Venezuela’s port of La Guaira: a colossus run down under the rule of chavismo

Venezuela’s port of La Guaira: a colossus run down under the rule of chavismo

Venezuela’s port of La Guaira: a colossus run down under the rule of chavismo

 

This key infrastructure has witnessed the country’s economic evolution since colonial times, playing a crucial role in the development of the Venezuelan economy.

lapatilla.com correspondent





To better understand the current situation of the port, our correspondent team in Vargas State interviewed Cipriana Ramos, Vice President of the Chamber of Commerce of Vargas State, and Rúsvel Gutiérrez, President of the Chamber of Merchants (retailers, traders), Industrialists and Customs of the Vargas State.

Historical importance of the port

Cipriana Ramos highlights the historical relevance of the port. “It is one of the main ports in the country. Since colonial times, the Casa Guipuzcoana has been a protagonist in international trade, facilitating imports and exports.”

“We have consolidated ourselves by contributing to the economic development of the country,” Ramos highlighted.

This port has also been essential to the economy of the Vargas State, acting as an entry and exit point for a variety of merchandise.

For his part, Rúsvel Gutiérrez adds that the port of La Guaira is an economic reference for international trade. It has been the main entrance to the country due to its proximity to Caracas, capital of the republic.

Since colonial times, the port was where control was established on the entry and exit of people and products between Spain and Venezuela in the year 1800. And witness “From then on, of very important events like arrivals by sea of personalities such as Francisco de Miranda” Gutiérrez explained.

Current port status

The port’s infrastructure has undergone significant changes, but not all of them have been positive. Ramos points out that the port has considerable capacity and is equipped with advanced technology. “The port of La Guaira has capacity for 1,200,000 TEUs (Twenty-Foot Equivalent Unit, a unit of measurement used in foreign trade and international shipments), equipped with gantry cranes and technology to improve efficiency in the handling of containers. It has a tourist terminal waiting for ships that will boost the economy of the state and the metropolitan area of Caracas.”

However, she also mentions operational problems. “It delays the departure of imports and the entry of exports and deficiencies, because it has only one scanning equipment.”

Gutiérrez describes specific problems that affect the port’s operation. “The port of La Guaira is restricted at times of high port operations during the entry and exit of trucks because it does not have various exits that can control the traffic of people and vehicles. This causes traffic congestion throughout the area when there is an increase in imports and exports. A vehicle can take up to a day to leave the port due to congestion.”

Impact of Chavismo on operations

Both interviewees agree that Chavismo’s management has had a notable impact on the port.

Ramos mentions that the modernization of the port of La Guaira with the construction of the new container terminal occurred between 2010 and 2015 by the company Teixeira y Duarte as a strategic plan to revitalize the port infrastructure. However, the benefits of this modernization are overshadowed by persistent problems and lack of proper maintenance.

Gutiérrez points to significant investment, but with mixed results. “The construction of the three deep water docks at a cost of 450 million euros saw fit to establish an immediate unloading terminal with six new high technology cranes. “This, to a large extent, enables the possibility of the country’s economic boost in conditions of high import and export.” However, structural and operational problems persist.

Consequences on trade

The deterioration of the port has had an adverse effect on commercial activities, both at the state and national levels.

Ramos highlights the urgency of infrastructure improvements. “It is urgent to install scanning equipment for exports and organize the entry of ‘empties’ (empty unloaded containers). This week we received a complaint from some truck companies about the delay in exiting when there are shipments with many containers and in times of low movement.”

Gutiérrez adds that the problems go beyond daily operations. “That the storage silos have not operated for more than 30 years has distanced Vargas from being a safe port for bulk loading and unloading. Thus a ship with 34 thousand tons must be slowly unloaded in port to trucks for up to 15 days, since the silos are not in operation for the suction and unloading of the ship. If this equipment were working, we could shorten from 15 days to 3 days the unloading of each vessel and that has an impact on the operational costs of the imported product and maritime chartering.”

The decline in numbers

According to Gutiérrez, the movement of imports and exports expressed in dollars for the year 1999 was as follows:

– Imports were estimated at 13.5 billion dollars

– Exports of non-traditional products stood at 2,400 dollars

In relation to the first half of 2024:

– Imports stood at 4,900 dollars

– Exports of non-traditional products were in the order of 1,374 dollars

“In relation to customs (tariff and tax collection), we have that Vargas has lost its place as the first port and customs at the national level displaced by Puerto Cabello, now for more than 10 years and, in turn, by the customs of San Antonio del Táchira, which is the second most important customs or dry port in Venezuela, with the customs of Maiquetía and La Guaira being displaced to the third place customs in the country,” Gutiérrez lamented.

Main complaints

The complaints and problems reported by merchants and industrialists reflect a combination of frustrations over the lack of modernization and operational inefficiency.

Ramos explains that the port of La Guaira was built to operate with the modernization of customs installed by Sidunea (Automated Customs System, software designed to cover all aspects of customs management) in 2003.

As he details, this application significantly improved customs processes, improving times. Management indicators of the time reported dispatches down to two hours.

“There were three selectivity channels (green, yellow and red) that allowed physical examinations and the delivery of documents to be reduced,” he said.

Gutiérrez, for his part, highlights the deterioration of infrastructure and its negative impact. “There are 24 abandoned docks without maintenance to keep them in optimal condition and receive shallow draft vessels. And provide general services for a future when we had up to 50 ships in the bay waiting to dock in port. Warehouses, whose infrastructure must be reviewed and evaluated for optimal functioning and operational continuity for merchandise that must enter or export in loose conditions or to be unconsolidated or consolidated, whether in import or export.

The conversation with both trade professionals in Vargas reveals that the port of La Guaira, despite its partial modernization and its historical importance, faces serious operational and structural challenges under the Chavista administration.

The voices of Cipriana Ramos and Rúsvel Gutiérrez highlight the urgent need for improvements in the infrastructure and operation of the port to recover its crucial role in the Venezuelan economy and ensure its future as an efficient and reliable international logistics hub.