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Colombia New Port On The Caribbean To Reduce Costs To Coffee Producers and Exporters

By: Diana Delgado, Contractor

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Colombia New Port On The Caribbean To Reduce Costs To Coffee Producers and Exporters

Bogota (Coffee Network)- Colombia’s new greenfield port on the Caribbean, Puerto de Antioquia, is expected to begin operations in early November, serving as a port of departure for agricultural exports, mainly coffee, as costs may slump as much as 51% as it is closer to producing regions, Gustavo Gomez, general manager of the coffee exporters association Asoexport.

The multipurpose port, with capacity to handle 6.6 million metric tonnes per year, will help clear the backlog of trucks unable to unload coffee bags in Caribbean ports during peak harvesting times, Gomez said in an interview. Puerto Antioquia will also reduce costs to shippers seeking to export beans through the Caribbean Sea.

“During the peak of the harvest in 2024, trucks had to wait between four to six days to enter the Caribbean ports as they were running out of capacity. Puerto Antioquia is an efficient logistic option because the waiting time would be solved with it. I don't know if it's a complete solution, but I would give a hand,” Gomez told Coffee Network in an interview.

Puerto Antioquia is nearing completion of construction, becoming a new port on the Caribbean Coast which is set to transform the country’s foreign trade capacity. The port is located in the town of Turbo (Uraba) in the Antioquia province. It is located at less than 260 nautical miles from the Panama Canal.

Coffee producers and exporters will be among the most benefitted agricultural product with the start up of the new port.

Coffee producers and exporters in the Antioquia department, the second-largest coffee producing region, will generate savings of up to 51% as the port is 325km closer than ports in Cartagena, according to a Puerto Antioquia presentation.  The distance between Medellin, the capital of Antioquia, and Pueto Antioquia is 312km, compared with 706km between Medellin and Cartagena

The terminal, which will serve as a gateway to the Antioquia department -  second most important for its contribution to growth domestic product-,  and the country’s interior, will be able to handle 650,000 TEUs/year.

The new port will also serve as gateway for coffee exporters from the region, known as Eje Cafetero, which comprise the departments of Risaralda, Caldas and Quindio.

The port is 337km closer than reaching the Cartagena port.  The distance between Manizales, the capital of Caldas, and Puerto Antioquia is 495km generating savings for coffee producers as the distance now between Manizales and Cartagena is 922km.

Coffee producers in Cundinamarca will also generate savings of up to 32% as Puerto Antioquia is 342km closer than reaching the Cartagena port. The distance between Bogota and Puerto Antioquia is 729km compared with 980km between Bogota and Cartagena.

A reduction of costs to exporters most likely will benefit growers as he could ensure a higher price for their beans, Gomez noted.

The shipping lines Maersk, CMA CGN and MSC have announced operations in Puerto Antioquia. But Gomez stressed that the internation buyer must nominate Puerto Antioquia. “If the buyers do not nominate the port, it will be impossible to begin exporting through there,” he said.

The local fruit export industry of Urabá ships 1.8 metric tonnnes /yr of bananas. The terminal also expects to handle at least 400,000 tonnes/year of other fruits and meat, and 1.5 mn t of general cargo, including vehicles.

Puerto de Antioquia, which initially was envisioned as a bulk carrier port, obtained environmental license in 2012, but the government’s environmental agency ANLA modified the permit in 2016 year once it became a multipurpose port.

Several multilateral banks have provided financing to build the port that demanded up to $764mn in investment. Colombian development bank FDN, multilaterals and Colombian banks were involved in securing financing for the port. The financial closure for the port was reached in 2021.

The port, together with the Highway to the Sea 1 project that connects it to the interior, will boost the competitiveness of the Uraba region, historically underdeveloped and long a battleground between armed groups including guerillas and former paramilitary groups. The Highway to the Sea 1 is estimated to require about Ps3.34 trillion pesos ($1.1bn). Construction of the double-lane highway is underway, but it demands the construction of the Tunnel Toyo.

Puerto Antioquia has depth of 16 meters allowing the arrival of Post Panamax vessels.

Puerto Antioquia will be the first port in Colombia to use an innovative loading and unloading system through a 3.8-kilometer-long viaduct that will connect the coast with the land terminal.

By Diana Delgado

 

  • Coffee

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