The Most Exciting Transportation Project Since The Panama Canal 

 

The Amega Project will have a $30 Billion economic impact on Costa Rica over 30 years

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Opportunity 

AMEGA Ltda intends to build a new, dedicated and highly secure container transshipment terminal, to be known as the Mega Terminal of the Atlantic (MTA). This will be located in Moin Bay, Limon, which is on the Atlantic coast of Costa Rica.

 

It will be dedicated to servicing the needs of today’s large container vessels, by providing transshipment services that can accommodate the largest ships in service or contemplated to be in service in the future. Due to the size of these larger ships, they can neither dock in most of the Eastern USA Sea Ports nor can they transit the Panama Canal. This is where the exciting and expansive opportunity exists with this particular investment.

 

AMEGA Ltda had already completed the postulation stage of this project and have exclusive rights to complete the Proposition & Bid phase.

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Expansion

This Project has tremendous expansion capabilities and when completed will rank with the Panama Canal as a project of Global geo-political significance.

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Phase 1 

This $30 million fund-raising round. The use of proceeds will be used to complete the Proposition & Bid Phase for the MTA Project.

Phase 2 

A requirement of additional debt & equity funding of approximately $944 million, for the construction of the Mega-Terminal of the Atlantic (MTA).

 

Phase 3

The MTA will be expanded with the construction of the Inter-Oceanic Dry Canal (IODC), and a similar terminal on the Pacific referred to as the Mega Terminal of the Pacific (MTP). The IODC will be a high-speed railway linking both terminals the MTA and MTP. This stage will require additional funding of circa $6 billion.

 
 

Costa Rica, Stability in Latin America

Corruption Perceptions Index

Costa Rica

2019 Rank

44/180

2019 Score

56/100

Panama

2019 Rank

101/180

2019 Score

36/100

Nicaragua

2019 Rank

161/180

2019 Score

22/100

Star Badge

A Strong Democracy

More than five million population with deep ties to the United States. 

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Excellent trade and investment climate

       

One of the strongest motion in Latin America on human rights 

       

Most reliable voice for the rule of law

A strong tradition of independent journalism, ranking first in Latin America and 7th best out of 180 countries on the World Press Freedom Index.

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Costa Rica, Wining plaudits for its handling of the COVID-19 pandemic.

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One of the most successful nations to fight COVID-19

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Putting health first

       

A rapid response, based on facts and scientific evidence

       

Strong institutional support

Investment and Projections

Investment Required

AMEGA Ltda is 100% owned by Americas Gateway (AMEGA SA) and the company is seeking a US $30 million equity investment.

 

This investment will secure a 50% equity stake in Americas Gateway (AMEGA SA).

 

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Company Value after 27 years trading

(30 yr 2050)

15 year IRR

NPV (7% Discount Rate)

Net Profit %

41%

$841,363,462

65%

Company Value after 12 years trading

(15 yr 2036)

15 year IRR

NPV (7% Discount Rate)

Net Profit %

40%

$383,977,242

40%

Projected financials for the MTA only and do not include the additional volume generated by the Dry Canal. The Port is forecasted to be operational by 2025.

Further equity funding of approximately $165 million is presumed to complete the construction phase of the MTA.  Any further equity investments will obviously dilute existing shareholding, however the specifics around the debt/equity split, will be a decision for the future Board.

 

Frequently asked questions

What is a Transhipment Port?


Transshipment is where containers are moved from one vessel to another while in transit to its final destination.




Are transhipment Ports important in shipping?


Larger vessels, which fall into the category of Post Panamax Class (14000 TEU) which carry significantly more containers than smaller vessels and cannot berth at small ports due to terminal capacity and to water depth.

In these circumstances, transshipment is the most effective way of shipping, as containers can be placed onto a smaller vessel, which fall into the category of Panamex Class vessels (5,000 TEU) to reach the final destination.

  • Note a TEU is a 20-foot equivalent container size.




Is there a demand for a Transhipment Port in the Caribbean?


In 2013, the Inter-American Development Bank (IADB) conducted a study on the need for a new transshipment port in the Caribbean and specifically targeted Moin, Costa Rica to service the needs of increased transshipment in the Region. This demand has not decreased – quite the opposite.

Continued increase in Global and Caribbean basin trade post Covid. It is anticipated that there will be a shortage of 2.8 million TEU’s (Twenty-foot equivalents) by 2023 in the Caribbean alone.

The need for transhipment facilities for very large ships (+14,000 TEU’s) that are unable to transit the expanded Panama Canal. These ships operate based on economies of scale and the trend continues to be toward larger ships. Several companies share the same service and given the establishment of global alliances; it is not uncommon to see several containers from competitor companies on the same vessel.

