Port of Acajutla

Maritime space:
Opportunity for cargo management
New York
Los Angeles
Trans- Pacific
Route
Freeport
Veracruz
Manzanillo
Global hub
Regional hub
Routes and
Terminal networks
NORTH –SOUTH
Americas Route
(Pacific)
a
Kingston
La Unión
Balboa
Manzanillo
Manta
Guayaquil
Callao
Feeder
Global HUB : Logistics center for concentration, processing,
and distribution of cargo and information, in East- West
Regional HUB : Redistribution of cargo in areas of centralized
routes , East-West with North-South routes.
Cargo feeder ports.
Mejillones
NORTH –
SOUTH
Americas
Route
(Atlantic)
Growth of maritime trade
trade…
…
Growth rate
11%
Growth rate of world
trade is twice the rate
of world GDP
Maritime trade in TEUs
grew almost three
times the rate of world
GDP
World traffic -TEUs
7.7%
World Trade
4.2%
World GDP
1984
1992
2000
2008P
Employment creation at La Union
Case 1: LaborLabor-intensive firms
(ARNECOM) ZAL: 73 acres x 500 jobs = 36,500 jobs
Case 2: Logistics firms (RANSA)
ZAL: 73 acres x 50 jobs = 3,650 jobs
Case 3: Firms adding value to cargo (Uruguay)
4,500 jobs could be created.
Descripction of ports of La Union y Acajutla
Employment generation at La Unión
Case 4: Firms already installed at Port’s adjacent
areas (e.g. Cutuco Energy, AES Fonseca, Calvo)
Case 5: Port operationsoperations- 1,500 jobs
Case 6: Nearby areas to Port:
47,250 new jobs in those 5 industrial parks
Employment generation at La Unión
Case 7: By small and medium firms (SMEs) in:
construction, repair shops, food preparation
services, etc.
Case 8: By public services:
services: security, health,
education, etc.
Case 9: Related to the naval activities related to
maritime law enforcement
Case 10: Jobs to be created in tourism related
activities
Employment generation at La Union
Case 11
11:: Companies offering complementary services:
services:
Telecommunications, financial and insurance;
insurance; maritime
and land transportation;
transportation; professional services, such as
accounting and auditing, etc
etc..
Case 12: Vessels’ maintenance and repair
Case 13: Various services to ships
According to UNCTAD: It is estimated that 1 direct
job creates 2 indirect jobs.
At present, El Salvador is a country with little presence
in the maritime regional business
Acajutla is the only port offering limited service to local
markets
Acajutla has very low productivity in relation to
movements of TEU/hour/vessel:
2001: 8
2008: 25, using ships’ cranes only
Investments at the Port of Acajutla
Cargo volume estimated in
2033 (Acajutla
(Acajutla and La Union
Union))
In TEUs
11446,415 TEU
Other different to TEUs
81348,016 MT
Present cargo volume
volume::
2008 (Acajutla
(Acajutla))
158,500 TEU
31229,000 MT
Goal: becoming a REGIONAL HUB ports, thus need to
be operated under:
Excellent management
“Know--how” of maritime business and 3rd.
“Know
generation ports
Capacity of business “creation” through
networking and powerful negotiations power
with shipping lines
Heavy and timely investment
Present owner - operator, CEPA, does not have these
capabilities.
Additional investment
investment:: $655.9
million
Port La Unión:
Ended:
Ended:
To do’s:
do’s:
Construction Fase I
Equipment Fase I
Construction Fase II, and
Business development
Port of Acajutla
Acajutla::
To do’s:
do’s:
Investment to cope with
infrastructure deterioration
and improvements
Business expansion
Loan for the construction
of Port La Unión
JBIC:
CEPA’s share:
$102.1
$ 77.4
Total: $179.5 million
Historical
Investment
at Port of
Acajutla
In 46 years (since
1961) CEPA
invested $30.8
million in
equipment
year
land
1961-1989
10,414,413.23
$
1990
$
11,073.95
$
1991
$
2,242.74
$
total
2,090,427.33 $
188,610.63
12,504,840.56
$
199,684.58
5,422,710.80 $
5,424,953.54
1992
$
525,692.15
$
525,692.15
1993
$
71,947.91
$
71,947.91
1994
$
107,211.85
$
107,211.85
1995
$
379,306.87
$
379,306.87
3,723,283.28 $
3,765,432.42
1996
$
42,149.14
$
1997
$
5,306,870.87
$
925,837.46
$
6,232,708.33
1998
$
4,461,109.40 $
4,461,109.40
1999
$
3,203,640.48 $
3,203,640.48
$
2001 $
More than 3 times
CEPA’s investment in
half the time.
