DP World signs port concession in Ecuador

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DP World signs port concession in Ecuador

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The Government of Ecuador has awarded DP World with the concession contract for the developing of the new Posorja deep water port in Guayaquil, at the delta of the Guayas River. 

The estimated for the project is US$1,200 million. 

Posorja port is currently a small fishing port in the Guayas delta, 50 km south of Guayaquil centre. In 2006, Spanish group Alianza Internacional Portuaria (Alinport) was awarded a US$450 million concession to build and operate a deepwater port with a 15 m draft in Posorja. However, works never began and the authorization for construction was later revoked.

The new contract has been awarded to DP World by direct hiring instead of following the normal procurement procedure. Therefore there has been some criticism about this irregular process.

In February, we reported that the Ecuadorian Ministry of Transport and Public Works and state-owned Dubai Port World (DP World) were about to agree a formal proposal for the construction of the project. 

Contencon, the company that run the concession of the container terminal of Guayaquil Port since 2007 has expressed its disagreement about this direct hiring process for the Posorja deep water port and has warned that is going to take legal actions against DP World for unfair competition.

The new Posorja port will move 2.5 million of containers per year and will include the construction of a specialized terminal with a with a 15 m draft. The project will be carried out on a build operate and transfer (BOT) basis

In September 2015 we published that the government of Ecuador announced a plan to develop four public private partnership (PPP) infrastructure projects including:

  • Machala port, which is Ecuador's second most important port. Located in the city of Machala, Bolivar Port is the gate of the export products of the rich region of the Province of El Oro and parts of the provinces of Azuay, Canar, Guayas and Zamora and northern Peru. This port mobilizes 80% of banana production in Ecuador.
  • Rio 7 highway in Huaquillas, a 95 km road that would link the northeast and northwest of El Oro province. The total project investment is estimated at US$356 million.

 The four projects plan would need an investment estimated at US$1.5 billion.

List of country news

Country news

  • June 02, 2016

    Ecuador signs port PPP project

    The Government of Ecuador has signed the first PPP project in the country to develop a new port terminal in Puerto Bolivar, in the municipality of Machala, El Oro Province.  Read more
  • April 20, 2016

    Tender re-launched for Manta port concession

    The Ministry of Transport and Public Works of Ecuador jointly with the Port Authority of Manta have recently announced the re-opening for the tender process for the port of Manta concession through a public-private partnership. Read more
  • April 07, 2016

    Ecuador merges road concessions in one

    Additionally, the Ministry of Transport and Public Works has launched a request for expression of interest (RFEOI) for the redesigned concession. The decision has been taken after the review of the expression of interests submitted for the two PPP projects. Read more
  • March 07, 2016

    Ecuador tenders two road PPPs

    The Government of Ecuador, through the Ministry of Transport and Public Works, has launched the tender processes for the development of two road public private partnership (PPP) projects. Read more
  • February 18, 2016

    Ecuador plans road concessions

    In order to improve the national transportation system the Government of Ecuador expects to receive through public-private partnerships PPP an investment of some US$4,000 million over the next 30 years.The plan would cover around 500 kilometers of roads. According to the information provided by Deputy Minister of Transport and Public Works.  Read more

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