EDITION 3 • FEBRUARY / MARCH • 2018
SPECIAL REPORT NAVIGATION OF THE MAGDALENA RIVER
A CONTINUOS BATTLE AGAINST NATURE INTERVIEW
PORT OF BARRANQUILLA WILL INVEST 16 MILLION USD IN INFRASTRUCTURE
GRUPO DAABÓN, LEADER IN SUSTAINABLE PALM OIL PRODUCTION
DIRECTOR OF NES
NEWS, THE PALM CORNER DATA, FIGURES AND MORE
Colombian Ports Magazine Index
COLOMBIAN PORTS BY ANGEL BELEÑO The River p.6
NAVIGATION OF THE MAGDALENA RIVER A CONTINOUS BATTLE AGAINST NATURE The River p.8
HANDLING THE RIVER: THE RESPECT FOR NATURE News p.11
PORT OF BARRANQUILLA WILL INVEST 16 MILLION USD IN INFRASTRUCTURE News p.14
CORMAGDALENA ANNOUNCED AN INVESTMENT OF $2,700 MILLION FOR ITS HYDRAULIC LABORATORY News p.15
COLOMBIA EXPORTED 50% OF ITS PALM OIL PRODUCTION IN 2017
Palm Corner p.16
ALEJANDRA RUEDA, DIRECTOR OF NES BRINGS TO THIS EDITION Palm Corner p.20
GRUPO DAABÓN, LEADER IN SUSTAINABLE PALM OIL PRODUCTION Data and Figures p.22
'RECORD' FIGURE IN CARGO MOBILIZATION THROUGH THE MAGDALENA RIVER
DIRECTOR: Angel Beleño EDITION: Cindy Fandiño JOURNALISTS: Willian Ahumada Maury , Cindy Fandiño PHOTOGRAPHY: Particular ﬁles DESIGN: Amilkar Llorente Colombian Ports Magazine 3
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Colombian Ports by Angel BeleĂąo Editorial
COLOMBIAN PORTS The exportation dynamics of the country, the important contributions and investments by the capital city for the improvement of the infrastructure of our ports, the construction of new port terminals, among others, are all the relevant news that make us consider some imminent growing and development are being produced in our country today. We talk about remarkable progresses that make us more and more visible and reliable every day in the international scenario. On the other hand, we also wanted to give a voice and prominence to the palm sector in the country who is having an excellent moment thanks to
by Angel BeleĂąo
both the production and the exportation percentage increase of palm oil, which for the previous year was of 50% out of the national production. These are important results that position satisfactorily the palm sector, since this contributes a 9% of the PIB (Gross Internal Product) In this sense, it is our purpose to additionally meet the goals of the palm sector, as to the commitments with everything what is related to the improvement of practices and conditions for the production and growing of oil palm. All this based on international agreements and deals to encourage good relationships with the environment and the present social context.
Colombian Ports Magazine Director
The Interview River AAlfredo continuos Varela battle talks against about nature the future of the Magdalena
NAVIGATION OF THE MAGDALENA RIVER
A CONTINUOS BATTLE AGAINST NATURE
by William Ahumada Maury
HOW CAN THE MAGDALENA RIVER BE INFLUENCED BY THE ENVIRONMENT? An interinstitutional working group in Barranquilla faces a constant challenge against nature to guarantee and preserve a continuous and ﬂuid navigation through the Magdalena river. On the one hand, one of the member is Captain Germán Escobar Olaya, director of Dimar, maximum maritime authority, who enjoys the privilege of a broad view of the access canal to the Barranquilla port from his roomy oﬃce. A good portion of the national economy keeps moving through this river artery. The ﬁght against the nature’s avatars in
6 Colombian Ports Magazine
this part of the country is constant and nobody should distract from its duties here. “This river is the most stunning and at the same time unsettling thing I have dealt with during my career. Right now, it can give me a smile and show me a 9,4m draft ﬂow; but tomorrow, I may be receiving bad news coming from it”, argues this captain. On the other hand, in a quiet manner, Iván Martín León Luna is another coast professional who lives for the purpose of unraveling the Magdalena river´s secrets.
A continuos battle against nature The River
“WE CANNOT FIGHT AGAINST NATURE In order to have a river that beneﬁts the construction of a society, we have to take care of this river’s health. We need to consider the fact of growing an ecosystem and specially on the upper course of the river where it has waterfalls, curves and expands while obliterates everything in its path” León Luna. “The behavior of the Magdalena River directly depends on the rainfalls regime. In addition to this, the river basin is always prone to the eﬀects of sediment loads which can mold the depth levels. The more sedimentation the less depth in the river. It’s a nature’s game”, says. When the rainfalls regime is not too strong, the levels of the river depth sink. Then, the sea has a direct inﬂuence in its mobility, because it waylays the river mouth.
