GOOD FORTUNE
Colombia is blessed with being the only country in South America with direct access to the Pacific Ocean, the Caribbean Sea, and the Atlantic Ocean, but its Pacific ports have long been overshadowed by their flashier Caribbean counterparts. With an ambitious investment initiative from the public and private sector, that is about to change.
Colombia is blessed with being the only country in South America with direct access to the Pacific Ocean, the Caribbean Sea, and the Atlantic Ocean. Although all of its ports have made tremendous strides since privatization in the 1990's, Colombia's Pacific ports—Buenaventura and Tumaco—have long been overshadowed by their flashier Caribbean counterparts due to ailing infrastructure and their status of as two of Colombia's most dangerous cities. Despite being the busiest port in Colombia, moving 16 million tons of cargo in 2015 according to the Superintendencia de Puertos y Transporte, Buenaventura earned its reputation for being the battleground between rival criminal organizations, La Empresa and Los Urabeños, the heirs of prior paramilitary groups.
However, the situation is changing for the better. With Colombia's sights on Pacific Rim and East Asian trade, attracting investment and development to the Pacific coast has been a priority for the Santos administration. China has risen to become the most important trade partner after the US; a FTA recently went into effect with South Korea; and another is in the negotiation stage with Japan. More exports leave Colombia from its Caribbean ports, but growing imports from Asia have helped Buenaventura account for roughly 55-60% of the country's total foreign trade volume. In light of these developments, efforts have been made to clean up Buenaventura, and connectivity issues with the rest of the country are slated to be addressed with the massive 4G infrastructure plan. Meanwhile, hundreds of millions of dollars are being invested to upgrade the Pacific ports themselves.
In late 2016, the USD485 million first phase of Buenaventura's Aguadulce Multi-user Container Terminal (AMCT) came online. Connected to the four other terminals of the Buenaventura port, the new 600 meter dock and its four super Post-Panamax cranes are expected to bring the port's total annual capacity from around 400,000 TEUs to 600,000 TEUs. The super Post-Panamax cranes are of utmost importance for increasing the port's competitiveness in handling the largest class of shipping vessels able to cross the recently expanded Panama Canal. The main partners of AMCT are Singapore's PSA and the Philippines' International Container Terminal Services Inc. The second phase of the AMCT will further extend its length to 900m, allowing a capacity of 1.4 million TEUs. While addressing the milestone opening of AMCT, Luis Fernando Andrade hailed the investment for its contributions to the region and the country, citing that it would provide 600 new jobs.
Beyond AMCT and the four other operational terminals, the port's ambitious future includes other projects, such as Puerto Solo and Delta Del Río Dagua.
Puerto Solo, which will be contiguous to the Container Terminal of Buenaventura and Delta del Río Dagua. Approved by the Ministry of Transport in early 2016, Puerto Solo is an estimated USD1.2 billion complex from the Gepsa Group for hydrocarbons, particularly for the regasification of imported LNG and the export of propane-butane. The complex will have a total area of 150ha.
The Delta del Río Dagua Maritime Terminal is another upcoming project in the Bay of Buenaventura designed to be a mixed-use complex, with capacity to handle a diverse array of items, such as handle liquid fuel, fishery products, and lumber, in addition to hosting an industrial zone.
With strong support from both the public and private sector, Buenaventura is set to further increase its already important role in the regional and national economy. If its timely investments were to align with a significant reduction in organized crime, a successful post-conflict era, and the completion of the highly ambitious 4G infrastructure plan, the Buenaventura port would be a gamechanger for the country, and will have finally lived up to the weight of its name—Good Fortune.
GOOD FORTUNE
TABLE OF CONTENTS
Focus: Nobel Prize
Eyes on the Prize
Juan Manuel Santos' Nobel Prize demonstrated the international community's recognition of his efforts toward forging permanent peace with the FARC, but the process of ratifying the treaty reveals that the issue remains as complicated as ever for Colombians.
read articleGuest Speaker
Luís Guillermo Solís Rivera, President, Costa Rica
TBY talks to Luís Guillermo Solís Rivera, President of Costa Rica, on respecting the sovereign power of the Colombian people, the critical areas of Caribbean security where both countries can work together, and the importance of burgeoning industrial ties between Colombia and Costa Rica.
read articleInterview
Ernesto Samper Pizano, Secretary-General, Union of South American Nations (UNASUR)
TBY talks to Ernesto Samper Pizano, Secretary General of the Union of South American Nations (UNASUR), on working with regional powers to bolster the peace process, boosting citizen participation at home and in the region, and forging a new concept of hemispheric security.
read articleInterview
María Claudia Lacouture, Minister, Commerce, Industry, and Tourism
TBY talks to María Claudia Lacouture, Minister of Commerce, Industry, and Tourism, on integrating Colombia's markets with natural regional partners, boosting underserved areas, and making sure that areas like bird-watching flourish.
