PORTS
Increasing support from the government for infrastructure projects has put a renewed focus on Colombia's ports, a key node in the country's transport and logistics network.
Most of Colombia's ports are adequate, but the problem lies in the connectivity with the rest of Colombia. We are going to have four terminals in Buenaventura, which is sufficient. However, the connection among these ports and inland is inadequate. The government is making huge investments in 4G concessions, but we have to expedite this process if we want to be competitive. The government has to pay more attention to the port in Buenaventura, not only in order to be competitive, but also for the people. The condition of the port is currently abysmal, and there is a great deal that needs to be done with regard to social matters. We have a foundation called Étika Verde and are currently working in different neighborhoods in Buenaventura to educate people on environmental issues and on how to invest in their own companies to help them progress. We have an agreement with the government in our concession to invest $80 million over the next 15 years. We are starting next year in Cartagena, investing $50 million in a project, and for Buenaventura we have to invest $80 million. We bought a new conveyor belt system to charge vessels in Buentaventura. We invested around $5 million this year and next year we are going to build a specialized warehouse, for grains, which will cost around $15 million.
Overall in Latin America, ports are fulfilling their goals. Over the last 20 years many countries in the region underwent privatization, and Colombia also took part in this process. This has been beneficial for the region and for the country. In my view the government does not need to be paternalistic toward the ports and should leave their operations to private enterprise. In fact, shortly afterwards privatization Colombia's ports improved their operations. This has been hugely beneficial to the country's foreign trade. As such, I am not really worried about the ports. They are well managed and have a good level of investment, with some ports belonging to international, and some to Colombian companies. What is a concern is the lack of connectivity between ports and cities. This is a severe problem for Colombia. One of our stated goals is to work on the development of the ports. However, the problem is not with the ports, it is with the logistics from the ports to the cities. This is what the country needs to improve on. Currently, it is considerably more expensive to ship cargo domestically from Cartagena Port to Bogotá, compared to shipping it internationally from China to Cartagena. This is due to the poor connectivity and logistics between Colombia's cities.
The currency depreciation and the fall in commodity prices made 2015 a complex year. Our terminal port is specialized in the transport of liquid and solid bulks with hydrocarbons, a sector that has decelerated. The two important port competitors of Barranquilla are Cartagena and Santa Marta. In order to bring more cargo into their ports, the operators had to drop fees to be more competitive. Barranquilla is an important port for hydrocarbons, and as MichellMar is located within the city we subsequently faced a difficult year. The main advantage that a port in Barranquilla has is the Magdalena River, which in the near future will be navigable. That is a major competitive advantage because the river runs through the middle of the country and will allow shipping companies to transport cargo to the heart of Colombia. The gate to the Magdalena, and consequently to Colombia, remains Barranquilla. Every single ship that either comes to or leaves Colombia will have to stop in Barranquilla. That route will connect the mines with the port, which represents a massive opportunity for us. If they improve that infrastructure, we can reduce the time and cost of transport. Therefore, we will definitely be more competitive as a result of better connections. Sometimes freight from Barranquilla to Europe costs the same as cargo from the mines in Boyacá to Barranquilla.
PORTS
TABLE OF CONTENTS
Interview
Bruce Mac Master, President, National Business Association of Colombia (ANDI)
TBY talks to Bruce Mac Master, President of the National Business Association of Colombia (ANDI), on tackling obstacles to competitiveness in the economy, participating in the global value chain, and the impact of the currency devaluation.
read articleFocus: Bank Expansion Abroad
Fortune Favors the Brave
Colombian banks have greatly expanded their operations in Central America in the last decade. The dramatic growth of the middle class and the internationalization of the Colombian economy has propelled growth. The market has shaken the shackles of the large players who used to dominate the market, with smaller institutions expanding and widening their coverage across the region.
read articleInterview
Mauricio De La Mora Rodríguez, Former President, National Hydrocarbons Agency (ANH)
TBY talks to Mauricio De La Mora Rodríguez, Former President of National Hydrocarbons Agency (ANH), on promoting investment, gaining knowledge of offshore activities, and the short-term outlook.
read articleInterview
Eduardo Jaramillo Cuervo, President & CEO, General Electric (GE)
TBY talks to Eduardo Jaramillo Cuervo, President & CEO of General Electric (GE), on the role GE intends to play in developing Colombia's energy value chain and creating a diversified matrix to support the country's energy needs for years to come.
read articleInterview
Adriana Lucia Falla, General Manager, SoftManagement S.A
TBY talks to Adriana Lucia Falla, General Manager of SoftManagement S.A., on the important elements of the company's business, its key strengths compared to its competitors, and the significance of the IT sector in Colombia.
read articleInterview
Juan Martin Caicedo Ferrer, Executive President , Colombian Chamber of Infrastructure (CCI)
TBY talks to Juan Martin Caicedo Ferrer, Executive President of the Colombian Chamber of Infrastructure (CCI), on the future of infrastructure in the country, challenges, and the role of SMEs.
read articleFocus: 4G Generation
Motoring Toward Development
Colombia is looking toward the future and improving its transportation network by renewing road infrastructure, putting an end to the nation's underdevelopment in roads and highways. The government estimates that in the next four years the 4G program will dramatically enhance the Colombian economy, shortening traveling time between cities and, consequently, reducing transportation costs.
read articleFocus: Coffee
Morning Joe
Colombian coffee has an incredible reputation for its aroma, taste, and purity, which is why it is considered one of the best quality coffees in the world. This belief has not changed despite the entrance of huge producing countries such as Ethiopia, Brazil, and Vietnam into the market.
read articleReview: Education
Gold Star For You
In recent decades, Colombia made changes to nearly every level and aspect of its education system and has been exceeding the expected results, putting the country on the right track to achieve the president's goal of becoming the best educated country in the region.
read articleReview: Tourism
It's Not Magic
A reputation for violence had for many years stunted the growth of Colombia's tourism sector. But now that the country has enormously improved its image abroad, there is little to prevent it from becoming one of the most ideal destinations in Latin America.
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