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.
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.
The Costa Rican government is seeking funds for the modernization of the port terminal in Limón.
The Executive has submitted to the Legislative Assembly a request to sign a loan for modernization works at the terminal.
According to the projections by the Ministry of Finance, investment for next year would be around $8 million, $24 million in 2014 and the remaining $8 million would be disbursed in 2015.
The National Tender Board (CNC in Spanish) has notified the company APM Terminals which has a maximum of 18 months to begin the construction of the new Moin Container Terminal (MCT), in the Caribbean, Costa Rica.
After the deadline, APT Terminals has 36 months to complete the works on this terminal which will allow servicing and boarding of container vessels.
Noting that the port services provided in Costa Rica are currently inefficient, an appeal has been filed in favour of granting the concession for the new container terminal in Moin.
Following complaints presented by the National Chamber of Banana Workers and the Union of Workers from Japdeva, the National Chamber of steamship owners and Agents (NAVE in spanish) has filed with the Administrative Court a request help in favor of the defendants.
After an arduous process, the government of Costa Rica has signed a concessionary award to Dutch run APM Terminals for the construction of the port and its management for a period of 30 years.
APM Terminal's investment will be $950 million, and they will have a period of 3 years to build a container port in Moin on the Caribbean coast of Costa Rica, north of the existing port facilities.
With the deadline for signing the contract, the 26 August, nearly reached, the government and opposition factions are sticking to their positions.
Laura Chinchilla's government is holding firm its intention to grant a concession to the company APM Terminals but has yet to resolve two complaints filed by the National Chamber of Banana Workers and Japdeva Workers Union (Sintrajap).
The project consists of a specialized port for the transshipment of containers with an operating area of 45 hectares, and a cost of $950 million.
A press release of the Presidency of the Republic of Costa Rica reads:
Vice President Liberman stressed the importance of getting "the green light to start the tender process, which will generate more employment in the country, mainly in the port area"
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).
Costa Rica would receive $2265 million over the 30-year period of concession on taxes on income, creating 500 direct jobs and 8000 indirect jobs.
A press release from the Ministry of Public Works and Transportation reads:
New Container Terminal in Moin Would Generate 8500 Jobs
This morning the Minister of MOPT, Francisco Jimenez, explained to the committee of the Legislative Assembly Awards the advantages and benefits of the concession to build a new container terminal in Moin. One of the main tangible benefits would be 500 direct jobs and 8000 indirect jobs.
Company Royal Haskonig conducted a study which calculated the actual cost of building and operating the new port on the Costa Rican Caribbean coast.
Back in 2004, authorities had set a reference price of $812 million. Haskonig’s figure is 17% higher.
Allan Hidalgo, executive president of Japdeva, the port authority for Limón, told BNAmericas that the study also “raised the expected return on investment from 15% to 17%, and calculated the cost of handling one container at $252, up from $169. These variations make for a more attractive project”.
Leadership from the Limón port workers union have so far opposed all offers from the government.
The union known as Sintrajab, which reunites workers from state-owned Japdeva, is in a standoff with the Costa Rican Government, regarding the concession of operation and administration of the ports to a private entity. Said conflict could be solved with a referendum among the workers, as 52% of Japdeva employees requested a secret vote to define whether the concession is accepted or not.
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.
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.
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.