Last year we reported on the situation in Venezuela (see ‘Strong message to Venezuelan Ports’) in our Latin America Ports Supplement with news that Government-controlled Bolipuertos took control of the country’s private terminals, including those at Puerto Cabello, in July 2009 under a presidential decree issued by president Hugo Chavez. DP World, which operated a container terminal at Puerto Cabello, was one of the operators which saw its assets nationalised by the decree. Since our 2010 report news coming from Venezuela seems to be few and far between. Hugo Chavez, a former army paratrooper who first came to prominence as a leader of a failed coup in 1992, caused a shift in Venezuelan politics six years later, after popular outrage at the traditional political elite, to win the presidency. Since then, Chavez has won a series of elections and referendums, including one on changing the constitution to allow unlimited presidential terms. In January 2011, Chavez announced that he would stand in the October 2012 presidential elections – something that he would win once again he assured his country. If this would be the case Chavez would hold office until 2019. But in June 2011 there were questions about his health as Chavez was treated for cancer. He flew to Cuba to have a cancerous tumour removed, after initial reports that alleged he only needed treatment for a pelvic abscess. After nearly a month’s absence he arrived back in Venezuela – just a day before celebrations to mark the country’s 200th anniversary of independence from Spain. Looking thinner after the surgery, Chavez said he was on the road to full recovery. He subsequently underwent several rounds of chemotherapy – both in Cuba and at home. It was not disclosed what type of cancer he has had nor was easy to ascertain his current state of health.
While Chavez is battling his health, Venezuela is battling its international reputation as the country is heavily depending on its vast oil reserves – the largest in the Americas – and has given it a strategic importance. And although Chavez’s government has implemented a number of social programmes, including education and health services for all, chronic poverty and unemployment are still widespread, despite the country’s oil wealth. Therefore the country needs a new direction to do business with the rest of the world. In November 2008, Chavez congratulated US President Barack Obama on his election victory, indicating that he was ready to “start a process of rapprochement” with the US. Three years later and the relationship with the US has not improved and this will be a long road for Venezuela if it wants to re-instate relations. The current government is fully aware of the situation and needs to act quickly and perhaps in hind-sight taking control of the country’s private terminals was not the right move. It therefore embarked on the next stage with the signing for a new container terminal in the port of Cabello. China Harbour Engineering was awarded a USD500 million contract by the state-owned Bolivarian Ports to build the new container terminal in the country’s main port of Puerto Cabello. The new Cabello project is based on a memorandum of understanding signed between the Caracas and Beijing Governments in September 2010.
The contract was signed by Venezuela’s transportation and communications minister Francisco Garces and China Harbour’s vice-chairman Chen Zhong. “This terminal will double the capacity we have and will be connected with the railway network we are developing,” said Garces. The new terminal will extend the cargo loading and storage area by 38ha, and add a space for the docking of two more container vessels with “a capacity of 70,000 tonnes and six mechanical arms for loading and unloading goods.” The construction of the terminal in Carabobo, located about 200km northwest of Caracas, is scheduled to begin in 2012 and should be fully operational in 2014. In 2009, the Carabobo northern state port handled a total of 790,000 TEU.