BergerWorld: 3rd Quarter 2007

Sociedad Portuaria Bocas de Ceniza (SPBC), a group of private developers, were awarded a concession from the Colombian government to construct a new $170 million deep-draft port facility at the mouth of the Magdalena River in the area known as the Bocas de Ceniza. Located near the existing Port of Barranquilla, one of Colombia's largest ports, the principal function of the proposed port will be processing coal. With increasing demands for energy, Bocas de Ceniza Port is projected to handle more than 15 million tons of coal by 2025.

The Berger Group was retained by SPBC to assess the market, evaluate alternate options and determine the viability for the proposed port. The market assessment included a review of worldwide coal demand by major markets, future trends in coal production and consumption and competitive transport costs. A detailed review of existing and potential coal mine operations in Colombia was also conducted, including an assessment of comparative transportation, terminal and export shipping costs. Based on the demand forecasts, preliminary engineering studies and the evaluation of alternatives, Berger prepared conceptual designs and cost estimates for the proposed port. Finally, the Team conducted a detailed operational and financial analysis of the recommended improvements to determine the feasibility of constructing and operating the first phase. Berger is currently preparing the final design and bidding documents for the port.

Key elements for the first phase of construction include a state-of-the-art barge unloading terminal with a peak unloading rate of 5,000 tons per hour; an 800,000-ton coal storage yard; a shiploading berth with a minimum draft of 18 meters; ancillary structures, such as administration, operations and maintenance buildings; and power, water, sewer and drainage utilities. Additionally, to ensure year-round operation, a new breakwater will be constructed with a shiploading pier located on its inner side. A storage yard complex will also be built on approximately 40 hectares of reclaimed land, with the provision for an additional 35 hectares of container storage and another 150 hectares for the future expansion of the coal storage yard and a proposed industrial complex.