International Container Terminal Services Inc. (ICTSI) is investing $18 million to expand its Ecuador operation.
The company said its Ecuador unit Contecon Guayaquil S.A. (CGSA) has signed an investment contract with the Ecuadorian state to further strengthen and develop the Port of Guayaquil.
“CGSA is investing $18 million to boost the port’s capacity to handle neopanamax vessels – to be carried out in three stages,” ICTSI said.
Stage one will raise the height of quay cranes 5 and 6 from 42 meters to 52 meters, and extend their boom lengths from 50 meters to 56 meters (20 rows). Stage two involves works to reinforce the docks. Stage three will further deepen Pier 1’s draft to 13.5 meters.
José Antonio Contreras, CGSA general manager. Contreras signed the contract together with Gabriel Martínez, Ecuador’s Minister of Transportation and Public Works.
CGSA has been operating at the Port of Guayaquil since 2007 under a 20-year concession. Last December, the Autoridad Portuaria de Guayaquil extended the concession period for another 20 years, allowing the company to operate until 2047.
CGSA started servicing neopanamax vessels in 2019, becoming the first port in the country capable of handling this large class of containerships following the dredging of the 95-kilometer access channel leading to the Port of Guayaquil.
CGSA plans to increase the total investment amount to $30 million as part of its commitment to enable and promote Ecuador’s foreign trade, ICTSI said.
In 2018, CGSA spearheaded the creation of the Logistics Community of the Port of Guayaquil, which provided supply chain stakeholders with a platform for stronger collaboration.
CGSA followed through by launching the first transport insurance program for Ecuador’s banana trade in 2019 to protect growers and the industry.
Banana is the country’s main export product after petroleum.