels of the market.
Complement rather than Competition to the
Panama Canal

37. Mayo - Agosto 2012
MODERN LOGISTICS OF
INLAND TERMINALS
Historically, the waterway system has been seen as
a transportation artery with terminals strategically
located along its route. These terminals tend to be
located at points where they may provide support
services to the local neighborhood or regional
industries. However, requirements for the 21st
century have changed this approach.
Modern dispatches require fully integrated
transportation systems that may quickly and
efficiently respond to the requirements of local,
regional and global services. Instead of operating as
isolated terminals, port facilities are ever more being
seen as elements of an integrated system. They must
operate as regional logistics centers, inland ports or,
sometimes, as virtual ports.
A regional logistics center positions itself as an
essential link for the general transportation system,
supporting producers, shippers and recipients,
using the integration of waterway, railway and air
transportation systems to provide their services. An
inland port slightly differs as it complies with some
of the functions of a deep-water port, although
being located on a navigable route or at a location on
the coast, and among its benefits it allows having the
time to classify commodities to be delivered near to
regional distribution centers and far away from busy
seaports, providing value added services to goods
being moved through the supply chain.
Latinports wanted to supplement this article with one of the
conclusions of the first specialized event in container logistics
held by the National Association of Entrepreneurs of
Colombia ANDI, the month of July:
Daniel Negron, Vice-
president
Thomas Miller Inc.

38. Mayo - Agosto 2012
LEGAL CERTAINTY IN CONCESSION
CONTRACTS: A CALL
TO GOOD SENSE
“The lack of ports connectivity with other modes of transport
such as the river and rail, affect access to several areas of
production and consumption of goods, what is required to
develop viable alternatives to mass transit than the truck which
A virtual port, on the other hand, does not
operate form a specific location but rather uses the
internet to facilitate regional domestic trade and
international trade, supporting exports and imports
operations by using technology to improve the use
of transportation systems. This provides users a
simple virtual location for all related services such as
commerce, logistics, security and other transportation
activities
Being considered of interest, we hereby transcribe the article
entitled Land of Opportunities, written for Container
Management Latin American supplement by Johnny J.
Medranda, Regional Manager for Latin America and the
Caribbean of RAM Spreaders and former Commercial
Manager of TIDE, failed concession of Hutchison in Manta,
Ecuador
allow an integration of logistics processes and strengthen the
multimodal transport, the mobilization of goods to facilitate the
foreign trade in terms of competitive prices”.

39. Mayo - Agosto 2012
involved in the decision-making process for
concession contracts may have interests in other,
competing concerns, causing serious conflicts of
interest. In the initial business development stage
of a project, the developer must identify the main
players and find out as much as possible about
them, to avoid subsequently having to deal with
‘fifth columns’ that may prejudice the investment.
Another issue to be aware of is ‘dirt swept under
the carpet’ that has not been properly addressed
at the time of drawing up the contract. This
includes potential sticking-points that have nothing
to do with the signatories themselves, but which
subsequently can become real problems that
can lead to costly legal battles. Examples include
outstanding stevedore or labor disputes involving
shipping lines or their agents. If such issues are not
resolved or properly addressed in the concession
contract, the developer may be exposed later on to
unforeseen financial scenarios. Unresolved disputes
of this nature can frighten off shipping lines,
making the business unsustainable. The developer
must explicitly ensure as part of the contract that
the port authority or the local government will
make all efforts necessary to end any such dispute.
If a dispute is not resolved within a specific
timeframe, the developer can cite it as a fair cause to
withdraw from the contract and claim indemnities.
Like the conquistadores who sought the mythical city
of El Dorado, adventurers are still pouring into Latin
America and the Caribbean – this time not in search
of a golden city but of development opportunities
in the region’s ports industry. However, they should
be aware that all that glitters is not gold. Some
global port developers have already found their own
golden opportunities in the region. Such is the case
with HPH in Mexico, Panama and Argentina; DP
World in Peru, Brazil, Argentina and the Dominican
Republic; APM Terminals in Brazil, Costa Rica,
Peru and Argentina; SSA Marine in Mexico, Panama
and Chile; and ICTSI in Mexico, Brazil, Colombia,
Ecuador and Argentina. Likewise, regional
powerhouses such as Agunsa and SAAM from Chile
are rapidly expanding their successful operations.
These global and regional port operators and
investors have developed world-class port operations,
bringing with them the competitiveness required
to thrive and survive. However, not everything that
shines from afar means gold. There are cases where
port developers have signed long-term concession
contracts in good faith, only for their dreams to turn
into nightmares. At the time of signing, both parties
may indeed have intended to achieve whatever
objectives they set in terms of infrastructure and
volumes. However, initially exciting prospects and
warm feelings of good faith can in some cases turn
to blind optimism that leads the parties to overlook
real threats to the viability of the business.
Investors should beware of some of the common
challenges affecting the Latin American and
Caribbean region when it comes to public contracts.
To begin with, no country in the world is immune
to public corruption. Some government officials

