SUSTAINABLE PORT DEVELOPMENT: CHILE
Rodrigo Galleguillos Ultramar OCTOBER 2015 Shipping Towing & Salvatage Agency, Ports and Logistics Other investments
• +200 vessels • 87 tugboats + PSV • 12 ports in Chile, Argentina, • Energy Uruguay and Brasil • Crude Tankers • Harbour Towage • Real Estate • Port operations and • Gas Carriers • Salvage and special Services Stevedoring services • Coal Mining
• Chemical tankers • Offshore Supply Vessels • Transport Agency • Sulfuric Acid plants
• Container feeders • Pilot boat sevices • Airline representations •Others
• Break bulk / Project cargo • Port consultancy.
• Ship management • Inland terminals and container depots. Global presence Schedule i. LATAM today ii. Chilean Port Scenario iii. Our model
6 LATAM today
7 LATAM Hoy
LATAM: The big picture
40.2 M total teus
42% Central America & Caribbean 58% Colombia to the south South America
45% West Coast 55% East Coast
Source: CEPAL 2013 LATAM: still growing…
Throughput TEUs (2011-2013) 10.0 4.9%
9.0 8.7
MTEUs 8.2 7.9 8.0 6.9 7.0 6.6 6.6 8.0% 6.0 4.2% 4.9 4.9 2011 5.0 5.2% 4.2 2012 3.8 4.0 3.6 2013 5.4% 3.4 3.5 3.1 2.8 3.0 2.0 2.2 2.1 1.8 2.0 1.9 2.0
1.0
0.0 Perú Argentina Colombia Chile México Panamá Brasil
Source: CEPAL Still growing…but we must face new
challenges
10 LATAM: still growing… Evolution of maximum and middle size vessels within selected routes 2000-2015
11 The New Challenge: Panama Canal
PMX
12 Turbulent waters for shipping companies That has resulted in strategic alliances
13 And the changes in shipping companies
14 How is the region preparing itself to face
this challenges?
15 New large port projects and expansion of existing ones
Deepwater port Ecuador Megaport Chile
Deepwater port Argentina Deepwater port Uruguay
16 New large port projects and expansion of existing ones Brasil México Panamá New port’s law Corozal Manzanillo • Greenfield • Greenfield Colombia Block 1 • Post Panamax Uraba • Santos y Para • Greenfield Block 2 Ecuador • Aratú, Sao Sebastiao, Manta Paranaguá y Salvador • Brownfield • Panamax Block 3 Posorja • Itaquí, Suape, Recife, • Greenfield Cabedelo, Fortaleza, • PostPanamax Maceió, Macapá
Block 4 Peru • Manaus, Imbituba, Itaquaí, Itajaí, Niterói, Pisco Chile Porto Alegre, Rio de • Brownfield Janeiro, Rio Grande, Iquique EPI • PostPanamax Vitória • Brownfield • PostPanamax Ilo • Brownfield Uruguay Antofagasta EPA • Brownfield Argentina Montevideo Fospac • PostPanamax • Greenfield • Greenfield Punta Indio • PostPanamax • Panamax Mega puerto • Greenfield • Greenfield • PostPanamax • PostPanamax However, existing ports must deal with
infrastructure expansion…
18 Chile: Existing ports having difficulties to expand because of cities…
19 And on the other hand, low utilization on mining dedicated ports…
% Berth Utilization 33%
Capacity 2.700 Kton
Throughput 1.800 Kton
Idle capacity 900 KTon
% Berth Utilization 10%
Capacity 4.200 KTon
Throughput 700 Kton
Idle capacity 3.400 KTon
20 Our value proposal
21 Our business model for Port development…
Typical scenario Each project owns a port Port 1 Copper Concentrate
Coal Port Complex Port 2
Port 3 Our Model Iron Ore Generate a port complex that Port 4 transfers each project tonnage, minimizing the CAPEX and OPEX
Agricultural products22 Mejillones, Chile • Population of 10,000 habitants • Only 68 km from Antofagasta, main mining city of Chile • Well Protected from South Pacific swells
N
150 km from Tocopilla Swel l
68 km from 23 Antofagasta city 23 What we did in Mejillones Bay… Port Mejillones
Thermoelectric Power Plant Liquid Terminal Client: Suez Energy Year : 1995 Storage: 1.0 M ton Bulk Terminal Copper Concentrate Future project
Bulk Minerals Clinker Client: Sumitomo Corp. Client: Polpaico Year : 2007 Year: 2001 Storage Capacity: 72.000 ton Storage: 100 K ton
10,3 Ha available
Sulfuric Acid plant: Noracid Sulfuric Acid Storage Tanks Client: Copec, Ultraterra Client: Codelco, Xstrata, Freeport Mc-Moran, Barrick. Year : 2011 Year : 1996 Troughput: 700 k ton Storage Capacity: 220.000 ton 24 11 tanks each of 20.000 ton What we did in Mejillones Bay… Port Angamos
Area Copper cathodes yard Stuffing area Year : 2003 Storage Capacity: 450 Teus Storage Capacity: 80,000 tonnes Container Deposit Year : Storage Capacity: 6,550 Teus
Stacking Storage: 3,400 Teus
Copper Concentrate Project Cargo – Gral Cargo Storage Capacity: +100.000 ton Year 2014 Storage: 1,300 Teus
CAPEX USD 350 MM… Shared by different 366 mts Loa clients! 13,5 mts draft •43 Ha, + 45 Ha available 135,000 displacement (ft) •With experts reducing OPEX •Increasing service quality. Ready for the new Panama Canal 25 However, what´s needed to go from port development to sustainable port development?