“What we know as the salt wedge then takes place. It is the sea who exerts a direct inﬂuence on the river levels. This a continuous ﬁght against nature where nobody can’t skip any details, if we wish to preserve a ﬂuid canal”, argues in a calm tone. León Luna friendly agrees to rebuild a hundred percent of the hydraulic laboratory of Las Flores, which will be provided with equipment and high technology, thus enabling the team to anticipate the river’s behavior.
Colombian Ports Magazine 7
The River Handling the river: The respect fot nature
HANDLING THE RIVER: THE RESPECT FOR NATURE For his part, Enrique Lequerica Otero, ex-navy oﬃcer and advisor who has devoted his life for the study of the most intimate river’s secrets, indicates that through the protection of the river it is possible to obtain a manageable access canal. Likewise, he considers the signiﬁcance of the people who handle the river conducting works from the natural properties of this tributary and not from projects that might violate its natural power. “It is necessary to take care of the riversides, to avoid contamination and to prevent deforestation. But this must be not only done in the Magdalena river, but also in Cauca and San Juan rivers and in other tributaries contributing to a third part of its ﬂow”, indicated this ex-oﬃcial.
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The battle of DIMAR The River
THE BATTLE OF DIMAR The ﬁgures provided by captain Escobar Olaya regarding the river’s devastation capacity on its riverbed, are signiﬁcant: “The river can obliterate in direction towards the Caribbean Sea an unthinkable amount of 225 million tons of sediment every year”, argues the captain based on documents that he presents. He also states: “You must keep playing the river’s game 24 hours a day as during a chess game you cannot lose. This is the importance of facing this issue as a perfectly articulated team. I can guarantee that the draft level of the river is ideal 24 hours and 7 days, only if all authorities involved in this issue show their commitment”.
continuous follow-up in the Magdalena river will also depend on something very important: “The agreements around the APP (Public and Private Alliance), where the ports captaincy will have more tools to ﬁx the mobility of the river’s access canal to the port, may soon take place”, says the oﬃcial. “Managing the Magdalena river requires the effort of a science component and education for people about the protection of this nature’s treasure”. Iván Martín León Luna Oceanography and Coasts Geology Doctor.
“The navy owns the Caribbean Ocean and Hydraulics Research Center that allows us to monitor and measure the risks of the environment in the sea and throughout the river.
“The Magdalena river is a typical river consisting of rainfalls. The level of waterfalls shows serious variations due to the flow capacity. This enables to anticipate its behavior”.
This is a signiﬁcant weapon in our work”, indicated. For this robust oﬃcial of the National Navy Headquarters, the success of a
Enrique Lequerica Otero Ex-navy oﬃcer and advisor.
Colombian Ports Magazine 9
News A brazilian company will contribute a 90% of the resources for the ﬁrst phase of The Darién I.P.
A BRAZILIAN COMPANY WILL CONTRIBUTE A 90% OF THE RESOURCES FOR THE FIRST PHASE OF THE DARIÉN INTERNATIONAL PORT.
THIS PORT PROJECT WILL BE ABLE TO RECEIVE CARGO VESSELS OF THE “POSTPANAMAX” CATEGORY WITH 300M LENGTH AND 40M WIDTH. The Darién International Port, a port project for the Sociedad Promotora de Infraestructura de Antioquia (Promoting Partnership of Antioquia Infrastructure) (Spiasa), will receive 90% of the resources for the construction of its ﬁrst phase by a Brazilian Company. For that reason, the memorandum of understanding has been undersigned with these Brazilian strategic partners, in order to reaﬃrm the construction of this port complex. The budget for the execution of this work is of USD 427 million of which the contribution by the Brazilian partners is expected to be an amount of USD 384,3 million. 10 Colombian Ports Magazine
The Spiasa representative, Pablo Agudelo Restrepo, indicated: “If we can ensure the obtaining of these resources, we will continue with the idea of the details design, we will complete some ﬁnancial structuration and in the ﬁrst semester 2019 we will star the works with the expectation of receiving the ﬁrst vessels in the end of 2020”. The construction schedule which comprises the intervention of one kilometer of the coast, estimates an access entrance to be available and the construction of docks and dredging to access the canal, in addition to the adaptation of the storage yards.
Port of Barranquilla will invest 16 million USD in infrastructure News
PORT OF BARRANQUILLA WILL INVEST 16 MILLION USD IN INFRASTRUCTURE The investment amounts to 16 million USD and will be destined for the Modernization of the Port in terms of infrastructure. The capital provided seeks to consolidate the port of Barranquilla as a logistical platform in the Caribbean, for which it will be destined to the existing infrastructure, and remodeling of wineries and Coke patios, as well as purchasing new equipment. This investment plan also aims to improve the bulk carrier system and its storage capacity. In this sense, it seeks to improve quality at the level of labelling services and distribution of cargo that arrives in containers, to considerably reduce the logistical costs of the customers of this port terminal. The President of the Port Society (Sociedad Portuaria), Rene Puche, said: "We are transforming our port into a logistics hub and we will increase the services we provide. This will allow us not to rely solely on increasing cargo through the river, but on having a better income scale by providing more services".
