The Fine Print of a $593 Million Contract

The construction and operation for 20 years of a container port in Isla Margarita, in Panama, is governed by a detailed concession agreement.

Monday, September 16, 2013

"... The ambitious port project will have three docks and will be located in an exclusive area of ​​Colon, where it will compete with the terminals currently in operation in the Atlantic: Cristobal, Colon Container Terminal and Manzanillo International Terminal. "

The core of the concession agreement seeks to ensure the delicate financial balance of the project, which depends on economic, commercial, and even political circumstances.

An article in Prensa.com reports that "The law contract to build a container port in Isla Margarita, Colon, committs to an investment of $593 million and has clauses that are broadly advantageous if the operator decides to leave the country."

The contract states that "... it (the contract) may be terminated by the Company without liability or penalty, by noticing the State 60 days in advance, if the company can justify and prove that there are economic changes as a result of acts or omissions by the State, directly or indirectly. "



More on this topic

Agreement to Operate Puerto Quetzal

September 2016

Compensation of $43 million to the State and a concession for 21 years for APM Terminals are part of the agreement made with the foreign company for it to operate the container terminal.

According to an article on Publinews, Anabella Morfin, Attorney General of the Nation, explained that   "...APM and EPQ pledged to desist with the courts with their efforts to obtain a declaration of voiding due to incompetence, in order to streamline the operation of TCQ. "

Panama: Port Works in Isla Margarita

May 2016

It has been announced that construction will soon start on the next container port concessioned to Panama Colon Container Port, a work which will need an investment of $900 million.

An article on Nacion.com reports that "... According to the company, the facilities will include a container yard with a capacity to handle up to 2.5 million TEUs per year, with 4 docks that will take up 1,200 meters of water front and it will be the first with the ability to accommodate Neo Panamax vessels."

Filipinos Awarded Terminal in Puerto Cortes

February 2013

The proposal by International Container Terminal Services includes royalties of $19.50 per TEU and $624 million in investment in the first ten years of the concession.

A statement from COALIANZA reads:

The company International Container Terminal Services Inc. submitted the best offer for the New Container Terminal for General Cargo at the National Port in Puerto Cortes

New Port in Colon

March 2012

The government of Panama has granted in concession 27 acres in Isla Margarita to be used to build a container port that will cost $600 million.

The Maritime Authority of Panama and the company Panamá Canal Colón Port Inc. have signed a contract for the construction, operation and management of a container terminal and general cargo area in Isla Margarita, Colon, at a cost of $593.9 million and for a period of 20 years.

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