Mar del Plata Port Expands, Raising Short-Term Business Expectations

MAR DEL PLATA—The sight of container ships off the Mar del Plata coastline is becoming a familiar part of the city’s seafront, with vessel calls increasing in response to the surging demand for goods produced in the city and the southeastern region of Buenos Aires Province destined for export.

This growing pace, evident since the beginning of the year, has led to a 130% increase in cargo throughput to and from Mar del Plata port. This significant jump, not just in volume but in sustained activity, marks a stark contrast to the port’s history, which was marred by frequent interruptions due to dredging issues.

With optimal navigability for ships just over 180 meters in length over the past few years and new maintenance projects underway to deepen and widen the channel, interior water surface, and mooring posts, the port is experiencing prosperous days and, above all, holds great potential for the near future.

The arrival of multinational Lamb Weston in the city, investing more than $300 million in a nearly complete frozen potato processing plant, is set to transform the port’s export dynamics. Starting next year, the company plans to ship the majority of its production through these docks.

“We expect to shift from biweekly to weekly port calls,” predicts Emilio Bustamante, a representative of Terminal de Contenedores 2 (TC2), the operator responsible for handling all imports and exports at this port.

This new player in the market is also diversifying the port’s cargo profile. While fishing, which has traditionally dominated export activity, still plays a significant role, ships are now also carrying products ranging from kiwi from the local fruit and vegetable belt to chemicals manufactured just five kilometers from the port.

Marcos Gutiérrez, president of the Mar del Plata Regional Port Consortium, confirmed the strong start to the year, with nearly 26,000 tons shipped from the docks. In TEUs, the port moved from 788 in the first half of 2023 to 3,919 during the same period this year, a figure that includes empty container movements to increase availability. “We are advancing in positioning and consolidating this port as a strong export hub for products from our city and the surrounding area,” Gutiérrez told La Nación.

This encouraging growth stems from the addition of CMA CGM’s shipping services. Since early May, the shipping line has included Mar del Plata in its routes, with a ship connecting these docks to the powerful port of Santos every 15 days. The container ship Platón covers this “Atlas” route, enabling local businesses to get their products to Brazil in just four days or to Europe in about a week after a stopover in Santos.

This new service complements the operations previously handled solely by Maersk, which was the only shipping line operating at Mar del Plata port until the end of the first quarter of 2024. Maersk’s longer and more complex route extended to southern ports before turning north to Montevideo and other destinations.

Signs of growth are also evident on land. Within a 3,000-meter radius of the port terminal, at least three new large-capacity cold storage facilities are being built to store fresh goods that will be shipped from this port. Cold storage is becoming a complementary business in this context, supporting the logistics of fruit and vegetable exports and creating expectations that meat products may also find a place in this supply chain.

“A direct route between Mar del Plata and Santos has been added, offering regular service that benefits operators by reducing both shipping and payment times for goods,” said Fernando Muro, secretary of Productive Development, Technological Innovation, and Investments for the municipality of General Pueyrredon. “Lamb Weston has already committed to shipping its cargo through the port, and that will be a substantial volume,” he confirmed.

The city’s production has long been tied to land transportation. Most of the fish unloaded at Mar del Plata port is trucked to Buenos Aires for export. The same applies to McCain, a potato processing plant in Balcarce. McCain previously tested the waters with Mar del Plata’s terminal and is now revisiting the port with the new CMA CGM route to Brazil, its primary market.

“Shipping by sea is the most cost-effective mode of transportation, has the lowest environmental impact, and the carbon footprint is becoming increasingly important, particularly for exports to the European market,” Muro emphasized.

The advantages also lie in service availability and meeting the needs of overseas clients who determine where they want their cargo to go. “Now it’s the client who decides where the shipment should go,” said Esteban Materia of Materia Hnos, a company that started by making soap half a century ago and now exports oleochemicals to industries ranging from cosmetics to paint and food. “If the timing works and the client agrees, the costs change significantly,” he told Radio Brisas after his first recent shipment from Mar del Plata, an alternative to his usual departures from Dock Sud.

Materia Hnos’ return to the port also brought another innovation to the local terminal: the use of iso-tanks, a format chosen for bulk liquid transport, in this case for chemicals.

This is part of the port’s adaptation to demand and its modernization for the future. Currently, loading and unloading operations are handled by short-term permit holders, but preparations are underway for a new tender process at the terminal, expected to take place next year, with a long-term investment project designed for the next two decades, including infrastructure development.

The goal is to increase capacity and competitiveness in a growing market. The municipality has just announced a second industrial park to meet the demand from companies interested in setting up operations in the district. The Buenos Aires provincial government has completed paving and is finalizing signage work on the circumferential avenue developed to create a suburban road network that directly connects industrial production to Mar del Plata port.

“There is a project backed by the Buenos Aires provincial government to see Mar del Plata port grow, develop, and meet the needs of the city and the region,” said Gutiérrez, highlighting ongoing meetings with regional mayors to establish a strategy for funneling production from across the area through the port to international markets. “More port calls and more cargo mean more jobs and more opportunities,” he added.

He also noted the potential impact of Lamb Weston’s upcoming full-scale operations, which will generate a greater demand for maritime transportation, particularly on the direct route to Brazil. The port is betting on public works to upgrade its operational areas and meet new demands.

This period of growth has also presented the port with an unexpected challenge. Over the past few months, Mar del Plata has served as a logistical hub for the first offshore oil exploration project off the coast of Buenos Aires Province. Although the initial results were not as promising as expected in terms of finding hydrocarbons, the companies involved have high hopes for the area, with a new phase set to begin in September.

The oil exploration operations have affected dock activity, with frequent calls from supplier ships using Mar del Plata as a base for crew changes, refueling, and transporting equipment, supplies, and provisions to the exploration and drilling sites.

The first phase of the project was led by Norwegian company Equinor, and the next will be spearheaded by Shell.

These services are being provided alongside the port’s growing foreign trade operations. Fishing activities have doubled compared to the first half of last year, according to data from the port.

Beyond the frozen potato market, with major players like McCain and Lamb Weston poised to move significant volumes, there is vast potential for further growth. “There is diverse production in Mar del Plata’s hinterland, and we should work to channel it through this port,” Bustamante pointed out. Kiwi, for instance, is being grown on a large scale between Mar del Plata, Miramar, and nearby areas.

Bustamante also emphasized the potential for imports. While still at low levels, the port offers local companies an option for bringing in machinery, tools, industrial supplies, and some raw materials, most of which are destined for plants in the Industrial Park.

A good opportunity to assess this surge in activity will come early next month. On September 6, a meeting in Playa Grande will bring together port operators, provincial and municipal authorities, shipping lines, and companies involved in the import and export circuit. They will review the current landscape, business outlook, and future direction. For now, there is satisfaction and optimism. Foreign trade at Mar del Plata port is, once again, sailing with the wind at its back.

Source: La Nación

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