COMPETITIVENESS Vs. SECURITY: STRIKING THE RIGHT BALANCE

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1 COMPETITIVENESS Vs. SECURITY: STRIKING THE RIGHT BALANCE Hemispheric Conference Miami, February, 2017 Jorge Durán Chief of the Secretariat Inter-American Committee on Ports (CIP) Inter-American Committee on Ports #OAS_CIP #OEA_CIP

2 Member States Inter-American Committee on Ports 1. Antigua and Barbuda 2. Argentina 3. Bahamas 4. Barbados 5. Belize 6. Bolivia 7. Brazil 8. Canada 9. Chile 10. Colombia 11. Costa Rica 12. Cuba 13. Dominica 14. Ecuador 15. El Salvador 16. Grenada 17. Guatemala 18. Guyana National Port Authorities 19. Haiti 20. Honduras 21. Jamaica 22. Mexico 23. Nicaragua 24. Panama 25. Paraguay 26. Peru 27. Dominicana Republic 28. St. Kitts and Nevis 29. St. Vincent and the Grenadines 30. St. Lucia 31. Suriname 32. Trinidad and Tobago 33. United States 34. Uruguay 35. Venezuela

3 CIP Structure CHAIR: Mexico VICE CHAIRS: Barbados and Uruguay INTER-AMERICAN COMMITTEE ON PORTS SECRETARIAT EXECUTIVE BOARD (CECIP) Logistics, Innovation and Competitiveness Sustainable Port Management and Environmental Protection Port Protection and Security Panama Mexico United States Public Policy, Legislation and Regulation Uruguay Tourism, Island Ports and Waterways, Ship Services and Navigation Safety Argentina Corporate Social Responsability and Women in Ports Peru

4 The Inter-American Committee on Ports (CIP) The CIP works towards the development of a more competitive, safe and sustainable port sector in the Americas Permanent Inter-American governmental forum at the highest level to strengthen Inter-American Port dialogue. Capacity Building to promote and improve technical and managerial skills of port officials. Technical Assistance, Regional Cooperation and Associate members. Dissemination and promotion of the Americas Ports, and Active cooperation and collaboration with the private sector.

5 Associate Members 1 2 3

6 LAC Competitiveness Competitiveness is the set of institutions, policies and factors that determine the level of productivity of a country. Global Competitiveness Index LAC position among 140 countries Innovation Business Sophistication Market Size Technology Readiness Financial Market Development Labor Market Efficiency Goods Market efficiency Training and Higher Education Health and Primary Education Macroeconomic Environment Infrastructure Institutions Source: WEF Competitiveness Index

7 Global Competitiveness Map Source: World Economic Forum, 2016

8 Logistics Performance LAC Country LPI Ranking Germany 1 USA 10 Canada 14 Panama 40 Chile 46 Mexico 54 Brazil 55 Bahamas 78 Jamaica 119 Source: World Bank, LPI 2016

9 # of documents required to Export Canada, Panama, USA Colombia, Grenada, Mexico, St. Kitts and Nevis Antigua y Barbuda, Barbados, Belize, Chile, Costa Rica, Dominican Republic, Honduras, Nicaragua, Peru, St. Vincent, Trinidad y Tobago Argentina, Brazil, Dominca, Guyana, Jamaica, Uruguay Bolivia, El Salvador, Paraguay, St. Lucia, Guatemala, Haiti, Suriname, Venezuela Fuente: Banco Mundial, 2015

10 # of Documents Required Fir Import Canada, Panama Mexico USA Chile, USA, Costa Rica, Dominican Republic, Nicaragua Bolivia, Colombia, Antigua y Grenada, Barbuda,Belize, El Guatemala, Salvador, Guyana, Honduras, Jamaica, Peru, St. Suriname, St. Kitts and Nevis, Vincent Uruguay, Argentina, Brazil, Dominica Haiti, Paraguay, Venezuela Trinidad and Tobago St. Lucia Fuente: Banco Mundial, 2015

11 Import / Export Time for a Container in LAC Tiempo para exportar Tiempo para importar Fuente: USI/CEPAL con datos del informe Doing Business, Banco Mundial, Nota: Promedio OECD incluye promedio de países de alto ingreso de la OECD.

12 Cost of Container Export LAC Fuente: Banco Mundial, Doing Business 2015

13 Global Port Infrastructure Quality (2015) Country Quality Panama 6.4 USA 5.7 Canada 5.5 Chile 5.2 Jamaica 5.1 Mexico 4.4 Argentina 3.8 Colombia 3.6 Brazil 2.7 Source: World Bank, 2016

14 Port Infrastructure Quality LAC Panama 6.4 Barbados 5.6 Chile 5.2 Jamaica 5.1 Suriname 4.9 Uruguay 4.7 Dominican Republic 4.6 Mexico 4.4 Ecuador 4.2 El Salvador 4.24 Trinidad and Tobago 4.1 Guatemala Honduras Average Peru 3.7 Argentina 3.8 Colombia 3.6 Nicaragua 3.5 Guyana Paraguay Costa Rica Brazil Venezuela Bolivia Quality of port infrastructure, WEF (1=extremely underdeveloped to 7=well developed and efficient by international standards) Haiti Source: World Bank 2015 Quality of Port Infrastructure