40. Mayo - Agosto 2012
Another major challenge, and one that is very
difficult to anticipate, is that of local media players
and their relations with the local community and
the government. Some unscrupulous media outlets,
including TV, radio and newspapers, will want an
investor’s advertising business, whether the investor
needs to advertise of not. If they decline, no matter
how politely, they may be demonized in the eyes of
the public. This does not apply to all media. Some
organizations are very professional and understand
that they cannot expect a great deal at the outset.
Port developers must understand the behavior of
local media or hire a local expert who can deal with
them appropriately. They should be ready to establish
with port authority partners a common front in the
eyes of the community and the government. Usually
a good strategy is for the port authority to take case
of local media while the developer handles public
relations in national and international media.
The relationship between the port authority and
the port developer is absolutely critical. If for any
reason this relationship sours after the contract has
been signed, the developer must step back, reflect
and change course if required. Unless the developer
has already created a substantial business and has
strong relationships higher up the public chain of
command, they stand no chance against the port
authority in any internal dispute. The developer must
always be proactively ahead of the game and should
let no issue come between it and its partner. The
relationship resembles a marriage, or a family bond.
The developer must understand that a concession
may last for 20 or 30 years while governments usually
change every five years or so, and government
officials come and go.
Another issue to consider is the infrastructure in
the port’s hinterland linking it to the wider market.
If this is not adequate, a government may promise
to improve it in “reasonable” time. However, the
developer must ensure that this is written into the
contract, and if shortcomings are not remedied
within a specific timeframe, this can become another
reason to withdraw and claim indemnities. Never let
the word “reasonable” be part of the contract: this
will only lead to ambiguities in the future. Be very
specific as to what the other party must do, and by
when. If a developer finds itself in this situation,
it should watch out for local authorities awarding
contracts for the construction of critical hinterland
links to companies owned by groups that also own
competing ports. Call it conspiracy, corruption or
conflict of interest: this is a real risk and does actually
happen.
A port developer must also check local anti-narcotics
and customs regulations, which can cripple a
business before it gets going. Imagine an inbound
container going to its primary zone in the port. It is
checked by anti-narcotics authorities and then placed
in the container yard. Before the container vessel
arrives, anti-narcotics decide randomly to take back
the container and check it again, and this becomes a
routine. It adds unnecessary costs for the exporter,
who may decide to send their containers through a
different port. The developer should check the levels
of anti-narcotics inspections in the port and have the
authorities commit to a reasonable regime.
Critical Relationship

41. Mayo - Agosto 2012
internships in the port, donating beds to local
hospitals, supporting sports teams, etc. Of course,
there has to be a plan and a budget for such activities.
The developer should not be viewed as a charity
either. It should work closely with local chambers of
commerce and forge links with social leaders. The
developer is part of a picture larger than the port
itself. Sometimes, and unluckily for the developer, the
port and the city are closely intertwined and so things
become political. The game must be played wisely.
Governments and port authorities, equally, must
be aware of issues that may limit their ability to
maximize opportunities created by the port business.
Most often than not, they own the infrastructure and
therefore possess an important strategic asset, but
unfortunately they do not always exploit it effectively.
They may invest millions of dollars in infrastructure
and then let other benefit from it, leaving very little
for themselves, sometimes not even enough to cover
maintenance.
Port authorities should regularly send technical and
commercial personnel to industry conferences and
for off-site training. They should have staff ready and
prepared to seize new opportunities if they manage
the port or, if it is concessioned, ready to take over
operations should the occasion arise. Port authorities
must truly understand the value of their own port,
should they decide to concession it. They need well-
briefed personnel to avoid any potential exploitation
by consultants, investors or developers. In order for
them to determine the port’s current and potential
future value, they must fully understand the business,
its dynamics, the links in the logistics chain, local
The developer must also check customs regulations
such those relating to where goods in transit can
be nationalized (clearing customs, paying any duties
and being given permission leave the port). If
transit goods are nationalized at the port of entry
and not at their final destination, this creates a
logistics problem for the importer, increasing costs
and reducing incentives to ship goods through
the terminal. Again, the relevant authorities must
commit to modify regulations that can lead to a loss
of business.
Another, more subtle, issue is the relationship
between the port developer and the local
community. The community must be educated to
understand that changes to the port will not happen
overnight and that ships will not be lining up the
day after the concession contract is signed. Most
importantly, the community must understand that
the developer does not own either the cargo and
containers or the shipping lines. It must know that
a port developer/operator and the terminal are
just tools that facilitate national and international
commerce. Expectations must be set reasonable.
The developer must not let the port authority run
wild, claiming that miracles will happen immediately.
This is especially important in greenfield or small
terminals. The developer should aim to integrate
itself into the community. It should consider
contributing to community programs: for example,
offering scholarships at local schools or universities,
donating computers to schools, giving local students
Maximizing Opportunities

