Concession renegotiation needed for US$250mn port investment

Colombia's government aims to attract US$250mn for modernization and expansion works at the ports of Buenaventura, Barranquilla, Cartagena and Santa Marta over the next five years, business daily La República reported. But this investment plan will only come into effect if President Alvaro Uribe's administration decides to extend by 20 years existing concessions due to expire in 2013. The expenditure is needed so that the country can fully benefit from trade agreements with the US, Europe, Asia and the Mercosur trading block. "The sum of the investments for the four port companies is in the order of US$200mn-250mn, but these investments do not provide a return in the time that remains in the concessions, so we have to sit down and talk about this," Mauricio Suárez, general manager of Santa Marta port authority said. Víctor Julio González, general manager of SPRBUN in Buenaventura said the company plans to invest US$180mn. In the first 10 years of its concession Buenaventura has already spent US$210mn. The terminal has capacity to handle 10.3Mt/y and moves almost 9Mt/y. Expansion will increase this to 16Mt/y capacity.