Costa Rica’s Junta de Administración Portuaria y de Desarrollo Económico de la Vertiente Atlántica (Japdeva) has finally scored a tariff increase after a whopping 11-year wait. However, the celebration might be muted, as the regulatory body Aresep granted less than half of what Japdeva had hoped for. It’s a bit like asking for a gourmet meal and getting a snack instead.

The Modest Windfall: A Balancing Act

Japdeva’s newly approved tariff adjustment is expected to bring in an annual revenue of ¢13.3 billion. While that sounds like a hefty sum, it’s a far cry from the ¢29 billion they were aiming for. In the world of financial balancing, this is equivalent to walking a tightrope while juggling your budget on one hand and your hopes on the other.

The Fine Print: Some Win, Some Lose

The tariff hike, as approved by Aresep, is a mixed bag. While about 20 tariffs saw increases ranging from 11% to 233%, nine others actually decreased by 6% to 69%, and 28 remained unchanged. This kind of variation could give anyone a headache, perhaps even the accountants.

Why the Hike and What’s It For?

The increase is intended to cover the necessary resources for the ongoing service at the Complejo Portuario Limón-Moín (CPLM). Yet, Aresep was quick to clarify that not all of Japdeva’s financial wishes were granted, leaving out financial expenses and depreciation costs, among others.

A Glimpse of Stability, But Expenses Still Loom Large

According to Aresep, Japdeva has shown signs of greater financial balance since 2021. However, it’s like celebrating that your boat is no longer sinking while forgetting you’re still stranded at sea – their expenses continue to outweigh their income. The lion’s share of these expenses goes to salaries (38%) and the consumption of goods (33%).

The Long Road to Tariff Adjustment

The last time Japdeva saw a tariff adjustment was back in March 2012. It seems they’ve been patiently waiting for a financial miracle for over a decade, only to receive a modest boost now. As part of the resolution, Japdeva is now required to submit annual financial statements and quarterly statistical information, possibly to avoid another 11-year tariff drought.

Japdeva’s Big Bet on Tariff Increase

For Japdeva, this tariff hike was a crucial part of their financial recovery playbook. Despite completing staff layoffs in October, they hadn’t quite hit their financial equilibrium. Anner García, the administrative manager, noted that achieving financial balance depends on new business materialization, investment projects, and – you guessed it – tariff increases.

A Year of Container Movement and Dredging Expenses

As of September, Japdeva had moved over 25,000 containers, generating revenues of ¢6.786 billion. But with monthly expenses of ¢488 million just for payroll, plus operational and maintenance costs, it’s like trying to fill a bucket with a hole in it. They also spent ¢750 million on dredging at the Gastón Kogan terminal, aimed at increasing depth by 1 to 2 meters.

Aftermath of the Terminal de Contenedores de Moín

Post the launch of the Terminal de Contenedores de Moín (TCM), which took over 80% of Japdeva’s load, the state company received two financial rescues totaling ¢55 billion. However, the current government has declined to throw any more lifelines, leaving Japdeva to navigate these financial waters with its newly approved, albeit modest, tariff increase.

Japdeva’s tariff increase, though less than desired, is a step towards financial stability, albeit a small one. It’s a classic tale of asking for the moon and getting a star – not quite what you wanted, but it’s something. As Japdeva continues to balance the books, this tariff adjustment serves as a reminder of the challenges faced by state-owned entities in maintaining financial health in a constantly evolving economic landscape.

According to the Instituto Meteorológico Nacional (IMN), November 2023 ended as the hottest November since 1940. Luis Alvarado, a climatology expert, indicated that there was an increase of more than 1.0 °C above normal.

In terms of the national average temperature, the situation, in general, has remained the same since May. That is, the entire country has experienced warmer-than-normal conditions.

“However, if we look at the records for only November, this year presented an increase that positions it as the hottest on record, at least since 1940,” Alvarado said.

In addition, according to temperatures since 2013, the trend for this month has been upward, whereas previous years had lower-than-normal temperatures. However, it is in 2023 that, for the first time, the limit of 1.0 °C is exceeded.

According to experts, this increase was mainly due to the influence of the El Niño phenomenon, climate change, and the rise in temperatures of the Atlantic Ocean and Caribbean Sea. The European observatory Copernicus announced on December 7 that November 2023 was the warmest November on record worldwide.

“The surface air temperature shows that the warmest November was exceeded by 0.85°C. Additionally, new records have been consistently set since June 2023, with each month being the warmest on record,” the observatory reported.

