With the uncertainty created over the strike at the ports of Limon and Moin, exporters are starting to think about sending out their products via Panama or Caldera on the Pacific.
Friday, June 15, 2012
In light of the shutdown of the ports where 80% of national exports exit the country, the export sector is analyzing alternatives.
Abel Chavez, president of the National Chamber of Producers and Exporters of Pineapples (Canapep) noted that among the possibilities being studied are transporting products via the port of Caldera, Costa Rica's Pacific port or via Panamanian ones. These options represent a major increase in costs for the sector.
According to an article in Elfinancierocr.com, "The local manufacturing sector has been rapid and uniform in their condemnation of the strike promoted by Sintrajap, which had the broad support among dock according to the union. For example, the Chamber of Industries of Costa Rica (ICRC), whose member companies have been affected by the strike which left them unable to import raw materials and production inputs, issued a statement urging the union to resume work. "
Union members went on strike indefinitely in the port terminals of Moin and Limon, through which pass 80% of international trade by the country and the region.
Business leaders from various productive sectors reported losses caused by the strike, while managers of port administration are looking for alternative labour in order to restart the loading and unloading.
The Workers Union comprising of Japdeva, Portuarios and Afines has gone on strike because of opposition to the construction of a private container terminal.
Staff members of the Union of Japdeva Port Associations (Sintrajap) are protesting against the concession to the Dutch firm APM Terminals to build a container terminal in Moin, an investment project costing $22 million approved by the Controller General of the Republic.
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.
The government of Costa Rica has put on hold "indefinitely" the process for the concession of the ports of Limon and Moin.
Caught between the demands of port efficiency by the productive sectors and the real power of the union, the Chinchilla administration has back tracked on its intention to grant concessions to private companies for the modernization and operation of the ports of Limon and Moin, and now intends to invest about $70 million to make sure that this essential modernization takes place, while keeping both terminals under the management of the Port Management Board of the Atlantic (JAPDEVA).
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