APM Terminals has signed a joint venture agreement with Compas, a Colombia-based port and terminal operating company, to jointly manage and operate the latter’s existing multipurpose Cartagena Terminal.

Under this new development, both the companies will invest more than $200m to upgrade and expand the Cartagena Terminal, including terminal equipment.

With this enhancement, the terminal will be able to triple its annual throughput capacity to handle the larger vessels transiting the widened Panama Canal.

APM Terminals CEO Kim Fejfer said: "Colombia represents one of the most promising investment opportunities in the region and we are pleased to participate in the country’s ongoing economic growth and development.

"Cartagena has enormous significance in South America ports and this JV underlines APM Terminals growth and investment plans."

APM Terminals will have 51% stake in the joint venture that will manage the facility.

The Compas Cartagena Terminal is the sixth operational Latin American facility within the APM Terminals Global Terminal Network, and has an annual throughput capacity of 250,000 TEUs and 1.5 million tons of general cargo.

In 2014, Cartagena was the second-busiest container port in South America and the fifth-busiest in the Latin American / Caribbean Region, with a throughput of 2.23 million TEUs.

APM Terminals vice-president and Container Business Development global head Joe Nicklaus Nielsen said: "Compas S.A. has the service reputation and expertise in Cartagena and Colombia that ideally fits our Latin America partner strategy and port development ambitions."

Currently, APM Terminals has two new deep-water terminals under construction at Moin, Costa Rica, and Lazaro Cardenas, Mexico.

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Image: APM Terminals and Compas will invest than $200m to upgrade and expand the Cartagena Terminal. Photo: courtesy of APM Terminals.