11 Colombian Ports Magazine
“In addition, with the new customs statute, the port is enabled for manipulation, storage and dispatch of national cargo to any location in Colombia.”, added Puche. In this way, Barranquilla's Port society is working on a tariﬀ update to manage a proper cost-beneﬁt ratio.
News The city of Cartagena consolidates as a leader in export dynamics for the country
THE CITY OF CARTAGENA CONSOLIDATES AS A LEADER IN EXPORT DYNAMICS FOR THE COUNTRY
US $15.500 million were recorded from January to November 2017. The city of Cartagena stands out as number one in export dynamics in the country, because it records nearly half of its National exports. Adding the highest value exports between January and November of 2017 amounting to US $15.500 million. According to the Port Society of Cartagena, the city "has been, for decades, the main port of Colombia in economic terms. It is the port area with the most international terminals in the country (more than 18, both public and private) at the service of Colombian foreign trade". In this same way, the Ministry of Commerce, Industry and tourism, said that approximately 95% of the products are shipped abroad through the ports, which gives relevance to the role they play in the foreign trade sector of the country.
COLOMBIA SEEKS TO ESTABLISH TRADE LINKS WITH AUSTRIA FREE ZONES ARE THE BIGGEST ADVANTAGE FOR INVESTORS AND ENTREPRENEURS In a meeting where more than 50 entrepreneurs participated in Vienna, Austria, the national government and the Ministry of Commerce seek to strengthen a trade agreement with this country. During this meeting, it was pointed out that Colombia oﬀers tax beneﬁts, exemptions from tariﬀs and simpliﬁcation of customs procedures to encourage establishment of companies in our territory. In addition, the Ministry of Commerce assured that there are incentives for those ﬁrms to invest
12 Colombian Ports Magazine
in innovation, research and development, as well as advantages in legal stability for foreign capital. "We have one of the most stable economies in the region, whose growth was even recently raised trending upward by the International Monetary Fund. We also have an expanding middle class and a privileged geographical position, conditions that are attractive for investment. Our goal is for Austrian entrepreneurs to look at Colombia, " said Trade Minister Maria Lorena Gutiérrez.
Liquid terminal Palermo Tanks plans to mobilize 360.000 tons during 2018 News
LIQUID TERMINAL PALERMO TANKS PLANS TO MOBILIZE 360,000 TONS DURING 2018 This liquid terminal has projected an expansion plan that would allow mobilization of 360,000 tons of oil palm, naphtha and Diesel during 2018. To this date it already has already recorded 250,000 tons mobilized.
The data: It is estimated that by the year 2020, Colombian palm oil exports will double, fulﬁlling a signiﬁcant role world-wide and representing more than 30% of the hemisphere's exports.
In this sense, Palermo Tanks aims to continue with its projection in product storage operations, for which, it acquired late last year four new tanks, whose storage capacity is 19.000 m3, which makes it one of the highest capacity for Palm oil storage in the country, while it continues to count with two 58.000 m3 tanks. Roberto Pretelt, commercial manager of Palermo Tanks said: "I believe that with these new tanks we respond to a market need. Therefore, this will allow us to oﬀer better alternatives every day to our customers".
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Colombian Ports Magazine 13
News Cormagdalena announced an investment of $2.700 million for hydraulic laboratory
CORMAGDALENA ANNOUNCED AN INVESTMENT OF $2,700 MILLION FOR ITS HYDRAULIC LABORATORY
With this new Research and Engineering Center of Cormagdalena, (CIIC), we seek to make constant measurements of current speeds, sediment drag and monitoring ﬂow behavior. The teams to be placed in the hydraulic laboratory, where the behavior of the river will be studied, already began to arrive in the city of Barranquilla. According to the report by Cormagdalena, they are expected to enter full operation this year. The director of Cormagdalena, Alfredo Varela, said that beginning December, they received the ﬁrst cutting-technology equipment for the (CIIC), this is the 600Khz Río Grande ADCP, with which measurements of velocities and ﬂows will be carried out in the Magdalena River, he also stated that they are already implementing software, Acquiring equipment,
14 Colombian Ports Magazine
assembling basic infrastructure and recruiting human capital. In the same way, the director of this institution said that certain tests were already carried out with the new equipment, making measurements of the ﬂow and the speed of the current of the access channel to the port of Barranquilla. “We have Already structured the acquisition processes for hydrographic surveying systems and the automatic hydrological stations, tide gauge and equipment to measure sediment concentration ", Added Varela. He also reported that they are negotiating with diﬀerent universities in the country to undertake scientiﬁc and technological research in the Magdalena River.
