International Container Terminal Services (ICTSI) Ecuador has launched the first transport insurance program for banana trade.
Contecon Guayaquil SA, the Ecuadorian subsidiary of ICTSI, will be providing banana-exporters with a comprehensive insurance program, increasing coverage for the transport.
Designed to meet Ecuador’s export market requirements – SIE, Ecuador’s first comprehensive banana exporter insurance program was introduced following efforts by the Port of Guayaquil (Comunidad Logistica del Puerto de Guayaquil – CLPG) CGSA-led Logistics Community.
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Supported by RSA Seguros as advisors and multinational insurers CHUBB and Zurich, growers are provided with a single worldwide banana export insurance coverage–from container handling, transportation, and third-party damage.
As an essential instrument for marketing Ecuadorian bananas to global markets, insurance serves as a key step in supporting the industry’s increasing requirements, as bananas are the primary export product after petroleum in the country.
More than 60% of the manufacturing is exported to two primary markets: the EU and the US. Russia and Asia are also significant importers.
Compared to traditional insurance, which only includes restricted stages of fruit transportation, essential transportation insurance allows banana growers to be sure that their product is covered until shipment to their customers ‘ destination.
Jose Antonio Contreras, Contecon Guayaquil SA chief executive officer, said that the increased logistics collaboration between the port and different supply chain stakeholders in Guayaquil will ensure that the country stays on as the world’s largest exporter of bananas.
Contreras said, “We wanted to leave behind the traditional role of the port that only receives and dispatches the cargo, Instead, we strategize and continuously search for new products/solutions for our customers.”
“We are positive that reducing risks for the export of goods will contribute to lower logistics costs, and should positively impact Ecuador’s economic and social development.”
About the CGSA-led Logistics Community.
Members of the CGSA-led Logistics Community of Guayaquil account for more than 83% of Ecuador’s non-oil exporters, with the biggest quantity of bananas. Plans are ongoing to extend this sort of comprehensive insurance to the remaining exporters in Ecuador.
ICTSI has invested more than USD325 million for its 20-year concession period to operate the Guayaquil Container and Multipurpose Terminals at the Port of Guayaquil, which will end in 2027.
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