Latin American Ports and Transport Infrastructure Challenges FERNANDO SÁNCHEZ-ALBAVERA DIRECTOR DIVISION OF NATURAL RESOURCES AND INFRASTRUCTURE ECLAC, UNITED NATIONS

Houston, TX. Dec 7, 2005 General ideas Maritime transport has followed the steps of the world economy, the new role of trade and the new economic geography Maritime transport and logistic, jointly with the communications revolution, are responsibles for globalization Trade is the driver of economic growth A positive and close relationship exists between infrastructure, transport and logistic services improvements and the economic growth Changes in the transport industry during the last years have been dramatic and stabilization will take time Changes in maritime transport depend more and more on the great changes in the world economy It is necessary to be alert to changes in general macroeconomic conditions The ports in Latin America, as development keys, show a modernization process with different level of progress and related problems

Houston, TX. Dec 7, 2005 ECONOMIC REFORM INDEX IN LATIN AMERICA Total Reforma financiera Reforma tributaria Reforma comercial Reforma de la cuenta capitales Privatización

Houston, TX. Dec 7, 2005 Economic growth in Latin America

Houston, TX. Dec 7, 2005 International trade in global economic growth

Houston, TX. Dec 7, 2005 Foreign investments in Latin America (USD Thousands)

Houston, TX. Dec 7, 2005 TRADE AGREEMENTS TRADE AGREEMENTS Mundo Países de ALC GATT OMC

Houston, TX. Dec 7, 2005 EXPORTS GROWTH 2000 = 100

Houston, TX. Dec 7, 2005 TRADE AGREEMENTS % of national exports Fuente: CEPAL, Naciones Unidas ACPI: Acuerdos Comerciales Preferenciales intrarregionales ACPE: Acuerdos Comerciales Preferenciales extrarregionales ACP: Acuerdos Comerciales Preferenciales

Houston, TX. Dec 7, 2005 EXCHANGE TRADE INDEX

Houston, TX. Dec 7, 2005 Latin America Port Laws & Reforms Port Laws: 1991: Colombia, Argentina 1992: Brazil, Uruguay 1993: Mexico 1997: Chile, Panama 1999: Paraguay 2000: Colombia 2001: Venezuela 2002: El Salvador 2003: Peru Franchised or Private Ports: Argentina Bolivia Brazil Chile Colombia Cuba Mexico Panama Paraguay Uruguay Underlined: Approved laws / partial or no reforms Underlined: No special laws / reforms done

Houston, TX. Dec 7, 2005 Reform Characteristics Reformed public ports were transferred to the landlord system There are major industrial, specialized, and highly- efficient private ports There are (new) major highly-efficient private ports of public use when authorized by law Sizable share of foreign capital investments, with exceptions Some performance and institutional differences can be observed between reformed ports In many countries, there is no relation among port reforms, transport, and logistics.

Houston, TX. Dec 7, 2005 Economic vs. port activity Base 1996=100, according to TEUS

Houston, TX. Dec 7, 2005 Economic vs. port activity Base 1996=100, according to MT tr.

Houston, TX. Dec 7, 2005 Port movement index, by regions. Base 2000= and forecast to 2009 Source: author based on ECLAC and Drewry Shipping Consultant Ltd. info

Houston, TX. Dec 7, 2005 Comparative efficiency. A growth path.

Houston, TX. Dec 7, 2005 Productivity changes

Houston, TX. Dec 7, 2005 Ship size in Latinamerican ports, Fuente: Ricardo J. Sánchez, CEPAL, sobre la base de informaciones propias, y la gentileza de Doerr, O. y Victor H. Tarántola. Panamá, No transit Costa Oeste Costa Este

Houston, TX. Dec 7, 2005 Port depths in Latin America Sufficient for future needs:8Around 42 feet Mid – situation:7Around 39 feet Sufficient only for current needs: 29Around 32 feet Insufficient7Around 26 feet Survey: Main container ports, 17 countries: 51 ports of Latin America, off Caribbean

Houston, TX. Dec 7, 2005 Source: R. J. Sánchez and G. Wilmsmeier, CEPAL, DRNI Logistic and transport infrastructure bottlenecks in Latin America and the Caribbean Se trata de una aproximación gráfica y no pretende describir con precisión todas y cada una de las insuficiencias específicas Los límites y los nombres que figuran en este mapa no implican su apoyo o aceptación oficial por las Naciones Unidas