read articleInterview
Patricia Tovar, Executive Director, Colombian British Chamber of Commerce (BRITCHAM)
TBY talks to Patricia Tovar, Executive Director of Colombian British Chamber of Commerce (BRITCHAM), on standing behind the UK despite Brexit, the opportunities offered by 4G, and why Colombia is one of the UK's best long-term bets in Latin America.
read articleInterview
Ricardo Ávila, Editor-in-Chief, Portafolio
TBY talks to Ricardo Ávila, Editor-in-Chief of Portafolio, on the biggest social, political, and structural changes Colombia must make to reap a full peace dividend, maximizing its huge agricultural potential, and the cornucopia of sustainable energy possibilities.
read articleInterview
Juan José Echavarría, Governor, Banco de la República (Central Bank of Colombia),
TBY talks to Juan José Echavarría, Governor of Banco de la República (Central Bank of Colombia), on the bank's cultural role in securing a broader peace, the importance of saving, and why the economy must still open up even more.
read articleInterview
Marcela Vaca Torres, Colombia General Director , GeoPark
TBY talks to Marcela Vaca Torres, Colombia General Director of GeoPark, on GeoPark's assertive moves in exploration investments, regulatory opportunities to encourage exploration, and new opportunities in shale gas and offshore resources.
read articleInterview
Francisco José Lloreda, Executive President, The Colombian Oil & Gas Association (ACP)
TBY talks to Francisco José Lloreda, Executive President of The Colombian Oil & Gas Association (ACP), on expectations for the year, increasing the feasibility of hydrocarbon projects, and the state of the offshore sector.
read articleFocus: Gold
The Road to El Dorado
2016 has been a mixed and sometimes challenging year for the mining industry in Colombia, especially for gold, due to legal issues, competitiveness, and high volatility in international markets. While gold exports rose 40.5% in 2016 to USD1.5 billion, the Colombian Mining Association estimates that up to 80% of gold production is done illegally.
read articleInterview
Guilherme Franklin, Managing Director , Tetra Pak Andina
TBY talks to Guilherme Franklin, Managing Director of Tetra Pak Andina, on the decision to locate the regional headquarters in Bogotá, the plan for double-digit growth, and its efforts on digital innovations and sustainable operations.<span></span>
read articleInterview
Ricardo Bribiesca, President & Director General of the Andean Region , PPG Industries
TBY talks to Ricardo Bribiesca, President & Director General of the Andean Region of PPG Industries, on strategic areas of growth, product segmentation, and raising the bar for industry sophistication.
read articleInterview
Zully Salazar Fuentes, President, The Cartagena Tourism Corporation (Corpoturismo)
TBY talks to Zully Salazar Fuentes, President of The Cartagena Tourism Corporation (Corpoturismo), on the successes of the past year, becoming a model for other regions, and focusing on sustainability.
read articleFocus: Buenaventura Port
Good Fortune
Colombia is blessed with being the only country in South America with direct access to the Pacific Ocean, the Caribbean Sea, and the Atlantic Ocean, but its Pacific ports have long been overshadowed by their flashier Caribbean counterparts. With an ambitious investment initiative from the public and private sector, that is about to change.
read articleReview: DOING BUSINESS
Doing Business in Colombia
The first year of Colombia's extensive fiscal reform has made doing business slightly more difficult in the immediate short term. Yet, if the state achieves even half of its goals in doing so, it will significantly improve the long-term corporate outlook for the country.
read articleInterview
Michelantonio Bosso, Regional Manager & Director of Operations of Latin America, Grupo Menarini
TBY talks to Michelantonio Bosso, Regional Manager & Director of Operations of Latin America of Grupo Menarini, on the importance of Colombia to the company and its goals for the local office.
read articleFocus: Zika VIrus
Ending the Epidemic
The Zika virus posed a special threat to the 26 million Colombians living in 900 municipalities below 2,200m. Nevertheless, due to proper surveillance, international cooperation, and an immediate government response, Colombia was the first country in the Americas to announce the end of the Zika epidemic.
read articleInterview
Alfonso Prada Gil, Director General, The National Service of Learning (SENA)
TBY talks to Alfonso Prada Gil, Director General of The National Service of Learning (SENA), on its key role post conflict, upcoming development projects, and its focus on technical and technological training.
read articleInterview
Cecilia María Vélez White, Rector, Universidad de Bogotá Jorge Tadeo Lozano
TBY talks to Cecilia María Vélez White, Rector of Universidad de Bogotá Jorge Tadeo Lozano, on the impact of its new university building, developing agricultural management programs, and becoming an innovative university.
read articleInterview
Fr. Juan Ubaldo López Salamanca, O.P., General Rector, Universidad Santo Tomas Colombia (USTA)
TBY talks to Fr. Juan Ubaldo López Salamanca, O.P., General Rector of Universidad Santo Tomas Colombia (USTA), on its growth plans across the country and its contributions to society.
read articleFocus: EDUCATION INVESTMENT
Striking A Deal
Teachers went on strike for the second time in two years in May 2017, fighting for increased wages, improved infrastructure, and more teacher development programs. Will the government's offer be more broken promises or will Colombia write a new chapter for the textbooks?
read article