Chile: Maritime Ports Port Investment and Opportunities Marcela Cintron
August 2009
ID:
Summary
Chilean ports were state- owned and managed until the early 1990’s through Empresa Portuaria de
Chile, Emporchi, the government body that regulated all port activity – including a few small privately
owned and used ports in the country. During the 1990’s the Chilean port system was reorganized,
converting the 10 existing state-owned ports into independent companies, which are still state-owned
but independently managed to better serve the ever increasing cargo requirements.
Today, Chile has a port system consisting of 33 ports divided into 3 subsets: Privately- owned and
operated, state- owned and operated, and privately- owned but open for public use. Approximately 95%
of Chile’s foreign trade is transferred through its ports, a trend likely to continue given Chile’s free trade
agreements with numerous countries – among them Canada, Mexico, the United States, European
Union, China, Japan – as well as their ongoing pursuit of new FTAs.
The U.S-. Chile Free Trade Agreement (FTA) came into force on January 1, 2004. Approximately 97
percent of U.S. goods now enter Chile duty-free. All remaining tariffs on U.S. goods are expected to be
phased out by 2015. Although Chile’s economy grew by 3.2 percent in 2008, the country experienced
its first negative GDP growth rate (-2.1 %) in 10 years during the first trimester of 2009, evidence of the
effect of the global financial crisis. Nevertheless, Chile has been praised for its sound counter-cyclical
policy and its favorable economic position in managing the crisis.
Challenges
As is the case worldwide, Chilean ports face the constant challenge of financing and building
infrastructure and purchasing state-of-the-art equipment and technology to improve efficiency. At the
same time, Chilean ports struggle to afford the ability to serve larger vessels that stop at ports for
increasingly shorter periods of time, generating fewer profits for port operations. Additionally, ports face
strong competition from other service providers, and currently need to comply with strict security
measures (International Ship and Port Facility Code – ISPS), due to terrorist threats, as well as
environmental regulations and requirements, which have increased significantly in recent years.
These facts alone put severe pressure on the Chilean port system, pressure that is further increased by
the following challenges:
1. Chile’s foreign trade depends almost exclusively on maritime transportation given its
geographic location being so far away from its main export markets.
2. Sea waters in the Chilean coast are open and very deep which requires construction of high
cost docks and piers.
3. The geography of the Chilean coast does not present large adjacent areas for port
operations.
Let us help you export.
The U.S. Commercial Service — Your global business partner.
export.gov
800-USA-TRADE
Chile: Maritime Ports ‐ Port Investment and Opportunities 2 Investment: Past, Present, Future
Investment in Chilean ports was mobilized in
December of 1997 with the implementation of
Law 19.542 – Modernization of the State Port
Sector. This law mandated the creation of
state-operated businesses to work with a
specific port, or cluster of ports, and
established the guidelines for future pathways
to port improvement.
The results of this law are evident by simply
examining the recent investment history by the
Directorate of Ports’ Works (DOP). Since
1999, the DOP has invested just over
USD$300 million globally. Between 1999 and
2008, this investment fell into the range of
USD$21-$26 million dollars per year.
However, the combination of an increased
DOP budget and shifted investment focus has seen that amount rise to a projected USD$51.9 million
for 2009.
Daniel Ulloa, the head of the DOP, has also declared that the DOP intends to invest approximately
USD$3 billion by 2020. These investments are to be focused in four primary areas:
• The transformation of a harbor support platform into a foreign-trade friendly area
• The physical connectivity between ports
• Development of ports’ cities
• Enhancement of tourism opportunities
•
Market Demand and Port Security
The ISPS went into effect July 1, 2004. ISPS asks of all countries under compliance to align security
practices and standards through information exchange and port visits. Ports in Chile successfully meet
the standards expected by ISPS. However, even though Chile has implemented the Container Security
Initiative (CSI), and the Customs Trade Partner Against Terrorism (CTPAT), there remains much
needed training and awareness/education.
The ISPS, however, provides incentive for increased efficiency and efficacy of port security in Chile.
