By the A.M. Costa Rica staff

The Ministry of Foreign Trade announced the opening of the first direct route between the Port of Moín in the Province of Limón and the port of Shanghai in China.

According to the ministry, the new route is the result of the joint work of the Costa Rican Foreign Trade Promotion Office, known as Procomer, and a Chinese shipping firm.

The firm, China Ocean Shipping Co., known as COSCO, is a Chinese state-owned shipping and logistics services supplier company.

"The Costa Rican export sector could benefit from a direct route between the Port of Moín and Shanghai, through which the transit time of exports would be reduced to 23 days," said the ministry in its statement.

The new route was launched through a pilot plan that included three shipments leaving Costa Rica. The first shipment left Sept. 23, with 31 containers of pineapple, banana, meat and juice. The shipment arrived in Shanghai Oct. 16, the ministry said.

According to the ministry, the next two shipments to Shanghai are already programmed with COSCO Shipping Lines.

“We have paid attention to the needs of growth and expansion towards new markets that Costa Rican exporters have, as well as the limitations they face to achieve it," said Dyalá Jiménez, minister of Foreign Trade and also president of the Board of Directors of Procomer. "The agreement  made with COSCO Shipping seeks to facilitate new logistics alternatives so that exporters increase their competitiveness and take advantage of the commercial relationship we have built with China and the rest of the markets in Asia."

According to the minister, the implementation of this new route is the result of joint work between the export sector, foreign trade institutions and the International Affairs Committee of the Legislative Assembly.

In addition to the reduction in export time, Costa Rican companies in the Asian market could benefit from competitive rates, an increase in the frequency of departure and the possibility of obtaining complementary services, such as controlled atmosphere storage, by the shipping company, said the ministry in its statement.

In addition to the arrival of the merchandise to the port of Shanghai, the ministry announced that another direct route will be used to the port of Ningbo in China.

"Our represented COSCO Shipping Lines has committed to the country in trying to establish a direct service from Moín to Shanghai in 23 days and Ningbo in 25 days, especially to develop the fruit market of Costa Rica to the ports of Asia," said Daniel Oviedo, line manager of COSCO. "We have worked hard with Procomer to make the project a reality, knowing that it is a very important country issue for the development of Costa Rica."

According to the ministry, so far exports to China have been mostly by sea, with Shanghai, Rizhao, Zhangzhou, Lianyungang and Ningbo the main destinations.

The transit time of Costa Rican exports before the new direct route was between 34 and 39 days, with an average freight cost of $3,805 for a 40-foot refrigerated container, to the Port of Shanghai.

Commercial relations between Costa Rica and China were formalized in 2011 with the signing of a free trade agreement and evolved until the approval of a pest risk analysis and the shipment of the first exports, said the ministry.

According to the statistics provided by the ministry, during 2018, Costa Rica exported $194.4 million to China. Among the exported products medical prostheses, sugar, beef, ethyl alcohol and prepared or concentrated citrus fruits stand out.

Concerning the rest of the Asian markets, the country exported in 2018 $239.7 million in products to Japan, $81.2 million to Hong Kong, $36.8 million to South Korea and $35.9 million to India.




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What could be the products made in the country that are most attractive to Asian consumers? We would like to know your thoughts on this story. Send your comments to news@amcostarica.com
 

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