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Thursday, January 21, 2010
Today's News Headlines
* Ports to be expanded, improved, Santos to triple - Brito - Brazil
* Wastewater treatment moves into high gear - Regional
* Companies ask authorities to throughly review Málaga port project - Colombia
* Mendoza concessions integrated medical waste system - Argentina
* New port regulations provoke mixed reactions - Brazil
* Atrex to build new cargo handling facility in Santiago airport - Chile
* Telefónica shows interest in ETB stake - Colombia
* IN BRIEF Another executive leaves CL Financial - Trinidad & Tobago
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* Ports to be expanded, improved, Santos to triple - Brito - Brazil
Container handling at São Paulo state's Santos port should triple by 2024, according to special ports department (SEP) head Pedro Brito.
"We have a special plan for Santos port over the next 15 years," Brito was quoted as saying by government news service Agência Brasil. TEU handling at the port is expected to increase from 3mn to 9mn TEUs a year by 2024, according to the SEP head.
The port sector in general will receive 3.2bn reais (US$1.79bn) from the country's growth acceleration plan (PAC) over the next few years.
"Ports are necessary to maintain Brazilian competitiveness," said Brito, who was speaking at the inauguration of terminal 4 at Santos which will be operated by Santos Brasil.
Port capacity throughout the country must be expanded and improved. "The port sector is a priority because it directly affects the performance of the economy," Brito said.
By Business News Americas staff reporters
* Wastewater treatment moves into high gear - Regional
Although levels of wastewater treatment are still quite low in Latin America compared to developed countries, notable progress has been made over recent years and opportunities abound, according to the January BNamericas infrastructure intelligence series report.
Historically a low priority in comparison to water capturing and distribution, wastewater treatment is finally making it onto the agenda of the region's biggest economies.
Attractive markets for investors include Mexico, Brazil and Peru, where governments are promoting public works programs not only to increase potable water and sanitation coverage, but also to clean up and preserve resources.
At the same time, the effects of climate change are causing drought throughout the region, prompting authorities to worry more about their dwindling resources. The need to reduce pollution levels in rivers, lakes and along the coast has wastewater treatment plans in full swing.
The Peruvian government is actively looking for private sector investment and a plan to raise wastewater treatment from the current 15% to 100% by 2015 is underway. In addition, last year the national standards for water quality were approved, setting new levels for treated wastewater.
Meanwhile, in Mexico authorities have set the goal of treating 60% of wastewater by 2012 and recently awarded a tender to build one of the largest wastewater treatment plants of its kind in the world, Atotonilco.
Brazil, on the other hand, has been making slow progress. Despite government investments of 4.5bn reais (US$2.5bn) a year over the last three years, only 32% of collected sewage is currently treated. Experts agree that the only way to revert this situation is by handing over more concessions to the private sector.
The BNamericas intelligence series examines how some Latin American countries have managed to reach wastewater treatment levels of over 80%, analyzing successful models and indicating the most likely countries to achieve significant growth in the industry in the coming years.
To see the report, please go to this link (http://member.bnamericas.com/store/view_item.jsp?sku=71I51005545&idioma=I)
By Greta Bourke
Business News Americas
* Companies ask authorities to throughly review Málaga port project - Colombia
Colombian department Valle del Cauca's industrial sector is asking the environment ministry to take as long as needed to evaluate the construction of a port in the bay of Málaga, local paper La República reported.
Málaga bay is known for its diverse marine wildlife and its surrounding area is home to 1,400 species of animals and plants.
The environment ministry has been close to issuing a resolution forbidding the port's construction, said one of the project's investors, Carlos Arcesio Paz. For this reason, investors have requested the ministry to take more time and study the initiative throughly.
The project involves the construction, maintenance and operation of a port in Málaga bay, next to a naval base, according to information provided by the transport ministry (Mintransporte). The facility would have a 17-21m draft and the capacity to handle 12Mt of cargo per year.
The first stage of development would involve the construction of a container terminal. Then, a multipurpose cargo handling terminal would be built.
A special committee has been formed to discuss the project, which might have to undergo a number of changes to become more eco-friendly and guarantee the area's ecological sustainability, said the president of Cali's chamber of commerce, Julián Domínguez.
"We believe, as has happened in other parts of the world, that compatibility between the environment and development is possible, allowing the port to be built with the necessary restrictions," Domínguez said.
There is a contradiction in the evaluation of this issue, according to Paz, because a naval base operates in the area. If the state followed the ministry's view, the first thing that should be done is to remove that base, said Paz.
WORKS IN BUENAVENTURA
In the meantime, the government will dredge the bay surrounding the department's Buenaventura port to reach a depth of 13.5m. However, the draft must increase to 15m to handle the ships that will travel across the expanded Panama Canal from 2014 on.
The current dredging project involves the removal of about 6Mm3 of material, and will cost US$35-40mn.
By Business News Americas staff reporters
* Mendoza concessions integrated medical waste system - Argentina
Argentine Mendoza province has signed a concession contract for the collection, transportation, treatment and final disposal of medical waste generated by public and private health institutions, local paper Diario Uno reported.
The contract was signed with a consortium formed by the firms Tysa and Lamcef.
