Ports and the battle for Perishables Sao Paulo, May 14-2014
Group: Port of Cartagena Private enterprise, operating 3 terminals in Cartagena Bay, developing a river port Main business: Container, Ro-Ro & cruise terminals, tugs, warehousing, Over 20 years offering terminal services 365 days, 24 hours Operations (No overtime) Yearly Revenue: US$ 270 Million +1100 direct employees Non Union
Cartagena Bay Wide, deep, safe No currents, hurricanes or tide problems +18m natural depth Ideal for port and industrial developments, largest industrial export zone of Colombia Access channels expansion under Handling over 40 Millions Tons Cargo per year 6 million inhabitants withinin 100 mile radius
Close to Panama Canal and major ports of the region
Cartagena Container Throughput Evolution 2300000 2100000 1900000 TíEUS 1700000 3X in 7 years 1500000 1300000 1100000 900000 700000 500000 2005 2006 2007 2008 2009 Year 2010 2011 2012
Cartagena: 9th most active container port in the Americas (2012) Rank Port Country Volume (Million TEUS) 1 Los Angeles USA 7,9 2 Long Beach USA 6,1 3 New York USA 5,5 4 Colon Panamá 3,4 5 Balboa Panamá 3,3 6 Santos Brasil 3,0 7 Savannah USA 2,9 8 Oakland USA 2,4 9 Cartagena Colombia 2,2 10 Seattle USA 2,0
Cartagena, main America s hub for 5 carriers 70% of the total volume is transshipment, 30% domestic AANZ AGAS ATEC CAMS CCNI CSAV ITFS WAMS / PACE Hamburg Sud Hapag Lloyd CMA-CGM SAWC1-3 UCLA CTG ANZ SAWC1-2 AGAS
So what's ahead? What should we do? What should we consider? Suggestions anyone?
Our Case
80% Growth
300% Growth
Under pressure to develop new infrastructure It is not only about the port, is about providing services to your shippers, creating new opportunities
Challenges to handle new products Flowers Tuna (Sashimi grade) Exotic fruits (Quarantine) Chemicals Vitamins / Medicines Fine liquors Today Colombia exports about 250,000 Tons of flower per year, only 8,000 Tons go by sea, but growing year after year, shipping farther each day (Japan, Australia)
500% Growth
Our Neighborhood
Urabá case Est. 1000 Units per week - On anchor operations - Need to shift from cool carrier vessels to containers
Moín - Limón case Low vessel productivity Out gate yards Low draft - mall vessels (2000 TEU) Hi export volumes Shifting from cool carriers to containers still under transition
Venezuela case Few Plugs Hi dwell time Unstable energy supply Hi amount of imports
The fleet, the industry
New Vessel Deliveries 2013-2016 Source: Alphaliner 68% 73% % Naves de mas de 7,500 TEUS 86% 87%
Ampliación Canal Mega de Panamá - 2015 Hamburg Sud s Reefer Vessels Cap San Class Capacity: 9,600 TEUS TRB: 124,500 LOA: 333.3 Meters Beam: 48.2 Meters Draft: 15,5 Meters Reefer Plugs: 2,100 Hi terminal yard impact for turning around these vessels!!!
SAP-NE Key Fruit Export Seasonality- 2012
Is the expanded Panama Canal really going to generate much more transshipment in the area? New volume: 6 to 20 million TEUS??? Current Caribbean capacity Transshipment volumes Cartagena Domestic volumes Cartagena Source: M&N Outlook Report, Drewry Consultants.
Upcoming network changes?
A carrier s conceptual South America network idea Post Panama Canal expansion 10,000 TEUS 7,000 TEUS 14,000 TEUS 8,000 TEUS
AGAS/America s Service today 6 vessels x 4,000 / 4,500 TEUS Rotation: San Antonio, Callao, Buenaventura, Cartagena, Port Everglades, New York, Baltimore, Charleston, Port Everglades, Cartagena, Guayaquil, Callao, San Vicente Weekly: NB y SB 3 Partners: CSAV, Hamburg Sud, CCNI 3,500 TEUS per week, origin or destination South Pacific East Coast USA: 182,000 TEUS per year 500 TEUS 400 TEUS 400 TEUS 600 TEUS 550 TEUS 850 TEUS
AGAS/America s Service post Pan-canal expansion Service via TS between Asia East Coast and Europe North South Pacific Combination of vessels between 10,000 and 14,000 TEUS Same Weekly: NB y SB service 6,600 TEUS of new weekly transshipment volume is created; 364,000 TEUS/year About 500 new weekly Reefer TS units per week 400 TEUS 400 TEUS 600 TEUS 500 TEUS TS 550 TEUS 850 TEUS
Power supply challenge Power packs are not an option for hi volumes Hi risk Costly Dependability So Terminals that want to be in the game should ensure to have low cost energy, reliable supply and state of the art monitoring systems 4000 Plugs would provide energy to about 8000 homes!!
Cartagena: A quick investment outlook into 2016/2017 ITEM CURRENT 3erd QUARTER 2016 Gantry cranes 12 20 RTG s 48 90 55,000 85,000 Depth 13.5 Meters 16.5 Meters Capacity (Year) 2.5 Million 4.5 Million 1,200 Meters 1,700 Meters 1,600 4,200 6,600 TEU 14,000 Yard capacity (TEUS) Berth line under gantries Reefer plugs Largest vessels calling USD$ 550 million additional investment
For Terminals: Is all about Dis-economies of scale Dredge more, deeper Larger, more expensive cranes Array of value added services Energy/Plugs More equipment dedicated for each vessel Much higher productivity Expensive berths Compliance for green regulations Complex IT systems Training But who is willing to pay more??? Security / safety
Ports and the battle for Perishables THANK YOU Sao Paulo, May 14-2014