| Friday, October 16, 2009 | Edition
4 Issue 10 |
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The World Trade Center Miami welcomes you to SeaCargo Americas Newsletter, offering you updates from the industry and useful information on the fourth year of the SeaCargo Americas Conference and Exhibition. SAVE THE DATE
MEET OUR EXHIBITORS NEWS IN THE AMERICAS Uruguayan Delegation to Offer Mercosur Gateway A government authorized group of private companies will join a team of government officials from Uruguay at the SeaCargo Americas AirCargo Americas Conference for a special seminar Nov. 5th detailing the advantages to hemispheric traders of selecting Uruguay as the natural gateway to Mercosur. The Mercado Common del Sur (Mercosur) is the trading bloc made up of the four founding countries from 1991: Argentina, Brazil, Paraguay and Uruguay. Since 2008, Venezuela, Chile and Bolivia are associate members. Besides, Peru, Ecuador and Colombia have expressed their desire to join the group but are to a certain extent limited by their own Andean Nations Community. Mexico has also expressed an interest. Paraguay is landlocked and Brazilian and Venezuelan airports and seaports are enmeshed in political and customs intrigue while Uruguay is striving to demonstrate the efficiency of its new Free Zone laws, according to Renato Ferreira, president of the Lobraus Free Port. Founded in 1989 in California, Lobraus is now a dominant force at the Port of Montevideo where it operates a Free Trade Zone and bonded warehouse with all the facilities and services common to US Free Trade Zone facilities but highly unusual among other South American port terminals or warehouses. Also on hand will be executives of the Zonamerica private free zone, business and technology park and executives from TCU S.A. the operator of the airport cargo terminal. The seminar on Nov. 6 at the Doubletree Miami Mart and Convention Center will cover the advantages of Uruguayan free trade laws, the logistical advantages of trading through Uruguay with Mercosur and the cost benefits of Uruguay’s low tariffs and service fees. Customs brokers, importers, exporters and carriers are invited to meet with Carlos Gianelli, Uruguay’s Ambassador to the United States; Jorge Camaño, president of CONALOG; Fernando Puntilgliano, former president of ANP, the national ports administration of Uruguay. Also on hand at the national booths and the seminar will be Ferreira, economist Isidoro Hodara who is vice president of Zonamerica and Bruno Guello, an engineer with TCU. More than 3,000 trade related business persons are expected to attend this historic first joint conference and exhibition of SeaCargo Americas and AirCargo Americas for the three day exhibition featuring the leading corporations in air cargo and ocean shipping and related logistics. Hundreds of other executives involved with SeaCargo will attend two days of intense discussions featuring leaders of the top companies in the industries including: the Ports of Miami, New Orleans, Jacksonville, Houston, Panama and Port Everglades. Also among the presenters will be executives from Seaboard Lines, Maersk, APL Limited, Crowley, SeaFreight, Ports America, Ceres, and DP World. Executives involved in Air Cargo will hear discussions and presentations from American Airlines, LAN, TampaCargo, FEDEX, and Cargolux. Both conferences will feature presentations by regulators, trade association leaders and major dealmakers, including representatives from major financial institutions and infrastructure funds. Chamber Study: Obama Trade Policies Threaten 585,800 U.S. jobs The study done for the U.S. Chamber of Commerce attributed almost two-thirds of the potential job losses, or 383,400, to Congress' failure to approve free trade agreements with Colombia and South Korea. Passing the two agreements and a third pact with Panama should be part of a national plan to double U.S. exports over the next five years, U.S. Chamber of Commerce President Tom Donohue told reporters in a conference call. "A major surge in exports is our best path out of a recession, out of double-digit unemployment and the exploding deficits we're now experiencing," Donohue said. The business group's call for Obama to work more urgently to pass the pending free trade agreements and resolve trade spats threatening U.S. exports came just a few days after Obama slapped tariffs on Chinese tires. The United Steelworkers union asked for those curbs after saying that 5,000 U.S. tire workers had lost their jobs over the last five years. "Our study contemplates and foresees in the very near term the number of American lost jobs if America fails to move forward on trade could be 100 times larger," Chamber Vice President John Murphy said. Obama opposed the Colombia and South Korea agreements during last year's campaign but has promised to push for their approval once a number of concerns raised by his fellow Democrats are addressed. U.S. failure to approve the deals with Colombia and South Korea could "lead to a decline