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A Special International Report Prepared by
The Washington Times Advertising Department - Published on April 21, 1999
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(1) Bell South
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Preparing infrastructure for international trade
Raul Samaniego, Minister of Public Works, explains, "Over the next three to five years, we plan to rehabilitate primary, or the most heavily trafficked, roads. Next we will rely on private concessions to repair secondary roads." However, the reconstruction and construction of many new roads is not on the agenda since the government is lacking financing. Nevertheless, the peace with Peru will lead to the creation of new roads. The Banco del Estado has begun programs in the Amazon and on the frontier, including the construction of four major roads. According to Manuel Vivanko, President of the Banco del Estado, this $450 million urban infrastructure project will also build a road through the Amazon and down to Peru, thus opening new lines for international trade. Back in Guayaquil, massive, 18-wheeler trucks are a common sight. The size and weight of these vehicles are part of the reason the city's primary or secondary roads are so poor. One of Guayaquil's challenges will be allocating the funds to maintain their roads for both agricultural trade and its citizens. Many international investors comment that the airports of both Quito and Guayaquil need to be upgraded to provide better services for those involved in exporting and importing. Roses and other cut flowers are examples of products that travel by air. In 1998, Ecuador exported $361 million in flowers to the United States. This year, Expoflores, the association of producers and exporters of flowers, plans to send flowers by air directly to the Baltimore Washington International Airport. However, most of Ecuador's agricultural products send their products by sea. The Port of Guayaquil is the largest of the country's eight ports. Strategically located on the west coast of Ecuador in the middle of South and North America, the port is about 50 nautical miles from the sea and is protected by the calm salt waters of the Gulf of Guayaquil, a major estuary of the South Pacific Ocean. The port's latitude makes it a convenient stopover for those ships heading to the Panama Canal. Ecuador is in the midst of a port and customs modernization scheme. Guayaquil's port has already begun to upgrade its facilities. Its general cargo, fruit, container and grain docks are all being modernized. Private companies have already received concessions to provide a wide range of services inside the port itself. For example, Banco del Pacifico is the first bank located within the perimeter of the port. Now, a customer can arrive by sea, fill out the proper paperwork and then pay the necessary charges, all within a few feet of his ship. However, if he decides to leave the port, and have fun in downtown Guayaquil, he can do so knowing that his ship is safe. The port is protected by electronic cameras to guard the perimeter and 52 video cameras to monitor internal movements. At the same time, launches patrol the canal leading from the gulf to the port, while on land security personnel constantly check identification. Port proximity is one reason Free Trade Zones have been created in the cities of Esmeraldas, Manta and Cuenca. ZOFREE, Esmeralda's zone, is located right next to the port. ZOFRAMA, the Manabi Free Zone, is less than 20 miles from Manta International Seaport. Meanwhile, ZOFRAC in Cuenca is a three and a half-hour drive down decent roads to Guayaquil's port. As the government prepares to promote international trade and investment, it will need to focus on improving its infrastructure. Some areas, such as coastal roads, will need drastic improvements in order to convince investors that the roadways are not just passable, but are safe as well. Others, such as the ports will need to continue to modernize and upgrade. As the infrastructure improves, investor confidence will increase as well. |
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Table of Contents (1) President Mahuad announces new economic plan |
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The coastal region of Ecuador provides Ecuador with shrimp, bananas, cocoa and many other agricultural products. For producers and exporters, the importance of a strong infrastructure is vital. However, the coast is still recovering from the damages of El Nino. The government has responded by creating an ambitious program to rehabilitate 1,200 miles of road.