Thursday, November 6, 2008

Infrastructure - Costa Rica - Sintrajab: Limуn-Moнn port complex needs to be modernized, not privatized

Costa Rica's Limón-Moín port complex is a profitable facility and does not need to be privatized, the conflicts secretary of workers union Sintrajab, Alexander Porras, told BNamericas.


"We are fighting to modernize the complex. This is a profitable facility, and this is exactly why the government wants to privatize it. But privatization will only bring unemployment to Limón," Porras said.

On October 31, Sintrajab requested US$700mn in compensation to allow the government to offer the port to a private concessionaire. This amount includes a 500,000-colon (US$905) compensation for each of the union's 1,400 affiliates.

On November 3 the government responded by saying the request was "absurd" and it offered Sintrajab US$80mn.

"The government's offer was more like a bribe. It was humiliating and was unanimously rejected by the union, which voted against privatizing the ports," Porras said.

"That same day, the union sent the government a letter ratifying our rejection of the offer, and demanding pending labor compensation owed to the workers. We are waiting for the government's response," he added.

SINTRAJAB PROPOSAL

Porras said the Sintrajab request includes US$90mn to purchase two cranes that are allegedly needed in Moín to improve operational efficiency.

"In 2006, Sintrajab submitted a technically and economically feasible proposal to the government. Until now, it has not answered, but pressed forward with its objective to privatize the port complex, to the detriment of its workers," Porras said.

"Those cranes will allow us to charge what we need to charge. In addition, the remaining US$610mn will finance the expansion of docking positions 57, 58 and 59," he added.

Porras said Limón port alone produces US$15mn/y in profits that go directly to Limón, and added that a private concessionaire would not contribute as much to the province.

PORT CONCESSION

Costa Rican President Óscar Arias plans to privatize the port complex, operated by Costa Rica's Atlantic port authority Japdeva, before his term ends in 2010.

Located in Limón province, the complex - which is comprised of Limón and Moín ports - will be offered in concession to a single private developer.

The preliminary concession plan expects all the country's general cargo and container traffic to be handled at Moín by 2016, with the addition of a fourth docking position to the three that already exist at the facility.

At the same time, the private concessionaire is expected to turn Limón into a tourist port.



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