APM Terminals and Compañia de Puertos Asociados S.A. (Compas S.A.) have announced a new joint venture in Cartagena Container Terminal Operator (CCTO).
Plans include US$200 million upgrades to facilities and equipment to accommodate larger containerships. CCTO will manage and operate Compas S.A.’s existing facility in Cartagena, Colombia.
APM Terminals will hold a 51% majority share in the operation, which includes annual throughput capacities of 250,000 TEU and 1.3 million tonnes of general cargo.
Kim Fejfer, CEO of APM Terminals, said: “We are proud to expand the APM Terminals Global Terminal Network into this important South American market in partnership.
“With such a highly respected business as Compas SA, we look forward to building upon their achievements in the port of Cartagena”
CCTO and Compas S.A. will co-operatively invest over US$200 million in upgrading and expanding the facility to triple the annual throughput capacity and enable the terminal to handle vessels up to 13,000 TEU capacity using the Panama Canal.
Cartagena had a throughput of over two million TEU in 2015, and the Colombian economy has averaged better than a 4% annual growth rate since 2010 and is projected by the International Monetary Fund to expand by 2.9% throughout 2016.
A recent World Bank report has noted that Colombia has seen the poverty rate decline from 49% in 2003 to 21.9% in 2014, with economic growth leading to job creation as the main engine of poverty reduction.
Increased trade opportunities resulting from port and transportation infrastructure investment and improvement will help to continue to drive Colombia’s economic expansion and social progress.