Gatun is also the name of the lake in the Panama Canal. Maybe he's down there right now and knows better about what happens in Panama than those armchair commentators ...
The Washington Times - December 14, 1999
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Maritime sector prepared for skyrocketing growth In light of the canal's reversion and the acquisition of the inter-oceanic region, Panama has directed its efforts to the creation of a successful transshipment hub. Almost 10 years ago, Panama's leaders foresaw the nautical potential and began evaluating the entities involved in the marine sector. Consequently, in 1998, the Panama Maritime Authority (AMP - Spanish acronym) was created to integrate all naval operations, which were dispersed into various ministries. These were the Ports and Ancillary Industries Authority, Merchant Marine Directorate, Marine and Coastal Resources Commission and the Seafarers Directorate.
The AMP is responsible for carrying out the "national maritime strategy," managing all marine resources, and complying with all national and international regulations associated with the nautical sector. The strategy, which has been very aggressive, is to create the most complete center of transshipment ever constructed. Panama has all the necessary components: a privileged geography; a principal international maritime route; deep water ports open 24 hours; a flexible government; a prestigious financial center, and Colon's Free Zone. For this, Panama has privatized its ports to prestigious operators and revived the 143- year-old railroad to serve as an intermodal link between the two oceans. "During our first year as the Panama Maritime Authority, we have had a significant growth. We have projects of approximately $441 million. Panama's port sector is considered the first economic impeller; marine product exports is the second, and the Free Zone, the third," explained Jerry Salazar, general administrator of the AMP. The Authority is in charge of representing Panama in all marine aspects around the world, except when the issues pertain to transit through the canal, which is the Panama Canal Authority's jurisdiction. There is a triangular relationship between AMP, the Canal Authority and the Inter-oceanic Region Authority (ARI, for its Spanish acronym); however any activity that may affect the functioning of the canal, must have the approval of the Canal Authority; otherwise, it does not follow through. In the port privatization involving the reverted areas, the ARI leased the land and the AMP negotiated the 25-year leases.
According to Reyna, the privatization of ports has brought about efficiency, profitability, and first -class services in tune with a "first-world Canal". Although the increment in container movement is not directly influenced by an increase in canal transit, the AMP is aware that many of the vessels traveling through are empty and, therefore, can be filled in Panama. To increase the arrival of post-Panamax ships, which have much more container capacity, the ports entrances must be dredged. Currently, Panama has three major port holding companies: Manzanillo International Terminal, formed by Stevedoring Services of America and Motores Internacionales, a local firm; Panama Ports, member of Hutchinson Port Holding Group, which has the concession at both Balboa and Cristobal ports, and Evergreen Colon Container Terminal. Last year the ports moved 1 million containers and expect to move twice that many annually within the next four years. For example, Manzanillo International Terminal (MIT), located in the Atlantic Ocean and the most developed and lucrative port right now, moves approximately 33 containers per hour using Post-Panamax container cranes (25 containers per hour is average for container movement around the world.). According to MIT's managing director, David Mishou, the terminal will move 750,000 containers this year, with a 5 percent to 10 percent future increase. For Hans Stig Moller, managing director of Maersk, Panama is the place to be right now, because of the possibilities offered for growth in the transshipment of containers through the canal and the railroad. This company has about 300 transits through the canal and is the largest container carrier in Panama and the biggest user of Manzanillo International Terminal.
Parallel to the canal, the transcontinental railroad, a $60 million-investment, will connect the ports in both oceans. Its concession was awarded to Panama Canal Railway Company, joint venture of Kansas City Southern Railway and Mi-Jack Products. The railroad will provide an alternate route for the transshipment of containers at both ends of the isthmus, further expanding the possibility of growth of the marine sector. The authority has created special commissions to address the different areas of the marine sector. To try to be a competitive maritime service provider, it has established four regional offices and others in New York, London, and Manila; has representation in the International Maritime Organization, and, through its Consulates, it provides marine merchant services to 61 posts. The AMP is evaluating expanding offices to Rotterdam and Singapore. The AMP is preparing the documentation necessary for entering the "White List" of the International Maritime Organization, which will be submitted on May 2000 and guarantees certification for all marine operators. Panama has become a world leader of flag registry. "Seventy percent of the new registries are ships less than 5 years old and more than 70 percent of those traveling with our flag have 17 years. We expect quality ships and responsible labor ordinance," added Salazar, who believes Panama has been extremely attentive to quality control in the entire maritime sector. During the next couple of years, as the world observes the canal's operation and the increasing development of the ports, Panama will hold, perhaps, the most important maritime position in the Western Hemisphere. The Ports of Panama Manzanillo International Terminal Panama (MIT) MIT, formed by Stevedoring Services of America and Motores Internacionales, began operating in 1994 with an escalating investment of $300 million. It moves the most containers -750,000 this year- using six 50-long-ton capacity post-panamax container cranes, two 40-long-ton panamax container cranes; it has 1,050 meters of contiguous container berths from 13 to 15 meters deep, and 57 hectares of container yard plus 51 hectares available for future development. MIT provides services to 19 shipping lines and has its own breakwater; therefore, the vessels avoid the canal's traffic. The terminal will be moving about one million containers within the next four years. According to Mishou, its success has to do with providing a quality service at reasonable costs in a privileged geographic position. "Our company has had a good experience here in Panama, we have excellent relations with Panama Maritime Authority, the Inter-oceanic Region Authority, and with the Panama Canal Authority, who are interested in the success of the maritime sector; therefore, our own," said Mishou. Panama Ports Company (PPC) The Panama Ports Company, member of Hutchison Port Holdings Group, won authority at Panama's two largest ports, Balboa in the Pacific and Cristobal in the Atlantic, to operate container terminals in 1996. It has invested $140 million and estimates that it will invest $110 million for the next phase of construction and expansion in both ports. Once finished, the port of Balboa will have a total area of 181 hectares, 1,500 meters of deep-water quay, 50 hectares of container storage area, 12 super post Panamax quay cranes, and a container movement capacity of 1.5 million per year. As for the port of Cristobal, PPC is modernizing the already existing facilities. In its 143 hectares, the port has 450 meters of quay, two Panamax quay cranes, an extended 18 hectares container storage with a capacity an annual capacity of more than 300,000 containers, and more than 27,000 square meters of warehouses, among others. Colon Container Terminal (CCT) Evergreen Shipping, a Taiwanese company, opened its new port in the Atlantic Ocean during 1997. By the year 2002, it expects to finish the $100 million project, which will have a handling capacity of 500,000 containers. CCT consists of 55 acres, a 600-meter container berth, four Panamax gantry cranes, a 15 meter-draft access channel, a 14 meter-draft alongside berth and a 600-meter turning basin. |
