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Wednesday, January 13, 2010
Today's News Headlines
* Icil Icafal still in the race for the rehabilitation of AFE's network - Chile, Uruguay
* API Salina Cruz predicts 18% cargo growth for 2010 - Mexico
* Log-In, TBS set up shipping JV - Brazil
* São Paulo requests US$650mn from World Bank - Brazil
* Daer declares emergency to speed up US$5.2mn bridge in Rio Grande do Sul - Brazil
* CAF funding EIS for Interoceánica Sur - Peru
* Nuevo León governor announces billion-dollar infra projects - Mexico
* Govt sets new deadline in Metrobus concession - Panama
* MOP launches road, bridge tenders worth US$20mn for region IX - Chile
* NWA tests red mud in road construction, repairs - Jamaica
* Govt announces public works fund - Venezuela
* Govt speeds up Santiago paving program - Dominican R.
* Govt needs US$50mn to complete 648 infra works - Guatemala
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* Icil Icafal still in the race for the rehabilitation of AFE's network - Chile, Uruguay
Chilean firm Icil Icafal has not withdrawn from the tender launched by Uruguayan state-owned rail firm AFE to recondition 414km of railways in Uruguay, Icil Icafal general manager Jorge Dublé told BNamericas.
The company submitted an offer for the project through a consortium that also included Chilean firm Tecsa. Spanish consortium Hispánica-Monalisa also made a bid.
However, the offers submitted were higher than what the state had planned to invest so the process was put on hold until the government decides what to do.
In a recent interview, AFE vice-president Alejandro Orellano told BNamericas that Icil Icafal had withdrawn from the tender, but Dublé said the firm is still taking part and is awaiting the government's decision.
The company is very interested in the rehabilitation of Uruguay's rail network, which is why it took part in both of the tenders launched for the initiative, Dublé added.
Icil Icafal specializes in rail infrastructure projects.
TENDER PROCESS
AFE initially launched a tender in February 2007 for the rehabilitation of 962km of rail networks.
In September of that year, one company and three consortiums submitted offers: Argentine firm Herso; Chilean consortium Icil Icafal-Tecsa; Spanish-Uruguayan consortium Hispánica-Monalisa; and Uruguayan-Indian consortium Saceem-Ircon.
However, all bids exceeded the budget established for the project so the government suspended the process.
After evaluating the bids and the project itself, the country's public works and transport ministry (MTOP) announced that the state would rehabilitate half of the network, while a company would be hired through a new tender process to work on the remaining 50%.
The consortiums Icil Icafal-Tecsa and Hispánica Monalisa submitted technical offers in the new tender but once again the price-tags were too high, according to Orellano.
A decision regarding the next step in the process has yet to be made, Orellano said.
By Eva Medalla
Business News Americas
* API Salina Cruz predicts 18% cargo growth for 2010 - Mexico
Mexico's Salina Cruz port in Oaxaca state expects an 18% increase in commercial cargo movement in 2010, port authority API Salina Cruz's marketing manager, Kathia Vanessa Bravo Ortiz, told BNamericas.
The port is expected to handle 15,600 TEUs during 2010 compared to the 13,218 TEUs in 2009, Bravo Ortiz said.
In 2009, the port exceeded its forecasted cargo movement by 25.2%, equivalent to a 180% increase compared to 2008, according to a press release by API Salina Cruz.
The jump in cargo movement is a response to the start of regular container cargo services at the port, which only began receiving containers at end-2007, Bravo Ortiz said.
"In 2009, regular cargo services were consolidated and our main clients increased their volume of container cargo, after an important publicity campaign that was carried out by the port authority," Bravo Ortiz said.
Salina Cruz is largely a petrol port, handling some 13.1Mt of petrol and derivatives in 2009. This is expected to increase to 15Mt in 2010.
By Catherine Setterfield
Business News Americas
* Log-In, TBS set up shipping JV - Brazil
Brazilian transport, storage and logistics company Log-In Logística Intermodal (Bovespa: LOGN3) and shipping company TBS Group have established a joint venture to explore and develop maritime transport services mainly for cabotage and the Mercosur market, according to a Log-In release.
"The endeavor is very new so a company name has not yet been decided," a Log-In spokesperson told BNamericas.
The new company will ship general cargo (break bulk and project cargoes) or non-containerized cargo.
Multipurpose vessels Log-In Macau, Log-In Manaus and Log-In Belém will be sub-chartered by the firm. Currently in service on the Amazon river, the vessels will be operated by the new company as of 2H09.
"For now, no cargo handling projections are being released but more information will be available in March," the spokesperson said.
Meanwhile, the firm is carrying out technical adjustments to the vessels and processing the necessary regulatory permits.
The JV will help Log-In restructure its coastal shipping model, reduce costs and improve competitiveness, the release said.
Log-In will hold 30% of the new company's capital stock with the remaining 70% in TBS' hands.
