TEXT-Fitch:Peru Port has regional advantages, global challenges | Reuters:
Source/Fuente: http://www.reuters.com/article/2012/04/23/idUSWLA676820120423
TEXT-Fitch:Peru Port has regional advantages, global challenges
Mon Apr 23, 2012 9:29am EDT
(The following statement was released by the rating agency)
Apr 23 - Fitch Ratings believes that a port in Peru stands to benefit from an array of local advantages but faces some global challenges. Terminales Potruarios Euroandinos Paita S.A. (Port of Paita) recently issued US$110 million senior secured notes and plans to use the note proceeds to dredge the port, build a mooring point, buy cranes, purchase other handling equipment, and partially fund reserves. The port currently handles over 150,000 20-foot equivalent units (TEUs). It primarily exports fish and agricultural products and imports fertilizers and grains. It is approximately 640 miles (1,030 kilometers) from Lima.
Port of Paita's location contributes to its relatively concentrated exports. The port is distant to major economic centers, with limited infrastructure access. However, activities at the port are likely to benefit from ongoing infrastructure developments in the region. Los Olmos water diversion and irrigation projects are expected to diversify its existing agricultural product base. Additionally, the connection to the Brazilian Amazon via the IIRSA highway may augment the port's activities.
As a second port of call, volume volatility could be partially mitigated with stronger contractual agreements with main counterparties. Fitch believes the additional capacity may better position the port to meet rising export activities in a growing economy.
Port of Paita also faces some global challenges given that most of its fish exports are bound for Asia. A slowdown in China's consumption, its largest fish byproduct market, could put pressure on export growth.
For more information, see the presale report, "Terminales Portuarios Euroandinos Paita, S.A.," dated March 23, 2012, available at www.fitchratings.com.
http://www.reuters.com/article/2012/04/23/idUSWLA676820120423
