MercoPress. South Atlantic News Agency

Port costs inhibit cruise industry warn Punta Arenas operators

Port authorities from Punta Arenas in the extreme south of Chile anticipate a complicated 2009/10 cruise vessel season which could mean 30 to 40% less visitors and a considerable drop in the number of calls.

“It’s not because of the global crisis, or because they can’t make money in Chile, but simply because the Caribbean is far more profitable. Chilean port services have become too dear and cruise tourism is strictly speaking a business after profits”, said Eduardo Manzanares, manager of the Empresa Portuaria Austral, EPA, which manages the port of Punta Arenas, consider together with Ushuaia in Argentina the gateways to Antarctic cruises.

Manzanares added that this was clearly the message at the recent SeaTrade fair in Miami which annually convenes the cruise industry.

“We’ve spoken about the matter with local and Santiago authorities; we need to lower costs and fees. They are practically double those in other areas popular with the cruise industry”, said Manzanares who pointed out this was something “we had seen coming for over three years”.

Manzanares revealed he had talked to Chilean Navy authorities who have a big say in the area: comparative data shows that Punta Arenas is cheaper than Ushuaia or any other Argentine port; “however when you add all the extra fees, light houses, pilots, tugs, launches, buoys, cruise operators prefer other areas where they can make more money”.

According to Chilean sources while cruise calls are expected to drop 30% in Chile for the coming season “in Argentina they are expecting a 15% increase”.

“The Chilean treasury and Finance ministry will have to decide whether they wish to support the cruise industry or will let her go. I think we’ve so incisive in maritime security issues that cruise vessels are being forced to pay far more than what is reasonable”, said Manzanares.

Operators of Southern Cone ports have also joined the debate and are asking for costs transparency: “how is it that a team of pilots helping the cruise vessels sail between Puerto Montt (Chile) and Puerto Madryn (Argentina) bill the vessels 80.000 US dollars when in Alaska for a similar distance the cost is 30.000 US dollars”.