15 Port raking in Latin America and the Caribbean Millions of TEUs #1 Santos: #2 Colon: 3.57 #3 Balboa: 3.29 #4 Cartagena: 2.60 #5 Manzanillo: 2.45

16 Panama Canal Expansion However, vessels of 16, 18 and 20 thousand TEUs do not fit 13,200 TEU Vessel Design: Capacity: TEU Tonnage: DWT Total Longitud: mts Bao: 48.8 mts Draft: 15.2 mts

17 Main Container Ports Caribbean Basin

18 Bahamas Freeport expansion US$250 million expansion Freeport Container Port. Quay length expansion to 1,536 meters Yard area of 63 hectares Depth of 15.5 meters (50.8 feet), 9 post-panamax cranes and one super postpanamax quay crane. (Boost annual handling of 1 million containers)

19 Jamaica Regional Logistic Hub Jamaica is investing US$660 million China will invest US$1.5 billion Caribbean hub linking the US East Coast, the Gulf of Mexico, the Caribbean and northern Brazil to handle the new traffic in post-panamax vessels 18 gantry cranes and 60 straddle carriers and will have an annual capacity of 3.6 million TEU

20 Colombia Intermodal Master Plan

21 Mexico: Global Logistic Platform Program Modernization and Expansion Projects: TOTAL aprox. USD $ 3.7 Billion $823 USD Million Expansión Puerto de Altamira $1.7 USD Billion Veracruz Port Expansion $620 USD Million Mazatlán Modernization Passenger Terminal Fuente: ProMéxico 2014 $345 USD Million LZC TEC II $280 USD Million Tuxpan Port TUM 21

22 Brazil: New logistic policy Institutional reform Reducing logistics costs Improve competitiveness US $2.5 billion in port infrastructure

23 Souther Cone Waterways Argentina $33.2 Billion

24 Cyber of Special Importance due to more automated processes Port Community System Cyber Risk/Security

25 Two New Projects: 1. Secure, restricted, real time on line Communication Platform for Port Security Officials (Caribbean Framework) 2. Capacity Building in Port Logistics for Pre and Post Disaster Risk Management

26 Caribbean Framework of Port Security Officials Caribbean Cooperation Framework Aiming to bring concrete benefits in the areas of port and maritime security to Member States of the CIP, by establishing a reliable and safe system of direct communication and by offering internationally recognized training programs.

27 Caribbean Framework of Port Security Officials institutional strengthening through capacity building; and increased connectivity through a secure online communication platform for security officials in ports. - Designed with CIP Associate Member HudsonAnalytix, this platform will grant restricted access to officials that are responsible for port security operations and provide them with a secure tool for real-time communication, including a mobile application. - Intended in the Caribbean countries, open to all CIP Members. - Users will be designated by each National Port Authority (PFSOs). - Port Authorities shall contribute with a maintenance fee in order to secure the sustainability of this initiative.

28 Technical capabilities and processes of the communication network: Creation of an efficient, secure, real-time, on-line communication platform for Port Security Officers and other protection officials to improve communication, coordination and cooperation for enhanced port and maritime security. Meet the operational security requirements of all concerned parties (or has varying levels of security dependent on access); Can be compartmentalized to enable varying levels of access; Includes web-based training and awareness modules; Sharing of international or regional leading and best practices; Sharing of real-time or near real-time information regarding vessels moving among participants ports, including notices of arrival, crew lists, cargo information, and incidents or issues of concern; Sharing of real-time or near real-time information regarding security incidents or response operations that are of interest to, or affect more than one participant.

29 Communication Network Project Activities PROJECT Baseline: IT capabilities Technical Assistance Regulatory assessment Recommendation and Agreement signed IT platform designed and mobile apps Installation and operation Budget and sustainability Initial cost: $850,000 Yearly operations: $200,000 (After second year)

30 Disaster Management and Humanitarian Assistance Port Logistics for disaster relief and humanitarian assistance *(Component of the Natural Disaster Response initiative) Goal: To establish/strengthen institutional capacity for the management of, and to support the legal facilitation of, disaster relief and humanitarian assistance. Purpose : Build disaster relief and humanitarian assistance capacities for the management of disaster relief and humanitarian assistance. Member States will be in a better position to take action so as to develop legislation, regulations, manuals, protocols and procedures for the management of the logistics for facilitation of disaster relief and humanitarian assistance. Partners: Risk Management and Adaptation to Climate Change (RISK- MACC), Department of Sustainable Development, U.S. Coast Guard, Valenciaport Foundation, Coordination General of Ports and Merchant Marine, SCT, Mexico, American Salvage Association (ASA), T&T Salvage.

31 Thank You! Jorge Durán Chief of the Secretariat Inter-American Committee on Ports (CIP) Inter-American Committee on Ports #OAS_CIP

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