Tuesday 11 November
2008, San José, Costa
Rica
Exporters Are First
Casualty Of Government-Sintrajab
Stalemate
By Renzo Dasso, Business
News Americas
Costa Rica's export
sector will be the first
to be affected by the
stalling of negotiations
between the government
and the Limón-Moín port
complex union Sintrajab,
chamber of exporters
Cadexco VP Marco Tristán
told BNamericas.
On October 31, Sintrajab
requested us$700 million
in compensation to allow
the government to offer
the port to a private
concessionaire. This
amount includes a us$905
compensation for each of
the union's 1,400
affiliates.
On November 3 the
government responded by
calling the request
"absurd" and offering
Sintrajab us$80 million.
That same day, the union
sent the government a
letter rejecting the
offer and demanding
pending labor
compensation owed to the
workers. The government
has not replied.
"I believe both parties
should sit down and
negotiate, or start a
dialogue, because
usually in these
situations, it is the
export sector that ends
up suffering the
consequences of port
closures, strikes and
cargo movement
slowdowns," Tristán
said.
"I am concerned about
this situation. I think
the government has run
into a wall and that is
very troubling, because
if the matter goes
further down this path -
and it appears it will -
the government will
encounter a lot of
resistance from the
union," he added.
Tristán added that
Sintrajab handles only
13-14% of operations at
the complex. The rest is
in the hands of the
private sector.
However, if the matter
is not handled properly,
the resolution of the
conflict could become a
very costly affair.
"Obviously, the sum
demanded by the union is
astronomical, it is not
even worth entertaining.
At the same time, the
government is offering a
very high figure.
However, at the end of
the day, it will be
financed by the
taxpayers," he said.
Tristán believes that
privatization is not
absolutely necessary.
"Exporters need Limón-Moín
to be modernized. There
are several operational
upgrades that can be
implemented without
privatizing the port.
Sintrajab itself could
implement them," he
said.
Costa Rican President
Óscar Arias plans to
privatize the port
complex, operated by
Costa Rica's Atlantic
port authority Japdeva,
before his term ends in
2010.
Located in Limón
province, the complex -
which is comprised of
Limón and Moín ports -
will be offered in
concession to a single
private developer.
The preliminary
concession plan expects
all the country's
general cargo and
container traffic to be
handled at Moín by 2016,
with the addition of a
fourth docking position
to the three that
already exist at the
facility.
At the same time, the
private concessionaire
is expected to turn
Limón into a tourist
port. |
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