equipment
$
2000
Operator will invest
in 25 years, $104.2
million
infrastructure
15,242,949.96 $
2002
$
2003
$
2004
$
2005
444,822.16
$
340,711.57
$
785,533.73
1,852,222.95 $
443,114.40
$
17,538,287.31
$
3,882,338.36 $
4152,530.88
7,601,088.86 $
3,555,999.14 $
11,157,088.00
270,192.52
224,697.74
$
$
2006
$
2007
$
15,242,949.96 $
99,069.77
$
323,767.51
1,191,053.69 $
1,191,053.69
1,593,466.72 $
186,840.77
$
1,780,307.49
$
68,958.50
$
68,958.50
30,867,864.36 $
73,874,055.20
27,763,240.88 $
…in need of an strategic partner
that::
that
Makes possible the
additionally required
investment in time
Uses its expertise in
business development
Transfers technology to
port operation
Concession Proposal
Concession of both ports: Acajutla and La Union,
according to natural inclination of each port
Public-private contract : 10% government and
Public90% strategic partner
Future development of 80.6 Acres (48.6 in La
Unión and 32 in Acajutla) for logistic purposes
now under CEPA’s administration and control
Period of concession: 25 years with possibility of
another 10
Concessions in Latin America
Similar cases in Latin America
Potential worldworld-class firms interested in our
ports
Have not yet visited
Have already visited
9
2
1
HUTCHINSON PORTS
HOLDING , CHINA
3
APM TERMINALS
HOLANDA
20 ICTSI Y MARUBENI
16
NIPPON YUSEIN KAISHA
JAPAN
DUBAI PORTS
DUBAI - UAE
-
-
PORTSAMERICA
USA
4
8
MEDITERRANEAN SHIPPING
CO. , Switzerland
SSA MARINE
USA
PHILLIPINES/JAPAN
-
KATOEN NATIE
Belgium
SUDAMERICANA AGENCIAS
AÉREAS Y MARÍTIMAS, CHILE
PORT OF SINGAPORE AUTHORITY
SINGAPUR
Other firms interested
CONSORCIO MARÍTIMO:
- SALVADOREÑO,
EL SALVADOR
$2,255.6
Government
Revenue
(25 years
years))
Royalty (Payment to governement
% of income per port services)
million
ACAJUTLA LA UNIÓN
142.4
375.5
Downpayment
(min amount for concession)
Dividends
(per 10% of share participation)
Taxes
(VAT and Income Tax)
INVESTMENTS
Local taxes
117.2
823.5
TOTAL
$517.9
32%
$60.0
4%
$81.1
5%
$940.7
$1,599.7
59%
$655.9
$2,255.6
Investment required
Government benefits
Know--how from operator
Know
Shareholder 10% participation : paidpaid-up and
sustained by strategic parter thru entire
contract
Downpayment $60.0 million
Royalties : $517.9 million
VAT and Income taxes:
taxes: $940.7 million
Government benefits
Dividends for $81.1 million
Risk of investment is transfered to strategic
partner
Government maintains strategic interests by
holding a place at Board of Directors
Government will receive an ongoing business
at the end of the 25th year
year..
Additional benefits
Human capital development
Territorial and local development in the region
of La Unión
Enpowerment of geopolitical leadership of El
Salvador in the Gulf of Fonseca
Development of maritime culture
What is left to be done?
Improvement of local infrastructure at sub
regions of La Union and Acajutla
Naval Force strengthening
Institutional supports from:
• Municipality
• CEPA (Ports
(Ports Comission
Comission))
• AMP (Ports
(Ports--Maritime Authority)
Authority)
Territorial law and creation of areas
under special regime (ABRE- areas bajo
regimen especial).
What is left to be done?