Palm sector projects production of 2 million tons of oil in 2018 News
PALM SECTOR PROJECTS PRODUCTION OF 2 MILLION TONS OF OIL IN 2018 For 2018 the projection of Fedepalma is to exceed 1,633,000 tons of crude palm oil which was produced during 2017 and represented a 42% increase compared to the ﬁgures obtained during 2016. As part of the 55-year celebration of the National Federation of Palm Growers, Fedepalma, the president of this organization, Jens Mesa Dishington, said that they will continue to work to remain as the ﬁrst producer in South America and fourth worldwide.
"The palm sector moves a $3.3 trillion market in Colombia and this ﬁgure will increase during 2018 because our expectations are to increase production to more than 2 million tons of oil" Said Mesa Dishington. In addition, he highlighted the creation of the Palm Price Stabilization fund, by the Oil Palm Research Centre, Cenipalma, the Fund for Pal Promotion and 139 strategic alliances, among others. "Palm is Colombia´s Second Permanent Crop After Coﬀee and corresponds to 9% of the GDP of the Country”, added Mesa Dishington.
COLOMBIA EXPORTED 50% OF ITS PALM OIL PRODUCTION IN 2017 Around 60% of the volume of export palm oil was sold to the European market. In the Year 2017, some 817,000 tons of palm oil, that is 50% of domestic production, were destined for export. External sales of the palm oil agro-industry recorded a 579% increase, between January and November last year, represented in sales for 356.2 million dollars. In the year 2016, external sales were 225,5 million dollars.
"The Colombian palm sector continues to consolidate as one of the leaders in the agricultural ﬁeld, since this dynamic has been sustained over a highly formal business-base", points out Mesa Dishington.
The President of the National Federation of Oil Palm Growers (Fedepalma), Jens Mesa Dishington, says that this outstanding export dynamic has led to the palm oil becoming the agricultural product that contributes the most to the good behavior of agricultural exports of the country, after Coﬀee.
In the country, the palm sector generates about 160,000 direct and indirect jobs, in this same way, there are some 500,000 hectares planted with oil palms and about 5000 producers in 124 municipalities in 20 departments.
According to Mesa Dishington, the increase in the export percentage is due to the good production performance of 2017 which was 1.6 million tons, which represented a growth over 42%, record ﬁgure if compared with that registered in 2016.
Fedepalma points out that among the challenges of the palm sector for this year, there is an interest in improving productivity, which will close technological gaps between producers and production scales.
Colombian Ports Magazine 15
Palm Corner Interview: Alejandra Rueda, Director of NES
ALEJANDRA RUEDA Director of NES Naturaleza
SUSTAINABILITY IS A FIGURE THAT PROMOTES COLLABORATION AND THE WELFARE OF THE COMMUNITY Her 18+ years experience in the Latin American agribusiness of oil palm, which she has been supporting not only towards the adoption of sustainable practices for palm companies and, in developing tools and initiatives that promote the generation of value in rural communities. She has also, supported the development of the Colombian biodiesel market and the implementation of sustainability standards in More than 100,000 hectares of Oil Palm plantations. With A Master’s degree in Energy and Resources, complemented by Paz y Resolución de Conﬂictos (Peace and Conﬂict Resolution), Alejandra has aided in strengthening knowledge of good agricultural, environmental and social practices, for more than 3000 small agricultural producers. She is currently the Director of NES Naturaleza, A Colombian company whose main objective is to generate sustainable productive projects in the ﬁeld, as well as promoting growth and development in rural communities.
COLOMBIAN PORTS INTERVIEW CPM: From the sustainable development point of view, which are the main objectives that have been raised in the rural and agro-industrial sector in Colombia? AR: Basically, sustainable development is no diﬀerent from working responsibly, so the goal is responsibility. Responsibility for what? Responsibility in environmental practices, responsibility in social practices and responsibility in productive practices, which, at the end of the day are the ones that lead the company to maintain itself in time. Therefore, sustainability basically reﬂects the appropriate
16 Colombian Ports Magazine
interactions between these three axes in such a way that there is a win-win relationship between the ecosystem and people and, the economic systems and people. Regarding the beneﬁts, for both agribusiness and the rural sector, I think there are many, starting with a subject as simple as organization. Agro-industry through sustainability has the opportunity, not only to understand, but to organize their processes, by organizing its processes it can compare costs, their expenses, income, practices, and improves continuously. From the point of view of rural development and communities, sustainability is key because it encourages the role of good neighbors, where all of us in some way, are concerned with the
Interview: Alejandra Rueda, Director of NES Palm Corner
environment, be it the landscape, the ecosystem, or society. Sustainability is a ﬁgure that promotes collaboration and the welfare of the community. CPM: In September last year, was there any resolution or certiﬁcation on palm oil issued in the Netherlands? AR: Certain countries in Europe and the European Parliament have started a discussion on the prohibition or non-importation of palm oil. It's not that any policy has entered in rigor, but there are European trends that seek to ban palm oil, mainly for biofuels. However, there are other trends that also consider palm oil from a health standpoint. In this line of thought, the most appropriate way to remain or enter the European market is through sustainability standards or sustainable certiﬁcations such as RSPO, ISCC, Rainforest, among others. They attest to the fulﬁllment of a series of requirements that ensure a responsibly produced palm oil. CPM: Speaking small producers, what goals have been achieved in transferring knowledge and technology in the palm sector in our country, to contribute to the inclusion of small producers in the value chain? AR: Regarding transfer of technology or knowledge there are diﬀerent initiatives: a very important one is that of Fedepalma and Cenipalma through the UAATAS, (Units of Technical, Environmental and Social Auditing Assistance). This initiative seeks to reach small fruit producers, and transfer knowledge hand-in-hand with the plants, because it is the latter who become the palm core, where, in addition to receiving the fruit from diﬀerent producers, they can also radiate information and knowledge.