42. Mayo - Agosto 2012
LATIN AMERICA & WORLD TOP
CONTAINER PORTS 2011
Latinports wishes to add to the above the importance of
clearly defining conditions and opportunities for contract
extensions, since many times this negotiation is too complex and
attempts against port and/or terminals efficiency for during
the negotiation period –especially when done at the end of the
concession– medium- and long-term investments are postponed
because of lack of guarantees for its recovery in case contracts
are not extended.
Below you will find the fifteen major container ports
in the region, most of which ammounted in the
world rankings where Panama leads in transhipment
and Santos in foreign trade (in parentheses the global
position):
Extension of Contracts
Latin American Ranking
and regional competition, economic trends, potential
alliances, and so on. This is not a job for the faint-
hearted.
When a concession contract is signed, and both
parties understand their rights and obligations, they
must both endeavor to establish simple yet clear
communications in terms of reports, statistics, audits,
etc. The port developer should not let itself be tied
up in bureaucracy or be coerced into constantly
reinterpreting contract clauses. Should a breakdown
of the partnership occur, the contract should be very
specific as to how long the port authority will be
allowed to use the developer’s port equipment. The
contract cannot say “the minimum or reasonable time
to maintain the port as operational”. Intentionally or
not, this minimum time will become permanent.
Another contract issue relates to the jurisdiction for
legal action should a dispute occur. Some countries
in the region no longer submit to international
tribunals for the resolution of disputes but resort to
their own domestic justice systems. If this happens,
the developer may feel a terrible sense of insecurity
because the case may not be handled impartially.
Developers must ask themselves beforehand, even if
a contract is signed with the best of intentions, what
would happen if there was a change of government
inimical to their own interests. To secure the success
of any project, a port developer and its partnering
port authority must take the time to set out clearly
and explicitly every last detail, obvious or otherwise,
to minimize the potential for conflict. That said,
Latin America and the Caribbean are indeed the new
land of opportunities, an El Dorado for those who
dare to lead the way.

43. Mayo - Agosto 2012
Noteworthy positively that within the hundred
main ports of containers of the world ladder of
Container Management, almost 10% are Latin
American (three are part of the first fifty: Panama
Atlantic and Pacific, and Santos).
(*) If we exclude San Juan, which is Latin American
but belongs to United States, Montevideo (Uruguay)
occupy 15th place (118 in the world), with 861.164
TEUs.
Eleven Asian ports (nine Chinese) within the first
fifteen ports of containers worldwide as we shall see
below:
Mundo Marítimo prepared the end of August the
following extract of Global Container Terminal Operators
Annual Review & Forecast 2012 published by Drewry
Shipping Consultants of London:
During the last decade, the port industry has seen
important changes, thus showing a solid growth
and global expansion. The entry of China to the
World Trade Organization (WTO) in 2001 and
the corresponding boom in volumes thanks to
outsourcing and global economic rise, the global
financial crisis of 2008 that resulted in the first fall in
traffic of containers in 2009, the dramatic increase of
the containerships and the rise of the Asian ports –
especially Chinese ports – as important actors in the
world scenario are just some of the components that
have changed the face of the global port industry.
Some of the principal changes encountered by the
World Ranking:
Global Container Terminal Operators Annual
Review & Forecast 2012

