Ecuadorian banana industry threatens protest over port rate hikes

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Ecuadorian banana industry threatens protest over port rate hikes

The Ecuadorian Association of Banana Exporters (AEBE) is planning a march on Nov. 15 to protest increased rates at the Port of Bolívar in El Oro, which could be set to jump from US$0.12 to US$0.14 by concessionary Yilport.

The association sent a letter to Ecuadorian President Lenín Moreno and the Ministry of Public Works in the hope negotiations could begin before the indicated protest date.

AEBE president Eduardo Ledesma told Fresh Fruit Portal the rates set by Yilport were beyond what the banana sector could pay and would impact competitiveness. 

He emphasized there was no additional service in the shipping arrangement that would warrant an increase in charges. And while some investments will need to be made for a poorly-built dock, this could be covered within Yilport's 60-year concession.

Ledesma claimed 95% of the port was used for banana exports, and that industry would not be able to pay the US$600 million required to invest over the short-term, claiming it would "practically liquidate" the El Oro banana sector".

He added that some multinational companies had already mentioned that in the event of higher rates at the Port of Bolívar they would ship more products from the Los Ríos area and use the Port of Guayaquil.

When asked about the current season, Ledesma said shipments were up 3% year-on-year and it was expected total exports for 2017 would be higher than the 319 million boxes shipped last year.

"We should be between 320-325 million boxes exported, so we'll continue being the [world] leaders. We'll continue growing and keep jobs and income," Ledesma said.

He said prices had remained steady, although an agreement had been reached between growers and exporters to reduce the cost of a box of bananas by US$0.06 in 2018 (down to US$6.20). This decision was made in a bid to stay competitive against the likes of Guatemala and Mexico, which have led to a 15% reduction in Ecuador's participation in the U.S. market.

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www.freshfruitportal.com

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