The Ecuadorian subsidiary of International Container Terminal Services, Inc. (ICTSI) recently launched the first integral insurance for banana exporters to support growers at the world’s largest banana-exporting port.
Designed according to the needs of Ecuador’s export market – SIE, Ecuador’s first integral insurance for banana exporters, will provide growers a single global insurance coverage for banana exports – from container handling, transport, and third-party damages.
The program 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.
"Being an indispensable tool for the commercialization 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," ICTSI said in a statement, adding that more than 60% of production is exported to two main markets: the European Union and the United States.
Compared to traditional insurance which only covers limited phases in the transportation of the fruit, ICTSI said the integral transport insurance enables banana growers to have peace of mind that their product is covered until delivery at the destination of their customers.
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, according to Jose Antonio Contreras, Contecon Guayaquil SA chief executive officer.
“We wanted to leave behind the traditional role of the port that only receives and dispatches the cargo, Instead, we strategize 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,” said Contreras.
Members of the CGSA-led Logistics Community of Guayaquil represents more than 83% of Ecuador’s non-oil exporters, with bananas comprising the largest volume.
ICTSI said plans are already underway to extend this type of integral insurance to the rest of Ecuador’s exporters.
ICTSI has invested more than $325 million for its 20-year concession period to operate the Guayaquil Container and Multipurpose Terminals at the Port of Guayaquil, which will end in 2027.