About Panama

Ports & Maritime Industries

Nearly 14,000 ships transit the Panama Canal each year with more than 197 million tons of cargo and 700,000 passengers and crew onboard. Because of this traffic and modern port facilities, Panama is expected to become the region’s principal multi-modal logistics center in coming years.

Today, Panama has the largest maritime fleet in the world and its four new container ports represent a total investment of over US$4.5 billion. The ports, combined with the trans-isthmian railroad, are projected to move 3 million cargo containers by 2006.

In the Atlantic Coast:

1. Manzanillo International Terminal (Stevedoring Services of America)
2. Colon Container Terminal (Evergreen International Corporation).
3. Colon Port Terminal (Hutchinson Port Holdings)
4. Colon 2000 (Cruise Ship Terminal)

In the Pacific side:

1. Panama Port Terminal S.A (Hutchinson Port Holdings)
2. Rodman Pier (Alireza - Mobil), for fuel loading and unloading.

Panama Canal Developments

The Canal itself is undergoing a modernization and maintenance program of up to $1 billion, which includes finishing of the widening of Gaillard Cut as well as improvement of the locomotives (mulas) used to guide the ships through the locks, the docks, the tugs and all the machinery of the Canal operation. In addition, the Panama Canal Authority has announced preparations for constructing a third set of locks. A multi-phase program includes building additional water reservoirs to increase water availability both for the Canal and the terminal cities; dredging the entrances to the Canal to allow the entrance of larger ships to the ports; similarly deepening Gaillard Cut and Gatun Lake; building the new locks and constructing two bridges over the next ten years.

Ports and Railroad

Additionally, Panama's ports are expanding their container transshipment capacity. Manzanillo International Terminal has just completed a $100 million expansion program, the port of Balboa is finishing a $130 million expansion program, and another $200 million phase three program. The Evergreen port at Colon will enter a second phase of expansion and a new port at Farfan, on the Pacific side, will be defined.

All this activity will allow Panama to transship over 3 million containers per year around year 2006 and continue growing over the years making Panama the No.1 container transshipment center in Latin America. Together with the ports, the restored railroad by Kansas City Southern Railways will connect the ports creating a land bridge to complement the Canal. This port activity will require additional services from the local economy such as financing, insurance, specialized maintenance and repair, electricity and water, telecommunications, trained manpower and other services, and it will create new business opportunities for logistics and cargo industries.

Investment Opportunities

Some of the multi-million dollar investment opportunities include:

• The development of major intermodal transportation and logistics centers at Colon and at the Howard/Farfan complex on the Pacific, including the construction of a new container port at Farfan.
• Ship owners services, servicing of vessels, ship repair and maintenance, container repair, intermodal cargo services.
• The future construction of the third set of locks, which will include the necessity for additional water resources, expanded hydroelectric power generation, the expansion of the entrances to the Canal and the deepening of Gatun Lake and Culebra Cut.
• Contracts related to the Panama Canal operation (provisions, equipment, material, construction, consulting etc.) that reached $135 million in 2001, not including purchases of $22 million.
• Provision of concessionary services to the ports (power, water, fuel, material, food, banking services, telecommunications, maintenance and repair, dredging) estimated at between $47 and $60 million annually).
• Services to passengers and crewmembers transiting the Canal, which in 2000 numbered 255,571 and 458,134 respectively.
• Services to smaller ships, such as yachts and motor cruisers, which totaled 1,748 in 2001.
• The relocation of approximately 8 to 10 thousand persons, as a result of Canal expansion, requiring housing and infrastructure.
• Cruise ship reception and tourism.
• Others

In terms of related air transport opportunities, Tocumen International Airport already is an international and regional hub for both passenger traffic and cargo; the former Howard airforce base should become an aviation industrial center, making use of its modern airport facilities; and construction of the cargo airport at France Field in the Atlantic must be completed.

Howard/Farfan Multimodal Project

The studies made for the development of this sector clearly indicate that their location at the entrance and west shore of the Panama Canal is ideal for the establishment of a multimodal center for industry and the commerce. The existing airport infrastructure, and advance telecommunications facilities and the integration of the just in time manufacture with the multimodal transport will provide fast and flexible connections between users, suppliers and clients.

These areas and facilities that reverted to Panama at the end of 1999 have a total area of 2,628 hectares, and are one of the most important sites based on the opportunities for the development in the shores of the Canal in the Pacific.

A New Opportunity: Container Port in Farfan

Located at the Panama Canal’s entrance, near to the bridge of the Americas, the 253 hectares of Farfan are part of the former air base of Howard, the biggest military airport that the EE.UU Armed Forces had outside of the United States.

The Japanese government through its Agency for the Development (JICA), prepared a feasibility study that reveals that after occurring the maximum development of the Balboa port and after its modernization, Farfan can become the second great port of containers in the Pacific.

This port will be part of the multimodal and intermodal center of transport that Panama promotes. With a view to integrate itself more indeed to the system of international transport its proximity to the port of Balboa and the airport of Howard makes this site especially attractive for the predicted development.

BusinessPanama has a team of top experts to help you with this project.

• Business and Development Opportunities of Howard Project
• Center of repair and maintenance of airplanes and helicopters.
• Development of a harbor complex in Farfan
• Logistic center of manufacture and distribution
• Industrial parks and processing zones for export
• Call centers
• Development of residential areas
• Establishment of educative and institutional centers
• Recreational parks, sports, tourist and recreational facilities.

Howard/Farfan has an estimated value of US$1 billion that will require participation from major developers or consortiums.

The Inter Panama can represent you, or find you local partners, or provide consulting in different areas of a project, or raise equity capital, or recommend you to the leading lawyers in Panama.

For more information about Business Opportunities, Consulting, Legal or other services, please contact Inter Panama.