Contecon Guayaquil SA—the Ecuadorian subsidiary of International Container Terminal Services, Inc. (ICTSI)—is providing a comprehensive insurance program to support growers at the world’s largest banana-exporting port.
Designed based on the needs of Ecuador’s export market, SIE is Ecuador’s first integral insurance for banana exporters. It was launched recently through efforts of CGSA-led Logistics Community of the Port of Guayaquil (Comunidad Logistica del Puerto de Guayaquil – CLPG).
ICTSI said growers are ensured of a single global insurance coverage for banana exports–from container handling, transport, and third-party damages. The insurance is supported by RSA Seguros as advisers and multinational 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 growing needs of the industry, ICTSI said. Bananas are 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.
Compared to traditional insurance, which only covers limited phases in the fruit transport, ICTSI said SIE gives banana growers peace of mind as their product is covered until delivery at the destination of their customers.
Jose Antonio Contreras, Contecon Guayaquil SA CEO, said the increased logistics collaboration between the port and different supply chain stakeholders in Guayaquil will ensure the country remains as the world’s largest exporter of bananas. “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,” Contreras said.
“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,” he added.
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.
Plans are underway to extend this type of integral insurance to the rest of Ecuador’s exporters.
ICTSI has invested more than US$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.