Previous region reports on Latin America in Cranes Today have looked closely at Brazil, as the country prepares for two major sporting events. This issue, however, we focus on the Spanish-speaking countries of the region.

The urgent need for improved communications and infrastructure network is the bread and butter for the crane and heavy lift machinery industry within emerging markets in the Americas. Mining operations continue to take a big share of demand, particularly in Peru where major energy projects are estimated to receive $8.1bn investment in 2014.

Fuel production is another area of long-standing demand, in Venezuela as well as in Colombia, where oil output ranges from 2.5 million and one million barrels per day, respectively.

In the last three years these markets have expanded at an average rate of five per cent up until 2012. However, since last year the upswing trend in these economies started to slow. Weak metal and other commodity prices have taken exports down. The election of new governments, social unrest and insecurity have also taken their toll, either lowering consumer confidence or reducing foreign investment.

Key players in the crane industry that have entered these markets say 2014 will be a year for cautious optimism. Cristian Galaz, VP of sales for Manitowoc for the Spanish speaking countries in South America, summarises the trend in the region: "We’re talking about emerging markets with very outstanding economic performance. I’d say mining followed closely by energy and infrastructure projects are the industries where cranes are sold the most."

The region is far from recession and nowhere near stagnation. Various projects are in the pipeline with both private and public funding for years to come. Heavy lifting specialists will continue to be needed. The key is to know where demand is coming from and what type of equipment is hot.

High demand in the Andes
The market in Venezuela is surrounded by uncertainties arising from the political arena. In Nicolas Maduro’s 10-month in power the country’s economy plummeted from a 5.6% growth rate in 2012 to just over 1% in 2013, inflation reached a record-high of 56.2% — the highest in the region — and there was a drastic currency devaluation of the Bolivar against the US dollar.

Nevertheless, the economy stays afloat fuelled by Venezuela’s oil production capacity, and steady demand from the US and China. Companies dealing with rough terrain and all terrain cranes say despite current turmoil in the domestic market, expansion plans in oil refineries have kept demand steady.

Guillermo Vasquez, VP sales for Mexico, Central America and the Caribbean at Manitowoc, says, "In 2012 we started to see a trend towards the 60t capacity on the rough terrain side, but the most commonly use rough terrain cranes are in the range of 30-40t. On the truck mounted cranes the demand is basically on the 60t capacity, that’s our major model, which is now picking up in Venezuela, Mexico and Panama. For the all terrain product, the GMKs of 130-220t are doing well."

Yeffer Suarez, marketing manager of rental company Equiser concurs. Equiser specialises in handling heavy and oversized load. Upgrade works at refineries as well as construction of thermoelectric power plants are part of the company’s portfolio. The firm’s fleet is made up by 160 units ranging from 30-1,000t including rough terrains, all terrains and boom trucks. Brand names in the company’s fleet include Liebherr, Grove, Manitowoc, Terex, Demag, and Sany. The biggest unit is a Manitowoc 18000.

A distinctive feature within the Venezuelan market, which is also present in the entire region, is that rental companies are expected to provide not only the machinery, but also the service (including transportation) and even the necessary engineering to make an operation successful. Equiser in Venezuela exemplifies this trend, having fulfilled a complicated operation offshore at Venezuela’s Ventanas oil rig. "The operation consisted in mounting the arms of a loading tank. We provided cranes, and the transport in road and on water. The operation was completed early in 2013 with a Demag AC650 and a Demag AC500," Suarez says.

Crane companies have also been busy in power plant construction.

The Venezuelan government invested over $1,700m in projects run by the National Electricity Corporation in 2012. The national grid is supplied by 45 plants, ranging from hydropower generation, small-scale power plants, and thermoelectric units. Nine of the latter are currently under construction.

"We have seen an increase demand from thermoelectric power plants," says Leonel Bonnice, manager and co-owner of rental company Renta Gruas. The Carabobo-based company has a fleet of nine Grove mobile telescopic cranes, and three forklift units. Bonnice said that the fleet had 70% utilisation in 2013: "We’ve had work at the El Sitio power plant, which is being built by a Spanish firm. We’ve also been working at the La Raiza plant, near El Sitio in the Miranda state where construction has been completed. Another relevant job is at the Guacara plant in the Carabobo state." Bonnice adds that knuckleboom cranes ranging 70-150t were used on this job, with heavier loads lifted using mobile cranes ranging from 500-800t.

