SOUTH AMERICA

Latin America needs $50bn in port investment

10 years ago

The Corporación Andina de Fomento (CAF), Latin America’s Development Bank, says that existing port infrastructure in the region is inadequate and the lack of new investment will become a real problem as of 2020.

The remarks, attributed to Fausto Arroyo, were taken from a study undertaken by CAF, looking at Latin America up to 2040. According to Mr Arroyo, investment of $50bn will have to be made between now and then.

In Panama, this equates to investment of $2bn by 2025 and a further $8bn up to 2040. Mexico will have to find $12bn.

The study identifies 134 port projects, including 36 for the Pacific coast, 25 in the Caribbean, 30 in Brazil and 20 in Mexico.

By 2040, it is calculated that Latin American ports will need container handling capacity of at least 113m teu. However, projects in the pipeline will deliver capacity of just 92m teu.

“In general, it is understood that on the Atlantic side the port sector is more mature than that on the Pacific. Another point is that in the Caribbean there is a lot of supply, contrary to the situation on the Pacific Coast of America,” said Mr Arroyo.