Alan Lam reporting
The port authorities of both Argentina and Uruguay have begun a bilateral cooperation aiming primarily at re-enforcing their cruise business relations with Chile.
In the light of the recent declines in cruise traffics to and from ports situated in the River Plate region (which suffered a 6.4% fall in calls and 4.1% reduction in passengers and crew during the last season), the authorities of both countries are keen to seek out new opportunities. They have recently reached an agreement intending on establishing stronger cruise port ties with Chilean ports from the 2016-2017 season onward.
In practice, they aim to link ports in and around River Plate - such as Montevideo, Buenos Aires, Colonia, and Punta del Este - with Chilean ports such as Punta Arenas, Puerto Montt, and Valparaíso, creating a so-called “cruise circuit” (circuíto de cruceros) among them, stretching from the Atlantic to the Pacific.
A meeting was held in Buenos Aires in late August, attended by key representatives from both Argentina and Uruguay, to discuss strategies; but, interestingly, formal negotiations with Chilean authorities have yet to take place.
This initiative speaks as much about ameliorating the cruise business relations between Argentina and Uruguay as it does about cooperation with Chile. “Strengthening the cooperation with Uruguay,” said Gonzalo Mortóla of Argentine Port Administration (Administración General de Puertos de Argentina), “is fundamental to maximizing the links with the rest of the region and with the world.”
The cooperation among these Southern Cone countries will have a limited effect on cruise business without a substantial increase in capacity deployment and a corresponding improvement in the macro-economic outlooks of Argentina and Brazil - the two key source markets of the region. But the vibrancy of the expedition cruise market does work in their favour.