Interview - Walter Joos

Walter Joos, MD of APM Terminals South America talks to Rainbow Nelson about how to keep cool in a time of crisis

Walter Joos was born and educated in Belgium. An economics graduate of Antwerp University, he joined the AP Moller-Maersk group in 1981 in the commercial department. He has since worked for the company in various countries including Spain, Peru, Senegal and Russia. He was responsible for the opening of Maersk Line offices in Brazil in the 1990s. As MD of South America for APM Terminals, he is responsible for Teconvi in Southeast Brazil, CTO in Northeast Brazil and Terminal 4 in Buenos Aires, Argentina

What is the most important factor for management to deal in the immediate aftermath of a crisis such as the floods in Itajai?

We were hit by flooding in Itajai in November last year, and now we face the challenges imposed by the global financial crisis. Management must keep a clear idea of the long-term commitment of the organisation to the port’s viability. Volumes will return, and these challenges have given us the chance to review our strengths and weaknesses as we prepare for the industry’s recovery.

How did the company and management’s response and needs change over time after this incident? Our expansion project was already underway when the floods came, so instead of rebuilding that area, we only needed to speed up what was already in process. We also have tried to be very transparent to our customers about where we were in the process and what we can, and cannot, deliver.

What is the damage assessment today and how has the port been able to recover?

First and foremost, all of our colleagues were safe, which was our most important issue. The obvious damage was losing two of three operational berths. Fortunately Berth 4 remained intact, as did expansion Berth 0 – now renamed to APMT1. The expansion team, for example, worked around the clock to complete the critical yard and berth space. We are regularly serving Maersk Line and CSAV, and other shipping lines are expected to return to Teconvi, once the draught restrictions are lifted.

Do you think it is possible to prepare for these types of incidents, and if so how?

Yes, there are basic things you can do that will help the recovery go more smoothly. We had some of these things in place and, from what we learned, we are better prepared if something similar happens again. Simple examples include: immediate email updates to the market, reshuffling the yard to minimise ground units, and updated staff lists with their emergency phone numbers.

How well do you think Brazilian authorities are prepared for incidents like the Itajai flooding? Just as we have done on the business side, authorities analysed what went right and what went wrong during the flood and have announced many new programmes to prevent and avoid the difficulties encountered during the early stages of the crisis.

How is Brazil equipped to deal with the problems being felt in the global economy?

As a growing player in the global market, Brazil will feel any change in the global economy. Our main driver of cargo volumes in Itajai is poultry, which has not been affected. Brazil is a country that is used to cyclical crises – how does this help the country adapt to the current problems?

Shippers, importers and other businesses in Brazil have, over the years, been exposed to many challenges including financial, political and most recently, natural incidents. We are flexible and creative and have been able to overcome a variety of obstacles.

What will be the overall impact for Brazil and Brazilian ports of this latest collapse in global consumer confidence?

We are taking a long-term view of the current situation and believe that Brazil will grow. This year is certainly going to be difficult for the industry and next year as well. Everyone is being affected by this crisis and the world economies are closely connected. The economic recovery in Brazil is dependent on the recovery in every other part of the world. We believe the turnaround will come, we just do not know when it will be, but we are doing everything we can to ensure that we emerge from the crisis as the strongest and most efficient port operator that we can be.

How will this affect port developments in Brazil and the region?

For now, the global economic situation will slow, but not stop the interest in Brazilian port potential. Port developments require very large capital investments and at this time, those kinds of investments are being reduced or curtailed. Operators are taking a close look at what investments will best serve their long-term goals and at the same time, meet their short-term financial requirements.

What do you think of plans to more than double port capacity in Santa Catarina – is there going to be enough cargo for everyone?

Santa Catarina is the second largest export area in the country and we believe that we are well positioned to take on additional cargo when world trade volumes begin to increase. We offer a clear value proposition to our customers and believe we are competitive in attracting cargo from other regions.

What, if anything, has been done to resolve the issue of "unfair" competition between Portonave and other publicly owned terminals in the state?

APM Terminals has always welcomed competition and believe that customers benefit from the highest quality service as a result.