Nobody Wants to Operate Puerto La Union

None of the four pre-qualified companies presented offers to build and operate the terminal in El Salvador, putting an end to a story fraught with problems and mistakes.

Friday, May 29, 2015

The unfortunate result of the tender of Puerto de La Union is no surprise to businesses, in whose opinion the project was poorly managed and badly planned from the beginning. Competition from other ports in the region, lack of "... a shipping line willing to develop transport of containers in the port in the east of the country" are part of the elements mentioned in the notes to the four prequalified companies who registered with the Executive Port Commission (CEPA).

Jorge Daboub, president of the National Association of Private Enterprise (ANEP) and who for many years served on the board of CEPA, "... lamented the missed "opportunity to (...) develop the country and eastern zone', and considered that this is one more 'death knell' for the current government, "to make them see that (...) the attack on the productive sectors, political attacks, result in lack of jobs, lack of opportunities and lack of development for the country '. "

Federico Hernandez, executive director of the Chamber of Commerce and Industry of El Salvador (CCIES) considered that "... the results of this tender set back the country's potential to boost its economy, and he believes that regional competition, did indeed, play an important role. "... 'While port developments have been made in the past seven years, which have introduced more competition (...) companies see the offer and say, 'Is it worth investing in a port that has lagged behind for so many years?. That makes the offer unattractive. '"

More on this topic

Puerto La Union: White Elephant Sits Waiting

May 2015

Now May 28th is the "confirmed" date for the submission of bids in the tender for the Central American Port of La Union.

According to the Executive Port Commission (CEPA), resolutions have been given to 63 queries put forward by four companies which have pre-qualified to participate in the tender, and because of this there will be no further changes to the date for receiving bids.

Another postponement in Tender for Puerto La Union

March 2015

For the fourth time since the project was announced, the Autonomous Executive Port Commission has extended the deadline for submission of tenders for the dredging of the harbor, this time to April 14.

With this new change and there are now four months of arrears since the date originally chosen for bids, which was December 2, 2014.

Will the Port of La Union Ever Be Tendered?

March 2014

Just like in a never ending story, a new problem always arises, such as the requirement now for the State to provide funding for dredging.

Although the Port Act Grant approved by the Legislature in 2011 established that the cost of dredging the Port of La Union shall be borne by the State through the Executive Port Commission (CEPA), the companies pre-qualified to take part in the competition for the award of the operation of the port are now demanding more assurances that the Salvadoran state will meet that commitment.

Puerto de La Union: So Far Only Words

September 2012

The Autonomous Executive Port Commission of El Salvador put to tender the administration of the port of La Union in mid-2013.

An article in quotes the chairman of the Autonomous Executive Port Commission of El Salvador (CEPA), Alberto Arene, who says that "The goal of CEPA is to grant concession the port of La Union, within a year, that is to say, in September 2013 ".

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