There are other initiatives that have been developed directly with international palm oil buyers such as Wilmar International, with whom we are working on a program in Colombia called WISSCo in the eastern plains with 11 plants, and those who initially seek to generate technical capacity and train small and medium-sized producers on issues such as the ABC of sustainability, along with Wilmar's own non-deforestation, non-peat and non-exploitation policies. This initiative is carried out with Solidaridad, a Dutch NGO that also seeks to strengthen sustainable practices in the palm agro-industry, among others. In addition, there are other private initiatives from both extractors and marketers seeking to strengthen sustainability in the sector. CPM: On one occasion, a conference mentioned that the company Ferrero Rocher, which is a strong consumer, did not buy in Colombia What do you think of that? AR: I do not think that they do not buy Colombian oil, what happens is that Ferrero has a clear policy of buying sustainable oils. Although this company does not buy directly in
Colombian Ports Magazine 17
Palm Corner Interview: Alejandra Rueda, Director of NES
Colombia, there is a possibility that some percentage of sustainable Colombian oils that arrive in Europe, are part of Ferrero´s supply chain. CPM: Ferrero Rocher buys in Malaysia? AR: Yes, I think it buys certiﬁed Malaysian palm oil. This is a company that buys mainly in Rotterdam. This port receives oil from Malaysia, Indonesia and Latin America so, I am hopeful that in addition to buying Malaysian certiﬁed oil, it also buys some Percentage of Colombian or Latin American certiﬁed oil. I was at a conference in November, I was just talking to small producers on a stage at the European Alliance for Palm Oil, and we were diﬀerent stakeholders interested in clarifying and promoting the issue of sustainable palm oil, and presenting in some way, the existing interests and concerns. Ferrero was there, and its commitment was on 100% sustainable palm oil. CPM: We have been at the Rotterdam port and the transferring operation is very interesting, it has an direct physical distribution to the barges. AR: Yes, the truth is that everything is through direct pipes to the tanks. CPM: Shipments are sent to Switzerland, Germany, and all neighboring countries in a direct, mechanical and very well managed way. The professionalism at the Rotterdam port is outstanding. AR: It's spectacular. Latin America moves almost 20% of its palm oil entering Europe through that port, and only a very small percentage of it is sustainable oil, either RSPO or ISCC certiﬁed.
18 Colombian Ports Magazine
So, the question is, how do we move towards sustainability, to ensure that market? Because what we do not want is that, at some point, the European Parliament limits access of palm oil to Europe. Although I see it as a long shot because it would be discriminating against international trade standards. Anyways, the risk is there. CPM: How has the adoption and implementation of sustainability standards such as RSPO developed in Colombia? AR: That's an interesting topic. The truth is, that if you start thinking about when it began or when RSPO arrived in Colombia, you could say that it was a decade ago with the ﬁrst Latin American RSPO Conference. 10 years later, there are about 10 companies certiﬁed under that international standard. CPM: Are the main stakeholders the ones that are certiﬁed?
Interview: Alejandra Rueda, Director of NES Palm Corner
AR: Yes. But in Colombia there are 62 extraction plants and only 15 are RSPO or ISCC certiﬁed, then there is still a long way to go. The process has been diﬃcult, initially it was all in English and the main documents had to be translated to move forward. Then, a national interpretation was made, and even before it, the ﬁrst certiﬁed RSPO plant was Daabon and, from there, other companies started to work on the subject. What happend? From my perspective, the local biodiesel market along with bud rot disease reduced pressure on export, so resources were allocated for the new local market and to protect the palms from the disease. In the past three or four years export begins to strengthen again, producers begin to work on RSPO along with another brand called ISCC. I spoke of brands, because to me, sustainability is a single one, no matter how you name it. Calling it ISCC, RSPO, or Rainforest, is the same, the only diﬀerence is that some emphasize more on certain speciﬁc topics than others. In Colombia, there is no Rainforest certiﬁed palm company, but in Honduras and Guatemala there are.