TBS Commercial Group specializes in the transport of bulk goods with operations in the Asia Pacific, Latin American and Caribbean markets.
By Daniel Bland
Business News Americas
* São Paulo requests US$650mn from World Bank - Brazil
São Paulo state government is requesting US$650mn from the World Bank to expand the city's metro line 5, according to a World Bank release.
Some US$621mn of the total loan amount will be used to buy equipment: 26 new trains with six cars each will require US$494mn; US$85.5mn will go to a communication based train control (CBTC) system; and US$41.1mn is for platform screen doors.
Of the remaining funds, US$27.5mn will be spent on technical assistance and institutional development.
The proposal will be up for board approval on April 15, the release said.
The government is also asking IDB for US$481mn to support the project. State government will contribute an additional US$1.39bn, bringing total project cost up to US$2.52bn.
"A tender for the project should be launched in February and we expect the work to begin in March or April," CMSP director of corporate affairs Sérgio Brasil told BNamericas in a previous interview.
Line 5, which began construction in 1994, has been in operation since 2002 but it is only half complete, running between the Capão Redondo and Largo Treze stations in the far south of the city. The expansion project involves building 11 stations and will extend the line by 11.4km from Largo Treze to Chácara Klabin.
By Business News Americas staff reporters
* Daer declares emergency to speed up US$5.2mn bridge in Rio Grande do Sul - Brazil
Brazil's national highway department (Daer) has declared a state of emergency for the construction of a 9mn-real (US$5.3mn) bridge over the Jacuí river on highway RSC-287 in Rio Grande do Sul state, national cargo transport association ABTC reported in a release.
The declaration allows the state to avoid a formal tender process and hire a company after evaluating costs, engineering plans and timeframes.
It could take up to 9 months to build the bridge to replace the structure that collapsed and Daer estimates the cost to be between 9 and 10mn reais.
The highway is important for cargo transport as well as passenger movement, the release said. Without the bridge, transport routes could increase 50-200km.
The original bridge, erected in 1963, was 314m long.
By Business News Americas staff reporters
* CAF funding EIS for Interoceánica Sur - Peru
The Andean Development Corporation (CAF) is working with Peru's environment ministry (Minam) to carry out the second phase of an environmental impact management initiative for the Interoceánica Sur highway, which will connect the southern part of the country with Brazil.
The second phase involves carrying out environmental impact studies on stretches two, three and four of the highway covering a 229,000km2 area in Cuzco, Madre de Dios and Puno, Minam said in a release.
CAF will provide US$120,000 for the project, according to Minam.
The initiative aims to prevent deforestation in the area surrounding the highway, as well as cut down on informal mining and forest fires.
The construction of stretches two, three and four of the Interoceánica Sur highway, also known as IIRSA Sur, is expected to cost US$1.3bn.
Last year, President Alan García said his government will complete the highway before June 2011.
By Business News Americas staff reporters
* Nuevo León governor announces billion-dollar infra projects - Mexico
The governor of Mexico's Nuevo León state, Rodrigo Medina de la Cruz, has announced plans to construct infrastructure worth billions of dollars over the next six years.
The largest project will be the 1,250ha Interpuerto Monterrey logistics terminal in Salinas Victoria municipality, which will include facilities for loading, unloading and storing cargo.
The terminal will cost some US$2bn, and will be funded by both the public and private sector, according to a press release from the state government.
In highway infrastructure, the state government plans to expand the Ciénega de Flores-Salinas Victoria and Monterrey-Salinas Victoria highways and Morones Prieto avenue, as well as build seven overpasses in Lázaro Cárdenas, eight overpasses in San Nicolás and Escobedo, and another seven overpasses in San Pedro and Santa Catarina.
Medina de la Cruz also announced plans to build a third line for state capital Monterrey's metro system, and relocate the city's central railway station.
Finally, the government said it will carry out its "Monterrey 5" hydraulic infrastructure project, which aims to bring potable water to the entire metropolitan area.
By Business News Americas staff reporters
* Govt sets new deadline in Metrobus concession - Panama
Panama's government has extended the deadline to receive offers for Panama City's Metrobus system to April 6, the presidential website reported.
Offers were initially scheduled to be presented on February 26.
The concession period was also extended from 10 to 15 years, the release said.
The awardee, which should be announced one month after the proposals are received, will be responsible for replacing Panama City's ageing bus fleet over an 8-month period.
A total of 41 companies from 10 different countries have shown interest in the tender. Firms include Spain's Empresa Municipal de Transportes de Madrid (EMT), Central America's Grupo Q, Panama's Distribuidora David, Brazil's Busscar, China's Lutong and operators of Chile's Transantiago mass transport system, according to previous reports.
By Business News Americas staff reporters
* MOP launches road, bridge tenders worth US$20mn for region IX - Chile
Chile's public works ministry (MOP) has launched two tenders worth some 10bn pesos (US$20.4mn) to improve connectivity in region IX, the ministry reported in a release.
