Panama Matures as the Shipping Hub of the Americas
Excerpts adapted from:
“Manzanillo crecio 20%,” Friday July 11, 2008, Wilfredo Jordan Serrano, laprensa.com.pa
“Balboa superará a Santos,” Friday July 11, 2008, Wilfredo Jordan Serrano, laprensa.com.pa
Panama Matures as the Shipping Hub of the Americas
Even within the current global economic slowdown, Panama continues to be on the rise. One example of the increased economic activity taking place on the isthmus can be witnessed within the shipping industry. In the first half of 2008, the Manzanillo International Terminal (MIT) port facility on the Caribbean side of Panama moved 708,319 shipping containers, an increase of 20% compared to the previous year. These numbers are due to the fact that economic growth continues in Latin America even as much of the United States and Europe appears to be slowing down.
Locally, Panama is undergoing a tremendous real estate boom. Equipment and materials that are moving through the shipping containers in and along the canal are directly related to new construction happening in Panama as well as the build up to the new expansion of the Panama Canal. Maritime activity on the Pacific side of the Canal directly affects operations on the Caribbean side as well, dealing with cargo that moves from one ocean to the other both via the Panama Canal and the trans-isthmus railway.
These increases in cargo movement highlight only the beginning in terms of where Panama’s maritime transport industry is headed. The Panama Canal expansion is still only in its earliest stages. By the end of the calendar year 2008, Balboa Port on the Pacific side of the Canal hopes to become the largest mover of sea cargo in all of Latin America according to the manager of Panama Ports Company Alejandro Kouruklis.
Under the fourth phase of its expansion, Balboa Port will be adding an additional 420 square meters of dock space and four new cranes. At the moment the port holds 18 cranes and 1,270 square meters of loading space, allowing it to serve four ships simultaneously. In 2007 Balboa Port moved 1.8 million cargo containers while the port facility Santos in Brazil was number one in Latin America moving 2.9 million. With the new additions to Balboa Port in Panama the goal is to move 3 million containers by the end of 2008 and become the shipping services port leader for all of Latin America. Traditional port movement combined with the use of the Panama Canal and the Panama Canal Railway all lend Panama to have one of the most strategic, efficient and busiest port facilities in the entire world.
Panama Prepares for a Competitive Future
Adapted from:
“En octubre se hara el III Foro Nacional de Competitividad,” Monday July 21, 2008, Marianela Palacios Ramsbott, laprensa.com.pa
“150 panameños estudian agronomía en Honduras,” Tuesday August 5, 2008, Roberto Gonzalez Jimenez, laprensa.com.pa
Maintaining one of the highest economic growth rates in all of Latin America over the past five years, Panama is looking to solidify its presence as a regional leader and a worldwide business center. While the current real estate and construction boom is causing great changes to take place in Panama, the majority of this development is rooted in foreign direct investment.
Supporting its position as the home to the Canal, a tax-free haven and the “Bridge of the Americas,” Panama finds itself in a strategic location that makes it a very desirable place to operate any type of international shipping, commercial or service-providing industry. Foreign money is finally tapping into Panama’s positive factors and advantageous natural conditions, but now and forever Panamanians are the ones who must ensure that all of this potential is realized and brought to fruition.
Sponsored by the National Center for Competition (CNC) and the Panamanian Association of Business Executives (Apede) the third annual National Competition Forum will be held in October; an event bringing together leaders from the private sector and the national executive body to strengthen alliances and improve upon the national competitive advantage of Panama.
This year’s meeting will analyze the goals that were set during last year’s forum to determine which challenges have been met and which have some further work still to go. A loan from the Inter-American Development Bank is in place to execute the project “Impulso Panama” which aims to help small and medium sized businesses in Panama to modernize and digitalize their daily operations, making them more competitive in the global workplace.
Besides working with already established businesses, Panama is focused on educating its youth and better preparing them for a wide range of occupational positions in the future. A group of 150 Panamanian students have received government scholarships to study in the Universidad Zamorano in Honduras. The students study the complete facets of animal husbandry, processing and agriculture while in Honduras, but as part of the scholarship they have committed to returning to Panama after their studies are over and promise to develop agriculture-related businesses near their home towns.
Panama’s central location and its famous economic resource of the Panama Canal have helped make it one of the most significant nations in the world in terms of maritime transport and commerce. The Universidad Maritima Internacional de Panama (UMIP) is sending seven of its students and one of its faculty members to the United States to spend a month as an education exchange with the Massachusetts Maritime Academy.
Working with current businesses planning for the future and also concentrating on preparing students for the dynamic work environment that lies ahead, Panama is doing all that it can to address the current economic situation and position itself as a leader always ready to take advantage of new opportunities in the future. For all intents and purposes as a developing world nation thrust into today’s fiercely competitive capitalistic international economy, Panama must compare itself with advanced industrial nations if it hopes to be successful within a truly global arena.
Hopefully the hard work it is undertaking right now will pay off in the future in the form of a capable, competitive and dynamic Panamanian workforce, in addition to sustainable economic growth rates that remain strong with or without a foreign investment boom.
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Panama’s Economy….Still Growing!
Adapted from:
“Actividad económica crece 9.48%” Diego Quijano of La Prensa, laprensa.com.pa
Wednesday, June 25, 2008
And
“Panama pierde liderazgo en crecimiento de AL” Marianela Palacios Ramsbott, laprensa.com.pa
Thursday, July 3, 2008
Economic Activity Grows by 9.48%
Panama closed 2007 with the highest economic growth rate in all of Latin America after registering an historic record of 11.2%. Now well into 2008, new information shows that the Panamanian economy continues to perform and expand at a high level.
While many parts of the world are experiencing job losses and economic stagnation, Panama’s economy is creating jobs and growing. The Index of Monthly Economic Activity (IMAE) in Panama registered an increase of 9.48% for the month of April 2008 compared to the same period last year. The overall increase in economic activity for the first four months of 2008 was 8.01%
The report published yesterday explained that the growth was witnessed in many different economic sectors including, construction, mining, hotel and restaurant services, transportation, warehousing, communications, real estate, and other public and private services without getting into many further details.
With positive growth taking place in a wide range of economic areas, Panama looks to develop further each year and utilize resources such as the Canal to solidify itself as an economic leader in the region.
Even though it maintained a strong economic growth rate of 8.4% during the first trimester of 2008, Panama lost its first place ranking in the region to Uruguay with growth of 11% and Peru at 9.2% according to official statistics. The economy of Argentina expanded at the same rate as that of Panama during the first three months of 2008.
These four countries rank far ahead of the Latin American average and some of the strongest economies in the region including Mexico (2.6%), Chile (3%), Brazil (5.8%) and Venezuela (4.8).
Even though Panama has fallen off from last year’s record numbers, the country continues to diversify, develop and expand. With many large scale infrastructure projects currently under works including the Panama-Colon Highway, the Panama City Cinta Costera coastal road and of course the expansion of the Panama Canal, the Panamanian government is confidently looking toward the future and understands the huge economic potential that exists within this small country.
As infrastructure and opportunities develop, market inefficiencies start to diminish and profit margins begin to increase. With Panama’s advantageous position at the center of the Americas and its world famous resource in the Panama Canal, the country is becoming every day more attractive as a strategic location to do international business. Panama is perfectly positioned to take on a greater role and significance within the new global economy.
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