Guatemala Moving Forward
Seven proposals to speed up ship traffic in Puerto Quetzal
As the expansion project gets underway with US Army engineers, users and stakeholders propose everything from specialized cranes to off-port storage facilities.
The commercial dock at Puerto Quetzal is 800 meters long and has the capacity to handle three or four ships, depending on their size. (Photo Prensa Libre: Erick Avila)
On April 4, the Tax Administration Superintendency (SAT) recorded a line of 24 ships in the anchorage area waiting to unload at Puerto Quetzal: four were carrying wheat, 12 had grain, six had iron, one had salt, and one had cement. These ships represent a total tax liability of Q331,280,535.10. Estimates from the Quetzal Port Company (EPQ) indicate that ships wait at anchor for between 25 and 30 days.
The bulk carrier union, affiliated with the Guatemalan Chamber of Industry (CIG), calculated that in 2024, ships at anchor paid US$70 million in delay surcharges alone. This Pacific port “has a limited number of docks where it can receive these ships, and what we have to work on is expanding the capacity of Puerto Quetzal to receive more ships at the same time, in order to minimize the number of ships at anchor,” says Raúl Bouscayrol, president of the CIG. The commercial dock is 800 meters long, allowing it to handle three or four ships simultaneously, depending on their size.
Port capacity has not grown so far this century. From 2000 to 2024, the Guatemalan Shipping Association (Asonav) recorded approximately 360% growth in container traffic and 252% growth in solid bulk traffic in the national port system, but not in infrastructure.
In the long term, there is a project with the U.S. Army Corps of Engineers (USACE) worth approximately US$600 million. Construction is scheduled to begin between November and December 2027. In the meantime, there are seven proposals to address the problems currently facing Puerto Quetzal.
1. Specialized cranes
One of the starting points for servicing ships arriving at the port is to expand installed capacity. Asonav considers it important to “assess the correlation between currently available machinery and equipment and make the necessary investments in faster ship loading and/or unloading systems.”
Bouscayrol believes investment in cranes is necessary: “If you don't have enough cranes to unload, unloading will not be efficient.” Puerto Quetzal currently has seven cranes in operation. However, Vice Admiral José Antonio Lemus, president of EPQ, says they are looking to acquire specialized cranes that will speed up the processing of ships carrying grain. “We believe this is the best short-term option we have to speed up the unloading process,” says Lemus.
In the short term, Asonav indicates that evaluating actual operational continuity times would help implement the necessary measures to achieve the established operational performance levels. Therefore, investing in specialized cranes could increase the number of tons unloaded.
There are seven cranes, but specialized cranes are needed to facilitate the loading and unloading of bulk cargo. (Photo Prensa Libre: Erick Ávila)
At Puerto Quetzal, Lemus estimates that “125 tons per hour per hook” are unloaded, that is, per ship crane, because bulk carriers have their own cranes. So, if I can have a mechanism that, instead of 125 tons, can unload 400 or double that, 250, for example, I would be in the same physical space, but in the time it used to take to serve one ship, I could serve two," he adds.
This could have a positive impact; however, Lemus believes that it will not be significant, as more dock space is needed.
2. Adapt existing docks to receive bulk cargo
One of the modernization projects with USACE is to expand the existing infrastructure to allow for the reception of larger ships with greater capacity, which is projected for 2027. In the short term, the solution is to adapt the existing docks. The CIG proposes making the necessary investments to transform them so that bulk carriers can unload in these spaces.
These talks are ongoing. In addition to the commercial dock, this port has five specialized terminals. Lemus says they are in negotiations with the coal and fuel terminal: “We hope to finish as soon as possible so that they can develop their own infrastructure and handle bulk ships.” EPQ has already conducted a test at this terminal, cleaning the conveyor belt to handle bulk cargo.
“They want to evolve into having their own band that has no connection with coal. The other coal company also wants to build infrastructure so that trucks can get close to the ship to handle bulk and general cargo,” adds the vice admiral. This work is planned for the coming months and is expected to be completed in less than a year.
