A PROPOSED revision to the container terminal concession at the main port in Buenos Aires by the Administracion General de Puertos (General Ports Administration) and the Argentine government would allow the three existing Puerto Nuevo concessions to merge into a single US$1.4 billion container terminal.
APM Terminals has emerged as the front runner to win the terminal's concession, according to several sources, reported IHS Media.
Opponents of the plan claim it would hurt competition while others argue the move would raise efficiency since larger economies of scale are required nowadays in both terminal operation and ship deployment.
If the current plan is implemented, depending on trade lanes out of Buenos Aires, Maersk Line and Mediterranean Shipping Co. will together hold 54 to 60 per cent of all volume from the Argentine capital, Ocean Network Express (ONE) will hold 11 to 14 per cent and Evergreen 10 per cent.
Under the revision, Terminales Rio de la Plata (TRP), owned by DP World, would relinquish its role operating container terminals 1, 2 and 3 and hand over the 143,000-square-metre yard area so that it can become an upgraded cruise facility and a developed real estate zone. Terminal Rio has a 740,000-TEU annual capacity.
Puerto Nuevo's other two container facilities - AP Moller's Terminal 4 and Hutchison Port SA's operation, called Bactsa at Terminals 5 and 6 - will then be merged into one unit and land-fill acreage will be added near the existing port breakwater, which will extend the port boundary further into the River Plate.
Although there' no final decision yet, several sources confirmed that the new tender will be for 35 years plus 15 years, rather than the standard 25 years plus 25 years. The estimated renovation cost is US$1.2 billion to $1.4 billion, to be split between the winning bidder and Argentina's government.
A key renovation project improvement will be a new, truck-only highway - part flyway, part underground - from Puerto Nuevo to the Exolgan box terminal - that will free-up central Bueno Aires roads for vehicles and public transport, substantially reducing congestion and improving shipper logistics.
Existing concessions end this year and the new concession is expected to start in early 2020. A detailed tender document is scheduled to be released by the port authorities early next year.
APM Terminals has emerged as the front runner to win the terminal's concession, according to several sources, reported IHS Media.
Opponents of the plan claim it would hurt competition while others argue the move would raise efficiency since larger economies of scale are required nowadays in both terminal operation and ship deployment.
If the current plan is implemented, depending on trade lanes out of Buenos Aires, Maersk Line and Mediterranean Shipping Co. will together hold 54 to 60 per cent of all volume from the Argentine capital, Ocean Network Express (ONE) will hold 11 to 14 per cent and Evergreen 10 per cent.
Under the revision, Terminales Rio de la Plata (TRP), owned by DP World, would relinquish its role operating container terminals 1, 2 and 3 and hand over the 143,000-square-metre yard area so that it can become an upgraded cruise facility and a developed real estate zone. Terminal Rio has a 740,000-TEU annual capacity.
Puerto Nuevo's other two container facilities - AP Moller's Terminal 4 and Hutchison Port SA's operation, called Bactsa at Terminals 5 and 6 - will then be merged into one unit and land-fill acreage will be added near the existing port breakwater, which will extend the port boundary further into the River Plate.
Although there' no final decision yet, several sources confirmed that the new tender will be for 35 years plus 15 years, rather than the standard 25 years plus 25 years. The estimated renovation cost is US$1.2 billion to $1.4 billion, to be split between the winning bidder and Argentina's government.
A key renovation project improvement will be a new, truck-only highway - part flyway, part underground - from Puerto Nuevo to the Exolgan box terminal - that will free-up central Bueno Aires roads for vehicles and public transport, substantially reducing congestion and improving shipper logistics.
Existing concessions end this year and the new concession is expected to start in early 2020. A detailed tender document is scheduled to be released by the port authorities early next year.