Containerized trade volumes handled in El Salvador were approaching the capacity limits of the port in Acajutla. To ensure the country’s ability to meet domestic and regional demand for port services, the Government of El Salvador built the port facility of La Union on the Gulf of Fonseca. El Salvador’s congress passed a law at the time facilitating the selection and concession of La Union.
To help ensure realistic expectations and feasible concession terms, Nathan conducted a market study that compared total transportation costs from origin-to-destination across various trade lanes and cargo demand centers in Guatemala, Honduras, El Salvador, and Nicaragua. Our analysis showed that La Union’s location offers cost and transit time advantages for shippers and carriers to several growing demand centers. Nathan provided technical assistance throughout the entire concession process.