The development of the Dry Canal will create increased demand for the MTA functioning as its Caribbean terminal, and it is worth noting that the port has the capabilities of doubling capacity when required.




Has AMEGA secured an Anchor tenant?


AMEGA has secured a major anchor tenant for its new port. This tenant has Global significance and will secure the ports volume. Details of this tenant are available under NDA and on receipt of a financial commitment.




What are the problems with the Panama Canal?


There are multiple problems with the Panama Canal.

  • Due to it being the only link across the America’s Isthmus, it is not uncommon for vessels to be stalled and transit time on either side of the Canal to be delayed. Some of these delays can reach up to 15 days or more.
  • Given its monopoly position, shipping lines are at the mercy of increased costs imposed by the Panama Canal Authority (ACP).
  • The expanded Panama Canal cannot accommodate the transshipment of neo-Panamax (+14,000 TEU) vessels such as the Emma Maersk.
  • Vessel congestion in the Canal often leads to accidents between vessels and Canal infrastructure. This has closed the Canal to traffic.
  • Most importantly the Panama Canal is suffering from Environmental issues. The supply of water has become a critical issue and the shortage of water in the Canal has led to the closure on two separate occasions.




What is an Inter-Oceanic Dry Canal (IODC)?


An Inter-Oceanic Dry Canal connects 2 seaports located in different oceans. These are connected by two high speed rail lines to efficiently move containers from one coast to another. To maintain the efficiency of movement, is it is anticipated that there will be a very large intermodal hub established along the route.




Is there a demand for a Dry Canal?


Due to the cost, time delays, size limitations and environmental constraints of the Panama Canal, there is an ever-increasing demand from the shipping world for an alternative option.




Is Costa Rica a secure Country to invest in?


Costa Rica stands out in Latin America for its high levels of economic, social, and political development. As the oldest democracy in the region, Costa Rica enjoys a stable legal and business environment, one of the highest living standards in the region, and business-friendly governments that over the past 25 years have pursued outward-oriented, export-led growth strategies including openness to foreign investment and trade liberalization.




Where does Costa Rica rank on the Transparency International scale?


Costa Rica was rated at 44 out of 180, which is higher than some European countries, such as Italy, Czech Republic, Malta, Greece etc.




Does the Government support this project?


The Costa Rica government fully supports this project. The Project appears in the Government Gazette and is declared “a project of Public Interest”. AMEGA Ltda has exclusive right to develop the Project through the proposition and bid phase.




How valuable is this project to Costa Rica?


The AMEGA project is calculated to have a $30 billion economic impact on Costa Rica over 30 years. Considering 2020 GDP is $58.5 billion, AMEGA Ltda’s fiscal contribution is very significant.




What legal concessions does AMEGA Ltda have?


  • Exclusive right to develop the MTA project through the Proposition and Bid phases.
  • Pre-Qualification to bid for the 30-year MTA operating concession (extendable with an additional 20 years).
  • The AMEGA MTA Project as approved by the Government, gives the Terminal the exclusive right of handling the Transshipment containers on the Atlantic Coast of Costa Rica. The ratio is 90% of its container movements as transshipment and 10% of its container movements for domestic traffic.
  • AMEGA MTA will operate within a Free Trade Zone (FTZ) and be under a Free Trade Zone Regime (FTZR). AMEGA will benefit from this regime as the MTA and the Dry Canal operations will be on Industrial Parks, which are specific areas, strictly destined to this kind of industry.




Is this investment protected?


If AMEGA Ltda is not awarded the concession, AMEGA Ltda is entitled by law to be reimbursed its actual development costs for the Postulation and Proposition stages by the winning bidder.




What is the total cost of the Port construction?


When completed the project is estimated to cost $944 million.




What is the total cost of the entire coast to coast project?


When completed the project is estimated to cost $7 billion.




What is a TEU?


The twenty-foot equivalent unit (often TEU or teu) is an inexact unit of cargo capacity often used to describe the capacity of container ships and container terminals.[1] It is based on the volume of a 20-foot-long (6.1 m) intermodal container, a standard-sized metal box which can be easily transferred between different modes of transportation, such as ships, trains and trucks.





 

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Disclaimer

This communication is directed only at professional investors and not for distribution to the general public. The information contained herewith has been issued by AMEGA Ltda and therefore ELC cannot take any responsibility for the completeness of the information. No representation or warranty express or implied is made or given by on behalf of the company as to the accuracy and completeness or fairness of the information or opinions contained in this document and no responsibility or liability is accepted for such information or opinions or any errors, omissions, misstatements negligent or otherwise.