CPM: What does ISCC mean? AR: ISCC means International Sustainability and Carbon Certiﬁcation. ISCC has very interesting topics. ISCC was created primarily for the biofuels market in Europe, and ISCC is interested in reducing greenhouse gas emissions against fossil diesel. CPM: In the BLs emissions are allocated from the extraction plant to the docks AR: Exactly. What the buyer does is that it takes the emissions reported by the extraction plants, they add them to the process of production of biodiesel, and that turns out a number of emissions, and these emissions are compared with the emissions normally produced by the fossil fuel, and in order for you to enter the European market the emissions of the entire process to reach palm biodiesel have to be less than 50% of those emissions generated by the fossil fuel, therefore it is very interesting because you have to look at the issue of emissions as a whole. Colombian Ports Magazine 19
Palm Corner Interview: Alejandra Rueda, Director of NES
CPM: Is it a strict traceability? AR: It is a very strict traceability but not only that, in my personal experience, when having to strictly review fertilization, application of agrochemicals and the use of fuel in each farm, a system of comparison of the eﬃciencies of each of the farms immediately arises, becoming an amazing control instrument, that is, an impressive administrative tool. Through traceability, a producer that really does its task is going to realize where it can save or where it is having unnecessary expenses, then it is compensated for the eﬀort made, and this should result in better ﬁnancial indicators. This is a topic that I personally like it because it allows to work eﬃciently and eﬀectively directly in the ﬁeld. CPM: According to data from the National Administrative Department of Statistics (Dane), during the year 2017 the palm oil agro-industry was, after coﬀee, the one that contributed most to the growth of the country's agricultural exports. What new scenarios and responsibilities pose for this recent dynamic in the palm sector?
“FROM THE POINT OF VIEW OF RURAL DEVELOPMENT AND COMMUNITIES, SUSTAINABILITY IS KEY BECAUSE IT ENCOURAGES THE ROLE OF GOOD NEIGHBORS, WHERE ALL OF US IN SOME WAY, ARE CONCERNED WITH THE ENVIRONMENT, BE IT THE LANDSCAPE, THE ECOSYSTEM, OR SOCIETY. ALEJANDRA RUEDA
20 Colombian Ports Magazine
AR: From my perspective, there is a scenario where the sector becomes mainly an exporter, since there is no longer a major local consumption of palm. This is where palm could become a benchmark for responsible practices, and other crops could follow the diﬀerent schemes that the palm industry has advanced in, which contribute to sustainability. For example, aspects related to labor formalization where there is a study by Fedesarrollo which compares the formalization of labor in the palm sector compared to other sectors. In environmental practices for example, the sector recently signed a statement of zero deforestation and on the other hand, it is currently seeking to grow via productivity and not by increasing cultivated areas. CPM: Are we far from Central America in terms of sustainability? AR: We have to know from what perspective we are looking at it, because all the countries have diﬀerent conditions. CPM: Analyzing markets, how will that buyer, who is in Europe, look at Colombia, and look at Central America around certiﬁcations or use or sustainability? AR: I think that in some way, the European buyer is interested in whether it is certiﬁed. There are companies in Central America that are certiﬁed and have also done an important job. That region is mainly exporter except for Mexico, so it is obliged to maintain global markets. CPM: Considering this issue, how far are we from that? AR: I think there are diﬀerent situations: if you look at Guatemala, it has a very important percentage of certiﬁed oil, but it has that
Interview: Alejandra Rueda, Director of NES Palm Corner
important percentage because they have really big companies where the fruit supply base belongs to them, therefore it is easier to handle, to reach certiﬁcation. Thus, we see large RSPO certiﬁed companies in Guatemala. In Honduras there are two RSPO certiﬁed and three ISCC certiﬁed companies out of eleven. These companies have their own supply base, as well as some third-party supply. Costa Rica´s largest oil producer is also RSPO certiﬁed. I believe that Colombia has been taking some important steps. It has been present in diﬀerent RSPO scenarios, this year, such as the Latin American RSPO Conference held in Cali, Colombia. I would not compare Colombia with other countries in Central America because they all have completely diﬀerent circumstances and models, and all have advanced. CPM: Do you see us as a sustainable country in terms of Palm in the near future? AR: Without a doubt. Perhaps we should strengthen a little more the development of sustainability within small fruit producers because they really represent a high percentage of the supply base for extraction plants. I think we need to look for innovative tools to reach that small producer who has diﬃculty acting in a sustainable way, and we need to assign responsibilities to them. I also think that there are oil extractors who just have to start taking steps towards sustainability and, at least in the next two years have 70% of the extraction plants certiﬁed.
