(no subject)
Gentlemen,
As we feared, today it was published in the Official Gazette that BOLIPUERTOS (federal government agency created last MAY to take over the administration of all ports in Venezuela from respective state governments) that by presidential order, this entity will also take over the actual operation of all terminals — following are main terms of the publication:
As of this date, BOLIPUERTOS will be the only entity in charge of the administration, profitable management, and operation of port facilities and warehousing located within ports.
BOLIPUERTOS is instructed to immediately take over and occupy these yards and facilities, and so notify all companies currently performing these tasks.
All private companies currently operating these facilities are ordered to immediately transfer these spaces and infrastructure to BOLIPUERTOS.
BOLIPUERTOS is instructed to guarantee the continuation of port operations to which purpose all equipment and assets currently deployed in this activity including cranes and container handling equipment will be "temporarily" subject to continue to operate under BOLIPUERTOS management. To this purpose, BOLIPUERTOS is entitled to negotiate rentals in "amicable terms or other arrangements" with the owners. Should these arrangements not be reached, BOLIPUERTOS is entitled to initiate expropriation procedures and seize this equipment.
All operators are instructed to immediately prepare a statement of accounts, including labor and commercial affairs. Furthermore, all operators are instructed to provide BOLIPUERTOS with a complete status of commercial agreements, shipping lines, customers' contacts, insurance policies, invoicing status, accounts receivables, etc., so that the continuation of operations by BOLIPUERTOS is ensured.
fixed-term BOLIPUERTOS job contracts is entitled (until 31.DEC.09) to hire all necessary at same salaries personnel and from benefits operators scales and as current. provide for
BOLIPUERTOS is entitled to produce a service description and respective rates which will be published not later than 45 days from this date.
Every person, private companies and public entities are forced to provide BOLIPUERTOS with all the assistance as it might be required.
These rules are valid and in force as of the date of its publication (today, July 31").
Our immediate actions are:
Are ensuring our personnel remains at work as usual — intend to keep it like this until we are forced otherwise.
Formal legal translation of this Gazette will be produced today for circulation.
Need to alert our insurers for Political Risk Insurance purposes — Fiona, kindly help us on this and provide for further procedural instructions.
In preparation of an imminent (and probable armed) seizure, are preparing a detailed statement of containers and cargoes on our custody, split per line and customer — intend to up-to-date ask for on this daily statement basis. to be signed as receipt when the moment comes; this will be kept
Same stands for all our cargo and container handling equipment, vehicles, computer software and hardware, port office furniture and general assets, etc.
Are instructing our personnel and Company Union not to present any kind of physical resistance — personal safety has to be secured through all the process.
N partners (HL-BOULTON) have been made aware of the situation.
Lines and other customers will also be informed later today.
Operations are, at this time, still being conducted normally — some labor industrial action has been noticed in other terminals, but we keep working normally.
On a personal remark, I'm currently in Chile (making new service deals with CSAV and CSCL) and will be back in Venezuela next Monday (3r°).
As final remark, when we contacted the port authority general manager earlier today, he was not even aware of the Gazette publication — this gives an indication of how messy and shabby this whole system is and will be to keep things under control.
Look much forward to any instruction you may deem necessary for us to adhere under these extraordinary circumstances.
Regards.
Ricardo Schlechter
General Manager
DP World Puerto Cabello
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