3. Dredging by service providers
With the increase in silting at the bottom of the sea, Asonav considers it urgent to carry out dredging in the port to maintain depths. This type of work “plays an indispensable role in reducing operational risks, which is why we trust in the interest of the Congress of the Republic to remove the obstacles that currently exist for dredging in the country's seaports,” says the association. This would allow ships of different sizes to access the port.
One solution for dredging is to use service providers with specialized port terminals. Lemus indicates that they are in the process of creating an alliance to dredge the dock under this tool, since it is a “legal figure that allows them, having the capacity to dredge their own docks, to dredge part of ours in exchange for a lease payment, because the regulations allow it.”
This would be a palliative measure to optimize ship docking and not depend on high tide. “We are in negotiations with them, they are looking for nearby dredging equipment to be able to do so,” adds Lemus.
In the future, there are plans to hold a tender to purchase dredging equipment. “We have the possibility of dredging ourselves, and if for some reason Congress passes a law authorizing the contracting of dredging, which is currently blocked, we will also take advantage of that,” said the vice admiral.
4. Coordinated and automated inspections
In addition to the EPQ, there are other institutions involved in this process, and coordination between them is key to speeding up the handling of ships. Bouscayrol believes that “it is useless to have very efficient unloading of ships if we then come to a standstill because there is no inspection by the SAT, for example, by the Ministry of Agriculture or on the issue of narcotics.”
Edwin Curtidor, SAT Customs Administrator, indicates that the solution is to coordinate joint inspections between SAT, the Ministry of Agriculture, Livestock, and Food (MAGA), and the National Civil Police—such as the Division of Ports, Airports, and Border Posts (Dipafront). Although there are protocols authorized by the senior authorities of each ministry on how they should be carried out, "sometimes, due to a lack of personnel, only two or one arrive. And sometimes there is a high percentage of inspections by MAGA. So, it is useless for the SAT to inspect only 10 out of 100 containers when MAGA only lets 10 go and 90 are being inspected," says the superintendent.
From 2000 to 2024, there was an approximate 360% increase in container movement. (Photo Prensa Libre: Erick Avila)
This is linked to the automation of the process. The SAT proposes to have “a single platform where everyone will record what they review, what they retain, and what results they obtained. Because today, all of that remains on paper,” adds Curtidor.
5. Advance declarations at anchorage
According to CIG estimates, ships wait at anchorage for 30, 45, and even 60 days to be serviced and unloaded at Puerto Quetzal. To speed up service at the dock, Bouscayrol indicates that investment in the port's operating systems would help anticipate which ships will arrive and with what products.
This advance notice can also be applied to customs procedures. One proposal by Curtidor to improve interoperability is to submit declarations prior to unloading. This means that “when the ship is already in the anchorage area, if we and the importer have confirmation that their container is indeed on board the ship, they can pay the taxes at that point, which means that when the ship docks and is unloading, they can remove the container immediately, without further delay and without storage,” explains the superintendent.
This requires the exchange of web services to facilitate and ensure controlled operations, and to measure dispatch times.
6. Communication between freight consolidator and importer
"We have assisted importers whose goods were abandoned and asked them what happened, because they have 20 business days to remove a container before it is abandoned. The explanation they gave us was that the consolidator did not inform them that the container had already been at the port for 20 days," says Curtidor.
This is another problem that the SAT has identified. In this case, the customs administrator believes that the solution is coordination between the importer and the person who brings the cargo.
Ronaldo Gómez, vice president of customs brokers at Puerto Quetzal, identifies an urgent need to improve communication between port stakeholders, such as EPQ, specifically to notify container movements to the ramp. “They don't notify anyone, and then they end up saying that the agent didn't show up, that the problem is the agent's fault, that the containers aren't opened right away, but the reality is that we have no communication, no one is informing us that the container is already at the ramp or that it's on its way to the ramp and that we should show up.” Gómez proposes implementing automation systems to generate that communication.
7. Off-port warehouses
Another way to provide space for cargo is to set up warehouses outside the port, whether near or far from the port area, to facilitate and speed up the movement of cargo to and from ports. This is “a short-term solution that is already being used in other ports in Latin America,” according to Asonav.
For the association, “having off-port warehouses helps reduce congestion in the seaports where ships operate, considering that they also generate jobs and other cargo services, such as special unloading and specific cargo treatments, among others.”
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