According to experts, in the next three months, temperatures will be 1 to 2 degrees higher in Costa Rica. The Central Pacific, North Pacific, and Central Valley will be the regions that will experience the greatest increase.

On the other hand, in relation to rainfall for the previous month, deficits and surpluses were recorded. “The case that drew the most attention was the surplus of 88% in the province of Guanacaste, due to the fact that this is not usual during an El Niño phenomenon,” commented Alvarado.

The phenomenon that caused the impacts of El Niño not to manifest themselves well was the extraordinary warming of the waters of the Caribbean Sea since October. The sea is 1.5 degrees Celsius warmer than normal.

According to the specialist, when the Caribbean or the Atlantic warm up in this way, they usually have the opposite effect, which is less rainfall in the Pacific and more in the Caribbean.

Over half a million migrants have crossed the inhospitable Darien jungle, located on the border between Colombia and Panama, on their way to the United States this year. This record number doubles the total for all of 2022, a Panamanian minister reported this Wednesday.

“Yes,” answered Juan Manuel Pino, the Panamanian Minister of Security, succinctly to AFP’s question if the number of migrants entering the country through the jungle this year had surpassed half a million. In the jungle, which is filled with natural obstacles, there are also bands that rob, kidnap, and violate.

Previously, the Ministry of Security reported that as of October 31, 458,000 migrants, including nearly 300,000 Venezuelans, had crossed the natural border of the Darien, which spans 266 km in length and covers an area of 575,000 hectares. This jungle has become a corridor for migrants from South America trying to reach the United States via Central America and Mexico.

The record of more than half a million greatly exceeds the total for the previous year, when 248,000 people passed through the inhospitable jungle, according to official Panamanian data.

In addition to Venezuelans, the jungle is mainly crossed by Ecuadorians (50,000 until October), Haitians (41,000), Chinese (18,000), as well as Vietnamese, Afghans, and individuals from African countries. People of all ages, including babies just a few weeks old, undertake this journey.

This situation has forced the Panamanian government, along with international organizations, to set up migrant care centers at various points in the country.

Facing Dangers

“Thousands of [migrant] people who risk their lives, often along with their families, need an immediate and ongoing response of protection and humanitarian assistance,” said Olivier Dubois, head of the International Committee of the Red Cross (ICRC) delegation for Mexico and Central America, this Wednesday.

Migrants “face dangers” and have specific protection needs, “especially if they were victims of sexual violence, extortion, kidnappings, or other crimes,” added Dubois in a press conference in Panama’s capital.

To try to contain this migratory wave, the Panamanian authorities announced a series of measures on September 9, such as increasing the deportation of those who enter the country irregularly.

After crossing the jungle, the thousands of migrants arrive at the village of Bajo Chiquito, where they sleep outdoors while queuing to board canoes the next morning. These canoes will take them to a shelter in Lajas Blancas, navigating almost three hours on the Tuquesa river, with a fare of 25 dollars per passenger.

In Bajo Chiquito, staff from UN agencies like UNHCR and IOM, as well as Doctors Without Borders (MSF) and the Red Cross, are present to assist the migrants.

From Lajas Blancas, they continue on buses, paying another 40 dollars, to cross Panama towards the border with Costa Rica, and then they proceed to Nicaragua, Honduras, Guatemala, and Mexico, until reaching the United States border.

Unprecedented Crisis

A month ago, United States President Joe Biden met with Latin American leaders to promote growth with more investment, with the aim of curbing migration (and incidentally countering China’s influence).

Convened by Mexico, presidents and foreign ministers from a dozen Latin American countries discussed mechanisms to contribute to orderly migration on October 22.

Also, the President of Costa Rica, Rodrigo Chaves, visited Panama in October to discuss this issue with his counterpart, Laurentino Cortizo.

“The number of migrants who have crossed the jungle amounts to more than 11% of Panama’s population. This is an unprecedented crisis that has not received enough global or regional attention,” stated Luis Eguiluz, general coordinator in Colombia and Panama of Doctors Without Borders (MSF).

“These migrants are exposed to a situation of extreme vulnerability: hunger, lack of shelter and water sources, excessive charges, misinformation and scams, xenophobia, and physical, psychological, and sexual violence,” added Eguiluz, quoted in an MSF statement.

In 2008, the first year for which records are available, 28 people entered Panama through this inhospitable jungle.