CPM: Could the rural SENA contribute? AR: You know, I think so. I think SENA can have a very important role in the transfer of knowledge. CPM: Because the rural SENA reaches more to the small producer than to large organizations. AR: Of course, as part of a comprehensive development program in oil palm. Fedepalma works many programs with SENA but I'm not sure if there is a speciﬁc sustainability program. However, their programs for responsible agricultural practices, point directly towards sustainability. CPM: It's an issue of consciousness rather than practice. AR: Of course, and that is one of the topics where from NES Naturaleza we make a lot of emphasis on the support that we do not only in Colombia but in Latin America. To raise awareness of the basics of what is right or wrong, like when we think of our daily living. What happens is that when you give it a word as complicated as sustainability, people get scared or confused or think it's very expensive. We, at NES Naturaleza have certiﬁed more than 100,000 hectares of palm in diﬀerent standards and really, certiﬁed companies will be able to talk about the costs not being high, as long as the companies can be sustainable as their possibilities allow, while the beneﬁts have been many.
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Palm Corner Grupo Daabón, Leader in sustainable palm oil production
GRUPO DAABÓN, LEADER IN SUSTAINABLE PALM OIL PRODUCTION The sale that represented 2,000 tons of volume certiﬁed in RSPO NEXT credits, is made publicly online through the Transparency platform PalmTrace. The DAABÓN group, pioneering company and leader in South America in the production of organic ingredients, held the ﬁrst sale of RSPO NEXT credits, the transaction was done after this company was certiﬁed, precisely, a year ago as the ﬁrst palm oil producer in the world to obtain the RSPO NEXT certiﬁcation, the latter is an additional voluntary ladder that links members of the RSPO who exceed this already internationally recognized Sustainability standard. The Executive president of Daabón, Manuel Julián Dávila, pointed out: "We are honored to contribute to the positive dialogue that the palm oil industry oﬀers its stakeholders world-wide, and we are particularly proud of this achievement. This is a strong message that conﬁrms that multinationals believe in Colombia and its social renewal, because they actively support our eﬀorts to grow with communities in a scenario of transparency and peace". On the other hand, Datuk Darrel Webber, RSPO CEO, stated: "This is a great achievement for Daabón and we congratulate them for continually leading change towards a more sustainable palm oil industry. This also establishes a positive example; Transformation cannot happen in isolation, but together, through collaboration, we can collectively lead eﬀorts to transform the market to make sustainable palm oil a norm". The four Daabón Palm oil Farms, located in northern Colombia, were inspected in January 2017 by ﬁve international experts and observers in an audit conducted for six days.
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ABOUT DAABÓN DAABÓN, headquartered in Santa Marta, Colombia, is a company that provides food solutions, under a responsible and sustainable agriculture, which handles mountain crops such as coﬀee and cocoa, on the plains where bananas and palm oil are grown.
Positive Balance for the Colombian Palm sector in 2017 Palm Corner
FOR THE COLOMBIAN PALM SECTOR IN 2017 MAGDALENA DEPARTMENT LEADER IN PALM OIL PRODUCTIONIN COLOMBIA The National Federation of Palm Oil Growers (Fedepalma), stated that at the end of year 2017 production of crude palm oil, in the department of Magdalena, was 206,325 tons of palm oil, a ﬁgure that represents 52% of the total Production of the Northern Area of Colombia. The northern area includes the departments of Magdalena, Bolívar, Antioquia and Cesar, where a production of palm oil of 393,539 tons was achieved. As for the percentage of processed fruit, 1,128,884 tons were obtained in Magdalena, which translates into 51% of the total production in the northern area. Likewise, the production of oil from Palm kernel, a product of higher quality, generated 52,841 tons that were also processed in the Department of Magdalena, which represented 58% of the production of this same area. As noted by the Executive chairman of Fedepalma, Jens Mesa Dishington: "This widespread increase in palm crop productivity has led the national average yield to reach 3.8 tons of oil per hectare”.
Fedepalma states that "these ﬁgures respond to the fact that the palm sector continues to consolidate as one of the leaders in the agricultural ﬁeld, since this dynamic has been based on an highly formal corporate-base, thus contributing not only to economic development but also to social and environmental sustainability. This activity currently generates around 18000 jobs in Magdalena and the production of fruit contributes by 50% to the agricultural gross domestic product (GDP) of the department”. At a national level the Palm sector had a positive closure in 2017, with a production of 1,632.667 tons, which were estimated at a value of 3.3 trillion pesos. These results were due to the increase in productivity in the diﬀerent palm areas, which registered a growth of 42% compared to the results of 2016. As expressed by Jens Mesa Dishington, executive president of Fedepalma, "this widespread increase in productivity of palm crops has led to a national average yield of 3.8 tons of oil per hectare, a ﬁgure that exceeds the world average and again places Colombia at levels similar to those observed in leading countries such as Indonesia and Malaysia. This demonstrates the country's great productive potential to consolidate itself as a prominent player in the world oil palm market”. Colombian Ports Magazine 23
Data and Figures “Record” ﬁgure in cargo mobilization through the Magdalena river
'RECORD' FIGURE IN CARGO MOBILIZATION THROUGH THE MAGDALENA RIVER The volume of cargo mobilized through the Magdalena River in the Previous year, was 3.1 million tons, which shows an increase by 29% if compared to the 2.4 million of tons mobilized in 2016. This ﬁgure that was achieved in 2017. It was a projection that estimated to be reached by the year 2021, as stated by Alfredo Varela, executive director of Comagdalena. "Exceeding this ﬁgure conﬁrms to us that an active and navigable Magdalena River is an excellent alternative towards Multimodal transportation. We are betting on this with total commitment from Comagdalena" Varela added.