44. Mayo - Agosto 2012
port industry during the last decade are the traffic
increase of containers at ports, which has more
than doubled since 2002, while the participation of
Chinese ports has reached 30%. Almost one third of
the TEUs handled worldwide correspond to Chinese
ports and regarding total TEUs handled, more than
75% are handled by global (*) port operators, a figure
significantly greater if compared to 58% that were
handled by said large firms in 2002. Another change
may be seen in the size of vessels: in 2002 the largest
vessel in service reached 7 thousand TEUs, whereas
at present there are lots of ships of 15 thousand
TEUs and coming closer those of 18 thousand
TEUs.
While some things change, others remain unaltered.
The report shows that the main actors of the
industry ten years ago continue being at present
mostly the same. Taking the total movement of
TEUs, Hutchison Ports (**) continue way ahead,
while PSA (**) and APM Terminals interchanged
the second and third places. The fourth place is for
DP World, place previously occupied by P&O Ports
(acquired by DP World in 2006). A new participant,
Cosco Group, occupies the fifth place in 2011
reflecting the emerging importance the Chinese have
been gaining in the industry.
In a globalized industry, merges are inevitable.
Shipping lines have consolidated alliances
voluminous in size but short in quantity, especially
in the Asian-European routes currently under the
domain of four large groups.
Looking one decade back is equally interesting
considering how the industry will be in the future
10 years to come. “We have forecast in this year’s
report that global container handling will exceed 800
million TEUs in 2017. According to these estimates,
within 10 years the industry may easily exceed one
billion TEUs per year and this is only based on a
one-digit growth each year. Also, it is highly possible
that only vessels of more than 20 thousand TEUs
will be operating in the east-west routes. However,
due to uncertain existing economic conditions, the
industry faces a great challenge in terms of growth
in more than one front”, stated Neil Davidson, Port
Consultant of Drewry.
(*)Without much explanation Drewry suggests that in 2012
total containers handled by global operators has substantially
decreased (Latinports)
(**) Port of Singapore Authority PSA owns 20% of
Hutchison Group (Latinports)

45. Mayo - Agosto 2012
PRIME MINISTER OF CHINA PROPOSED
AT ECLAC A FORUM FOR HIGH LEVEL
COOPERATION WITH LATIN AMERICA AND
THE CARIBBEAN
To strengthen the strategic relationship with the
region, the Chinese Prime Minister, Wen Jiabao,
proposed the creation of a Chinese-Latin American
Cooperation Forum and the establishment of a
periodical dialogue mechanism with the troika of
chancellors of the Community of Latin American
and Caribbean States (CELAC) summoning the
first meeting for 2012. Last June 26 the Executive
Secretary of the Economic Commission for Latin
America and the Caribbean (ECLAC), Alicia
Bárcena, welcomed Wen Jiabao in the name of
the institution, who addressed a message from
the headquarters of the organization to the Latin
American and Caribbean regions on the occasion of
his official journey that took him to Brazil, Uruguay,
Argentina and Chile.
In his discourse at ECLAC, the Chinese prime
minister submitted concrete cooperation proposals
within the scope of food security, innovation, science
and technology and sustainable development, among
others. Wen Jiabao announced the creation of a
cooperation fund addressed to the region, including
at first 5 billion dollars to promote, among other
things, the development of the manufacturing
industry, and also a line of credit for 10 billion
dollars to promote infrastructure cooperation
through the Bank of China. He proposed the
creation of mechanisms for multiple forms of inter-
governmental consultations, extending contacts
among legislation entities, political parties and
territorial governments, and reinforcing the exchange
of experiences in matters of State governance and
managing administrative issues. He also posed the
creation of a forum of Ministers of Agriculture and
another for Scientific and Technological Innovation,
Wen Jiabao, Prime Minister of China and Alicia
Bárcena, Executive Secretary of ECLAC

