Bulk Port Expansion
Bulk Port Expansion
Business Model Description
Invest in expansion of port infrastructure to cope with capacity limitation and traffic growth, reducing issues in the supply chain, initially through private investment and eventual public participation on dredging.
Expected Impact
Investment in the port (cargo) will promote trade and connectivity
How is this information gathered?
Investment opportunities with potential to contribute to sustainable development are based on country-level SDG Investor Maps.
Disclaimer
UNDP, the Private Finance for the SDGs, and their affiliates (collectively “UNDP”) do not seek or solicit investment for programmes, projects, or opportunities described on this site (collectively “Programmes”) or any other Programmes, and nothing on this page should constitute a solicitation for investment. The actors listed on this site are not partners of UNDP, and their inclusion should not be construed as an endorsement or recommendation by UNDP for any relationship or investment.
The descriptions on this page are provided for informational purposes only. Only companies and enterprises that appear under the case study tab have been validated and vetted through UNDP programmes such as the Growth Stage Impact Ventures (GSIV), Business Call to Action (BCtA), or through other UN agencies. Even then, under no circumstances should their appearance on this website be construed as an endorsement for any relationship or investment. UNDP assumes no liability for investment losses directly or indirectly resulting from recommendations made, implied, or inferred by its research. Likewise, UNDP assumes no claim to investment gains directly or indirectly resulting from trading profits, investment management, or advisory fees obtained by following investment recommendations made, implied, or inferred by its research.
Investment involves risk, and all investments should be made with the supervision of a professional investment manager or advisor. The materials on the website are not an offer to sell or a solicitation of an offer to buy any investment, security, or commodity, nor shall any security be offered or sold to any person, in any jurisdiction in which such offer would be unlawful under the securities laws of such jurisdiction.
Country & Regions
- Belize: Belize city
Sector Classification
Transportation
Development need
The GSDS and the NDF emphasize the need for the transport sector to support the tourism and agricultural sectors’ development with environmentally-friendly and climate resilient and adaptable infrastructure and supporting policies, along with the active collaboration of the private-sector.
Policy priority
The Government of Belize with the support of the Inter-American Development Bank (IDB) developed Belize's Comprehensive National Transportation Master Plan (CNTMP) which identifies and recognizes the need for more efficient and effective transport of people and freight within the country, and between Belize and its main trading partners.
Gender inequalities and marginalization issues
47% (females) and 53% (males) access to public transportation.
Investment opportunities introduction
Transportation is among the priority sectors for investment in Belize, given the extent to which agricultural exports feature, efficient road connectivity between the agricultural hinterland and the eastern coast seaports, and efficient port operations and shipment logistics are essential to the Belizean economy.
Key bottlenecks introduction
Bottlenecks for transportation sector include the lack of a bulk terminal in the Port of Belize City, or the capacity constraint in the municipal airport of San Pedro, along with limited investment from private sector in this sector.
Marine Transportation
Development need
The Port of Belize suffers from infrastructural limitations negatively impacting port productivity and competitiveness.
Policy priority
The Comprehensive National Transportation Master Plan (CNTMP) identifies objectives for martime transportation which includes an effective and resilient transport network and systems focused on
exports and trade and a better transfer of freight from roads to maritime transport
Gender inequalities and marginalization issues
47% (females) and 53% (males) access to public transportation
Investment opportunities introduction
Transportation is among the priority sectors for investment in Belize, given the extent to which agricultural exports feature, efficient road connectivity between the agricultural hinterland and the eastern coast seaports, and efficient port operations and shipment logistics are essential to the Belizean economy.
Key bottlenecks introduction
Possible emergence of more congestion for container and bulk cargo, with impact on costs for both imports and exports.
Lack of ability of the Government of Belize to influence the development of the existing ports.
Outdated regulatory framework
Pipeline Opportunity
Bulk Port Expansion
Invest in expansion of port infrastructure to cope with capacity limitation and traffic growth, reducing issues in the supply chain, initially through private investment and eventual public participation on dredging.
Business Case
Market Size and Environment
70,000 containers
Forecasted Containers by 2025: 70,000
Indicative Return
10% - 15%
Based on the feasibility study of the project in the Comprehensive National Transportation Plan, with an investment of USD 30.0 MN, the project sees a NPV of USD 772,787 and IRR of 14%.
Investment Timeframe
Long Term (10+ years)
Given the size of the total investment required for the port development and the construction/dredging of the port are long term with minimum 7-10 years.
