The Ecuadorian port of Posorja went from handling 100,000 TEUs in 2019 to projecting to close 2024 with 900,000. Since 2022, it has attracted two of the most important shipping lines.
DP World's Posorja deepwater port has been in operation for five years since the first ship called in August 2019.
Carlos Merino, CEO of DP World Ecuador, gave an interview to the local newspaper El Universo , where he reviews the main achievements of the port, but also reviews the challenges currently facing the port business in general and the growth in cargo projected by the entry into force of the trade agreements that Ecuador has signed and will sign in the future.
- What are the results of the Port of Posorja in these five years of operations?
We started in mid-2019 with a maritime service and we concluded that year with less than 100,000 TEUs. Five years have passed and we can say that today we have eight weekly calls, we have the main shipping lines in the world calling at a single hub . We will conclude 2024 with approximately 900,000 TEUs, which I believe will make Posorja the main maritime terminal in Ecuador.
- Were the expectations from the beginning to be the main port or did this happen with the growth of the port business due to the trade agreements signed by Ecuador?
The expectations were that the main services with their largest ships could call at the terminal, and so it happened. At first we served a service that did not even reach Guayaquil, it connected from Guayaquil to other ports, I think Buenaventura (Colombia), but with the construction of the terminal we made it possible for the Eurosal service to Europe, one of the emblematic services of Northern Europe, to call at Ecuador.
After this, in the second half of 2022, a flagship service to Asia by the CMA CGM line, the potential second largest shipping line in the world, decided to change its operations from Guayaquil to Posorja, with which we almost doubled the movement we had a year earlier; and in 2023, the Maersk shipping line with all its services in Ecuador, which are three, mainly to Europe and Asia, also decided to change its operations from Guayaquil to Posorja, with that we consolidated the volume and activated the second phase of construction that we will begin in October or November of this year with the expansion of the dock. We have calculated an investment of US$ 140 million, taking into account that the first stage was an investment of approximately US$ 500 million.
- How do these negotiations between ports and shipping companies take place?
Posorja's value proposition is a long-term proposition. If you give a line the capacity to think not only about today but about what it can do in a year, two years, it's not just about volume growth, it's not just about enlarging its ships, but even using the terminal, in this case Posorja, as an operations center, a hub or a transshipment center. Many things are analyzed for a shipping company to change.
The security context also had a lot to do with it. In 2019, Posorja began its operations with the implementation of scanners, an issue that was not mandatory that year and which later became mandatory under the government of President Guillermo Lasso.
- Are there more shipping companies considering moving to Posorja?
We are always in talks with shipping lines, this always comes and goes, our objective with the extension of the dock is basically to be able to better serve what we have today, but also to have sufficient capacity to receive other maritime services.
- If shipping companies continue to move to Posorja, what will happen to the other ports in Guayaquil?
I think the market is smart, free competition based on the capacity of each terminal is gradually being fixed.
The Posorja deepwater terminal offers a long-term vision, the main shipping companies are there and will remain there, the Guayaquil terminals have their own loads, they will mutate to supply other ports or maintain the services they have today thanks to the exports of their clients, this will evolve and I believe that there is finally a specialized market for each of the terminals.
The market continues to grow, Ecuador is a young country in terms of free trade agreements.
- Will there be enough cargo for everyone?
I think so, different types of charges for different types of terminals.
If Maersk's change activated the second phase, what is the trigger for activating a third phase in Posorja?
With this second phase we will have the capacity of 1.4 million TEUs, obviously if this increases the investments will continue, everything depends on the volume.
- DP World also has investments in Peru. This year they expanded the port of Callao. Can this benefit Ecuador?
Ecuador already has direct routes to Asia, from Posorja it exports directly to the main ports in China and South Korea, as well as from other terminals in Guayaquil.
Indeed, significant investments have been made on our side in Callao (Peru), the fact that more capacity and more infrastructure are being added is positive for shipping lines, for importers and exporters.
Ecuador is in the midst of closing several free trade agreements, so it is important that it has sufficient infrastructure to support all of these agreements.
- Posorja aside, do you think Ecuador has the infrastructure to support the increase in cargo?
It is difficult to leave Posorja aside. The port of Posorja has put Ecuador on the regional port map.
- Where does Posorja rank in the regional ranking ?
In third place, with much more mature ports such as Callao and Cartagena (Colombia). In Ecuador we estimate that we will end 2024 with a 30% market share, we estimate that we will be in the top 2.
- We have been in force for four months under the agreement with China, and the one with South Korea is coming. What are Posorja's projections regarding the increase in cargo?
An agreement always tends to mature over time... this does not happen immediately, this has a process that occurs over the next few years. I would say that in the next five years we would see a positive impact on this. We hope to close 2024 with 900,000 TEUs and by 2025 with more than 1 million.
- But there are already capacity problems at customs due to the concentration of cargo, what can we expect in the next five years?
These are growing pains, they will always occur, volume grows, terminals become congested, more is invested in the terminals, access roads become congested, more is invested in access roads.
It is an issue that occurs in other underdeveloped and developed countries, but that ultimately tends to be resolved with greater state or private investment. I cannot tell you how much it will impact in the coming years, it will definitely have an impact, but we are optimistic that this investment, coming from one side or the other, will be made.
- Did the same thing happen in Peru, which has had an agreement with China for more than ten years?
The lowest common denominator is that investments have been made and continue to be made, and somehow the volume has increased tremendously and that is where we are operating.
I believe that Ecuador, with the free trade agreements that it will negotiate and close soon, will increase its volume of exports and imports and that the ports will be prepared for the execution of its future investments.
- How is the logistics park, which is ZEDE, next to the port of Posorja, going?
We have already implemented warehouses, we are implementing 60,000 to 70,000 square meters of areas for various industries, for clients such as Maersk that will centralize its logistics operations there, we also have sister companies that will do it, such as DP World Logistic, little by little we will grow.
There are currently four companies, serving more than 30 companies in the export sector mainly. We are receiving cargo of spirits, there is also mobile equipment, cars, these are what we have imported containers and they have been deconsolidated within the ZEDE, that will continue to grow, as the port grows in its connectivity.
- What work is done on the cars that arrive at the ZEDE?
They are unconsolidated, fueled, the tires are inflated, and they are assembled in case some parts come separated.