The waste treatment plant is expected to operate at 100% of its capacity by October or November and will require an investment of 10mn pesos (US$2.63mn) to be made by the awardee. The new plant will be built in the Las Heras municipality, in northern Mendoza.
Previously, waste collection, treatment and disposal were managed by different firms.
The contract, however, has generated debate as the health institutions will have to pay a higher price for services. Rates increased from 3 pesos/k to 10.70 pesos/k, the paper said.
The Tysa-Lamcef consortium is controlled by the Argentine firm Industrias Metalúrgicas Pescarmona (Impsa).
By Business News Americas staff reporters
* New port regulations provoke mixed reactions - Brazil
New norms regulating Brazil's port sector to be published in February have been met with mixed reactions from sector players.
Private investors wanting to build port terminals will now have to pass through a concession process, local paper O Estado de S Paulo reported.
National waterways regulator Antaq has said that there will be an emphasis on the concept of public ports, where several companies operate under a central administration.
Only companies that handle their own cargo exclusively will be given authorization to build port terminals, according to Antaq director Fernando Fialho.
If port activity is slow, the company will be able to handle third party merchandise as long as it handles the same type of cargo. So, if a firm builds a terminal to handle solid bulk cargo, it will not be able to work with containers, vehicles or bulk liquids.
Firms wishing to build ports to handle cargo without restrictions will have to pass through a concession process.
"Our objective is to avoid a predatory tendency in the sector and provide more competitiveness to the Brazilian economy," special ports department (SEP) Pedro Brito was quoted as saying.
OTHER REACTIONS
Sector experts, however, claim that the regulations will restrict the construction of ports and that the government has not been doing enough to boost the sector, the report said.
If nothing is done about this, the sector will collapse as current installations will not be able to handle the growing demand.
Currently, Brazil has a deficit of 50 berths at its ports and ships have to wait as much as one week to carry out their operations, according to a study carried out by the National Navigation Center (CentroNave)
"The new rules will be a straightjacket, impeding the private sector from investing," said CentroNave director Elias Gedeon.
By Business News Americas staff reporters
* Atrex to build new cargo handling facility in Santiago airport - Chile
The Chilean association of express transport Atrex plans to build a new operating center at Santiago's Arturo Merino Benítez international airport, according to Atrex general manager Luis Miranda.
"We are evaluating the construction of an operating area of about 6,500m2, which means an investment of around US$5mn," Miranda was quoted as saying by local paper Estrategia.
The facility is expected to begin operations during the second half of 2011 and will house 18 courier firms operating in the country, the report said.
The current cargo handling area will be demolished and the new center will be built at the entrance to the airport.
Atrex is currently in conversations with airport concessionaire SCL Terminal Aéreo Santiago and an agreement has been signed to receive some 8,000m2 on which to build, according to the report.
By Business News Americas staff reporters
* Telefónica shows interest in ETB stake - Colombia
The Colombian unit of Spanish telecoms giant Telefónica (NYSE: TEF) is interested in acquiring a controlling stake in local telecoms operator ETB, newspaper La República reported Telefónica Colombia CEO Alfonso Gómez as saying.
The executive said the company is in the process of analyzing whether to buy the stake in ETB. Gómez added that Telefónica also has interest in the telecoms unit of state-owned utility Emcali.
"We'll see how these two processes evolve to make a decision," the executive was reported as saying.
The Bogotá municipality currently holds 86.59% of ETB, while minority shareholders have the remaining 13.41%. ETB needs a partner to bring in more capital in order to better compete in the increasingly competitive telecoms market. The telco plans to sell new shares, equivalent to a 36.6% stake.
According to previous press reports, ETB expects to select its strategic partner in April.
By Business News Americas staff reporters
* IN BRIEF Another executive leaves CL Financial - Trinidad & Tobago
Michael Carballo, CFO of Trinidad & Tobago-based financial group CL Financial, which was rescued by the country's government in January 2009, has resigned effective the end of January, local press reported the company as saying in a statement.
Carballo, who will remain on the company's board, will be replaced by Winston Millett, who will assume his duties immediately, CL Financial said.
The news comes on the heels of CL Financial's announcement that CEO Steve Bideshi, who led the company since July 2009, had resigned and would leave the company at the end of the month.
By Business News Americas staff reporters
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In-deph interview
*
Citibank Peru corporate finance VP Alberto Carrera
Peru
http://www.bnamericas.com/interviews/privatization/Citibank_Peru_corporate_finance_VP_Alberto_Carrera-/170884423
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Main companies covered in today's news
* Empresas Municipales de Cali
http://www.bnamericas.com/company-profile/en/Empresas_Municipales_de_Cali-Emcali/170884423
* The World Bank Group
http://www.bnamericas.com/company-profile/en/The_World_Bank_Group-World_Bank/170884423
* Ministerio de Transporte
http://www.bnamericas.com/company-profile/en/Ministerio_de_Transporte-Mintransporte/170884423
* Agência Nacional de Transportes Aquaviários
http://www.bnamericas.com/company-profile/en/Agencia_Nacional_de_Transportes_Aquaviarios-ANTAQ/170884423
* Ultramar Agencia Marítima Ltda.
http://www.bnamericas.com/company-profile/en/Ultramar_Agencia_Maritima_Ltda,-Ultramar/170884423
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