According to the Association of the CFZ, if it were the end of 2013 now, the Zone would be recording losses of $1.5 billion.
Surse Pierpoint, president of the Association, explained that the main causes are the protectionist measures implemented by Colombia and Venezuela, two of the main customers of the CFZ.
"Added to the 500 million dollars that the CFZ stands to lose today, are $800 million which sources estimate as the debt held Venezuelan businessmen with their peers in the Panamanian zone," says an article in Prensa.com.
Panama's government has backed down and decided that the airports in Rio Hato, David and Colon, will be administered by Tocumen SA.
Rafael Barcenas, director of the Civil Aviation Authority (CAA), said that they found a way for three new airports, which will not be profitable in the short term, not to become an administrative burden that hinders securing the funds they need to build the South Terminal at Tocumen airport, which will have an investment of $679.4 million.
The construction of the new headquarters building of the municipality Colon has been awarded to the sole bidder for $16.5 million.
Prensa.com reports that "for an amount of $16.5 million the award was made to the only firm who submitted a bid, Omega Engineering Inc., for the planned construction of the new city hall in the province of Colon."
According to Damaso Garcia, mayor of the district, the project will include the study, design, demolition of the old headquarters, building, equipping and delivery of final plans.
The 40% devaluation of the Venezuelan currency threatens the ability of the largest customer of the CFZ to pay debts in dollars.
Martesfinanciero.com reports that "In a globalized market, when a country gets a cold it is normal that another one sneezes. This is the case of Panama, and more specifically of the Colon Free Zone (CFZ), which sees a dangerous flu coming on after the roughly 40% devaluation of the Venezuelan bolivar, which has gone from 4.3 to 6.3 per dollar. "
The Civil Aviation Authority of Panama is to hire a consultancy company to establish the implementation scheme for the privatization of airports in Chiriquí, Colón and Rio Hato.
The Civil Aviation Authority (CAA) will be looking for a consulting firm to determine whether the airports Enrique Malek (Chiriqui), Enrique Jimenez (Columbus) and Scarlet Martinez (Rio Hato, Cocle) will be managed by a single concessionaire or privatized separately.
In a reversal of the decision of having them administered by Tocumen SA, the airports of David, Colon and Rio Hato will be granted in concession to private companies.
The Panamanian government now believes that it would not be suitable for Tocumen SA to manage – along with Tocumen International Airport - these airport terminals, which are being remodeled at a cost of $138 million.
After repealing the law allowing the sale of land, the government is intending to put up rental prices.
"Yes, the rents are going to be raised, we said that from day one," said the Minister of Economy and Finance, Frank De Lima, whose aims is that users of the free zone will contribute the more than $27 million per year that are currently paid, towards improvement plans in the province.
Panama's National Assembly has repealed Act 72 which authorizes the sale of land in the CFZ, and President Martinelli has signed the enactment.
A statement from the Presidency reads:
On Sunday October 28 President Ricardo Martinelli sanctioned, a ruling repealing Act 72. With this act the national government has fulfilled its commitment to the people wanting the repeal.
President Martinelli has suspended the sale of plots in the Colon Free Zone, and announced increases in rents and changes to the much resisted law 72.
After suspending the sale of land in the Colon Free Zone and noting that if the people in Colon do not want it to be sold, the plots will not be sold, the government of Panama announced that the law will be modified so that the income produced from these areas – be it from future sales or rents -will go entirely to the province, rather than the 35% that had been planned.
The company Panamerican Seaway announced at the beginning of the year that that the ferry would start functioning in May making its 12-hour journey which would link the port of Colon with the terminal of Cartagena.
The project aroused great expectations, but never materialized.
Now it being is reported that "Aventura 2000, the agency that would be responsible for the operation in Panama, said the project has been canceled until further notice and it is not known if it will ever come to fruition."
The start of operations was announced for May 10 but the permits from the governments of Colombia and Panama are still lacking.
Some internet postings point to the possibility that regional airlines are lobbying to prevent the activity of Cartagena-Colombia Ferry, which would pose serious competition.
According to an article in Visitpanama.com "Nissos Rodos is the name of the ship that will link the port of Colon 2000 in the city of Colon on the Caribbean Sea in the Republic of Panama with the Colombian port city of Cartagena, with a journey taking just 12 hours and costing $99 per person. "
A shipping vessel owned by Panamerican Seaways with capacity for 1,500 passengers and 500 cars, will begin travelling in May between Cartagena de Indias in Colombia and Colon in Panama.
Operators calculate that between 800 and 1,000 people will be carried on the "Nissos Rodos" ferry per trip, with rates starting from $99 and going up to $508.
The ferry will leave Colon for Cartagena at 18.00 local time on Mondays, Thursdays and Saturdays, and will depart from Cartagena for Colon 2000 at the same time on Fridays, Sundays and Tuesdays.
The $20 million project starts in 2013 and expects to bring improvements in the water supply and sewerage systems in the province.
The project funded with $20 million from the World Bank will be presented to the Provincial Council of Colon, Panama, on April 25th, said Charles Hamilton, regional head of the Institute of Aqueducts and Sewage Systems.
The work will begin next year and should be completed in 2015.
Tens of thousands of tourists board cruise ships bound for the Caribbean, generating a strong hotel business, which during the 2012-2014 season should make about $75 million.
About 90% of passengers taking cruises in the Colon 2000 port spend 3 to 4 days in the area before boarding in order to see the sights and shop.
The Royal Caribbean cruise ship has confirmed two new seasons sailing from Panama, and the Spanish Pullmantur announced that it will make Colon 2000 its home port for the season 2012-2013 with its ship The Horizon, which can carry 1,800 people.
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.