Odebrecht JV Wins $1.3b Colombia Waterway Contract

Posted by Eric Haun
Friday, August 15, 2014

Colombia awarded a 2.5 trillion peso ($1.33 billion) contract to a consortium led by Brazil's Odebrecht SA on Friday to improve navigability on the Magdalena River, which the Andean nation has long planned to exploit for cargo transport.

Odebrecht will have an 87 percent stake in the joint venture, called Navelena. Navelena was was the only bidder for the contract, which covers a 908 km (564 mile) stretch of the Magdalena, which flows north to the country's Caribbean coast from the southern interior. Colombian construction firm Valorcon holds the remaining stake in the joint venture, Odebrecht said in a statement.

The project, focused on building navigation channels in shallower stretches, will eventually add 6 million tonnes of cargo transport capacity to the river, which flows through the populous center of the country.

"This project is fundamental for the competitiveness of the country," Eleuberto Martorelli, president of Odebrecht in Colombia said of the 13.5-year contract. Construction is scheduled to commence in July 2016.

The Andean nation's steep terrain and poor roads make it hard for industries to compete in export markets because of the high cost of transporting merchandise to port. The Magdalena River, however, flows to Barranquilla, one of the country's main seaports.

The government will not have to pay for work and services until they are delivered, the statement said, adding that Navelena has received proposals from international and local banks to finance the project.

Jorge Barragan, the Odebrecht engineer in charge of Navelena, told Reuters it would take around 18 months to arrange finances for the project.

"Today there is a lot of industrial production in the interior of the country and what we hope is that Colombia will be more competitive with this project," Barragan said.

($1=1,884.45 Colombian pesos)

(Reporting by Peter Murphy)

Maritime Reporter February 2015 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

Petrobras Downgrade Shakes Market

Moody's shocked bond investors this week with a surprise two-notch downgrade that put Brazilian oil company Petrobras in junk territory. The move was seen by some investors as overly assertive,

Brightoil Reports Steady Growth in Interim Results

Brightoil Petroleum (Holdings) Limited announced its interim results for the six months ended December 31, 2014, reporting steady growth over the period.   During the period,

Davie Building LNG-powered Ferries

Canadian shipbuilder Davie held a keel laying ceremony for MV Armand-Imbeau II, marking the beginning of the hull assembly for this first of two sisterships under

Contracts

Davie Building LNG-powered Ferries

Canadian shipbuilder Davie held a keel laying ceremony for MV Armand-Imbeau II, marking the beginning of the hull assembly for this first of two sisterships under

Lithuania Looks to U.S. for Gas

Lithuanian liquefied natural gas (LNG) importer Litgas has signed a preliminary agreement with a U.S. supplier, looking to lessen the Baltic nation's dependence on Russia.

Petrobras Denies Hiring JPMorgan for License Sales

Petróleo Brasileiro SA denied on Friday that it has hired JPMorgan Chase & Co to handle the sale of oil exploration licenses in deep-sea areas off the coast this year.

Bulk Carrier Trends

Ferus Smit to Launch Newbuild Bulker

Ferus Smit will launch newbuild bulk carrier Arklow Breeze on Friday, March 20 at Westerbroek.   Arklow Breeze is the sixth and last vessel of a series to be

Dryships in the Red

DryShips Inc. and through its majority owned subsidiary, Ocean Rig UDW Inc., of offshore deepwater drilling services, today announced its unaudited financial and

Munkebo Maersk, Biggest Ship Ever to Sail on the Thames

The 18,300 TEU Triple E container ship Munkebo Maersk became the largest ship to ever sail up the River Thames as it called at DP World London Gateway.   The 399 metre long Munkebo Maersk,

Ports

LA, Long Beach Ports Cooperation Approved

Federal regulators approve expanded working pact for Port of Long Beach and Port of Los Angeles to cooperate on congestion relief   The ports of Long Beach and

Damen ASD 2810 Hybrid Tug Delivered to Multraship

Multraship took delivery of a Damen ASD 2810 Hybrid tug vessel, built at Damen Shipyards Galaţi, in Romania. The delivery is part of Multraship’s fleet expansion program,

Van der Vlist Expands Zeebrugge Facilities

Van der Vlist Zeebrugge has expanded the capacity of the Zeebrugge site. The indoor and outdoor storage facilities now occupy a surface of 50,000 m². A new 950

Navigation

Crowley Crew Aids Ill-fated Catamaran

The crew of the Crowley-managed, 393-foot, heavy lift vessel Ocean Crescent recently provided assistance to five people aboard the damaged and drifting catamaran

River Levels Decreasing in Argentina

River levels in Argentina are currently decreasing and they are expected to continue over the coming week. The bottleneck remains in the River Plate access channel,

Containership Becomes Largest to Sail the Thames

The Munkebo Maersk became the largest ship to ever sail up the River Thames as it called at DP World London Gateway, the U.K.’s newest deep-sea port hub. The 399-meter-long,

Dredging

Dredging Project to Protect Virginia Shoreline

Outer Continental Shelf sand will protect infrastructure, restore dunes and habitat   The U.S. Bureau of Ocean Energy Management (BOEM) and Naval Air Station Oceana at Dam Neck,

Van Oord, Falck Ink Safety Training Deal

Van Oord has signed a two year contract with Falck Safety Services for the provision of safety training.   Van Oord, a contractor for dredging, marine engineering and offshore energy projects,

Dutch Chief Mate Sentenced for Fatal Collision

Gerardus Chapel, the chief mate at the helm of the dredger that collided with a sailing yacht at the entrance to the River Orwell in Suffolk last summer, has received a six-month sentence.

News

Ferus Smit to Launch Newbuild Bulker

Ferus Smit will launch newbuild bulk carrier Arklow Breeze on Friday, March 20 at Westerbroek.   Arklow Breeze is the sixth and last vessel of a series to be

Petrobras Downgrade Shakes Market

Moody's shocked bond investors this week with a surprise two-notch downgrade that put Brazilian oil company Petrobras in junk territory. The move was seen by some investors as overly assertive,

This Week's Top Stories

The top stories this week covered everything from a DP system failure, a facelift for a WWII torpedo boat, and some mysterious tankers off the coast of Philadelphia.

 
 
Maritime Contracts Maritime Standards Offshore Oil Pipelines Port Authority Ship Electronics Ship Repair Shipbuilding / Vessel Construction Sonar Winch
rss | archive | history | articles | privacy | terms and conditions | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.4360 sec (2 req/sec)