Ecuador's Manta port authority (APM) and the port's concessionaire Terminales Internacionales del Ecuador (TIDE) are discussing a new work schedule to push the port development forward, APM general manager Patricio Padilla told BNamericas.
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The port's expansion works, which include the construction of a fishing and container handling terminal, will be ready in 2010, said Padilla.
APM has determined that rushing port development is essential to keep up with current and future demand without falling behind in terms of competitiveness and losing business to its main competitor, Peruvian port Callao, Padilla said.
CONCESSION MODIFICATIONS
TIDE submitted a document to APM requesting a number of modifications in the concession contract.
According to the contract's article 66.1, unilateral changes can only be made by APM, unless extraordinary circumstances take place, or the project's financial structure changes.
Therefore, if TIDE wants to make changes, it must submit the suggestions to APM. The entity then analyzes the modifications and, if in agreement, accepts and implements them.
However, APM looked at the suggestions made by TIDE and believes they are not in the interests of the state, but rather in the interests of the concessionaire's partner, who wants to obtain a number of advantages from the initiative, Padilla said.
This decision will not affect the concession at all, Padilla said, adding that works are being carried out as expected.
THE PROJECT
Manta port's expansion will require US$578mn, of which US$523mn will be covered by TIDE and up to US$55mn will be covered by the state through a trust that is already available, Padilla said.
Works will kick off with the remodeling of the port's operations building, the reinforcement of the docks used for international trade and the dredging of the port's access canal to increase depth from 12m to 14m. The construction of a 300m deepwater docking area will follow the initial works.
TIDE is responsible for developing the port into an international container terminal and once investments have been made, within three years the port will increase its actual handling capacity of 40,000 TEUs/y to 80,000 TEUs/y. The ultimate goal is to handle 1.6mn TEUs/y, the Andean Development Corporation (CAF) previously reported.
GLOBAL CRISIS
The global financial crisis is likely to have an effect on the port's demand projections, as it will probably affect trade.
It may also affect new projects, as firms are now being extra cautious before carrying out new initiatives, mainly due to financing conditions.
However, the crisis will not have an effect on the terminal's works because - according to the concession contract - it is mandatory that the concessionaire carries them out during the first few years of concession, said Padilla.
TIDE is a subsidiary of Hong Kong-based multinational port operator Hutchison Port Holdings.