Houston, TX. Dec 7, 2005 The perspectives for the next years ( ) are positive, with an expected annual growth of 9-10%. The negative perspectives are associated to oil prices that could continue to increase. The Far East and China will continue as leaders of higher growth, although ISC will also lead. There are new opportunities for Latin America. Transport frequency will increase from the Far East to United States through the Panama Canal, resulting in more possibilities of transshipping in Latin America. The expansion of the Terminals in Panama, Mexico and the Caribbean (Colombia?), within the framework of known merges, will change the patterns of maritime trade in Latin America. The least developed ports must prepare themselves, but more developed must be alert too! Cargo shippers will have to adopt other negotiation strategies to encounter the above mentioned changes. The relevance of the learning curve. Pressures on ports will increase both in investment requirements as well as in price discrimination practices. Some outlooks:

Houston, TX. Dec 7, 2005 Growth in trade and port traffic remain strong Bigger ships and higher frequency are expected The consolidation process in ports and transport will continue Port development capacity must go ahead of demand Work ideas

Houston, TX. Dec 7, 2005 More speed is required in the containers operation, otherwise new bigger ships have no sense. The main ports of the world are technically prepared for the change …. and Latin America? The strategic planning process is crucial. All the traffic to all ports? The port congestion is an increasing problem … what happens to logistic congestion? There are regulatory problems associated to the maturation and development of port reforms.

Houston, TX. Dec 7, 2005 Conclusions: In a context with apparently favorable economic and business conditions in the region, with fewer uncertainties as to the demand for the products exported by the region, the port development and related services, especially the logistic, come across both barriers and favorable aspects: Opportunities: Good trade and macro prospects in the region Good port development, at terminal level, yet with differences among countries Higher demand for services due to a sustained increase in both international and intraregional trade Higher demand for services due to the operating changes in the maritime transport service Barriers: Current ports vs. future fleet Logistic services not mature The limitations and insufficiencies of the transport system may restrict trade Funding problems Instability in local policies for the provisioning of port services, as well as in investment conditions Lack of appropriate distribution ports, especially in the Pacific coast

Houston, TX. Dec 7, 2005 Final thoughts Ports are more important than we thought, and they will be even more! Can we keep on thinking separately ports from logistic? Do we have time to loose? Which is the temporary difference between trade evolution and achievements in infrastructure transport, logistics and ports? Can we risk the driver of growth and competitiveness?

Houston, TX. Dec 7, 2005 Aportes de la CEPAL/DRNI al desarrollo marítimo, portuario y logístico en América Latina y el Caribe Misiones de asistencia técnica a los países y organismos regionales de integración, al sector público y privado Organización y participación en conferencias, seminarios y reuniones de expertos BIENIO 2004/2005: 42 misiones Colaboraciones con organismos especializados: IIRSA, CIP/OEA, AAPA (American Association of Port Authorities), OMI, PIANC (International Navigation Association), IAME (International Association of Maritime Economists), etc. Estudios y publicaciones

Houston, TX. Dec 7, 2005 Estudios: Series DRNI (1) Medidas de productividad para la industria portuaria. Aplicación en América Latina y el Caribe Octavio Doerr Núñez y Ricardo J. Sánchez, dic. del Hacia un desarrollo sustentable e integrado de la Amazonía, Pedro Bara Nieto, Ricardo J. Sánchez, Gordon Wilmsmeier, noviembre del Infraestructura y servicios de transporte ferroviario vinculados a las vías de navegación fluvial en América del Sur, Gordon Wilmsmeier, nov. del 2005 Ciudades puerto en la economía globalizada: alcances teóricos de la arquitectura organizacional de los flujos portuarios, José Granda, noviembre del Bridging infrastructural gaps in Central America: prospects and potential for maritime transport, Ricardo J. Sánchez and Gordon Wilmsmeier, September, Provisión de infraestructura de transporte en América Latina: experiencia reciente y problemas observados, Ricardo J. Sánchez y Gordon Wilmsmeier, agosto del El desarrollo productivo basado en la explotación de los recursos naturales, Fernando Sánchez Albavera, diciembre del Puertos y transporte marítimo en América Latina y el Caribe: un análisis de su desempeño reciente, Ricardo J. Sánchez, noviembre del 2004.

