Ecuador terminal operators decry concession terms sought by new player

Dubai-based international terminal operator DP World is seeking to establish concession conditions at a new container terminal in Ecuador that are being rebuked by other operators in the country.

Last March DP World and Ecuador's transport and public works ministry (MTOP) signed a US$1.2bn MOU outlining that the international operator would design, build, finance and operate a container terminal in the Ecuadorian town of Posorja, located in Guayas province.

The concession period, as detailed in a public-private partnership arrangement, had been reported at 50 years.

DP World is said to be petitioning the MTOP to curb container handling operations at ports within a 200km radius of Posorja and is also seeking to prevent the channel between Posorja and the port of Guayaquil from being dredged to a depth greater than 9.75m, local newspaper El Diario reported.

Container traffic at the port of Guayaquil totaled approximately 1.8mn TEU in 2015.

Guayaquil terminal operator Contecon, the Ecuadorian subsidiary of Filipino ICTSI, has filed a complaint with Ecuador's anti-monopoly regulator, citing unfair practices on the part of DP World.

Ultimately the MTOP will have to rule on the matter, said Kevin Lazo, a public official with Ecuador's port of Manta authority (APM).

Posorja terminal, which was originally awarded in 2006 to Spain's Alinport, is planned to have a mooring depth of 15.5m and a 16ha container yard, among other infrastructure and handling components.

In 2015 DP World acquired a 55.9% stake in Alinport and the firm is also represented locally by Ecuadorian holding Consorcio Nobis.

Ecuador is seeking to consolidate several new port concessions after years of shunning such arrangements. In addition to Posorja, the government is favoring concession agreements at Manta and Bolívar.

In Manta, where the government had awarded a concession in 2006 only to cancel it three years later, APM is administering a tender for the 37-year concession and elected officials, in addition to President Rafael Correa, have indicated that Chilean firm Agunsa was the favorite to take over operations.

Yet, according to Lazo, four companies (from Chile, China, Peru, and the US) that are competing for the concession have delayed filing tender documents and only this week will the groups will take part in a site visit to Manta.

Required investment in the Manta concession has been estimated at US$175mn. However, MTOP minister Walter Solís stated earlier this week that repair costs from damage caused during last month's earthquake should also be assumed by the future operator, local television outlet Ecuavisa reported.