The price of this market report covers 4 quarterly reports on this sector. This quarterly report will be downloadable instantly as a PDF document, with the 3 remaining reports delivered at regular intervals throughout the year.

For Q212 our outlook for the Colombian ports and shipping sector remains positive, with a backdrop of strong domestic economic growth, as well as support from external demand for commodities. There are also encouraging signs of badly needed investment in transport infrastructure, both in the countrys ports and in the freight transport infrastructure that feeds them, on the back of the countrys developing mining sector. However, progress on such projects is often delayed, and BMI cautions that bottlenecks may remain a problem for some time.

Colombias economic expansion continues to power forward, in line with our forecast for real GDP growth to reach 4.5% in 2012. Private consumption, fuelled by credit expansion and historically low interest rates and fixed capital formation, especially in the energy and mining sectors, will continue to spearhead Colombias long-term growth, underpinned by a strong performance in commodities exports, all of which bodes well for investment and volumes in the countrys shipping sector.

Headline Industry Data

- The Port of Cartagena will see total tonnage volume increase by 9% to 11.98mn tonnes in 2012.
- Container traffic at the port will rise by 12% to 1.90mn twenty-foot equivalent units (TEUs).
- Volume at the Pacific port of Buenaventura will be up by a more restrained 3.49% to 9.52mn tonnes, while container traffic will rise 12% to reach 531,805TEUs.

Key Industry Trends

Brazils Richest Man Awaits Approval To Build Colombian Coal Port

CCX, the coal mining company owned by Eike Bautista, Brazils richest man, is to begin production from its open pit mines in Colombia in about 18 months. The company plans to develop underground mines by 2015. When coal output starts in 2013 it should generate US$300mn of earnings annually, enough to finance the expansion of capacity to 30mn tonnes a year, Batista said. CCX is currently awaiting final approval to build a port on Colombias Caribbean coast to export the coal.

Cartagena To Implement Navis Yard Automation Solutions

Navis, part of the Cargotec Corporation, announced in January 2012 that Sociedad Portuaria de Cartagena is to implement a Real Time Locating System (RTLS) to provide real time asset visibility, increased domain awareness and improved operational efficiency in its container handling operations.

Key Risks To Outlook

For Q212, the main risk to our positive outlook for Colombia remains the possibility of a hard landing for China, which we expect to take up the shortfall as US imports of Colombian coal decrease. A severe slowdown in the country would kill Chinese demand for raw materials such as iron ore and coal, leaving Colombia to look elsewhere for an export market.

We believe Colombia is set to benefit from its free trade agreement (FTA) with the US. The country is already in desperate need for improved transport infrastructure to export its coal reserves, and since this FTA is likely to increase US imports it should bring with it some much needed investment into Colombias port infrastructure.

Click for Report details:Colombia Shipping Report Q2 2012