Ticket Size
> USD 10 million
Market Risks & Scale Obstacles
Market - Highly Regulated
Impact Case
Sustainable Development Need
There is a need to develop and connect the different modes of transportation/freight in Belize to boost competitiveness.
There is also a need to reduce carbon emissions from freight transportation
Gender & Marginalisation
Since the industry’s workforce is largely dominated by males, new investments in this area can potentially increase employment opportunities for female employees in the maritime transportation sector.
Expected Development Outcome
There is a need to develop cargo transport to boost competitiveness. Solving the conflict between containers and bulk by creating a second berth can increase capacity for additional 90,000 containers which in addition will lead to increased employment in the sector.
Reduce emissions from freight transportation by improving maritime infrastructure.
Gender & Marginalisation
Investment opportunities in this area can increase employment opportunities for women in the maritime transportation sector if complemented by fair and equitable employment policies.
Primary SDGs addressed
9.4.1 CO2 emission per unit of value added
9.1.2 Passenger and freight volumes, by mode of transport
CO₂ emissions embodied in imported goods and services: 0.59/capita
In terms of port cargo movements, in 2016 import and export movements were 781,367 and 446,140 tons respectively, distributed between Port of Belize and the Port of Big Creek.
N/A
14.1.1 (a) Index of coastal eutrophication; and (b) plastic debris density
Belize Chlorophyll a concentrations year 2018: high values of 0.53 and 2.29 µg /L of alpha chlorophyll were detected in the inner coastal lagoon (this references the reef lagoon i.e. our immediate coastal waters)
N/A
Directly impacted stakeholders
People
Planet
Corporates
Public sector
Outcome Risks
Potential environmental risks linked to the dredging
Impact Risks
Potential environmental risks linked to the dredging & risks related to execution of the project, however investment in marine transportation will promote trade and connectivity
Impact Classification
What
Investment in marine transportation will promote trade and connectivity which will boost competitiveness resulting in the fulfillment of SDG 8 (Decent work and economic growth)
Who
Increased maritime activity directly benefits employees in the maritime industry in developing countries as well as exporting and importing SMEs "
Risk
Risk related to dredging may impact the environment
Impact Thesis
Investment in the port (cargo) will promote trade and connectivity
Enabling Environment
Policy Environment
The Comprehensive National Transportation Plan (2018) identifies the expansion/development of the port as of major importance to be able to cope with the capacity for the expected increase in container cargo traffic.
The Growth and Sustainable Development Strategy (GSDS) and the National Development Framework for Belize 2010-2030 (NDF) emphasize the need for the transport sector to support the tourism and agricultural sectors’ development with environmentally-friendly infrastructure.
Financial Environment
Ports are catalysts for economic development as they enable trade and support supply chains. Potential exists for a concession agreement between a Government Authority and a Private entity under the Public-Private Partnership (PPP).
Regulatory Environment
Belize Ports Authority Act (CAP 233): , the BPA controls port operations to serve the public interest; to regulate and control navigation within the limits of the ports and their approaches; to maintain, improve and regulate the use of such port services. The Belize Port Authority would act as the implenting agency for the expansion of the port.
(Regulation): The Cabinet recently approved a Public Private Partnership Policy (PPP) and creation of a PPP Unit to mobilize private sector capital that support large-scale investment in infrastructure.
Marketplace Participants
Private Sector
Belize Port Authority (BPA): is the primary regulator of the maritime sector, and oversees the following areas: maritime safety, port security, licensing and registration of vessels, licensing of masters, port state control and regulatory oversight for ports - - both public and private.
Government
Ministry of Finance: Responsible for national financial and investment policy
Target Locations
Belize: Belize city
References
- (1) Government of Belize. Belize Comprehensive National Transportation Master Plan (2018). Retrieved from https://edc.gov.bz/governmentpolicies/projects/cntmp/
- (2) Inter-American Development Bank. Transport Sector in Belize (2013). Retrieved from https://publications.iadb.org/publications/english/document/Transport-Sector-in-Belize.pdf
- (3) Government of Belize. Belize Comprehensive National Transportation Master Plan (2018). Retrieved from https://edc.gov.bz/governmentpolicies/projects/cntmp/
- (4) Vinci Construction: Grand Projects- Port Expansion (Kingston, Jamaica) https://www.vinci-construction-projets.com/en/realisations/extension-du-port/