Guatemalan private sector wants more investment in port infrastructure

Representatives of Guatemala's private sector are calling for more investment to improve port infrastructure to boost capacity and avoid increases in prices of goods transported by sea.

The capacity of the country's ports is no longer sufficient, the president of the Guatemalan business association Fundesa, Juan Carlos Paiz, said during a forum on port investment.  

The freight volumes handled by Guatemalan ports are expected to climb by 30% or more during the next six years, not considering government programs that could boost the growth to 50%, he was reported as saying by Prensa Libre.  

The lack of capacity and congestion at ports leads to long waiting times, Paiz said during the forum "Diagnosis, challenges and investment opportunities in the national port system". 

“Waiting fees for ships cost US$75,000 per day,” he said. “If you have 12 ships, that amount is around US$1mn per day, which is passed on to consumers, besides the time wasted due to congestion that will increase if investments are not made,” he underlined.

Another problem highlighted by Paiz is the lack of depth at some ports, which can mean that ships cannot be at full capacity when leaving or arriving.

The competitiveness manager of Guatemalan industrial chamber CIG, Andrea Romero, also suggested during the forum that ports implement digital platforms that allow smart, smooth and more rapid shipment and loading/unloading processes.

The president of the Guatemalan shipping agent association (Asonav), Roberto Papadolpolo, also highlighted that freight volumes increased by 120% from 2000 to 2020, pointing out that the shipping industry is directly affected by the state of the available infrastructure. 

“The shipping sector experiences the consequences or benefits of good or bad infrastructure, and efficient or inefficient service, which affects performance because everything adds up and, if there is a delay there are other repercussions because everything is observed by international companies when considering foreign trade routes,” he said. 

Meanwhile, the president of the national port commission, Omar Barrios, called for authorities to consider port concessions as a means of reducing the State's responsibility for infrastructure investments. 

Photo: Quetzal Port. Credit: AFP