The government of Ecuador has signed a contract with Dubai-based international terminal operator DP World for the construction of the Posorja deepwater port in Guayas province.

"The deepwater port of Posorja will have a fundamental impact on the systemic competitiveness of the country," President Rafael Correa was quoted as saying by Pulso at a ceremony in Carondelet palace in Quito.

"The project was always important, but it became urgent after the Panama Canal expansion. Ecuador needs a port to receive the post-Panamax vessels that will now go through the canal."

The Panama Canal expansion project is expected to be inaugurated this month.

The agreement was made under a public-private partnership model and with a planned investment of US$1.2bn by DP World, represented in Ecuador by consortium Nobis. The consortium will be in charge of the construction, maintenance and operation of the port.

The terminal will have a mooring depth of 15.5m, a 16ha container storage yard, and a further 19ha for additional facilities. Forecast traffic volume is of 2.5mn TEUs/y.

In maintaining the port, DP World will be responsible for the dredging, construction, and operation of a navigation access channel to the port.

Sultan Ahmed bin Sulayem, chairman of DP World, was present at the ceremony and added that the new port will benefit Ecuadoran exports such as bananas, which will become more competitive by having cheaper transportation."

"We will invest initially US$500,000 in the first phase of the port and then a billion in the overall project," he was reported as saying by local news source El ciudadano.

Construction is expected to take three years, and the concession period to last 50 years.

The deepwater port is the first of its kind in Ecuador, and will join the country's four other port facilities: Esmeraldas, Guayaquil, Manta and Bolívar.


Source: BNamericas

Photo:The chairman of DP World, left, with President Correa (CREDIT: El Ciudadano)