of $40.2 billion in U.S. exports of goods and services and U.S. national output failing to grow by $44.8 billion" in the next year or two as Canada and the EU fill the trade gap left by the United States, the study said. "Buy American" provisions of the economic stimulus bill passed by Congress earlier this year were another big source of potential job losses, the study said. If other countries retaliate by shutting American companies out of just 1 percent of their domestic stimulus programs, the "net employment loss to the United States from the Recovery Act's "Buy American" provisions could total 176,800. In the event retaliation escalates, U.S. job losses will mount dramatically," the study said. Lastly, the Obama administration's failure to resolve a cross-border trucking dispute with Mexico threatens another 25,600 U.S. jobs, the study said. http://in.reuters.com/article/businessNews/idINIndia-42479720090915?pageNumber=2&virtualBrandChannel=0&sp=true US Chamber’s International VP, Brilliant, to Address Joint Luncheon Infrastructure Limits Shift to East Coast Ports: Study When the capacity and overall efficiency of the canal are increased, East Coast ports will attract more of the Asian imports that move to retail distribution facilities in the eastern half of the country. Bruce Lambert, executive director of the Institute for Trade and Transportation Studies in Mandeville, La., said the fastest growing distribution hub of the country is located in a region stretching from the Ohio Valley to the Southeast and west to Memphis and Kansas City. West Coast ports, where mega-ships of 8,000 to 10,000-TEU capacity regularly call today, serve many of those distribution centers via intermodal rail. However, retailers and other importers are seeking alternative gateways due to increasing intermodal rail costs, the imposition of port fees in Los Angeles-Long Beach and an unfavorable perception of Longshore labor on the West Coast. “Cargo will go where it is the most competitive,” Lambert told the Canada Maritime conference sponsored by The Journal of Commerce Thursday in Vancouver. Lambert recently completed a study on the Panama Canal for the 13 Southeast and Gulf Coast states that support the Institute for Trade and Transportation Studies. Those states see a bonanza of cargo when the canal is enlarged, and they will certainly gain some market share at the expense of West Coast ports, Lambert said. A study earlier this year by Drewry Shipping Consultants in London projected as much as a 25 percent market shift, but Lambert said that conclusion is “on the high side.” A number of factors will determine cargo flow once the canal is enlarged. For example, will Los Angeles and Long Beach continue to “push cargo away” through fees and other policies, he asked. Lambert formerly worked in marketing at the Port of Long Beach. Most East Coast ports are incapable of handling mega-ships due to water draft limitations, or, in the case of New York-New Jersey, bridge clearance issues. Also, Panama will most likely have to continue increasing its tolls in order to retire the massive debt it will incur in enlarging the canal. Shippers and carriers will have to decide whether canal tolls or intermodal rail rates are a bigger deterrent to freight. All port expansion projects today include environmental challenges, and these could delay construction of much-needed infrastructure. http://www.joc.com/node/413609 Obama Taps “Border Czar” for Customs Chief It was the second time he’s had such a job. Under the Clinton administration Bersin was both U.S. attorney for the Southern District of California and the U.S. attorney general’s Southwest border representative to coordinate law enforcement there. Upon Senate confirmation, she said he will lead more than 57,000 CPB employees “to implement practical, innovative solutions to protect our country from threats to our national and economic security and facilitate legitimate travel and trade.” Port of Tampa Lowers Cargo Rates Despite the prospect of losing a projected $100,000 in revenue from Zim Integrated Shipping Services, port officials said they wanted to support a company that has helped expand Tampa's fledgling container cargo business. Panama Agrees to Host Two U.S. Naval Bases According to Panama's La Prensa newspaper, a preliminary agreement was reached between Panamanian President Ricardo Martinelli and U.S. Secretary of State Hillary Clinton during recent talks in New York. "The U.S. and Panama will sign before October 30 an agreement on the deployment of two naval bases on the pacific coast of our country to fight international drug-trafficking," said Minister of Government and Justice Jose Raul Mulino. "One of the bases will be located in Bahia Pina...450 kilometers [280 miles] east of the capital, Panama City, and another one - in Punta Coca about 350 km [217 miles] west of the capital," Mulino added. The U.S. government will also allocate additional USD 7 million to Panama this year for the fight against organized crime and illicit