Housing projects are also picking up demand for cranes. In Caracas, 13,000 homes have been built as part of a housing plan in Fuerte Tiuna neighbourhood. Construction is part of an investment agreement with the Chinese government. The partnership has also built houses in other areas of Venezuela, totalling 7,376 units. In addition, the government-funded Mision Vivienda housing scheme for low-income families, has also put cranes to work.

One question is whether there are enough units to cope with the demand. Renta Gruas’ Bonnice says the market has seen an influx of cranes, particularly in higher tonnages, however when it comes to complex operations where foreign investors are involved it’s likely that sophisticated equipment will be brought from overseas. That’s the case for the construction of the urea and ammonia Pequiven plant in the Carabobo state. The plant is being built in partnership between the Venezuelan government and a Japanese firm. "We have boom truck cranes of 18t on site, but there have been other companies involved, like Mammoet; they brought to the site a 1,200t crane that was used to lift the reactors. The operation also required small cranes ranging 40t- 80t, and rough terrain units ranging 150t-300t. Crawler cranes where also used ranging from 400-500t," says Bonnice. The Pequiven plant is near completion and only a small number of cranes continue on site.

The Venezuelan fleet is largely populated by cranes built in the 80s, but there is new equipment too. "The problem is the red tape around the import process," Bonnice says. "You can import telescopic cranes, but not truck-mounted cranes due to protectionist measures. The government wants businesses to buy Venezuelan-built trucks, so what you do is to purchase the crane and the truck separately and then mount the crane on the truck yourself."

Yeffer Suarez of Equiser agrees. But, he notes that customers are slowly but surely starting to request newer units. "I think there is a chance for new cranes sales in Venezuela, particularly given the high level of demand. However it all depends on the economy and the political situation to get better."

Manitowoc’s Vasquez agrees. Import of cranes to this market is tricky, however the presence of new internationally owned crane manufacturing facilities like Manitowoc’s Paso Fundo plant in Brazil is proving to be an efficient way to overcome the hurdle. "Having Brazilian-built units give us an advantage over competitors in countries like Venezuela and other Mercosur territories. What we are trying to do with the Paso Fundo factory, is to make rough terrains more simply available for our Venezuela-based customers".

The challenge for all large and small crane companies in Venezuela remains the same. Players need the ability to adapt to changes in the market arising from the policy-makers, but demand is certainly there.

Beacon of hope
The industry in Colombia is on the high thanks to a government plan to boost home-building, not to mention upgrade works in oil and gas and infrastructure projects. Construction is booming partly due to sound economic policies that have helped the country to gain momentum.

Colombia’s economy expanded 6.6% in 2011, then fell to 4.2% in 2012 and picked up again ending 2013 with a GDP growth of 5.1%. The challenge for Juan Manuel Santos’ administration continues to be a high unemployment rate (8.48% in November 2013) and the social unrest arising from drug trafficking.

Alberto Alcocer, general manager tower cranes at Liebherr Colombia explains: "The crane market in Colombia is expanding primarily because the industry has been behindhand in the use of lifting equipment for many years. Various construction projects are now going forward across all sectors."

Liebherr’s rental partner in Colombia is MCS Colombia. The firm is the Colombian branch of Chilebased company MCS S.A., which also has a branch in Peru. According to Koehler Henning, head of the South America division at Liebherr, the available fleet of tower cranes between MCS Chile and MSC Colombia is over 200 units. "In Chile we have approximately 230 tower cranes and in Colombia circa 80," he notes, adding that MCS in both countries also provide service to the customer base.

"Cranes most in demand at the moment are used, small-to-medium capacity, including the LC 30, LC 63, 71 EC-B, and 110 EC-B. Loads vary between 1-2t at the tip,usually at 50m," says Alcocer.

Camilo Rusinque, junior manager at MSC Colombia explains that 50% of the fleet is at job site building houses, 30% takes on infrastructure operation and 20% in public buildings. He notes that tower cranes contracted for infrastructure projects are generally up to 80m high with load capacity at the of 1.5-6t.

"We are in a housing project called Ciudad Verdad in Bogota comprising 350 flats. We have eight tower cranes in operation at this job site," says Rusinque. Five other cranes are in operation at two of Colombia’s biggest infrastructure projects, including the construction at the Gecelca thermoelectric power plant in the Montelibano province, and the construction of a viaduct for the HidroSogamoso dam project. The company is also working at the Mallorca site, a residential and commercial project in Medellin. "In all we have 50 cranes in operation, that is 80% of the fleet."