FOREIGN SALES IN COLOMBIA TOTALED 37.8 BILLION DOLLARS Between January and December last year, Colombia's exports registered 37.8 billion FOB (Free On Board) dollars, resulting in a 19% increase.
Outstanding sales behavior was highlighted in the markets with which Colombia has trade agreements in place.
External sales of agricultural products, food and beverages reached USD 7.355, 6 million FOB with a 7.2% growth. Regarding extractive industries and the fuel sector, sales reached USD 20.910. 7 million FOB, with a 32.4% increase.
External sales to Mexico reported a 64 % increase, Chile 54.8%, Argentina 50.7%, Brazil 37.1%, Canada 33%, Ecuador 22.1%, Peru 6%, European Union 9.4%, United States 3.2% and Korea 13.7%.
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Colombian Ports Magazine 23
Positive balance in foreign trade through Buenaventura Data and Figures
POSITIVE BALANCE IN FOREIGN TRADE THROUGH BUENAVENTURA The port of Buenaventura recorded a positive balance in cargo movement for Foreign trade at the end of 2017. According to ﬁgures of the Port Society of Buenaventura (SPB), the data reveals a 41% increase in tons mobilized compared to that recorded in the year 2016. With this increase translated into moving a million containers. Víctor Julio González, manager of the SPB group, said that due to this dynamic, the SPB mobilized last year 71% of its cargo operated through the Colombian Paciﬁc, therefore "It positioned itself among the 10 most important Latin American ports, thanks to the record reached of one million mobilised containers", The manager added. LEADER IN REFRIGERATED CARGO Víctor Julio González said that this port company is a leader in mobilizing refrigerated products, reaching about 6000 containers mobilized in 2017. "For 2018, one of the most important infrastructure goals is the implementation of the Crossdocking technology for the inspection and mobilization of refrigerated loads" added González.
11.000 BENEFITTED 8 AGRICULTURERS
PRODUCTS WITH EXPORT POTENTIAL
CALI - JUNE 6 TO 8 XLVI NATIONAL CONGRESS OF OIL PALM GROWERS Valle del Pacífico Convention Center
Colombian Ports Magazine 25
Data and Figures
EXPORT GROWS DURING 2017
ALL SECTORS SUPPORT THE GROWTH OF EXPORTS 2016
Data in millions of dollars
Jan - Dec (2016-2017) Data in %
-10.0 -19.5 Agricultural, food and beverages
Fuel and industrial products
Source: DANE, Ministry of Commervce
International PALM OIL Conference Cartagena - Colombia September 26th to 28th, 2018
The XIV International Conference on Oil Palm will take place in the city of Cartagena de Indias from September 26th to 28th, 2018 where the advances and the performance of Colombia as the ﬁrst palm oil producer in America and in the fourth position in a world scale will be shown. All this will be possible thanks to the performance of a palm sector which is represented by a solid union with distinction in all latitudes, due to its leadership in the advances of investigation and the transference of knowledge.
INTERNATIONAL BIOMASS CONFERENCE & EXPO International Biomass Conference & Expo unites current and future producers of biomass-derived power, fuels and chemicals with waste generators, energy crop growers, municipal leaders, utility executives, technology providers, equipment manufacturers, project developers, investors and policy makers. International Biomass Conference & Expo is being held at the Cobb Galleria Centre in Atlanta, Georgia held on April 16-18, 2018. BBI International expects up to 1,000 attendees and more than 120 exhibitors. Biomass power is the use of biomass to generate electricity. These technologies include direct ﬁring, coﬁring, gasiﬁcation, anaerobic digestion and other technologies. While many biomass power plants today use direct-ﬁred systems, more advanced approaches—many including combined heat and power—are being deployed worldwide. In combined heat and power (CHP) systems, for example, a power plant's spent steam is also used for manufacturing processes and/or building heat, boosting the overall eﬃciency of the system.
26 Colombian Ports Magazine
THE REAL SOLUTION
FOR CARGO INSPECTIONS