APM Terminals and Colombian-based port and terminal operating company, Compañia de Puertos Asociados S.A. (Compas S.A.) have signed a joint venture agreement to jointly manage and operate Compas S.A.'s existing multipurpose Cartagena Terminal.
APM Terminals and Compas S.A. will jointly invest over USD $200 million in upgrading and expanding the Cartagena Terminal, including state-of-the-art terminal equipment. The upgrade will triple annual throughput capacity for the terminal to handle the larger vessels transiting the widened Panama Canal.
While Compas S.A. will continue to be the concession holder, APM Terminals will hold a 51% majority share in the joint venture that will run the facility. The transaction will be subject to compliance with the necessary formalities with the relevant authorities.
APM Terminals CEO Kim Fejfer said:
"Colombia represents one of the most promising investment opportunities in the region and we are pleased to participate in the country's ongoing economic growth and development. Cartagena has enormous significance in South America ports and this JV underlines APM Terminals growth and investment plans."
The Compas S.A. Cartagena Terminal has an annual throughput capacity of 250,000 TEUs and 1.5 million tons of general cargo. It becomes the sixth operational Latin American facility within the APM Terminals Global Terminal Network, which includes interests in operating port facilities in Callao, Peru; Buenos Aires, Argentina; and Santos, Pecém, and Itajaí, Brazil. APM Terminals' Latin American interests handled an overall combined container throughput of 2.1 million TEUs in 2014.
"APM Terminals has an impressive heritage in the port business and they continue to transform operations. We are excited to partner up with them and expand our business here in Colombia."
Compas S.A., headquartered in Bogotá, was formed as a joint venture between Grupo Argos (a Colombian conglomerate with investments in the infrastructure, cement and energy industries) and Southern Port Holding Inc. (formed by the Colombian Echavarría Obregón family and Spanish-based Ership S.A.). While Compas S.A. is a major terminal operator in Colombia, it also has terminal interests in Houston, Texas (USA) and Panama.
Joe Nicklaus Nielsen, APM Terminals Vice President and Global Head of Container Business Development, said:
"Compas S.A. has the service reputation and expertise in Cartagena and Colombia that ideally fits our Latin America partner strategy and port development ambitions. We look forward to working with them on developing the Cartagena terminal further."