Develop a national strategy to promote
logistic areas (in charge of government)
government)
Develop a municipal policy to promote
investment and employment
Develop a national logistic policy as
indicated by the Ministry of Economics
Area of port activities:
CORSAIN
Calvo
Cutuco
Energy
AES
Fonseca
TROPIGAS
611 m
Adjacent
area
89 Mz
95 Acres
FASE II
66 Acres
Area of logistic
activities:
57 Acres
Adjacent area
7 Acres water
treatment plant
financed by AES
FASE I
124 Acres
580 m
54 Acres
Total docking
yard lenght
lenght::
1,794 m
FASE III
78 Acres
603 m
• Cars Yard
Yard:: 36,000 m2
Area of logistic
activities:
Areea of port
activities:
• Container Yard:
Yard: 50,000 m2
• Warehouses (4): 30,000 m2
• Solid Bulk Warehouse:
Warehouse: 30,000 TM
• Docks: 9 Acres
Dock length
length:: 313
Depth:: -8 a -12
Depth
Wide:: 37
Wide
Dock length
length::
North dock: 360
South dock: 336
Depth:: -8 a -12
Depth
Wide:: 28
Wide
Dock length
length:: 270
Depth:: -12
Depth
Wide:: 19
Wide
Total dock length
length:: 943
meters
$655.9
Investment by
years))
Operator (25 years
million
$313.9 million (present value)
ACAJUTLA LA UNION
TOTAL
Equipment
46.8
336.5
$383.3
58%
Infrastructure
44.5
198.9
$243.4
37%
Technology
12.9
16.2
$29.1
$104.2
$551.6
$655.9
16%
84%
5%
Construction (up to change 8)
$161.3
Counterpart office
$7.0
Interests paid to JBIC
$4.8
Land acquisition
$5.1
Fences
$0.7
Design modification
$0.6
Note: Local taxes are not
included (pending of
definitiion by Supreme
Court).
US$179.5 m.
Public-Private Partnership (PPP): Some
Publicexamples
Terminals of Cristóbal and Balboa: PPP
10% Government of Panama
90% Hutchinson Ports Holding (HPH)
Cristóbal
Balboa
•
•
•
•
All government shares paid by HPH
Operator commited to make all investments
If equity is increased , government holds its 10% 10%
Government receives incomes as a share holder and
royalties over sales
Terminal of Montevideo: PPP
20% Government of Uruguay
80% Katoen Natie
Cuenca del Plata
• Government invest according to its share participation
• Government receives incomes due to royalties and share
participation.
Some points about
the proposal
Operator of world
class..
class
• Sound legal system provides
safeguards for a 25 year investment
• Has flexibility to manage the business
• An attractive rate of return over
investment
• The ports of El Salvador complement the
regional chain of ports of operator.
Government
• The government receives the know how from
operator to become a regional hub.
• Receives a share participation which is paid by the
operator.
• It is not committed to make any investment
during the time of the concession.
• It is entitled to share dividends as a stockholder
• The government does not take the risk of
investment
• It is entitled to receive a royalty over gross sales of
port business
• The government receives income due to,
income tax, VAT and municipal taxes
because the operator has to comply with
these payments.
• Has command on strategic topics through its share
participation
• The governmet will receive an ongoing
business in 25 years.