Belgium-based Sarens is a newcomer in the Colombian market, having opened an office in Bogota in 2011. The company currently holds 43 cranes in its fleet ranging from 40- 400t, the majority being 50t, 70t, 80t, and 90t, from Terex Demag. "The group sends us units as we need them from Europe, but there have also been imports from the US," says Julio Hernandez, country manager at Sarens Colombia.

"The most important contract we have at the moment is with CB&I, working at the expansion of the Reficar refinery in Cartagena. We have up to 23 cranes at work on the site ranging 40-400t. Currently there are 17 units on site," Hernandez comments.

Other projects in Sarens Colombia’s portfolio include an operation at the El Alcaraban plant, a biodiesel factory owned by Bioenergy, located in the city of Puerto Lopez. The contract is for cranes ranging from 40-350t in addition to support equipment.

The outlook for the crane market is positive. Liebherr’s Alcocer says that the trend for the past two years has been on the rise ranging 20%- 30% and that he foresees the business will continue on a high for the next five to 10 years. MSC Colombia’s Rusinque concurs. "The construction sector in Colombia has been growing at a rate of 4% year on year. We estimate that the trend will continue for another four years."

Further development of the crane market depends on the availability of lifting equipment, not to mention that the nation’s fleet is largely outdated. Shortage of units paired with old equipment result in fierce competition where price is king.

"You can easily find 40-year old cranes in the rental market at a dramatic low price, so it is difficult to win a contract. This is a major hurdle for us with newer cranes because it needs a change in the culture within our industry," Rusinque says. For Liebherr’s Alcocer the problem is the lack of knowledge in the use of heavy lifting machinery. "It seems that it is hard for them (Colombian clients) to understand the cost-efficiency in the use of a new crane," he says.

But the optimism is high. Just like Sarens did, international manufacturers and rental firms are entering the Colombian market, bringing along more units to satisfy the demand. "There is a government plan to invest $40bn for the next seven years in major infrastructure projects, we can only hope these plans see the light, " concludes Julio Hernandez.

Projects in the pipeline include harbour and airport, and the construction of new refinery sites at the Barrancabermeja oil company. In 2012, the company announced a scheme to build seven new plants by 2017.

Mining for growth
In the southern tip of South America, the economies of Peru and Chile stand out from the crowd. These countries have expanded over 5% since 2010, and despite the trend of growth has slowed down, they remain on the positive side. Peru is particularly complicated with weak metal prices and a decline in domestic demand and business confidence. Peru’s GDP fell from 6.3% in 2012 and slipped to just over 4% in 2013. Chile has been more resilient to both global and domestic factors affecting the economy. Sound economic policies have helped the country to keep GDP growth at rates ranging 5.8% in 2010, 5.9% in 2011, and 5.6% in 2012.

These countries are the region’s major metal producer, particularly copper. Early in 2013, the market saw a significant reduction in the demand from China, but the situation is improving. "We’re expecting to recover in the second or third quarter 2014. For us, the South America region continues to be optimistic, with great expectation of growth, but in a slower rate compared to the last 5 years where we have grown at an average rate of 12%-14%," says Manitowoc’s Cristian Galaz.

The optimism on Peru’s recovery is based on current demand but, most importantly, on the shortage of units needed to cope with the demand for the wide range of heavy lifting machinery. For example, whilst Chile has over 1,500 tower cranes, Peru has roughly 150 units.

Enrique Salas, manager construction and mining division at Lima-based Ferreyros, an authorised Terex dealer in Peru, says the availability of cranes has improved significantly since 2011. "By October 2013 the import of mobile cranes was $50m, 70% up from the previous year," he notes. Salas also argues that the fleet is improving in terms of manufacturing date. "30% of the country’s fleet were new units of mobile cranes, and from the second half of 2013 that share increased to 44%."

The trend is shifting from 10-year old units to newer equipment driven by "mining companies looking for contractors with up to 5-year old machinery," explains David Melgarejo, commercial manager at Lima-based rental company Gruas Alquiler.

"Mining is by all means the main driver for demand of cranes," says Ferreyro’s Salas adding that mobile cranes are also in demand in highway, and bridge construction, power plants and refineries. David Melgarejo agrees. Heading up the mining division at Gruas Alquiler, he says that in 2014 the main contract is with Cerro Verde mining company, a copper and gold operation run by Freeport- McMoRan in Arequipa. Gruas Alquiler is providing 16 units including rough terrain and all terrain models up to 500t.