With this in mind, the annual budgets often reflect a portion designated specifically for this cause. In
2009, the DOP received a 105% increase in budget – a jump that was greeted by a similarly large
increase in projected investment. The projected investment for 2009 is outlined in the table below,
illustrating a focus on improved integration between ports, fishery productivity, coastal recreation areas
and security, and maintaining prior efforts by the DOP.
Let us help you export.
The U.S. Commercial Service — Your global business partner.
export.gov
800-USA-TRADE
Chile: Maritime Ports ‐ Port Investment and Opportunities 3 Investment Programs – Directorate of Ports’ Works 2009 Project Purpose Port Infrastructure to Connect Zones Port Infrastructure for Fisheries Improve Coastal Infrastructure Coastal Protection Integrated isolated regions ‐ regions X, XI, and XII Improve fishery productivity, operation security and local tourism Create public coastal recreation areas Increase coastal security To maintain operation for the Directorate of Ports’ Works Conservation Amount Invested 1990‐
2008 (Millions USD) Projected Investment 2009 (Millions USD) $60.03 $32.02 $163.68 $4.91 $26.81 $3.96 $37.18 $1.52 $70.73 $9.53 Source: Dirección de Obras Portuarias – www.dop.cl
The projects in the table above represent opportunities for potential purchases of security related
equipment and technology. Examples of how these investments could be applied to the port system
include:
•
•
Towards the improvement of operation security of fisheries
To increase security in coastal towns
Best prospects of specific Technologies:
• X-Ray detection equipment
• CCTV
• Access control
• Signaling systems
• Firefighting and encapsulated suits
In addition to the opportunity presented by the ISPS in port security, the Chilean Ministry of Public
Works (MOP) has announced investments of several billion U.S. dollars, which will be realized under
the existing private-public partnership and very successful concession program. This program allows
private investors interested in bidding on these BOT construction projects, to be granted with 15 to 30
year concessions via collection of toll-fees. These projects range from inter-regional and rural
highways, to hospitals and jails. There are also projects that would include ports.
The construction industry sees to gain from projects such as:
• Maintenance of past DOP projects
• Improvements upon coastal infrastructure
• Increased physical connectivity of area ports
• Development of port cities
With a goal of spending USD$3 billion by 2020, DOP is prepared to provide funds towards some of these
projects, and the umbrella MOP appears poised to invest money towards similar goals.
Let us help you export.
The U.S. Commercial Service — Your global business partner.
export.gov
800-USA-TRADE
Chile: Maritime Ports ‐ Port Investment and Opportunities 4 Market Entry
Seaports are instrumental in the
movement of merchandise in Chile.
Approximately 97 percent of exports
and 59 of imports go through
seaports, of which the most important
state-owned ports are the Ports of
San Antonio and Valparaiso. The
primary cargoes loaded in Chile’s
ports are materials relating to
metallurgy and minerals (32%), wood
(15%), paper (10%) and copper (8%).
By contrast, the main cargoes
unloaded in Chile’s ports are liquid
and solid fuels (60%), cereals and
meals (7%), and general chemical
products (6%).
Exports can also be generalized geographically – ports located north of Santiago, from Arica down to
Quinetor, often load cargo related to metallurgy or metalic coppers. By contrast, ports to the south of
Santiago are the major exporters of
wood and paper products. And the
aforementioned ports of Valparaiso
and San Antonio are the major
exports of Chile’s fruits and
vegetables, and seafood, while also
exporting copper, wood, paper, and
the bulk of the other commodities
traded by Chile.
Imports tell a different story for Chile
– as the main imported good for the
country is liquid and solid fuel as
Chile is a predominantly energy
dependent country. Many of the
ports are active – at various levels –
in the importation of fuels and other
goods, but the privately owned Port of
Quintero easily handles the largest
supply, unloading just under
12,000,000 metric tons of fuels in
2007. Valparaiso and San Antonio remain active ports in the unloading of cargoes, acting as prominent
players across all commodities imported into Chile.
Let us help you export.
