Future of Limón Port Area Unclear

The new Costa Rican government's proposal was rejected by the union, whose consent must be obtained for the concession of services to third parties.

Thursday, May 21, 2009

The collective agreement that governs the relationship between Limón Port employees and JAPDEVA, the entity manager, has the force of law. Therefore, any project to hire third parties to perform tasks at the port must be formally approved by the union.

However, this does not prevent the government from awarding construction and operation of a new port to be located north of the current one in Moín. Attractiveness to potential investors will be greatly enhanced if concession of the administration of the current port facilities is done together with the concession of the new port.

An article in Elfinancierocr.com reported: "Meanwhile, time is passing. The government had fixed the date to try to have concession processes conducted simultaneously, and this becomes more difficult over time."

More on this topic

Union Twists Government’s Arm

May 2011

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).

Costa Rica: Agreement With Port Union Still Unresolved

August 2009

Meanwhile, the terms for Limón's port bidding process should have been published on August 21st.

Francisco Jiménez is the Executive President of Japdeva, the organization negotiating with the government and the worker's Union the private concession of the port. He said: "We are going to keep pressing for an agreement.

42 Companies Interested in Limón Tender

May 2009

The main question from investors is whether concession of the new port in the Costa Rican Caribbean includes the existing facilities.

The Costa Rican government´s response to this issue is that the processes are independent. The future of the existing facilities depends on the JAPDEVA union coming to an agreement with the government over the amount and nature of worker compensation, which has not yet been reached.

Costa Rica: Concession of Limón Port Begins

April 2009

The cartel for the concession of the expansion of the Costa Rican Caribbean Port, with a reference amount of $812 million, was approved.

The Minister of Transport and Public Works of Costa Rica, Karla González, announced that the cartel for the tender of the Limón port project was approved, and it is expected to be published in the official newspaper in the coming days, giving bidders three months to submit their proposals.

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