Peru’s great potential is for cranes manufacturers. Enrique Salas of Ferreyros says that while the rental business is not completely developed he has noted an increase demand from rental companies to purchase new units. "By October 2013 we saw a 55% rise in sales of Terex cranes from rental companies looking to upgrade their fleet," he says.

The downturn in the mining sector from weak metal prices has made investors to halt a number of projects, however, Gruas Alquiler’s Melgarejo says infrastructure projects recently announced by president Ollanta Humala can take up demand. In August 2013, Humala’s administration announced a US$20bn infrastructure investment plan to be completed by 2016.

The outlook for mid-range tonnage capacity is also positive. Gruas Arlin, a rental company with a fleet made up primarily of Hiab boom trucks, had a better-than-expected 2013. Junny Villugas, spokesperson at Gruas Arlin, comments: "The influx of crane companies, namely dealers and rental companies, has allowed us to be more competitive in terms of pricing and that has prove to be a successful move. Demand comes mostly to Hiab 330 and 550 to work in energy, infrastructure, and mining job sites," she says.

"The oil industry takes up the majority of rental deals in the Bolivian market," says Juan Carlos Alanoca, manager and owner of Alanoca Gruas. The La Paz-based company supplies lifting equipment to a wide range of industries, from textile to oil, energy, mining as well as infrastructure projects.

"The market has grown evenly in all segments," says Alanoca, who also notes that a recent regulation has allowed the fleet to be in constant renovation. "In Bolivia you see cranes from 1986 to 2007, but with the new regulation companies can only put to work units of up to fiveyears- old," he explains.

According to Alanoca, the fleet in Bolivia is made up of rough terrain and crawler cranes ranging 30t to 300t. Brands with the large share in the market include Grove, Tadano and Rigo.

Chile: demands at ease
Chile continues to be the most mature market for the crane industry. The strength comes from the country’s economic stability and its investor-friendly regulation for domestic and foreign initiatives. In addition, population growth triggers housing development and the real state and banking sectors work together providing favourable conditions to the customer. Chile’s tower crane market is highly competitive; services and equipment quality is paramount to succeed.

"The market for tower cranes has turned very difficult," says Horst Nickel, manager and owner at Transvertal. "Despite demand for units is high, rental prices have plummeted to 50% compared to 2012, whilst operational costs have gone up," he says pointing at the arrival of used cranes from Europe, particularly from Spain and Portugal.

Competition is tough in all segments of the crane market. Raul Burger, manager and owner of rental company Burger Gruas, a mobile crane specialist, says: "We estimate that demand in 2014 is likely to drop as price and operational costs have rocketed to opposite directions. This climate has made a number of investment announced for 2014 to be in hold or delayed."

Burger Gruas has a fleet made up of 35 units of hydraulic (mobile) cranes totalling 27,000tm, with a 1,200t LTR 11200 telecrawler the firm’s top model. "My estimate is that Chile has circa 400 mobile cranes and 250,000tm supplied by approximately 80 rental companies. For 2014, however, I see a surplus in the market having reached a peak of cranes pn offer in 2013," he says.

Demand for Potain cranes is trending towards the lower capacity range for infrastructure works with the most popular cranes lifting 1,300kg at the tip. "Industries like mining and complex operation require up to 16t load capacity," says Julio Nazer, sales manager at ETAC SA. The company has the exclusive representation of the Manitowoc product line in Chile and Peru. He adds that demand for self erecting tower cranes mostly used in housing projects range from 700-1,000kg at tip, with 40m boom at 35m height.

"Our fleet comprises around 140 units in addition to 100 Potain cranes. We estimate that the availability in the market is about 1,300 units including those owned by contractors and those in rental companies," notes Nazer.

ETAC is currently working in the construction of the Guacolda power plant in northern Chile, a project under construction by Hochtief. The fleet is also in operation at the Cochrane power plant, a facility located in Mejillones and built by Sigdo Koppers. The company has an ongoing contract with Los Pelambres mining site, a copper production site based in Salamanca in the Coquimbo region, in addition to a number of contracts in residential and commercial projects.

On the mobile crane market "demand is on the high with strong signs that the trend will continue to 2014", comments Andres Garate, commercial manager at rental company Multiservice. The company owns cranes ranging from 25-350t from Liebherr, Terex, Grove and XCMG, to name a few. The company also have a fleet of boom truck cranes.