The U.S. Commercial Service — Your global business partner.
export.gov
800-USA-TRADE
Chile: Maritime Ports ‐ Port Investment and Opportunities 5 Ports By Ownership Type:
The following tables provide information on the amount of cargo loaded and unloaded in each of Chile’s
ports, as well as the primary cargoes loaded and unloaded. These charts illustrate to overall decrease
in loaded cargo from 79.6 million metric tons in 2007 to 78.3 million metric tons in 2008.
Privately Owned Ports
Total Cargo Moved 2007 (Metric Tons) Port Quintero T.P. San Vicente Patillos Huasco Caleta Coloso Patache Guayacan Pelambres ‐ Los Vilos Caleta Michilla Cabo Negro Chañaral 12,155,760 5,046,658 2,194,355 5,272,773 2,899,250 1,514,440 1,928,164 866,468 137,937 116,996 10,237,633
4,333,605 4,014,246
3,540,800 2,332,955
1,380,566 1,364,482
1,250,403 193,365
32,555 199,855 24,248 Bahia Gregorio TOTAL Total Cargo Moved 2008 (Metric Tons) 269 0
32,332,925 28,704,858 Primary Types of Loaded Cargo (2007) Primary Types of Unloaded Cargo (2007) N/A
N/A Salt, Metallurgy/Minerals Metallurgy/Minerals Metallurgy/Minerals Salt, Metallurgy/Minaerals Metallurgy/Minerals Metallurgy/Minerals N/A
N/A Metallic Copper/ Metallurgy/Minerals N/A
Fuel
Fuel N/A
Fuel N/A
N/A N/A
N/A Chemical Products
N/A Fuel N/A
Source: Camara Maritima Y Portuaria de Chile A.G. – www.camport.cl It is evident that Quintero channels the largest load of Chile’s private ports and, in fact, of all of Chile’s
ports nationwide. In 2007, Quintero moved just over 10 million metric tons of cargo. The private ports
moved 36% of all cargo mobilized through the port system in 2008, in comparison to 40.6% in 2007.
This group of ports was majore culprit of the overall decrease in cargo shipments, as privately owned
ports handled 4 million metric tons less in 2008 than 2007.
State Owned Ports (Including Private Concessions)
Port Total Cargo Moved 2007 (Metric Tons) Total Cargo Moved 2008 (Metric Tons) Primary Types of Loaded Cargo (2007) Primary Types of Unloaded Cargo (2007) Valparaiso 7,335,493 8,624,970 Fruits/Vegetables, Metallic Copper, San Antonio 9,989,564 8,387,190 Fruits/Vegetables, Wood San Vicente 4,082,950 6,617,313 Wood, Paper Metals/Plastics/Other Cereals/Chemical Products/Metals/Other Fuel Iquique 2,035,075 2,874,789 Niter/Fertilzer, Metallic Copper Fuel/Vehicles Antofagasta 2,643,380 2,641,873 Metallurgy/Mineral, Metallic Copper Fuel Arica 1,530,529 1,545,889 Fishmeal, Mettalurgy/Minerals Cereals/Other Puerto Montt 208,324 255,979 Other Fertilizer Coquimbo 151,667 244,579 Metallic Copper, Niter/Fertilizer N/A Talcahuano 193,085 125,243 Seafood Fuel 1,458,419 92,902 Other Metal 67,504 62,986 Metallurgy/Mineral 29,695,990 31,473,713 Punta Arenas Chucabuco TOTAL Let us help you export.
The U.S. Commercial Service — Your global business partner.
N/A export.gov
800-USA-TRADE
Chile: Maritime Ports ‐ Port Investment and Opportunities 6 Source: Camara Maritima Y Portuaria de Chile A.G. – www.camport.cl State-owned ports, by contrast, saw a slight increase in cargo handled in 2008 – handling nearly 2 million
metric tons more than in 2007. State-owned ports increased their overall share of moved cargo from
37.3% in 2007 to 40.2% in 2008 – effectively swapping with the privately-owned and operated ports.
This group of ports remains primarily responsible for the transport of Chile’s fruits, vegetables, and
seafood.
