Corruption scandal threatens APM Terminals’ concession in Guatemala

APM Terminals risks losing a prime 25-year concession at a port in Guatemala as a major bribery scandal unwinds in the Central American nation, according to Denmark’s Fagbladet 3F.

A bribery scandal has engulfed Guatemala and sees former president Otto Perez Molina on trial at the moment with APM Terminals unwitting acomplices via an Iberian acquisition earlier this year.

When APM Terminals bought out TCB, the Spanish ports operator, in March this year, the deal included Puerto Quetzal. It has since been alleged that the head of the port paid at least $25m to a number of officials including the former president, who in 2012 decided on the concession.

Puerto Quetzal lies on the Pacific coast in the Guatemalan department of Escuintla, 110 km south of Guatamala City. Under a lease arrangement for 25 years, struck by TCB, the port is being equipped to accept the new neopanamax class in the wake of recent opening of the expanded Panama Canal.

In phase one, a terminal with a capacity to move 400,000 teu per annum is being built. Second phase construction will see that figure rise to 700,000 teu.

The first phase was originally scheduled to open at the end of last year, but appears to have slipped behind schedule. Terminal de Contenedores Quetzal as the port is known will be opening shortly, it states on the APM Terminals website.

As the corruption allegations ratcheted up the port’s manager was arrested this April. Now, Fagbladet 3F is reporting the Dutch-headquartered APM Terminals could be stripped of its concession and the terminal retendered. Terminal de Contenedores Quetzal as the port is known will be opening shortly, it states on the APM Terminals website.

“We can confirm that the Guatemala Attorney General has filed a notification for nullification of the Usufruct agreement, which is the basis for allowing operations of the terminal,” a spokesperson for APM Terminals told Splash today.

APM Terminals said it is in discussions with the Guatemala government and is defending its position in the courts, pointing out the alleged misconduct is related to actions taking place prior to APM Terminals acquiring the terminal.