Enapu aims to accelerate Ilo development

Peru's national ports company Enapu is making a concerted effort to attract Bolivian cargo through Ilo port in southern Peru's Moquegua department, BNamericas has learned. As part of Enapu's effort, it plans to spend US$2mn on equipment so that Bolivian exporters can start using Peru's southernmost port, news agency Andina reported. Specifically, Enapu aims to buy container handling equipment and bulk loaders/unloaders by February to enable Ilo to handle Bolivian cargo, according to Peru's deputy foreign minister Jorge Gumucio. Enapu will also open an office in Bolivian capital La Paz. ALTERNATIVE TO CHILE Bolivia has been looking for alternatives to Chile's Arica port since it passed to private operator Consorico Puerto Arica (CPA) October 1. Arica then increased port rates by 300% on average. Enapu's expenditure is part of the short-term scenario for the port's development, according to Silvio de Vega, an advisor in the port matters directorate of Peru's ministry of transportation and communication (MTC). "Peru has been talking with Bolivia since Arica increased its rates. We are interested in moving Bolivian cargo through Ilo and Matarani. Matarani is already receiving about 500,000t/y of Bolivian cargo which has resulted in a 30% drop in the volume handled by Arica. We want to move 100,000t of this through Ilo," de Vega told BNamericas. While Peru's government wants to attract Bolivian cargo, it remains cautious about financially committing itself, as a certain amount of indecision exists on the part of Bolivian exporters. "We are being careful because we know Bolivia is also interested in using Iquique port," he said in reference to the Chilean port. Bolivia's port services administrator ASPB will deliver a report to its members and the government December 15 about the various options available to exporters, including Peruvian ports. Uncertainty over Arica will linger into January as ASPB has negotiated a preferential rate with Arica port operator CPA. ASPB handles about a quarter of Bolivia's exports through the Pacific, or some 200,000t/y. "This [preferential rate] expires after 120 days on January 21. If CPA does not maintain this rate the exporters that we represent intend to use Peruvian ports," an ASPB source said. ASPB is "hopeful" that Ilo would be used starting February because liner services do not call there, which is the most important factor for shippers. "We need to talk to the shipping lines so that they call at the port. None arrives at the moment, only chartered vessels," the source said. CREATING INCENTIVES FOR ILO MTC advisor de Vega said the government is trying to address low traffic at Ilo through the development of special cabotage conditions that would allow foreign-flagged vessels to sail between two Peruvian ports. Such conditions would provide incentives for shipping lines that call at Peru's main container port, port of Callao, to also call at Ilo. "This is not defined yet and it needs an agreement between Peru and Bolivia. There are many variables but as volume increases, that will attract the liners," de Vega said. A bi-lateral commission has been created that includes the foreign and transport ministries of Bolivia and Peru to attract shipping lines to Ilo. Peru's national port development plan published earlier this year by national port authority APN outlines short-term improvements for Ilo that include infrastructure maintenance and quay rehabilitation. In the medium term to 2012, the plan outlines expenditure of US$54mn-70mn to develop new quays capable of receiving Panamax vessels.