World Grain - October 2007 - 70

PORT NEWS ROUNDUP

IFC provides $15 million for Port of Cartagena expansions
WASHINGTON, D.C., U.S. - The International Finance
Corporation (IFC), a member of the World Bank Group, announced on Aug. 29 that it will provide $15 million in financing to Colombia's Terminal Marítimo Muelles El Bosque Sociedad Anónima (MEB) to support the company's expansion
program at the Port of Cartagena, Colombia.
IFC said the $15 million investment is expected to boost
the Colombian economy significantly by increasing the port's
capacity, which will help expand employment opportunities
in the country.
In 2006, the terminal handled 440 ships carrying 46,000
containers, 250,000 tonnes of general cargo, 413,000 tonnes
of grains, and 53,000 tonnes of coke (fuel).
MEB holds a 20-year concession to develop and manage a

multipurpose port in the Bay of Cartagena, on Colombia's Atlantic Coast. It is Cartagena's second largest terminal and the
fifth largest in Colombia, as well as a gateway for the country's
exporters targeting the European market, IFC said.
MEB will use IFC's financing to purchase additional equipment, extend the existing container yard and increase storage
space. The capital expenditure program will be used to expand
the terminal's operations, enhance its efficiency and reduce
logistical costs for importers and exporters.
Alberto Jimenez, general manager of MEB, noted, "We are
convinced that this investment to expand our infrastructure
and update its equipment will be crucial to making Muelles El
Bosque a more efficient port - one that is capable of handling
larger volumes and delivering better service to its clients."

St. Lawrence Seaway is 'trade corridor of the future'
TORONTO, CANADA - Robert Matthews, vice-president
of marketing for the Hamilton Port Authority, shared his views
on the future of the St. Lawrence Seaway as a major trade corridor with more than 190 attendees of the U.S. Grains Council's
47th Annual Board of Delegates' Meeting in Toronto, Canada
on July 23. Matthews said the seaway is the only transportation route able to provide immediate capacity, as it is currently
running at 50%.
"Increased demand is raising freight prices," Matthews said.
"The troughs are getting shallower and the peaks higher. Commodities formerly moved in bulk are now in containers. Container terminals are becoming long-term investment opportunities."
He told the audience of U.S. farmers, industry executives
and agribusiness leaders the ports along the St. Lawrence Seaway need to act now - before they are in crisis - to respond
to the global shipping trends. He noted that the seaway has

not presented alternatives to the status quo, using "antique"
domestic bulk carriers instead of container ships. Despite the
outdated equipment and facilities currently in use at most of
the ports, Matthews was optimistic about the future, even as
he identified areas that need to change.
Transitioning stevedoring from manual to skilled labor as
ports modernize, the development of integrated tug-barge
units and review of international shipping regulations would
all contribute to greater movement of commodities, including
U.S. grains, through the seaway.
Matthews also expressed his hope to open the seaway to
shipping for at least 10 months a year, adding the trade corridor has to expand to be successful.
As the system becomes more adaptable, U.S. agriculture
will benefit from increased competition among transportation
suppliers.

Bunge, Sinograin to build Chinese soybean plant
WHITE PLAINS, N.Y., U.S. - Bunge Limited on July 26
announced the establishment of a joint venture to build and
operate a soybean processing plant in Dongguan, Guangdong
Province, China, with Sinograin, the Chinese state-owned
grain company. Bunge will hold a 65% interest in the plant,
the company's first in southern China and fourth in the nation.
The venture is subject to government approval.
Construction of the plant, which will be located between
Guangzhou and Hong Kong, is expected to finish in late 2008.
The facility will have a daily processing capacity of 4,000
tonnes of soybeans and will be connected directly to discharge
facilities at the Port of Dongguan via Sinograin's existing
warehouses and conveyor systems.
It will produce soybean meal for the large livestock production industry in Guangdong and soybean oil for nearby urban
www.World-Grain.com / World Grain / October 2007

markets. Guangdong Province boasts one of the highest per
capita incomes in China.
"Combining Bunge's global supply chain and risk management expertise with Sinograin's domestic distribution network
will make this plant an efficient addition to the Chinese crushing industry," said Christopher White, chief executive officer,
Bunge Asia. "We expect the partnership between Bunge and
Sinograin to make a valuable contribution to meeting the
growing demand for food in an important region in China."
Driven by rapid commercialization of its meat and feed
industries and strong growth in food consumption overall,
China's soybean meal and soybean oil consumption have
risen at compound annual rates of over 11% and 15%, respectively, since 2000, according to U.S. Department of Agriculture statistics.
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World Grain - October 2007

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