Montys transhipping its way forward

It is also where rivals such as APM Terminals, ICTSI, DP World, PSA, Chile’s Ultramar and Hutchison Port Holdings are all eager to invest in a new $200M box terminal being promoted by port authority Administracion Nacional des Puertos (ANP).

Joris Thys, the president of TCP, which handled around 60% of the 700,000 teu that passed through Montevideo last year, is a firm believer that the historic Uruguayan port has what it takes to be a regional hub port.

Mr Thys tells Port Strategy: “We firmly believe at TCP that we are already well on our way to becoming a transhipment hub for the River Plate region.”

And with around 55% of the 420,840 teu that TCP handled in 2008 being transhipment boxes he seems to have the facts and stats to back him up.

TCP already handles significant volumes of transhipment cargo, much of it fish and other reefer cargo from Patagonia (southern Argentina) that Maersk Line is moving – via Montevideo – to various destinations around the world but that looks set to increase still further.

The executive for TCP adds: “We also think the percentage of transhipment cargo through TCP will rise again over the next few years, and by the end of 2010 we expect to be handling around 70% transhipment cargo. We are, with our current $120m expansion scheme, well on our way to becoming a hub facility for the region.”

That money is being spent on lengthening the berthing line from 288 m to 638 m, and expanding the overall area (via some sea reclamation) from 17.2 hectares to 28.7 hectares. And this September four more super post panamax cranes (with a 60m outreach) will arrive from ZPMC as part of a $60m package that also includes new straddle carriers and other equipment. TCP will be operating eight gantry cranes by the end of this year.

TCP will also beef up its reefer plugs, by an extra 300, giving it a total of 1,652, more than any other single facility in the ECSA range of ports.

As well as Patagonia, Mr Thys says TCP is also drawing in cargo from the south of Brazil, as well as from interior states of Brazil, such as Mato Grosso, where new barge links are creating a new transport matrix.

The TCP president says that chicken and beef exporters from Mato Grosso do Sul – some 1,500 km away – were ramping up export volumes through TCP, after transporting the frozen meat via the Parana and Uruguay Rivers from the land-locked state.

Because of reduced costs many shippers were now choosing Montevideo over Paranagua or Rio Grande or even the traditional favourite Itajai, which is still recovering from terrible flooding last November. Much more of this and Montevideo will surely deserve the epithet regional hub.