Houston, TX. Dec 7, 2005 Protección marítima y portuaria en América del Sur, Ricardo J. Sánchez, Rodrigo García, Martín Sgut y otros, noviembre del 2004 Concesiones viales en América Latina: situación actual y perspectivas, Alberto Bull, septiembre del Desarrollo de infraestrucutura y crecimiento económico: revisión conceptual, Patricio Rozas y Ricardo Sánchez, agosto del Comercio entre los países de América del Sur y los países de la Comunidad del Caribe (CARICOM): el papel que desempeñan los servicios de transporte, Ricardo Sánchez y Myriam Echeverría, noviembre del El pago por el uso de la infraestructura de transporte vial, ferroviario y portuario, concesionada al sector privado, Ricardo Sánchez, noviembre del Acceso a la información: una tarea pendiente para la regulación latinoamericana, Andrei Jouravlev, agosto del Identificación de obstáculos al transporte terrestre internacional de cargas en el Mercosur, Ricardo J. Sánchez y Georgina Cipoletta Tomasian, mayo del Estudios: Series DRNI (2)

Houston, TX. Dec 7, 2005 Estudios: Series DRNI (3). En proceso Las regulaciones de seguridad en puertos y buques, un año después del Código PBIP de la OMI. Costos y desempeño actual. El impacto de las regulaciones bilaterales de seguridad portuaria en las negociaciones de los Tratados de Libre Comercio. Productividad en la industria portuaria. Segunda parte. Puertos y transporte marítimo en América Latina y el Caribe, versión 2005.

Houston, TX. Dec 7, 2005 Boletines FAL Nº 228 Agosto/2005 El ciclo marítimo y las tendencias de la industria en América LatinaEl ciclo marítimo y las tendencias de la industria en América Latina Nº 227 Julio/2005 Las medidas de protección portuaria: Un año después del código de protección de buques e instalaciones portuarias (PBIP)Las medidas de protección portuaria: Un año después del código de protección de buques e instalaciones portuarias (PBIP) Nº 227 Julio/2005 Port Security Measures: One Year after the Entry into Force of the International Ship and Port Facility Security Code (ISPS Code)Port Security Measures: One Year after the Entry into Force of the International Ship and Port Facility Security Code (ISPS Code) Nº 224 Abril/2005 Costos de transporte como barreras al comercio internacional de bienes agrícolasCostos de transporte como barreras al comercio internacional de bienes agrícolas No.223 March/2005 Tourist Cruise Ships and the Trade in Services: Recent Trends in Countries of the Caribbean BasinTourist Cruise Ships and the Trade in Services: Recent Trends in Countries of the Caribbean Basin Nº 223 Marzo/2005 Los cruceros turísticos y el comercio de servicios: tendencias recientes en los países de la Cuenca del CaribeLos cruceros turísticos y el comercio de servicios: tendencias recientes en los países de la Cuenca del Caribe No.221 January/2005 Recent increases in shipping costs and their impact on exports from Latin AmericaRecent increases in shipping costs and their impact on exports from Latin America Nº 221 Enero/2005 Los recientes aumentos en el costo del transporte marítimo y sus efectos sobre las exportaciones de América LatinaLos recientes aumentos en el costo del transporte marítimo y sus efectos sobre las exportaciones de América Latina No.216 August/2004 Maritime and port security in South America: implementation costsMaritime and port security in South America: implementation costs Nº 216 Agosto/2004 Protección marítima y portuaria en Sudamérica: los costos de implementaciónProtección marítima y portuaria en Sudamérica: los costos de implementación No.215 July/2004 Maritime and port security in South America: the situation in mid-2004Maritime and port security in South America: the situation in mid-2004 Nº 215 Julio/2004 Protección marítima y portuaria en Sudamérica: la situación a mediados del 2004Protección marítima y portuaria en Sudamérica: la situación a mediados del 2004 No. 213 May/2004 Ocean freight, shipbuilding costs and charter rates: recent trendsOcean freight, shipbuilding costs and charter rates: recent trends Nº 213 Mayo/2004 Fletes marítimos, precios de construcción y arriendo de buques: sus cambios recientesFletes marítimos, precios de construcción y arriendo de buques: sus cambios recientes No. 207 November/2003 Infrastructure, transport and production development in an agricultural region: a case in Argentina.Infrastructure, transport and production development in an agricultural region: a case in Argentina. Nº 207 Noviembre/2003 Infraestructura, transporte y desarrollo productivo de una región agrícola: un caso de ArgentinaInfraestructura, transporte y desarrollo productivo de una región agrícola: un caso de Argentina

Houston, TX. Dec 7, 2005 Thank you very much… Fernando Sánchez-Albavera Director Division of Natural Resources and Infrastructure ECLAC/UN