The operator of the port of Limón in Costa Rica, is seeking to diversify its business focusing on conventional cargo handling, in order to compensate for the losses it will face when APM Terminals 's container port comes into operation.
Serving as port of departure for more Nicaraguan exporters and transporting more iron and vehicles are two of the objectives that make up the strategy envisioned by Japdeva, the concessionaire of the port of Moín, in Limón, which they intend to follow over the next few years.
The union of shipowners and steam ship agents in Costa Rica has expressed its opposition to the decision by Japdeva to close one of the berths in Puerto Moin for two months.
The National Chamber of Shipowners and Steamship Agents (NAVE), have questioned Japdeva's decision to close one of the berths between November 7 and January 31, arguing that it is"...
Although the $55 million loan to build a port which will accommodate Postpanamax vessels has already been approved, there is still no environmental or financial guarantee to ensure that the resources will be directed towards it.
The problems with ports in Costa Rican could still get worse in the future with the delay of the expansion of the dock at Moin.
Despite the new president having reaffirmed his government's commitment to the project at Moin to be run by the Dutch company APM Terminal, his own lawmakers are supporting the formation of a committee to re-analyze the concession contract.
While President Luis Guillermo Solis is touring the United States looking for investors and providing legal certainty to foreign companies, inside the country space is still being given to obviously bias obstructionism on the part of port official unions. Now it is the sphere of the Legislature where a petition will be filed in an attempt to halt the project.
Lack of adequate port infrastructure, mainly in the Caribbean, is the reason behind the decline in cruise ship arrivals in the past five years.
Although both coasts (Pacific and Caribbean) receive cruise ships at their ports, the one in Limón, in the Caribbean, is the most affected, as cruise goers must walk between trucks and containers when they disembark due to lack of adequate infrastructure.
The Presidential candidate Luis Guillermo Solis has promised to respect the contract with the Dutch company APM for the construction of a new container dock at Moin.
The likely winner of the presidential election has backtracked on his campaign ads which stated he would "review the ports concession contracts."
During a meeting with members of the Costa Rican Coalition for Development Initiatives (Cinde), Luis Guillermo Solís, presidential candidate of the Citizen Action Party (PAC), said that a new government would respect the contract that was signed two years ago with the Dutch firm APM Terminals to build a new container dock in Moin, Limón, with an investment of $1 billion.
Excessive paperwork is delaying investments in the country's ports, while authorities blame each other for the problems.
Planned investments in the ports of Limón, Puntarenas and Caldera have been slowed by excessive paperwork and the lack of accountability of the authorities, who blame each other for the delays.
2 years ago the port of Moin halted a million dollar purchase of equipment.
Government, bureaucracy and environmentalists remain entangled together, while, like an inevitable tragedy, the country's infrastructure continues to decline.
Jorge Woodbridge's article in Nacion.com is a warning cry over the very poor condition of Costa Rican infrastructure, demanding urgent action to lift what is a serious constraint to development.
Among the causes identified are high operating costs and poor terminal infrastructure for tourists.
For the cruise season which begins on October 16 and ends on May 30, 2014 only 60 boats are expected to arrive at the port. Data provided by the Costa Rican Tourism Institute (ICT), reveals that while in the 2008-09 season 127 cruise ships arrived, in the 2011-12 season only 71 came.
In the 2010-2011 season the number of cruise ships that docked at the port of Limon fell by 41% compared to the 2011-2012 season.
During the last season 117 vessels loaded with tourists docked at Limon, whereas this year only 69 arrived.
The prospects for next season are set to get worse, with only 59 cruises scheduled to arrive.
Allan Hidalgo, CEO of the Board of Port Administration and Economic Development of the Atlantic (Japdeva), explains that the high cost of fuel and the lack of infrastructure and tourist services in the port and the city of Limon are the main causes of the problem.
Of the $80 million funding for the ‘Ciudad-Puerto‘ (Port City) project at Limon, Costa Rica, only 3.3% has been spent in the past three years.
The effect of the $80 million investment spent on public infrastructure such as sewers, street furniture, pedestrian crossings and flood controls, should be extraordinary in Limon, the port city of Costa Rica, which is characterized by its poverty and lack of opportunities for its inhabitants.
The area related to the Port of Limon now has its own Promotion Agency, with private and public operators, and an investment guide to promote its development.
The Agency for the Development of Limon is presented as "a nonprofit joint entity of public utility made up of entrepreneurs, chambers, universities, government agencies and civil society to develop the potential of the economy of Limon and improve the competitiveness of enterprises ", which has as its mission" to promote socio-economic development, through joint planning, coordination, training and dissemination across sectors involved in the development of Limon. "
The Controller of the Republic of Costa Rica has confirmed the award of the works on the oil terminal to the consortium ICA-MECO.
The regulator dismissed appeals filed against the award on the grounds that they lacked merit.
"The tender promoted by the Costa Rican Oil Refinery (Recope) includes the construction of a Dukes quay berth, via which products that the country needs, such as gasoline, diesel and oil can be unloaded.
The cost of exporting a container using Costa Rican ports is the highest in Latin America and the Caribbean.
The recently released Competitiveness Report by the World Economic Forum indicates that Costa Rica has moved down five places from last year in the global ranking based on port infrastructure. The report reviewed a total of 142 countries, and this year Costa Rica is ranked 137.
Despite the delays, modernization initiatives are emerging as potential positive signals for the Costa Rican ports.
The ports of Moin and Limon, two gateways of international trade into the country, are lagging behind compared to other ports in the region and Latin America.
So far, attempts to modernize the ports, such as the recent concession to APM Terminals, have faced many obstacles, introduced mostly by the workers union of the Board of Port Administration and Economic Development of the Atlantic Slope (Japdeva).