"We have over 60 units in operation at the moment, that’s 90% occupation," says Garate adding that long-term operations and one-day rental contract takes 50% of the business respectively. He adds: "Demand increases by 15% to 20% every six months. Projects vary from mining job sites to wind power and housing."

The outlook for boom trucks is fertile. Ingo Erhardt, head of the Americas for Hiab comments: "Latin American countries are experiencing different situations with respect to the crane market. While in Chile demand is fairly stable, with no significant growth or decline, in Mexico the decline is significant mainly influenced by the GDP growth reduction from 3.5% to 1%." Erhardt adds that Chile is showing a development trend in the building materials industry.

Walter Toro, manager and coowner at Gruas Toro, is a Hiab dealer in Chile. He says 2013 ended with an uptake of boom truck cranes, particularly from the mining sector. "Companies have started to demand a lot of boom truck cranes of 40tm, as they are versatile for transport of materials as well as assisting assembly operations," he explains.

Toro’s fleet comprises models from Hiab and Effer, with the Hiab 477 being the most popular unit. Gruas Toro currently has working cranes at the Caserones and Escondida mining sites. In energy, the firm has a contract with the Los Vientos wind farm and another under construction in the Chiloe island.

What can overshadow the upbeat trend? Some players in the Chilean market say the new government, due to take power in March 2014 could change the positive climate. President-elect Michelle Bachelet has announced a tax reform in which the mining industry is targeted, therefore demand is expected to decline slightly.

Argentina: it’s complicated
The Argentinean economy is in free fall. The dive started in 2011 when GDP dropped from 9.2% in 2010 to 8.9% the following year. More significantly, Cristina Fernandez’ administration ended 2012 with a mere 1.2% economic expansion, and signs of a better performance in 2013 are hard to believe. Crane companies in the market have adapted to a climate characterised by protectionist trade policies, and currency control.

Matias Curras, product manager at Gruas San Blas, an authorised dealer for Terex says: "Energy, mining, and oil are the industries currently demanding equipment. Despite certain import restrictions, the market continues to grow thanks to heavy investment," he says.

Curras says that rough terrain, all terrain and Stinger boom trucks take most of the demand. "Popular ranges for rough terrain models are in the 70-80t range. For all terrains units the AC 60/3L, the AC 80-2, and AC 100 are proving popular. For Stinger models the 22t RM4792 and 28t RS70100 are popular."

Various cranes have worked the energy projects, including contracts with Panamerican Energy in Chubut, Servicios Petroleros in Neuquen, and Rio Negro.

The company is looking to overseas markets and recently opened offices in Uruguay and Paraguay where construction is starting to take-off. "Uruguay is a market populated by used and largesize machinery. We know of upcoming wind farm projects that will require cranes for assembly. In Paraguay the business varies from a wide range of needs in the construction sector."

Heavy lifting specialists have also been hit by import restrictions. "Demand is there, but the business gets complicated particularly when it comes to re-stock equipment," explains Sergio Ortiz, commercial manager at Ortiz Fischer. The company supplies mobile cranes for the construction industry, pedestal cranes for ports, and overhead cranes for the metal mechanic industry.

"We have noticed a growing demand for special cables. These cables have characteristics that make them suitable for heavy load cranes. On the other hand, it is interesting to see the growth of roundsling fibre for operations involving movement of heavy loads," he says. Ortiz Fischer is the exclusive distributor in Argentina of Verope, and SpanSet.

The company’s current contracts include mining projects with Minera Argentina Gold at the Veladero mine and Cerro Negro and Bajo Alumbrera projects run by Goldcorp. It has also been involved in projects such as the expansion of YPF’s Ensenada refinery, and the nuclear power station Atucha II.

Fast track expansion
The Mexican economy is also complicated with both domestic and global downturn. GDP growth averaged 4.3% in 2011 and 2012 but last year the figure is likely to be below 2%. However, President Enrique Peña Nieto who took power in December 2012 holding a pack of reforms across his administration, is determined to make 2014 the year of growth. He has announced a $1.15bn investment plan in public works projects to be awarded to the best bidder.

"We hope that the projects in the pipeline will be executed in the coming years. For 2014, we are expecting a growth of 4% in the construction sector which is better than the 1.4% seen in 2013," comments Pierre Aspar, commercial manager at Megamak, a dealer for Terex in Mexico. The company also deals with Hiab cranes, and Fassi, among others of up to 20t.

