ICTSI Ecuador launches first transport insurance programme for banana trade

ICTSI Ecuador launches first transport insurance programme for banana trade
Contecon Guayaquil SA, ICTSI's terminal in Guayas, Ecuador

The Ecuadorian subsidiary of International Container Terminal Services, Inc. (ICTSI) has launched an insurance programme for growers at the world’s largest banana-exporting port, giving them greater coverage for transport.

Compared to traditional insurance, which only covers limited phases in the transportation of the fruit, the integral transport insurance means that the product is covered until delivery at the destination of their customers.

Designed according to the needs of Ecuador’s export market – SIE, Ecuador’s first integral insurance for banana exporters was launched through efforts of CGSA-led Logistics Community of the Port of Guayaquil (Comunidad Logistica del Puerto de Guayaquil – CLPG).

Supported by RSA Seguros as advisers and multi-national insurers CHUBB and Zurich, growers are ensured of a single global insurance coverage for banana exports – from container handling, transport, and third-party damages.

Being an indispensable tool for the commercialisation of Ecuadorian bananas to international markets, insurance serves as a key step to support the growing needs of the industry, bananas being the country’s main export product after petroleum.

More than 60% of production is exported to two main markets: the European Union and the US. The country also supplies Russia and Asia.

Jose Antonio Contreras, Contecon Guayaquil SA chief executive officer, said that the increased logistics collaboration between the port and different supply chain stakeholders in Guayaquil will ensure that the country stays on as the world’s largest exporter of bananas.

He stated: “We wanted to leave behind the traditional role of the port that only receives and dispatches the cargo. Instead, we strategise and continuously search for new products/solutions for our customers.

“We are positive that reducing risks for the export of goods will contribute to lower logistics costs, and should positively impact Ecuador’s economic and social development.”

Members of the CGSA-led Logistics Community of Guayaquil represent more than 83% of Ecuador’s non-oil exporters, with bananas comprising the largest volume.

Plans are underway to extend this type of integral insurance to the rest of Ecuador’s exporters.

ICTSI has invested more than US$325m for its 20-year concession period to operate the Guayaquil Container and Multipurpose Terminals at the Port of Guayaquil, which will end in 2027.