26 Current Scenario….
Slower growth in China Growth Rate (PPP) % the global economy
Complex and social movements Mergers and challenging and community alliances in the environment empowerment shipping industry for industry
Increase d labour costs 27 Our model: Sustainable port development
Safety & Stakeholders Environment
Infrastructure Productivity & Technology
28 Efficiency: USD/CTR
México 378 usd
Guatemala * Colombia 454 usd Panamá 833 usd
Ecuador 299 usd
Perú 467 usd Brasil Central 574 usd Chile Norte 489 usd Brasil Sur 686 usd
Chile Central 333 usd Uruguay 459 usd
Argentina 488 usd
29 Productivity: No more warehouses Introducing technology: Bulk mineral shipment in rotainers
Mine Loading Transport to Port Port Storage
30 Transference Unloading Productivity: Mejillones Training Centre Project
Experts training Experts Functional Map . 204 new operators (2014) Certification Skills and . Working with government and unions Training competences Internal Cycle . New collaborators comes from Mejillones Training Curriculum
Gap Course detection design
31 Productivity: Equipment
New equipment
. New mobile cranes. . Yard equipment was updated and additional new units arrived, still investing in more equipment.
32 Productivity
That has brought great results…
In terms of efficiency and Berth availability
Box/hr Possitive effect on availability 48 45 37
24
Jan - 14 Jun - 14 Dec - 14 Jun - 15 33 Productivity: More berthing site available
Transferred Tonnage vs Terminal Utilization Rate
Use
Site % %
% Site Use Lower terminal utilization allow us to offer reduced berth waiting time to shipping lines and more availability for growing demand. 34 34 Stakeholders: Our people
New port law
• ½ hr break in each work shift • Dedicated areas to rest
Sports Center • Fitness classes for women • Soccer field • Barbecue zone
35 Stakeholders: Our people 60% of our workers live in Mejillones Ultraport PANG PMEJ Bay(1026) (63) (32)
84% 66% 63% Women at our operations 16% 34% 37% +328% 166 142 59 57 83
58 107 85 Administration 25 Operation 36 2013 2014 2015 Stakeholders: Community
Mejillones community as port ambassador
37 Stakeholders: Community Good relations with community and authorities Environment: Clean Ports! Port Mejillones shipping lead and zinc since 2007
Port Angamos shipping copper concentrates since 2014
•Evironmentally friendly technology
•0 harm to the health of our people
•Awarded by community and recognized by authorities
Safe for community, our people and the environment! Safety: Life at our center
Leadership
Organization Culture Organization & Operational discipline Culture
•Operational risks • Organizational structure •Knowledge and skills Machine/Equipment •Performance management •Rules and procedures Work Interphase •Recognition , penalty & •Improvement mechanism reward policy •Recruitment & training • Courageous and visible leadership • Conditions Process Actions Safety: Life at our center
The journey to zero accidents Accidentability Frequency Index Evolution it´s based on a Safety culture
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 How important and relevant is to Mejillones?
4.2 4.2 4.2 4.1 4.0 4.0 3.9 3.9 3.9 3.7 3.7 3.6 3.6 3.6 3.6 3.6 3.5 3.5 3.4 3.4 3.3 14 14 11 10 10 23 23 18 20 16 16 20 20 28 33 27 30 43 40 42 37 35 35 38 41 42 33 45 43 44 34 36 44 47 44 49 38 40 44 45 38 42 43 39 34 31 34 29 25 20 29 41 28 27 19 23 25 16 18 22 21 13 13 13 11 11 12 13 11 17 19 11 16 18
2 2 2 3 4 8 6 3 10 6
Ultraport
Oil Terminal Oil Terminal Oil
Molybdenun…
Pto.Angamos
Molybdenum…
Pto. Mejillones Pto.
Sulphuric acid… Sulphuric acid… Sulphuric
Port company B company Port
Gas company B company Gas
Port company A company Port
Garbage/Waste…
Gas company A company Gas
Thermoelectric B Thermoelectric
Thermoelectric A Thermoelectric
Fishing company Fishing
Shipping Agency Shipping
Mining company B company Mining
Mining company A company Mining Explosive company Explosive
Not important (1-2) Not much(3) Important (4) Very important (5) SUSTAINABLE PORT DEVELOPMENT: CHILE
Rodrigo Galleguillos Ultramar OCTOBER 2015 Mauruuru!