"My estimate is that the sale of boom trucks is circa 300 units per year in this market, however, the market for mobile cranes is tough as they compete with pre-owned equipment entering Mexico from the US at an incredible low price," says Aspar. He notes that the sale of mounted trucks is circa 15 units a year whilst yearly sales for RT models ranges from 20 to 30 units.

"The trend is towards heavy lifting machinery", says Christian Tableros, machinery managing director at Cargo Crane. The company specializes in mobile telescopic cranes, but also works with crawler cranes. The firm’s key business segments are refineries, petrochemical industry, energy and infrastructure.

Cargo Crane’s biggest project for 2013 has been the assembly of a 60km second level highway in Mexico city. "The project needed to mount 500-ton pieces of concrete and the job was completed with a Liebherr 1200," he explains adding that in total 10 units of different load capacity worked on the site. The second level is near completion and is scheduled to open in a year’s time.

"I see a lot of demand for cranes up to 300t capacity, but bigger tonnage will soon pick up. Current projects (and those in the pipeline for infrastructure, oil and energy) are more sophisticated, and completion is generally expected to be fast, " says Tableros.

Mexico’s MPE Group is a heavy lifting specialist and its president and owner Alvaro Rodriguez agrees on the potential the market has for the coming years. "Gantries are generally used for heavy lifting works and demand comes primarily from the metal-mechanic industry," he explains. Rodriguez also notes that car manufacturing takes 70% of MPE products and services with 30% of the business focused on energy projects.

The outlook for 2014 is promising, particularly since a number of car-makers have announced plans to open manufacturing facilities in Mexico. Rodriguez comments: "It has been said that Audi, Honda will follow Nissan in opening a production site here. These projects are the tip of the iceberg and I foresee demand for cranes in all levels of the supply chain as these plants will require many assembly operations."

The economy in Panama has rocketed to over 10% GDP growth since 2011 fueled by its service sector in which the Panama Canal is a strong industry. In addition, its dollar-based economy and the free trade agreement with the US and other countries have also boosted the upswing trend in the market.

The Panama Canal expansion project, currently in halt due to controversies between the Authority and the contractor, has been the main driver for the crane industry. "I would say that up to 80% of the crane fleet in Panama has been taken to the Panama Canal site," comments Jose Carlos Pino, manager at Gruas Rayo Amarillo, a Spain-based company specialist in boom truck cranes of up to 250 tons.

Terex’s dealer APE Crane sales and leasing has also been involved in works at the Panama Canal, but now has turned its focus to mining. "We have recently sold a 70t RT model by

Terex to the Panama mining company, which is soon to begin works of a new mine. Operation will take up demand for the coming 30 years," comments Tania Diaz, the Latin America marketing at APE.

Diaz also notes that other expansion plans that require cranes on site includes a harbor and various housing and infrastructure projects. Construction of an underground line, which started in 2011, is second in demand after the expansion of the Panama Canal.

"The market is growing as well as demand, particularly for bigger cranes," says Diaz. She adds that companies in the country benefit from the import from the US. "We’ve seen companies from Venezuela for example, entering the market as they found a better climate for the business," she notes.

Honduras: Growth potential
Back in June Cranes Today covered the building of a dam in Honduras assiting on that project were UK-based firm Van Doorn Tower Crane Consultants. Co-founder Dayne Davis said, "The crane sector is not very big in Honduras. It’s a very young country in terms of major projects, but there is not a lot of infrastructure to support tower cranes. All of our spare parts have to come directly from Europe, and we were able to make others by hand at a local factory".

Terex Comedil cranes were imported from Italy and the US, and have endured harsh weather conditions. The job site is located 200km southwest to San Pedro Sula, in the Jungle. "The road was cut out to the side of the mountain in order to get to this location, so it’s quite unique, the road a lot of the time is flooded as it rains heavily," explains Davis who notes that the potential for the cranes industry equals to start the industry from scratch. "I can foresee a lot of growth, but at the moment what’s lacking is a lot of foreign investment. I believe there is going to be a more focus on this region given the big opportunity to build infrastructure."

Honduras has recently started construction for another dam and a port, and Cohersa has another project in the pipeline that is three times bigger than La Vegona. Construction has not a definite date yet, but is expected to begin in the first quarter of 2014.