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World Maritime University The Maritime Commons: Digital Repository of the World Maritime University Port & Shipping Administration Dissertations Ports and Shipping Administration 1991 Comparative analysis between the ports in Valparaiso and San Antonio Rodrigo Ricardo Garcia Bernal World Maritime University Follow this and additional works at: http://commons.wmu.se/psa_dissertations Part of the Transportation Commons Recommended Citation Garcia Bernal, Rodrigo Ricardo, "Comparative analysis between the ports in Valparaiso and San Antonio" (1991). Port & Shipping Administration Dissertations. 1. http://commons.wmu.se/psa_dissertations/1 This Dissertation is brought to you courtesy of Maritime Commons. Open Access items may be downloaded for non-commercial, fair use academic purposes. No items may be hosted on another server or web site without express written permission from the World Maritime University. For more information, please contact [email protected]. 9 WORLD HARITIME UNIVERSITY MALMo, Sweden COMPARATIVE ANALYSIS BETWEEN THE PORTS IN VALPARAISO AND SAN ANTONIO BY RODRIGO RICARDO GARCIA BERNAL CHILE A dissertation submitted to the World Maritime University in partial fulfilment of the requirements for the award of the : Degree of Master of Sciences in Ports and Shipping Administration Year of Graduation 1991 COMPARATIVE ANALYSIS BETWEEN THE PORTS OF VALPARAISO AND SAN ANTONIO” CONTENTS I INTRODUCTION 1.0. BACKSROUND 1.1. REGIONAL ECONOMICS 1.2. LEGAL FRAMEWORK 1.3. CHANGES IN POLICIES LABOR SYSTEM PORT SYSTEM SHIPPING INDUSTRY 1.4. NATIONAL APPRAISAL OF INVESTMENT 2.0. MARITIME ECONOMICS 2.1. IMPACT OF DEREGULATION IN SHIPPING IN THE WEST COAST FREIGHT RATES 2.2. DEMAND AND SUPPLY FOR MARITIME TRANSPORT 2.3. THE NEW ROLE OF PORTS IN THE REGIONAL ECONOMY 2.4. NEW CHALLENGE I PRIVATE OR PUBLIC INVESTMENT ? 2.5. WHY USE A COMMON CRITERIA IN PORT PERFORMANCE INDICATORS ? 2.6. MANAGEMENT INFORMATION SYSTEM IN PORTS, A REAL NEED TO ESTABLISHED AN ADEQUATE ELECTRONIC INTERCHANGE «» hCTMCH^K 3.0. ANALYSIS OF VALPARAISO AND SAN ANTONIO 3.2. PORT OF VALPARAISO 3.2.1. INTRODUCTION 3.2.2. PORT SKETCH 3.2.3. MAJOR COMMODITIES 3.2.4. ANALYSIS OF TYPE AND NUMBER OF SHIPS VISITINQ THE PORT 3.2.6. HOM THE PORT IS MANAGED, OMNED AND OPERATED 3.2.7. LABOR AND WORKING HOURS 3.2.8. PORT PERFORMANCE INDICATORS 3.2.9. PORT MARKETING POLICY 3.2.10., PORT PRICING POLICY 3.2.11.. PORT SAFETY 3.2.12.. MAJOR CONSTRAINS 3.2.13. EQUIPMENT AND MACHINERY IN VALPARAISO 3.2.14. PROJECTED PORT INVESTMENTS 3.2. IS., INFRASTRUCTURE AND SUPERSTRUCTURE OF VALPARAISO 3.2.16., ELECTRONIC DATA INTERCHANGE SYSTEM 3. 3. PORT OF SAN ANTONIO 3.3.1. INTRODUCTION 3.3.2 PORT SKETCH 2 3.3.3. MAJOR COMMODITIES 3.3.4. ANALYSIS OF TYPE AND NUMBER OF SHIPS VISITING THE PORT 3.3. S. HOU THE PORT IS MANAGED, OWNED AND OPERATED 3.3.7. LABOR AND WORKING HOl^S 3.3. 8. PORT PERFORMANCE INDICATORS 3.3.9. PORT MARKETING POLICY 3.3. 10. PORT PRICING POLICY 3.3.11. PORT SAFETY 3.3.12. MAJOR CONSTRAINS 3.3.13. EQUIPMENT AND MACHINERY IN SAN ANTONIO 3.3.14. PROJECTED PORT INVESTMENTS 3.3.IS. INFRASTRUCTURE AND SUPERSTRUCTURE OF SAN ANTONIO 3.3.16. ELECTRONIC DATA INTERCHANGE SYSTEM 4.0. CONCLUSION APPENDICES APPENDIX I APPENDIX II o ACKNOWLEDGMENTS 1 would like to acknowledge my gratitud to my family whose support made it possible to successfully complete my studies at World Maritime University. 1 would specially like to thank my dear wife Marcela who gave me continued support, strength and hope. •« My thanks to all of those who have made efforts to help me during my intensive research. Thank God for giving me live, a family and friendship. 4 0 INTRODUCTION The Republic of Chile which is located on the south­ west coast of South America is characterized by its long and narrow strip of land. In the east it is separated from Argentina by the Andes Mountains^ in the southern part limited by the South Pole, on the north its border is with Peru and on the west its border is projected through the Pacific Ocean to the rest of the world. Therefore, the geographical location, hostile nature and ethnic composition of the country's population, created very special geopolitical features both for its territory and population. Consequently, during the history of the country, the government has legislated different laws and regulations with the objective to create a legal framework capable of established the necessary conditions to permit the whole development of the country. On the other hand, the adequate development and economic growth of the country has to be performed through aggressive changes in policies with the objective to create some comparative advantages. The purpose of this changes is to allow national exports to reach the international market with competitive prices and adequated quality. Moreover, Chile is no longer an island thanks to the internationalization of business and commerce. 