AAPA Seaports Magazine
Saturday, September 4, 2010 AAPA Seaports Magazine is "The Voice of the Industry"

Summer 2009 - Managing through Challenging Economic Times

Case Study: Curaçao Ports Authority

Synergies Suppress Downturn's Impact

In the deep Southern Caribbean, the beautiful island of Curaçao is going through vibrant changes. All are planned and executed to prepare for an upturn amidst a troubled worldwide economy.

For decades, the geographical location of Curaçao has been a dogged disadvantage for cruise tourism. Windward islands have benefited from the unprecedented increase of Miami sailing vessels. Curaçao, as all other neighboring islands in the Deep South, has been relegated to cruise ships sailing from Puerto Rico.

Despite increases in fuel prices, topped with the downturn of the world economy, Curaçao has become increasingly popular as a cruise destination. As the number of cruise calls increases, so does the number of passengers enjoying the Curaçao experience. In 2008, a record high of 355,500 passengers was registered. But this statistic is still vulnerable to external factors, of which the destination has no influence.

The Curaçao Ports Authority has meticulously studied the trends and risks to come up with a planned and organized creation of sustainable beneficial change. First and foremost, CPA is renewing and strengthening its position in the region as an all-around destination through client-friendly and competitive services and first-grade security and safety measures.

But the actions are also based on factual international evolutions. The upcoming expansion of the Panama Canal is scheduled for completion in 2014. China and India, the world's largest populations, are increasingly participating in the world economy and international trade of goods. Within a few years, the Southern Caribbean is expected to be within reach of the world's most important maritime route.

CPA's collaboration with the Panama Canal Authority has recently been formalized in a memorandum of understanding. This act was a logical consequence of the threats and challenges ahead and will establish a regional network for collaboration for mutual interest. An alliance of cooperation, aimed at generating new business by promoting the routes to Curaçao via the Panama Canal, also is fostering the cruise business and the regional trade of petroleum products.

At Curaçao, the local maritime industry is preparing for these changes. While the vessel traffic statistics already indicate an overall increase of 18 percent in number of vessels visiting the island in the last five years, a much greater increase is expected in the years ahead.

The growth will come primarily from increased traffic for the local petroleum industry. Oil carriers already represent 38 percent of all Curaçao vessel traffic. This portion is expected to change in the future, as the business for storage of crude and hydrocarbon products of the local terminal will likely result in a surpassing of the amount of freighters and cruise vessels visiting the Curaçao harbors.

To conform to the international trend in hydrocarbon transports, many more oil carriers are anticipated to visit the Curaçao harbors for Venezuelan crude products destined for the Far East. This will cause an increase in the average vessel size recorded and an upturn in consequential business.

"We will celebrate with pride as we move up the continuous improvement cycle, with or without the crisis," said Agustín M. Díaz, managing director of the Curaçao Ports Authority. "Our geographical location in the Southern Caribbean does not appear to be so bad after all."

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