Master Concession
Concession:: 28
ARGENTINA
COLOMBIA
CHILE
ECUADOR
SANTA FE, ROSARIO
MEXICO
VERACRUZ, ENSENADA, L. CARDENAS, MANZANILLO,
GUAYMAS, ALTAMIRA, MAZATLÁN
PANAMA
PERU
DOMINICAN REP
JAMAICA
BRAZIL
GUATEMALA
BALBOA, CRISTOBAL, MANZANILLO, EVERGREEN
CARTAGENA, BARRANQUILLA, STA. MARTA, BUENAVENTURA
ARICA, SAN VICENTE
ESMERALDAS, MANTA, GUAYAQUIL
MATARANI
CAUSEDO, HAINA
KINGSTON
SANTOS
BARRIOS
Concesiones maestras in process
process:: 15
CHILE
HONDURAS
NICARAGUA
COQUIMBO, TALCAHUANO, PTO. MONTT,
PUNTARENAS
PUERTO CORTES
MONKEY POINT
PERU
PAITA, PISCO, ILO, CHIMBOTE, SALAVERRY,
IQUITOS, PUCALLPA, YURIMAGUAS
DOMINICAN REP
PUERTO PLATA
Terminal concessions
concessions:: 12
ARGENTINA
BUENOS AIRES (7 TERMINALES)
CHILE
VALPARAÍSO, SAN ANTONIO, IQUIQUE,
ANTOFAGASTA
PERU
CALLAO
Terminal concessions in process
process:: 8
CHILE
GUATEMALA
NICARAGUA
ANTOFAGASTA, COQUIMBO, VALPARAÍSO, SAN
ANTONIO, PTO. MONTT, PUNTARENAS
QUETZAL
CORINTO
Public Private Partnership (PPP): 5
CUBA
HONDURAS
URUGUAY
PANAMA
LA HABANA (GOBIERNO + SOCIEDAD ESPAÑOLA)
ROATAN (EMPRESA NACIONAL PORTUARIA + ROYAL CARIBBEAN)
TERMINAL DE MONTEVIDEO (AUTORIDAD PORTUARIA + KATOEN NATIE)
TERMINAL BALBOA (ESTADO + HUTCHINSON)
TERMINAL COLON (ESTADO + HUTCHINSON)
State:: 9
State
BRAZIL
VENEZUELA
GUATEMALA
COSTA RICA
EL SALVADOR
FORTALEZA, RECIFE, SALVADOR, RIO DE JANEIRO
MARACAIBO, PTO. LA CRUZ
STO. TOMAS DE CASTILLA,
LIMON-MOIN
ACAJUTLA
1992-2008: Management of ports
1992in Latin America
Master Concession
Concession::
PPP
Government as operator
operator::
63
5
9
12%
6%
Government
PPP
82%
Master Concession
Acajutla:
Acajutla:
Containers cargo
TEU
180,000
158,500
160,000
144,458
140,000
119,133
120,000
100,000
92,857
80,000
103,483
65,576
60,000
41,840
40,000
20,000
0
17,721
2001
2002
2003
2004 2005
Years
2006
2007
2008P
*Using ship cranes
Solid Bulk
Acajutla:
Acajutla:
56%
Other type of cargo
different from containers
General
8%
Liquid Bulk
36%
MT thousands
4,000
3,454
3,500
3,000
2,500
2,343
2,234
2001
2002
2,447
2,508
2003
2004
2,813
3,191
3,229
2007
2008P
2,000
1,500
1,000
500
0
2005
Years
2006
Origin of estimated cargo
Port La Unión:
4% dry canal
•Freight in containers: 1.38
milllion TEUs (Graph represents
estimated freight in Port La
Unión)
•Cargo not in containers: 800,000
Metric tons (imports for project of
Energy using coal).
50,000 TEU,
11% trans
trans--shipping
and value added
160,000 TEU
Port of Acajutla
Acajutla::
• Cargo not in containers: 7.5
million Tons (Local cargo increased
with regional cargo through
operator )
• Cargo in containers: 0.07 millions
TEU (Generated by local cargo
through feeder port)
290 ,000 TEU,
21% regional
cargo
880 mil TEU,
64% domestic
cargo
ACAJUTLA: 50 years operation
2001:
• Opinion survey ECLAC 2001: Acajutla is the most inefficient port in
Latin America
• Cargo in containers
containers:: 17,000 TEU
• 1,200 employees to manage 2.5 million TM
• Accumulated loss up to 2001: $20 million
• 8 movements /hour per ship
2006:
• 35% of requests for proposal deserted
ACAJUTLA: 50 years operation
2008
• Poor additional investment
investment:: (1 single bulk crane from 1961; obsolete
yard cranes)
• No operating profits
• Poor commercial management
• Very little investment in human capital ( only 2 practices
practices))
• Limited development of additional areas to port section (Opsal
Opsal,,
Diana, Iminsa y Cenérgica
Cenérgica):): 14% in 50 years
• Firms such as Rasa, Alcasa
Alcasa,, Almapac
Almapac,, Fertica
Fertica,, Puma, Duke Energy
Energy,,
ARFS and Termopuertos
Termopuertos:: all of them in private land out of port area.
area.
• 80 families invaded port land.
land.
$80.9
In 25 years
years::
Annual dividends
(10% Government
Government))
million
$24.9 million (Present Value)
$ million
They will vary according to
business development
80
70
60
50
40
30
20
Years 1
2
3
4
5
6
7
8
9
10
11 12
13
14
16
15
17
18
19
21 22
20
23
24
10
0
-
25