La Union receives port security certification - El Salvador

Business News Americas
May 28, 2010

By Indiana Corrales

El Salvador's La Union port has been given the green light to open on May 31, after receiving the ship and port facility security code (ISPS code) required to begin operations, an official from maritime ports authority AMP told BNamericas.

The ISPS, which was issued to La Union by the International Maritime Organization (IMO) on May 28, was the only pending requirement for the port to open for business.

Last week, local press speculated that setbacks in the approval of tariffs to be charged at the port could delay its official opening until the beginning of June. However, AMP approved the tariffs on May 24, the official said.

EQUIPMENT

Equipment was scheduled to begin arriving at La Union on May 30. The port, which cost over US$180mn to build, will start operating with second-hand gantry cranes that cost US$5mn. Authorities plan to invest US$24mn in additional equipment.

Following the purchase of additional equipment, La Union will have capacity to handle 50,000 TEUs in what remains of 2010, and 300,000 TEUs/y thereafter.

Construction of the La Union port began in 2005 and finished in 2009, and cost over US$180mn. The port has been inoperative since consortium Toa-Jan De Nul handed the completed facility over to the country's national ports operator Cepa in December 2008.

La Union port was expected to be concessioned in 2009, but this did not go ahead after the legislative assembly failed to approve a bill outlining a concession model. The port will now be operated by Cepa until a concession law is approved.

http://www.bnamericas.com/news/infrastructure/La_Union_receives_port_security_certification