In a landscape where maritime trade is constantly changing, ports and terminals must remain competitive and offer added value to their customers, who expect fluid operations for their supply chains. For this reason, within the framework of TOC Americas 2024, A group of specialists addressed the issue “Infrastructure Development and Maritime Trade”, in a panel that focused on the analysis of the current conditions of port and terminal infrastructures in America; the latest trends that drive infrastructure development; connectivity as a competitive factor and financing and investment.

Agustina Calatayud, head of the Transportation Division of the Inter-American Development Bank (IDB) ensures that "Most countries in Latin America and the Caribbean have implemented port reforms, with the cooperation of the private sector, which has resulted in a better positioning of ports.”

He explained that the American continent has the potential to reshape the dynamics of maritime trade thanks to a series of funded projects that seek to improve the service of its ports and terminals. For example, the Port of New Orleans (Port NOLA) will receive US$73 million.

In New Orleans, APM Terminals will invest US$500 million in the construction of a modern container terminal at the Port of Plaquemines; in Peru, the Port of Chancay, developed by COSCO Shipping, will be completed and operating in the third quarter of 2024, competing with the Port of Callao (Lima), where DP World is investing US$350 million to increase cargo handling capacity by 80% (2,7 million TEUs) and another US$70 million in electrification systems to reduce carbon emissions; and, in Mexico, SSA Marine is investing heavily in the Port of Lázaro Cárdenas to expand its vehicle storage capacity and in the construction of an industrial park that aims to meet the growing demand for automobile imports from Asia.

Apart from the significant investment made by the private sector, Calatayud states that the “Automation and digital transformation through the implementation of automatic processes achieve cost reductions that, together with improved security and an increased preference for e-commerce, have restructured maritime trade.”

Likewise, Enno Koll, CEO for the Americas of PSA International, stressed that “During 2019-2024, the region experienced significant port growth. Brazil saw a 20% growth; while Manzanillo, 12%; the Port of Lázaro Cárdenas, 33%; Cartagena, 15% and Panama, 19%. These expansions, in turn, are also increasing the capacity of the terminals.”

To Koll It is essential to focus on optimizing the capacity of these terminals. This can be achieved by taking into account three pillars: Operational (ship dwell time, efficient yard management), Tactical (yard density, equipment, automation) and Strategic (network redesign, ecosystem/community, inland ports).

Growth in the region is expected to continue in the coming years as regional trade has ample room for development, he said.

Challenges

While it is true that the region is experiencing significant development, there are still many challenges that need to be addressed. “There is uncertainty worldwide due to the geopolitical situation. This may cause a period of contraction, as was experienced during the pandemic. Connectivity is also not the most cost-effective, as it is below African countries in terms of speed and with very high bureaucratic costs. Climate change remains a threat and carbon emissions need to be reduced urgently.” stressed Calatayud.

To mitigate these deficiencies, the IDB suggests the following solutions:

• Financing
• Public Policies: assist in the creation of a regulatory framework and public policies to encourage the private sector.
• Institutional reforms
• Strategic alliances

To William Elliott, President of Colon Container Terminals and Colon Logistics Park (CCT/CLP), ““The efficiency of port infrastructure is essential to boost business success and promote sustainable economic growth. Investments in this sector must be in line with fair and responsible business practices, ensuring balanced development that benefits all parties involved.” 

Despite the broad scope of infrastructure development projects, attracting and securing the necessary investment remains a major challenge for the port sector. While in some cases governments and maritime authorities provide the funding, in others ports rely on concessions to global operators to upgrade their infrastructure. Regardless of the funding strategy, appropriate collaboration between the public and private sectors is key to attracting and securing investment in ports.