The first tender is for the construction of a by-pass in Pucón city.
The project has an official budget of more than 4.7bn pesos and will reduce traffic congestion in the city. The cost will be financed by the ministry's road division.
Technical bids are to be submitted by January 15 and financial bids will be reviewed on January 22.
The second tender is for the construction of the Quelhue bridge, over the Trancura river, to replace the existing structure which is no longer meeting the local population's cargo and transit needs.
Authorities have set an official budget of over 5bn pesos.
Technical and financial bids are to be presented by February 26 and will be reviewed on the same day.
By Business News Americas staff reporters
* NWA tests red mud in road construction, repairs - Jamaica
Jamaica's National Works Agency (NWA) is investigating using the red mud generated as a by-product of alumina production in the construction of roads, government information service JIS reported.
NWA has already advanced in the research process and will start a pilot phase in St Elizabeth parish to test the material. This phase is expected to end by April and, if successful, could result in savings on road construction and repairs.
Research so far shows that the mud can be stabilized using geopolymers. "Geopolymers are some complex polymers (compounds) of aluminum silicates that you mix with the red mud and it stabilizes the red mud. It is really cutting-edge technology," Vivian Blair, engineer in charge of materials and soil research at NWA, was quoted as saying.
MORE SAVINGS
NWA has also started using a product called pave-zyme to build several roads, which were recently completed, the report said.
Pave-zyme saves money as it allows construction firms to use the existing materials at the site to form the base of the road.
"We rip up the existing marl and we add this product to it and it stabilizes the existing marl and then we re-lay it and compact it and then we surface it with asphalt, concrete or whatever material we want to use on it," Blair said.
By Business News Americas staff reporters
* Govt announces public works fund - Venezuela
Venezuelan President Hugo Chávez announced the creation of a public works fund during his weekly TV show Aló Presidente.
The fund will cover the cost of maintenance and works on roads, avenues, buildings, homes and green areas, as well as solid waste collection systems, the presidential website reported.
The initiative will also support a US$1bn national fund to replace imports with national products and increase exports, Chávez said.
The head of state said the objective is to boost national productivity and create a new model of production apart from oil.
The country's US$1bn fund to reduce imports also aims to reduce Venezuela's dependency on neighboring countries from which it purchases basic goods such as food and clothing.
By Business News Americas staff reporters
* Govt speeds up Santiago paving program - Dominican R.
The Dominican Republic's public works department is speeding up a paving program in northern Santiago city, the government reported in a release.
Paving on Estrella Sadhalá avenue is almost complete and only some works to the rainwater drainage system are pending.
The program is part of a government plan to invest more than 500mn pesos (US$13.9mn) in paving and maintenance work on the streets, sidewalks and gutters of the country's second largest city.
Other sectors to have benefited from the program are La Peña, Monte Adentro, Brisa del Este, Los Cocos, Ranchito, Villa Bao, Barrio Lindo and Obrero, the release said.
By Business News Americas staff reporters
* Govt needs US$50mn to complete 648 infra works - Guatemala
Guatemala's government needs to invest 418mn quetzales (US$50.1mn) this year to finish 648 infrastructure projects that were started in 2009, local paper Prensa Libre reported.
The works were not completed due to a lack of funds, the report said.
However, the 1.88bn-quetzal budget for 2010 is already earmarked to carry out more than 2,000 new projects, according to the government's executive coordinator Luis Velázquez.
A total of 200mn quetzales can be assigned to complete last year's projects from the country's economic development fund (Fonpetrol), Velásquez said. This, together with other funds, can be used to finish the pending works.
To resolve the issue, a committee has been formed comprising Velásquez and representatives of the national municipalities association (Anam) and the ministry of finance, among others.
By Business News Americas staff reporters
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In-deph interview
* Mesoamerica: A permanent development initiative
María Teresa de Rendón
Executive director
Mesoamerica integration and development project
Regional
http://www.bnamericas.com/interviews/infrastructure/Maria_Teresa_de_Rendon_,Mesoamerica_integration_and_development_project,/169679444
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Main companies covered in today's news
* Empresa Nacional de Electricidad S.A.
http://www.bnamericas.com/company-profile/en/Empresa_Nacional_de_Electricidad_S,A,-ENDE/169679444
* Ministerio de Transporte y Obras Públicas
http://www.bnamericas.com/company-profile/en/Ministerio_de_Transporte_y_Obras_Publicas-MTOP_,Uruguay,/169679444
* Empresas TECSA S.A.
http://www.bnamericas.com/company-profile/en/Empresas_TECSA_S,A,-TECSA/169679444
* The World Bank Group
http://www.bnamericas.com/company-profile/en/The_World_Bank_Group-World_Bank/169679444
* Corporación Nacional del Cobre de Chile
http://www.bnamericas.com/company-profile/en/Corporacion_Nacional_del_Cobre_de_Chile-Codelco/169679444
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