drug trade. According to Panamanian intelligence, there are over 2,000 hideouts on the Pacific coast of Panama, which international drug cartels use as transshipment bases for narcotics shipped from South America to the United States. All U.S. bases in Panama were closed and U.S. military forces left the country at the end of 1999 in accordance with the Panama Canal treaties. Textile Groups Urge U.S. to Act on Honduras In the letter, the groups said that the current political crisis in Honduras "has caused commercial traffic to falter dramatically, and textile and apparel plants in United States and Honduras are already being idled and workers told to go home." "We urge the U.S. government to work with the Honduran government in order to ensure that commerce is fully restored in the region before the textile and apparel sectors of the U.S. and CAFTA region are further harmed,” the letter said. By some estimates, Honduras' $14.1 billion economy has lost as much as $200 million in foreign investment since the Honduran military ousted elected President Manuel Zelaya from office on June 28. Acting president Roberto Micheletti ordered a military-enforced curfew on Sept. 21 after Zelaya snuck back into Honduras and took shelter at the Brazilian Embassy in Tegucigalpa, the capital. Micheletti said that he imposed the curfew because Zelaya's supporters surrounded the Brazilian embassy and "incited" violence. The trade associations did not specify what measures they believe the United States should undertake to ensure that commerce between the United States and Honduras is fully restored. The trade groups explained in their letter to Secretary Clinton that the U.S.-Central America textile complex "is a large interconnected textile platform where yarns, fabrics and other components often cross multiple country borders before the final garment is produced. If any one of these segments of the process is significantly interrupted -- as has been occurring in Honduras -- work quickly stops everywhere." "Dozens of U.S. textile mills have already reported that work has been curtailed and plants have been partially or completely shut down. In the CAFTA region, the same impact is being felt at apparel plants across the region because they cannot get components from Honduras or get products through the port of Puerto Cortes, the principal port for CAFTA trade in the region,” the letter said. The letter was signed by the following trade associations: American Apparel and Footwear Association (AAFA); American Manufacturing Trade Action Coalition (AMTAC); National Council of Textile Organizations (NCTO); National Textile Association (NTA); National Cotton Council (NCC); and the U.S. Association of Importers of Textiles and Apparel (USA-ITA). Fitch Upgrades Jacksonville Bonds from Negative to Stable According to Fitch, “The prior Negative Outlook reflected the city's prior plans to further leverage the security to the point where coverage levels may be inconsistent with the current rating category. The Outlook revision to Stable from Negative reflects the city's decisions not to further leverage the security and to authorize that the remaining $300 million of BJP projects, including $200 million of transportation projects and $100 million of additional projects, be financed through CB&A secured bonds, including the current issuance discussed above. In fiscal 2000, the city authorized $750 million in transportation projects and $1.5 billion in infrastructure sales tax projects over a 10-year period as part of the $2.25 billion Better Jacksonville Plan, a comprehensive capital program that will fund various infrastructure and economic development improvements with roughly $300 million of BJP projects left to be funded. The 'AA' rating on the BJP transportation revenue bonds reflects sound debt coverage, adequate legal provisions and the general credit characteristics of the city. The bonds are secured by the city's half-cent local option transportation sales tax and constitutional fuel tax revenue on a subordinate basis to bonds issued by the State of Florida for the benefit of the Jacksonville Transportation Authority (JTA). The JTA has pledged under an interlocal agreement with the city not to incur additional debt senior to or on parity with the city's bonds. Coverage of annual debt service for fiscal 2008 remained ample at 2.55x while MADS coverage was lower but still adequate at 1.66x due to ascending debt service. MADS occurs in fiscal 2031. Fiscal 2009 year to date revenues are down 8.4% from a year prior through the first ten months of the year which, if annualized, would lower annual debt service coverage. MEET OUR EXHIBITORS A&M Transwild Cia S.A.
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| Published by World Trade Center-Miami, Inc. Copyright © 2009 World Trade Center-Miami, Inc. You are receiving this e-mail because you have indicated you would like to receive information from the SeaCargo Americas Conference. |
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