5 9 The boundaries of most countries in the world are open to commerce. Because of its location Chile depended on shipping and port industries to transport more than 140 different export products to reach internatiwial markets. Efficient, reliable, cheap and scheduled shipping and ports services are among others the key to succeed in the international trade adventure. The objective of this work is to analyze how all those components have been helping the national economic growth and how the ports in Valparaiso and San Antonio helped such adventure. Therefore, a comparative analysis of them give a complete picture of their functions, activities, services and how they can be improved in . the future. Of course a SWOT analysis is provided to helpe in that issue. Finally, the paper provides a consecive number of conclusions and recommendations which the author hope to facilitate further improvements in shipping and port industry in Chile with the help of a macro and expert point of view. 6 1.0 BACKGROUND 1.1. GLOBAL AND REGIONAL ECONOMICS IN SOUTH AMERICA GENERAL ASPECT OF THE WORLD ECONOMY, DURING THE M'ST DECADE Some of the most important features of internetiwial economy during this decade have been both its rapid growth and the increase of transboundary financial activities. Firstly, despite heavy external debts in the majority of the developing countries it. is possible to see a high increase in investments as well as in the production of services and products there. During the last decades the production of manufactured products in developed countries grew sharply. Which also means, an increase in the trade of raw materials and middle manufactured products coming from the least industrialized areas of the globe.Secondly, because of the rise in restrictions of traffic, the capital is circulating more and more through international frontiers. Mainly, trade has been increasing between areas such as Europe, the United States,the Far East and after the 70*s to the New Industrialized Countries so called NICs. Where new intercommunications systems are being developed 7 as help for traders who are asking for nore business and reliability. I Further, it is possible to appreciate an extraordinary increase in multilateral agreements, trying to become more and more international and leave the old forms of bilateralism, which has proved to be not a very successful tool for achieve regional development (ALALC). Nevertheless, with the opening of the Eastern countries a new enormous market has begun to improve the condition for a real international new economic order. OVERVIEW OF THE SOUTH AMERICAN ECONOMY On the other hand. South America as been left behind, both because of loss of its strategic importance, for the USA and Europe and because of the political differences with prevailing military governments in most of the South American countries during the last two decades. The 1980*s were really a very difficult period of time for all the South American economies due to huge foreign debts, unstable political regimes, lack of appropriate macroeconomic policies related with exports, poor development on their industrial sectors and 8 o economies mainly relying on raw materials exports. However, perhaps the most important reason was lack of spirit of entrepreneurship end con^etitiveness, shown in 0iost of the different sectors of the Latin American economies. In the 1990's things look slightly better; many countries changed their economic policies for other closer to the market economy, influenced by permanent advice from the International Monetary Fund, as well as, the good example given for the healthiness of the Chilean economy and its successfully full free market economy, where the result of new changes can be appreciated on different aspects of the industry, social and labor systems. SUMMARY DF THE CHILEAN ECONOMY DURING THE LAST TWO DECADES Until the beginning of the 70's, the Chilean eco­ nomic system or policies were mainly connected with semi- centralized model but ruled under capitalistic regulations. That is why there was a claim for nationalization of the main natural resources lying in foreign hands, like the great mining (approximate us 80 7 . of Chilean exports, at that time ). 9 & The earlier 70's were really very hard time for the Chilean econony. In the beginning of the period, a governeent lead by the Popular IMion was ruling the country with a centralized policy which turned most of the private investments and properties to social ownership. During this time, private properties were taken and given to the people, against the normal cultural behavior of the Chilean populaticm. Some of the most important features of the social structure of the country are its huge middle class,^ which means that more than 60 % of the population^ belongs to this social layer mainly composed of professionals and employees.

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