Market and Geopolitical Trends favour AMEGA
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" Amega Development Corporation is developing a major transshipment terminal (the Mega Terminal Atlantic or MTA) at Moin, as the first stage in a longer term plan to construct a “dry canal” comprising Atlantic and Pacific ports linked by a high capacity container railway." |
An excerpt of the following report by Mr. Peter Garratt, OBE,
FICE, Executive Vice President (Technical) AMEGA, former
Director, Scott Wilson Group plc and Chairman of the British Consultants Bureau
(now British Expertise) and former Chairman of Canning House appeared in Container
Management, March 2014.
Please note: Since the publication of this article, Luis Guillermo Solís became the 47th president of Costa Rica on May 8, 2014 with 78 percent of the vote in an April 6 runoff against former San José mayor Johnny Araya.
President Solís has stated that " I want Costa Rica to continue improving conditions as an optimum location for foreign direct investment, and we will continue that effort with innovation, equality and competitiveness."
AMEGA Development Corporation is developing a major transshipment terminal (the Mega Terminal Atlantic or MTA) at Moin, as the first stage in a longer term plan to construct a “dry canal” comprising Atlantic and Pacific ports linked by a high capacity container railway.
The MTA has been progressing steadily as the first major public infrastructure project to be implemented under Costa Rica’s recently enacted private concession legislation. With the election process now concluded, His Excellency President Solis Minister of MOPT, Executive President JAPDEVA, Congresspersons from Limon and other parties, Party Leaders, as well as members of the business community have been briefed.
There is support for AMEGA from all sectors and we look forward to working collaboratively with the Government, the Private Sector, Non Governmental Agencies and the people to make the Project a success. America’s Gateway will bring great economic and social benefits to the Limon Region and put Costa Rica firmly on the map as a leading global player in container shipping and related economic activities. Work is about to commence on the second “Proposition” stage of the concession process, with the aim of taking the MTA to public bidding early in 2016.
Meanwhile, the global backdrop against which the project is moving forward has improved significantly:
Please note: Since the publication of this article, Luis Guillermo Solís became the 47th president of Costa Rica on May 8, 2014 with 78 percent of the vote in an April 6 runoff against former San José mayor Johnny Araya.
President Solís has stated that " I want Costa Rica to continue improving conditions as an optimum location for foreign direct investment, and we will continue that effort with innovation, equality and competitiveness."
AMEGA Development Corporation is developing a major transshipment terminal (the Mega Terminal Atlantic or MTA) at Moin, as the first stage in a longer term plan to construct a “dry canal” comprising Atlantic and Pacific ports linked by a high capacity container railway.
The MTA has been progressing steadily as the first major public infrastructure project to be implemented under Costa Rica’s recently enacted private concession legislation. With the election process now concluded, His Excellency President Solis Minister of MOPT, Executive President JAPDEVA, Congresspersons from Limon and other parties, Party Leaders, as well as members of the business community have been briefed.
There is support for AMEGA from all sectors and we look forward to working collaboratively with the Government, the Private Sector, Non Governmental Agencies and the people to make the Project a success. America’s Gateway will bring great economic and social benefits to the Limon Region and put Costa Rica firmly on the map as a leading global player in container shipping and related economic activities. Work is about to commence on the second “Proposition” stage of the concession process, with the aim of taking the MTA to public bidding early in 2016.
Meanwhile, the global backdrop against which the project is moving forward has improved significantly:
- The major contractual dispute and associated delays to the Panama Canal Expansion have raised awareness of the risks associated with a single inter-oceanic link in Panama.
- Far Eastern shipping interests (notably China and Singapore) would welcome the opportunity to compete effectively with the ACP monopoly position in handling inter-oceanic container traffic via the Panama Canal.
A number of sources can be cited to support these
observations.
In some ways, the Caribbean can be seen as “the Mediterranean of the Americas” so the recent Drewry analysis “Mediterranean Transshipment Booms” contains some findings that are very relevant to AMEGA:
“ It seems as if increasing vessel sizes and carrier alliances is favouring mega-hubs once again, the last time being before 2006, when the level of hub port efficiency became unacceptable to ocean carriers, prompting the introduction of more direct services."
“Bigger east-west ships and larger alliances are likely to continue to allow key transshipment hub ports in the Mediterranean to outperform underlying organic market growth by serving regions well beyond the Mediterranean through relay. The large hubs with critical mass are likely to continue to be the main beneficiaries whilst the smaller hubs will find it harder to compete unless they can find a niche – or a large carrier to back them.”
A recent presentation (January 2014) by DP World in Panama, relating to the expansion of the Canal, provides further relevant comment:
The Economist on 5th February reported thus on the contractual dispute that has halted work on the Panama Canal expansion:
“…… the dispute has drawn attention to the alternative routes for big ships, such as Suez, or inter-modal services between West- and East-Coast America, and even near-shoring to Mexico, experts say. Aaron Ellis of the American Association of Port Authorities says there is a common misconception that bigger ships depend on the canal’s expansion. “It’s a big, big event in world trade but it isn’t the only game in town.””
Indeed it is not. The factors outlined above have fuelled increasing interest in AMEGA from investors, liner companies and port operators. Once the presidential election process is concluded, AMEGA is confident that the MTA will move ahead to implementation. Furthermore, the Costa Rican Dry Canal may become a reality earlier than had been anticipated.
In some ways, the Caribbean can be seen as “the Mediterranean of the Americas” so the recent Drewry analysis “Mediterranean Transshipment Booms” contains some findings that are very relevant to AMEGA:
“ It seems as if increasing vessel sizes and carrier alliances is favouring mega-hubs once again, the last time being before 2006, when the level of hub port efficiency became unacceptable to ocean carriers, prompting the introduction of more direct services."
“Bigger east-west ships and larger alliances are likely to continue to allow key transshipment hub ports in the Mediterranean to outperform underlying organic market growth by serving regions well beyond the Mediterranean through relay. The large hubs with critical mass are likely to continue to be the main beneficiaries whilst the smaller hubs will find it harder to compete unless they can find a niche – or a large carrier to back them.”
A recent presentation (January 2014) by DP World in Panama, relating to the expansion of the Canal, provides further relevant comment:
- Largest Canal trade route will remain Asia-USEC
- USEC ports have Facilities limitations.
- Hub ports in the Caribbean will need to upgrade infrastructure to remain competitive.
- Larger feeder ships will be serving the area.
-
Caribbean and Latin American countries present higher
security concerns.
The Economist on 5th February reported thus on the contractual dispute that has halted work on the Panama Canal expansion:
“…… the dispute has drawn attention to the alternative routes for big ships, such as Suez, or inter-modal services between West- and East-Coast America, and even near-shoring to Mexico, experts say. Aaron Ellis of the American Association of Port Authorities says there is a common misconception that bigger ships depend on the canal’s expansion. “It’s a big, big event in world trade but it isn’t the only game in town.””
Indeed it is not. The factors outlined above have fuelled increasing interest in AMEGA from investors, liner companies and port operators. Once the presidential election process is concluded, AMEGA is confident that the MTA will move ahead to implementation. Furthermore, the Costa Rican Dry Canal may become a reality earlier than had been anticipated.