MercoPress. South Atlantic News Agency

Who pays for port expansion to dock larger cruise vessels?

View of Punta Arenas, port, Straight of Magellan, and Norwegian Dream cruise ship

As the cruise industry keeps advancing and vessels become larger a controversy has erupted in Punta Arenas as to who should pick the bill for the expansion of port facilities both for docking and landing tourists.

This has become a particularly serious issue for Punta Arenas which does not have the sufficient infrastructure for the large cruise vessels to dock which limits the possibilities of passengers visiting the city. Anyhow Empresa Portuaria Austral, which manages Punta Arenas port is planning to expand facilities as part of a regional strategy to attract as many cruise vessels as possible. But EPA argues that most of the money generated by these visits benefits the city and "only 15% to 17% goes to the port", therefore "we are proposing that the city and the Region pick the bill for the infrastructure because for us it is not profitable", said Eduardo Manzanares, EPA general manager. Punta Arenas main two jetties have insufficient physical and technical capacities to receive the larger vessels which now range almost 300 meters long. And this is a growing tendency in the cruise industry which is also very much aware of costs. "We're talking of 2.500 people per visit and with an increasing number of middle class US residents. This means that last season we had 20 calls with 44.000 visitors and this summer we're expecting anywhere from 24 to 32 calls", said Mr. Manzanares. "It's not the same to have people walk ashore to having them shipped ashore in zodiacs or launches and the same when returning", he added. Chilean statistics show that when cruise vessels dock almost all passengers like to come ashore, while when they have to make a short open sea trip before landing the percentage drops to half. According to Mr. Manzanares any of the two docks can be converted since Maradones has a depth of 14 meters and Prat, ten meters. However Prats is favored since it is the most attractive and next to the waterside promenade. Manzanares revealed that as of next year a "dolphin" dock will be added to the end of the Prat jetty which should facilitate the direct landing of passengers. "And since the main beneficiary will be the city, we've proposed both to city and regional authorities to make the infrastructure investment because for us, 3 million US dollars for 20 to 30 dockings annually is under no circumstances profitable", insisted Manzanares. The last season Punta Arenas received 100.000 cruise visitors plus 35.000 crew members.