Because Colombian ports have a lower operating cost base than Panamanians, the South American country competes to appropriate the logistics business in the region.
Until a while ago, Panama led the logistics operations in the region, however, there are some signs that indicate that this situation could be changing, since the growth in the movement of maritime cargo in the country has reported a slowdown in recent years.
Opposition on the part of a port operator and residents in the area is preventing the development of a terminal that would speed up maritime traffic in the Panamanian Pacific and result in lower logistics costs.
The opposition that has been expressed by the current operator of the port of Balboa, on top of the legal actions filed by groups of residents, lawyers and environmental organizations, has prevented the ACP's project to build a port in Corozal from advancing.The tender was declared void in March of last year, after having been postponed twice.
From September 27th to 29th, companies from the maritime sector will be meeting in Panama to discuss issues related to technology, rules and regulations in the industry.
From a statement issued by the Maritime Chamber of Panama:
First Annual Maritime Conference of Panama entitled "The Next 100 Years" set within the framework of Panama's 100-year ship registry.At the Sheraton Hotel in Panama City.
The Canal Authority has started a process of measuring and analyzing the current and projected demand for the inter-oceanic route in order to determine when to start the expansion.
The Panama Canal Authority has already formed a group of experts to carry out analysis and technical studies for the future expansion of the Canal, which will depend directly on the behaviour of demand over the next few years.In the first year of operation, vessels larger than those initially planned have passed through the third set of locks. At the moment, according to Jorge Luis Quijano, the third set of locks generates 32% of revenues.
The Panama Canal Authority expects to tender at the end of the year several logistics projects to be developed in 1,200 hectares of land in the canal zone.
The goal of the Panama Canal Authority is to generate value-added services around the extended canal, and according to the head the institution, Jorge Luis Quijano, several state companies from China have already expressed interest in participating in the development of these projects, which could be estimated at $1 billion and would be developed over a period of five to seven years.
New businesses in the segment of small shipping companies, and competitiveness in the maritime and logistics regional market is what the country is missing out on because of the delay in the construction of a new terminal.
One of the main points in favor of the construction of a port in Corozal is the business that could be generated in the segment of smaller shipping companies, which, according to entrepreneurs in this sector, have difficulty accessing the services they need because larger shipping companies are generallygiven priority attention at major ports.
The Supreme Court has rejected the appeal over constitutional guarantees filed by Panama Ports Company against the tender process for the port.
The port company had argued on several occasions that there was no need to build the port in Corozal, for market reasons, an opinion which it began stating when the Panama Canal Authority announced the project.PPCfiled a legal action a few months after that announcement.
On November 8 Panamanian entrepreneurs will be meeting to discuss the project for the construction and concession of a port in Corozal and its impact on the economy.
From a statement issued by the Chamber of Commerce, Industries and Agriculture of Panama:
Panama, November 01, 2016. -In order to analyze the diversification of opportunities for maximum use of the expanded Canal, the Chamber of Commerce, Industries and Agriculture in Panama will be holding a national forum in connection with the proposal for a port construction in Corozal, on Tuesday, November 8, which will take place at the guild´s headquarters.
The company that obtains the concession to build and operate the terminal must ensure the movement of at least 70 thousand containers in the first year, at a rate of at least $12 per container.
Unlike other port operators in the country, the company that obtains the concession must comply with certain performance requirements and tariffs set by the Panama Canal Authority.The Request for Proposals document sets out the minimum movement of containers per year of the concession,"... starting with 70,000 a year to the seventeenth year with 490,000. This is a significant requirement when compared with other legal contracts between the state and port operators, in which there is no requirement for performance let alone a table showing movements per year."
The Panama Canal Authority has published the tender documents for the design, construction and operation of a Container Terminal in Corozal.
The companies who will be taking part in the event are PSA International Ltd, Terminal Link, Terminal Investments Limited and APM Terminals, which will have until February 3, 2017 to submit their proposals.
Panama risks losing out to regional competition in the logistics area if the project to develop a cargo port in the area of Corozal continues to be hindered.
From a statement issued by the Chamber of Commerce, Industries and Agriculture (CCIAP):
Eleven legal processes are hindering progress of the project that could increase the capacity of container movement in the Panamanian port system.
Panama could already have a container terminal operating on the Pacific side, but opposition from the Panama Ports Company (PPC) and others such as residents of surrounding areas has impeded progress of the project which the Panama Canal Authority has been promoting since 2014.
There has been an increases in traffic of neopanamax ships, which now produce revenues of $68 million, as well as extra maritime services that used to go through the Suez Canal.
An article on Prensa.com reports that "...During the first two months of operation of the expanded Canal 130 neopanamax ships were reported to have passed through, most of them container ships, bringing in total revenues of $68 million.Since the expanded Canal opened on June 26, business has been growing, with 2 new services coming from the Suez Canal, said the Canal Administrator Jorge Luis Quijano."
Expanding moorings in Gamboa on the Atlantic side, continuing construction of the third bridge over the canal, and building another on the mouth of the Chagres River are some of the works planned for 2017.
The Panama Canal Authority (ACP by its initials in Spanish) will have a budget of $2.8 billion to manage in 2017, and among the projects which are to be completed is finishing"...