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Business / Archive

25 February, 2008 12:45:26 | in import-export

The PTPA requires modernization and more port efficiency*



AmCham PeruInfo provided by the
American Chamber of Commerce of Peru (AmCham Peru)





Over the last weeks, we have been exposed first to troublesome, and then disastrous and contradictory news which could affect negatively our commercial trade if we want to take advantage of the U.S.-Peru Trade Promotion Agreement (PTPA). Despite promises by port authority to decongest shipping traffic in the port of Callao, various shipping lines have been forced to increase their loading and handling charges to those vessels that sight land in Callao, as of March 15, 2008, by about 128 Euros, or 200 U.S. dollars per container in Callao, using port congestion as their excuse for this increase. Already weeks ago, 90% of the shipping lines anticipating problems decided to reduce lifting of some tonnage in Callao because they believed that the “Enapu” measures, established to resolve the traffic congestion, were actually not giving the expected results.


The situation is appalling due to the fact that, in the past two weeks 8 various shipping lines have switched - scheduled ready and perishable cargo from Peruvian to other neighboring countries. Also, cargo previously scheduled for shipment had to be "rolled over" for new shipping dates, resulting in tremendous logistical and commercial problems which in turn, generate a very low level of productivity. Even now Callao, only moves 18 containers per hour, Buenaventura (Colombia) and Valparaiso (Chile), do about 50 per hour. Singapore goes over 100 containers per hour. In the meantime, the daily congestion at the port of Callao generated costs of over $100 per container.

Indeed the evolution of the markets, the services, as well as the required technology and the regulatory forces demand a progressive transformation in the state of our ports. In today’s globalized economy, many industries go around the world in search of low cost commodities which generate a fierce competition of each commodity with the final product, compelling for the integration of the ports with the manufacture and distribution systems. This is why the physical infrastructure of the ports should not only ensure the quick and efficient access to the vessels, being land or promenade, but also facilitate the reception, dispatch and manipulation of their cargos at a fairly reasonable cost.

Therefore, the pending agenda goes far beyond resolving the problems of the last few days, but requires an immediate modernization as well as a deep reform in: competitive tenders, increase of the physical capacity in port operations, technological investment, reduction of fares and port costs. Also, the quality and efficiency of the port services are fundamental for the implementation of national development. Even more so, if we want to better utilize the different trading agreements we have been negotiating and, finally, to place us in the strategic commercial route towards renovated business in other markets and blocks.



*Translated by Joceline Frank

Frankly Speaking Inc.


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8 Comments

# James Sutcliffe, Port Evolution, UK says :
26 February, 2008 [ 09:12 ]
Dear Sir

The realistic way forward for this port is to privatise the container terminal or indeed the whole port. We have a great deal of experience in this field, as the UK is the leading authority on port privatisation worldwide.

I have created Polands only 1M Teu deepwater container terminal at Gdansk (www.dctgdansk.com) and I am involved with port developments worldwide.

Ports are the "engine room" of any international economy, so it is vital to invest in port infrastructure and to continue to invest if Lima and Peru are to enjoy the fruits of their labour to export to overseas markets.

Do contact us if we can help.

Kind regards
James Sutcliffe
www.Port-Evo.com
# Robert Conant says :
27 February, 2008 [ 07:51 ]
From the Jan. 29, 2008 edition of El Diario Callao, I have a clipping of an article written by Adolfo Granadino, secretary-general of Fentenapu explaining the cause of the delays at the Port of Callao and Enapu's measures put forth to eliminate them and the reasons why the measures might be ignored by the commercial interests causing them. My suggestion is for AmCham to check in with the local office of the International Labor Organization of the United Nations to get a remedy for their nausea created by contrived "troublesome, and then disasterous and contradictory news". And dear Port Evolution, if you truly believe "it is vital to invest in port infrastructure and to continue to invest if Lima and Peru are to enjoy the fruits of their labour to export to overseas markets", then contact Senors Bravo and Paredes at Megapuerto.net and join their 14-billion dollar effort to privitize the government-held island of San Lorenzo and build Peru's superport. Now might be the opportune time as Peru's central government announces their sales of state land held in the upscale areas of Lima to developers. 

 
# James Sutcliffe says :
28 February, 2008 [ 01:59 ]
We have expressed an interest in the project in view of our experience and contacts.
# David Carranza says :
28 February, 2008 [ 06:48 ]
The maiden voyage of the Olimpic Bravery did not last long ,just a few hours.This V.L.C.C. ran aground on rocks off the coast of Brittany,France.The vessel had been a double problem for her owners.NOt only did this "monster of the seas" become a  wreck before earning any money,but she also became obsolete before ever doing a day's work.On this disastrous voyage,the Olimpic Bravery was destined to be laid up joining many ohters vessels in premature redundancy. The plight of the Olimpic Bravery well symbolizes the problems surrounding a modern breed of ships,dubbed supertankers due to their tremendous size. The amtter of international ports is money and risks, who knows what innovations may bring to accelarate the economics of international trades and developemnets of ports.
By Dave
# Robert Conant says :
28 February, 2008 [ 04:50 ]
There are proposals pending in the Peruvian Congress and its ministries and gov agencies to remove the mineral exporting industry away from the Port of Callao to a yet determined northern port. Doing this is projected to free up the port to focus on container movement and aditionally, in the case of the decades-long storage of lead, to stop the posioning of children living nearby. In the case of Megapuerto San Lorenzo, yes there are redundancies with mega-seaport next to seaport, but propose that all cargo flights now lifting off from Callao's Chavez International Airport be transferred to San Lorenzo's runways and we see another socially responsible action preventing the sense-deprivation and sound assaults upon the organs of Chalacos living under these there-is-sooner-or-later-going-to-be-a-mother-of-a-take-off-crash into-the-populated-areas-under-these-skirting-ICAO regulations-on-flight-path-height cargo planes.
# Luis Caceda says :
10 March, 2008 [ 08:37 ]



As Peruvian born, my opinion is that yes let go open business with mega.port. We need a port to build in San Lorenzo and began to make a satisfaction job for the vessel. Indeed, The economic will be increase rapidly in favor to Peru and Callao. I hope that some officials from the ENAPU could read this comments  and put away all personal greedy and start to build the San lorenzo Port for the welfare the all Peruvian People. God Bless You
# Arturo Sabroso says :
16 March, 2008 [ 04:38 ]
Hi my name is Arturo Sabroso, peruano, with Artex Intl. Link, company based in Tampa FL.
Did you know, that the Port of Tampa is the largest Port in Florida  and handle more cargo alone that all the Florida ports together, including Miami?
With the new proyect of the Canal of Panama (enlargement),the first Ports that going to take advantage of this situation are going to be Florida Ports, that already are taken measures and investing million of dollars in infrastructure to be competitives in the global market.
The same way, I think  for double reason our Puerto del Callao should be ready to operate(maybe under an agreement between ENAPU and an international Port Management Company); and compite at the level of the international comunity, first because the Free Trade Agreement with the USA and second, because the expansion of the Canal of Panama that will bring more business and progress to Latin America especially to nuestro querido Peru.
# Muama mensah says :
26 March, 2008 [ 09:32 ]
I am Muama Mensah I'm looking for a honest and hard working Individual/company that can help me to invest in Transportation Industry or any other profitable business.Please contact me for more details and your area of investment offer.
my email is muama.mensah@yahoo.com please don't send scam letters here.
Muama Mensah

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