Inter-American Committee on Ports

Introduction

In an renewed Hemispheric Agenda, the issue of transport is crucial, particularly regarding the development of ports.

Today, transportation costs are much more significant than tariffs. The region’s average cost of transportation to the United States is 7.8% while the average tariff is only 2.7%. For the total of intra-regional exports, transport costs is 4.3% versus 1.9% in tariffs.

Introduction (2)

Transportation costs are higher than those in developed countries. For example, maritime shipping from Latin America to the U.S. is 75% higher than shipping to Holland.

Even though this can be attributed to the commerce of ‘heavy” goods, an equal part is due to port and airport deficiencies and to a weak competition of transportation services.

introduction (3)

The reductions in transportation costs may have a significantly higher impact in tariff liberalization, in both volume and level of trade diversification

For instance, in Argentina a reduction of 10% in shipping exports costs to the U.S., would have a positive impact 20 times higher than an equivalent reduction in tariffs (and 5 times for intra-regional exports.)

Introduction (4)

There is an evident need for a more extensive trade agenda that incorporates “new” issues, such as trasnportation costs.

The key areas in which to focus are infrastructure and the competition of transportation services (regulatory framework).

Ports and the Supply Chain

Ground transport

DESTINATION

Consolidation Port services

EXPORT

IMPORT

MARITIME TRANSPORT

Ground transportDe-consolidation Port Services

ORIGIN

Ports operational

system

Competitiveness is no longer individual

The new global environment is changing the guidelines of international trade.

Today, competition among ports, maritime shipping companies, ground transport, or any other element of the supply chain is increasingly becoming a competition among logistic chains

Asia

New York

Chicago Area

VancouverSeattle

TacomaPortlandOakland

Manzanillo

LC

Panama Canal

LA/LBNorfolk, Vi

HoustonSavanna, Gi

A better relationship of the IACP and the OAS We will look to create more synergies between the IACP and the

OAS departments.

Natural possibilities arise with the Department of Economic Development, Trade and Tourism and with the Department of Sustainable Development, as well as with the Secretariat of Integral Security in the critical issue of Port Security.

The Department of Economic Development, Trade and Tourism has a programs in Competitiveness, Trade, Sustainable Tourism, Innovation and Corporate Social Responsibility. In all these programs, direct and clear commonalities are shared with the region’s ports.

Links with the DEDTT Today, port activity has become a critical element for a competitive

logistics.

Currently, a comprehensive view of the supply chain in needed. One where port activity is a link that must function efficiently, just like the rest of the links in the supply chain.

We must look to innovate port systems through the use of systems that promote a better organization and automatic mechanisms, activities and processes, which, certainly will be a key element for their competitiveness.

Technology’s role is fundamental for efficiency and competitiveness.

Cruise tourism, clearly linked to ports, is of significant relevance to the entire hemisphere.

Links with Sustainable Development and CSR

Sustainable development is an emerging theme in Latin American Ports.

It posits, among other perspectives, that port activity needs to be economically profitable to last.

It is necessary to establish good corporate practices and labor relations inside ports, which implies being socially responsible in all business aspects.

And also with Integral Security

After 9/11, security is paramount in any port.

In addition, the fight against contraband in ports may play an essential role by acting in coordination with customs.

The Secretariat for Integral Security has valuable experiences that may be of use by ports.

Conclusion

By working and coordinating with OAS areas, the IACP and the Organization may both enjoy mutual benefits.

We should be looking to develop joint programs between ports and the OAS Departments previously mentioned that have direct links with activities carried out by ports and those areas that need improvement.