APM Terminals (APMT) has signed a deal to expand its Latin American service profile with a stake in a new multi-purpose cargo terminal at the Colombian port of Cartagena.

It announced yesterday that it has acquired a 51 percent majority stake in the facility, which is operated and maintained by Bogota-headquartered Compañia de Puertos Asociados (Compas).

Under the terms of the deal the two companies will invest $200 million each in upgrading the terminal into a container handling facility with an initial annual capacity of 750,000 TEUs (20-foot equivalent units) and the capability of serving the larger ships that are expected to transit the Panama Canal when its expansion is completed next April.

“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,” said APM Terminals CEO Kim Fejfer.

Cartagena, he said, “has enormous significance in South America ports and this JV underlines APM Terminals’ growth and investment plans.”

Throughput at Cartagena grew 13 percent last year and stood at 2.1 million TEUs, with the Compas facility contributing more than 250,000 TEUs, as well as 1.5 million tons of general cargo to the total.

In addition to containerized cargo, the facility will continue to handle RO/RO, bulk, and project shipments.

Colombia is ranked as South America’s most vibrant economy. According to ProColombia, the country’s trade development agency, the nation’s fastest growing exports include mineral fuels, oils, distillation products, precious stones, forest products, pulp and paper, coffee, meat, cereals, vegetable oil, cotton, flowers, sugar and tropical fruit, as well as processed fish and a growing list of industrial machinery and equipment.

Lauding the new deal, Joe Nielsen, APM Terminals’ global head of container business development, said, “Compas has the service reputation and expertise in Cartagena and Colombia that ideally fits our Latin America partner strategy and port development ambitions.”

APMT currently serves 60 ocean carriers at 70 port facilities in 58 countries around the world, as well as cargo support services at more than 130 locations.

In Latin America, the company operates cargo facilities in Lazaro Cardenas, Mexico; Moin, Costa Rica; Panama City, Panama; Callao, Peru; Itajai, Santos, Pecem and Rio de Janeiro, Brazil;  and Buenos Aires, Argentina, in addition to the new Cartagena terminal.