DP World wins concession for greenfield port in Ecuador

The Dubai-based port terminal operator has been granted a 50-year concession for the development of a new multi-purpose port facility in Posorja, Ecuador, 65 kilometers from Guayaquil.    Dubai-based port terminal operator DP World has been granted a 50-year concession for the development of a $1 billion greenfield multi-purpose port facility in Posorja, Ecuador, 65 kilometers from Guayaquil, the company said in a statement.
   The first phase of the Posorja Port project will include the purchase of land, dredging of a new access channel, a 20 kilometer access road and a 400 meter berth equipped to handle containers and other cargo. Phase 1 is projected to cost $500 million, and construction is expected to start within the next six to nine months and take around two years months to complete.
   Upon completion of Phase 1, the facility will have an annual capacity of 750,000 TEUs.
   Total project investment is estimated at over $1 billion and includes plans to develop a logistics zone the company hopes can become a regional trading hub. DP World said the Posorja Port project will create thousands of jobs during construction and close to 1,000 positions once operational.
   Benefits of the new deepwater gateway include access to a 15-meter draft, compared to the current 9.75-meter drafts at existing Guayaquil ports; additional capacity for Guayaquil terminals, which are operating at close to capacity, handling over 1.75 million TEUs in 2015; and long-term expansion potential with up to 2,000 meters of berth and over 200 hectares of overall terminal area, according to DP World.
   The company is partnering with local firms Consorcio Nobis and Grupo Vilaseca on the port, which will focus primarily on containers with the capability to handle other types of cargo.
   “We are delighted to extend our South American footprint with a major investment in Ecuador. The additional value it will bring to the economy is compelling, increasing competitiveness through the provision of modern container terminal services in central Ecuador,” DP World Group Chairman and CEO Sultan Ahmed Bin Sulayem said of the project.
   “Posorja will contribute to our continued growth in the developing markets of South America in the years ahead,” he added. “This investment builds on our existing network in the region, with terminals in Argentina, Brazil, Peru and Suriname.”
   “We are excited to partner with DP World and Grupo Vilaseca on this landmark project,” said Roberto Dunn, executive director of Consorcio Nobis. “DP World Posorja will offer Ecuadorean importers and exporters a unique deep-water alternative that will dramatically improve the competitiveness of their products in world markets and has the potential to transform the Ecuadorean economy.”