Ecuador signs a $1.2 billion port construction contract with Dubai's DP World

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• published: 07 Jun 2016
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Ecuadorean authorities signed on Monday (June 6), a 1.2 billion-dollar contract with Dubai's DP World, for the construction of Ecuador's first deep water port. Authorities from the Arab Emirates's state company attended the signing in Quito, where the contract was finalised for the public-private endeavour involving the construction and 50 years' of operation of the Posorja Port, connecting to the Panama Canal. Critics said the contract should have been awarded via a public tender, given the magnitude of the project. Leading the signing was Ecuadorean President Rafael Correa. "This construction has always been very important, but it has become urgent given the expansion of the Panama Canal. Ecuador needs a port which receives Post-Panamax boats, which could now pass through the canal with a depth of up to 15 metres (49 feet) and which can transport more than 12,000 containers. The natural advantages of Posorja - its natural depth of 15 metres and little to no waves - allow the arrival of this class of ship," said Correa. Also present was Chairman of Dubai World, Sultan Ahmed Bin Sulayem. "Ecuador needs a deep water port. Posorja is very important for the economic future of Ecuador. Every country on the west coast of South America has a deep water port, except for Ecuador. And this is of vital importance for trade. Guayaquil is one large container port in the world with less than ten metres (32 feet), everywhere else is about 15 or 16 metres (49 or 52 feet). Therefore, Guayaquil can only handle two to three thousand, it cannot handle big vessels, that can only be handled in other places. The benefits for Ecuador are many," Bin Sulayem said. An expected 2.5 million containers would pass through the port each year. Ecuador currently has four international ports, but none of them deep water ports capable of receiving the so-called Post-Panamex supertankers which have taken to surrounding waters following the expansion of the canal.