46. Mayo - Agosto 2012
stating also that his country will actively consider
the proposal of ECLAC for the development of
periodical meetings with the Chiefs of State and
Governments of the region.
Within the framework of the visit of Wen Jiabao,
ECLAC published the document The People’s Republic
of China and Latin America and the Caribbean: Dialogue
and Cooperation in the face of New Global Economy
Challenges, which examines the most recent trends in
matters of commerce and investment.
Worth noting, according to the report, is the
essential inter-industrial character of trade between
both parties, which means that China exports to the
region manufactured goods and Latin America and
the Caribbean basically commodities. “This reduces
the potential to eventual China-Latin America
entrepreneurial alliances and makes difficult a more
efficient insertion of the countries of the region in
the productive chains of Asia and the Pacific”, states
the document.
Only four countries of the region, all South
American, had surpluses in 2011in their trade with
China: Brazil, Chile, Venezuela and Peru. In any case,
this was the result of the sales of a reduced number
of primary products. On the other end is the
commercial deficit of Mexico with China: while less
than 2% of Mexican exports in 2011 were to China,
15% of its imports in the same year came from that
country.
In this sense, Wen Jiabao stated that China does not
pursue commercial surplus but seeks to maintain a
balanced trade with the region, increasing imports
to Latin America and the Caribbean of greater value
added products in the future. China expects that
the volume of trade with the region may exceed
400 billion dollars in the next five years, stated the
authority.
“The increasing growth of the economic and
commercial link of Latin America and the Caribbean
with China presents opportunities and concerns
and thus results essential to establish a dialogue
and cooperation agenda between both parties”,
stated Bárcena. Among the opportunities of the
relationship with China, Bárcena mentioned an
improvement in the terms of exchange, higher
rates of growth and additional resources to invest in
education, infrastructure and innovation. Concerns
in the mean time relate to the reprimarization
of exports, deindustrialization, the emergence
of the Dutch disease, the access to the land and
immigration, he stated.
Wen Jiabao proposed an increase of friendship
among the peoples of China and Latin America,
promoting mutual respect and pacific coexistence.
China has lived titanic changes, he said, but its
condition as a country in way of development
has not changed, or its cooperation policy, or its
solidarity sentiments towards Latin American and
Caribbean countries. China will invariably continue
its path towards pacifist development. “Friends are
like the stars: they are far away but may be seen”, he
concluded quoting a Chilean thought.

47. Mayo - Agosto 2012
LATIN AMERICA MAY TAKE THE LEAD OF
WORLD ECONOMY ALTOGETHER
WITH ASIA: CARLOS SLIM
Latin America has a great potential of having
access to development and of being next to Asia as
leader of the world’s economy, stated the Mexican
multimillionaire Carlos Slim, quoted by Latin
Business Chronicle in a forum in Mexico with
politicians, experts and businessmen of the region
held the end of July, which he hosted. “I am very
optimistic; we have great opportunities, and if we
do it relatively well, we shall go to development” and
“maybe Latin America may take the lead as is done
by Asia”, stated the man considered the richest in
the world during the last day of the two-day meeting
of the Circle of Montevideo, that referred to the
European crisis and inequity problems worldwide.
The Mexican businessman opposes the solution
being given to the crisis in Europe and states it
requires deeper solutions. “Medicine of the thirties is
still being given as the way to prevent the crisis, but it
is rather a way to defer it”, stated Slim who considers
that the present situation of world economy is part
of a process that started in 2000 and worsened in
2008. In his opinion, the technological revolution has
caused changes requiring structural reforms to meet
citizen demands of health, education, pensions, and
above all, more and better jobs for the young.
The billionaire stated that governments must take
measures to prevent the same from happening
as with the industrial revolution that brought
forth serious conflicts, world wars and political
experiments, and at the same time affirmed that
countries of the region have, in general, sound
finances and a large window of opportunities to
have access to external savings as source of financing
projects left behind. “Low return rates in other
regions of the world are attractive to investments
seeking more profits”, he added.
Carlos Slim, the world’s richest
businessman according to Forbes

48. Mayo - Agosto 2012
REORGANIZATION OF
IBERIAN PORTS?
Spain and Portugal are now under pressure to
generate more income for ports in order to pay
the debt of the government. According to Port
Finance International the Minister of Economy
of Spain is evaluating a privatizing movement of
the assets of Spanish ports to obtain funding for
the shaky economy of the country. Unofficially,
now the concern of the advisers of the minister on
the Spanish ports is a fact, which will be part of a
new campaign to privatize entities managed by the
state, including the operator of state railroads of
Spain, RENFE, and the national agency of airports,
AENA.
Spain’s port debt has decreased if compared to
other transportation assets, becoming a tangible
objective for privatization, even more when some
Spanish ports have continued growing despite
Spanish recession and the reluctance of previous
governments to liberalize stevedoring labor
services. It has been considered that the Ministry of
Economy could select a small number of ports for
its privatization, but the Ministry of Public Works of
Spain might be thinking in favoring continuance of
ports as public entities. Nevertheless, the economic
agitation in Spain means that the management in
Madrid is way below to increasing the pressure to
introduce reforms to the ports.