Latin America needs USD 55 billion by 2040 to boost maritime and port industry

The region requires public and private investments of about USD 55 billion over the next two decades in order to significantly advance in competitiveness in the maritime and port sector, explained the report “Analysis of port investment in Latin America and the Caribbean, 2040 Outlook,” prepared by CAF –development bank of Latin America. This figure includes investments to add new container port capacity, improve operation and deep dredging at port nodes in the short and medium term, among others.

Half of the investments required in the medium term, which total USD 15 billion, is to be made in ports of Mexico (25%), Brazil (13%) and Panama (12%). Brazil and Argentina require ambitious dredging plans, which account for the largest portion of the investments planned in these countries. In the long term, investment needs exceed USD 50 billion by 2040. Mexico (24%), Panama (16%) and Brazil (13%) stand out once again, as detailed in the study.

“The outlook by 2040 for the maritime and port sector in Latin America and the Caribbean suggests an attractive environment for investors, based on factors such as expected GDP growth, industrial diversification and modernization, strengthening of the services sector, improvement of logistics corridors, among others, which along with port modernization, will lead to port capacity growth to over 150 million TEUs (tripling the current traffic), to having more than 20 ports with capacities of more than 2 million TEUs (currently there are only 6), serving fully laden new-generation vessels at the main nodes, becoming part of the main maritime routes with direct connections to all markets and extensively developing cabotage and river traffic, among others,” said Rafael Farromeque, senior specialist of the Vice Presidency of Infrastructure of CAF and author of the report.

Latin America and the Caribbean will need to bridge a 113 million TEU gap between demand and a container handling capacity in ports by the year 2040. This gap in the long term focuses mainly on maritime sub-regions of Mexico (20%), the South Pacific (26%) and Central America and the Caribbean (35%). These three regions are also the first to exceed the recommended saturation level (>80%) as of 2017.

“The challenge is to move forward in the modernization of the port system from a networking perspective that covers the entire regional port system and offers a long-term outlook. The modernization of port infrastructure must be accompanied by reinforcing governance models, deploying specialized logistics infrastructure, and assuring land and maritime accessibility, because these aspects still have plenty of room for development in most port areas,” added Farromeque.

Investment opportunities in the maritime and port industry in Latin America will be presented at the CAF Conference: Infrastructure for the integration of Latin America, to be held on July 16 at Casa de América in Madrid, Spain, with the participation of Mariana Prado, Bolivian Minister of Development Planning; Esteves Pedro Colnago, Chairman of the Board of CAF and Brazilian Minister of Planning, Development and Management; Mauricio Cárdenas, Colombian Minister of Treasury; Pilar Más, Macroeconomic Analysis and International Economy Director of the Spanish Ministry of Economy and Business; Carlos Oliva, Peru’s Minister of Economy and Finance; Lea Giménez, Paraguayan Minister of Finance; Mario Bergara, president of the Central Bank of Uruguay; Salvador Marín, President of COFIDES; Joan Rosell, President of the Confederation of Employers and Industries of Spain (CEOE), and Juan Béjar, President of Globalvía, among others.

Complete information on the Conference is available on the conference site, including the schedule, participants and access to register and attend