Ports Open for Public Service (with Private Administration) Primary Types of Unloaded Cargo (2007) Chemical Products/Fuel Fertilizer/Chemical Products Total Cargo Moved 2007 (Metric Tons) Total Cargo Moved 2008 (Metric Tons) Mejillones 1,997,155 5,323,386 Metallic Copper, Niter/Fertilizer Lirquen 4,883,164 4,790,925 Wood, Paper Ventanas 4,383,123 4,651,564 Metallurgy/Minerals Fuel Tocopilla 2,792,001 2,855,361 Niter/Fertilizer, Other Fuel Coronel 2,747,184 2,428,125 Wood, Paper Fuel Puchoco 1,264,402 1,740,877 Wood N/A Caldera 1,171,931 1,171,934 Metallurgy/Minerals, Fruits/Vegetables Fuel Muelle Cap 1,110,819 1,110,819 Other Fuel/Chemical Products Jureles 581,562 844,280 Wood Fuel Corral 556,428 652,564 N/A N/A Oxiquim Qto. 482,006 440,271 N/A N/A Penco 374,733 312,241 Fishmeal Fuel/Fertilizer 1,712,685 15,927 N/A N/A 11,235 15,486 N/A N/A Port Puerto Angamos Oxiquim CCP. TOTAL 17,566,587 18,159,086 Source: Camara Maritima Y Portuaria de Chile A.G. – www.camport.cl Let us help you export.
The U.S. Commercial Service — Your global business partner.
Primary Types of Loaded Cargo (2007) export.gov
800-USA-TRADE
Chile: Maritime Ports ‐ Port Investment and Opportunities 7 Those ports open for public service saw a slight increase in overall share of mobilized cargo, rising from
22.1% to 23.2%. The business Portuaria Mejillones, which operates out of Puerto Angamos, also saw
a major increase in share, while dramatically reducing the load taken by Puerto Angamos directly.
Key Contacts
• Ministerio de Obras Publicas (Ministry of Public Works), MOP, www.mop.cl
• Dirección de Obras Portuarias (Directorate of Ports’ Works), DOP, www.dop.cl
• Dirección Nacional del Territorio Marítimo y Marina Mercante (National Directorate of
Maritime Territory and Merchant Marine), DIRECTEMAR, www.directemar.cl
• Gobierno de Chile (Chilean Government), www.gobiernodechile.cl
• Cámara Marítima Y Portuaria de Chile A.G (Maritime and Port Chamber of Chile),
www.camport.cl
Primary Sources:
• MOP (www.mop.cl),
• DOP (www.dop.cl)
• DIRECTEMAR (www.directemar.cl)
• Gobierno de Chile (www.gobiernodechile.cl)
• Cámara Marítima Y Portuaria de Chile A.G (www.camport.cl)
• World Port Source (www.worldportsource.com)
• El Mercurio (June 11, 2009 – www.elmercurio.com)
• FTA Handbook, US Foreign Commercial Service – Santiago, Chile (www.buyusa.gov/Chile)
For More Information
The U.S. Commercial Service in Santiago, Chile can be contacted via e-mail at:
[email protected]; Phone: (56-2) 330-3402; Fax: (56-2) 330-3172 or visit our website:
www.buyusa.gov/chile
The U.S. Commercial Service — Your Global Business Partner
With its network of offices across the United States and in more than 80 countries, the U.S. Commercial Service of the U.S.
Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their
products and services worldwide. Locate the U.S. Commercial Service trade specialist in the U.S. nearest you by visiting
http://www.export.gov/.
Disclaimer: The information provided in this report is intended to be of assistance to U.S. exporters. While we make every effort to ensure its accuracy,
neither the United States government nor any of its employees make any representation as to the accuracy or completeness of information in this or any
other United States government document. Readers are advised to independently verify any information prior to reliance thereon. The information provided
in this report does not constitute legal advice.
International copyright, U.S. Department of Commerce, 2006. All rights reserved outside of the United States.
Let us help you export.
The U.S. Commercial Service — Your global business partner.
export.gov
800-USA-TRADE