Transport & Logistics
From The Report: Panama 2014
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Growing at double-digit rates in each of the past five years apart from 2009, the transportation and logistics sector contributed 24.1% to GDP in 2012 and is identified as one of four pillars of economic growth in the Strategic Economic Plan 2010-14. To secure the future of the sector the administration is investing $9.6bn, equivalent to 70% of public sector investment, from 2010 to 2014 in infrastructure upgrades. Public spending on infrastructure extends well beyond the flagship $5.25bn Panama Canal expansion and includes construction of the Panama City Metro, an overhaul of the road network and upgrades to maritime and airport infrastructure. With a business-friendly regulatory framework and the canal’s ability to attract global trade, Panama is set to continue developing the transport and logistics hub.

This chapter includes interviews with Rafael Barcenas, Director-General, Civil Aviation Authority; Daniel Isaza, President, Logistics Business Council; Roberto Roy, Minister for Canal Affairs, and CEO, Metro de Panamá; and Pedro Heilbron, CEO, Copa Airlines.

Articles from this Chapter

Overview

Moving along: Continuing to expand the transport and logistics network
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A geostrategic location and the presence of the Panama Canal make Panama a natural centre for transportation and logistics. In fact, the transportation, logistics and communication sector combined is easily the largest contributor to GDP, a fact recognised by the current administration. In its Strategic Economic Plan 2010-14, the logistics sector, along with finance, agriculture and tourism, was identified as one of the country’s four pillars of economic growth. To secure the future of the sector…

Interview

Strategic advantages: OBG talks to Rafael Barcenas, Director-General, Civil Aviation Authority
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Interview:Rafael Barcenas What return do you expect from government investment in regional airport capacity? RAFAEL BARCENAS: It is difficult to quantify the eventual results at this stage. However, the rationale for each airport is solid. When developing a new airport, you don’t expect to reach peak capacity until 10 years down the road. David, for example, is the second-largest city in the country, and its airport was in need of expansion. We expect there to be substantial growth in regional…

Analysis

Trade centre ambitions: Leveraging global trade for domestic economic development
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Ever since the country wrested control of the Panama Canal in 1999, economic development has taken on several new dimensions including the rapid growth of the logistics sector. The country’s location at the epicentre of trade in the region, growing presence as a hub for logistics and trade, relatively small size and influential financial sector have in fact paved the way for some to associate economic progress with that of Singapore during the 1980s and 1990s, though Panama has some way to go before…

Interview

Collaborating for growth: OBG talks to Daniel Isaza, President, Logistics Business Council (COEL)
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Interview:Daniel Isaza Is there room for further public-private collaboration in the transport and logistics industry? DANIEL ISAZA: Yes, there is, and in many areas. Since the creation of the Logistics and Business Council (COEL), the mission has been to encourage the public sector to drive the integration and participation necessary to promote growth. The reception has been very positive and we feel progress has been made. It is the first time that public and private stakeholders within…

Interview

Linked-up solutions: OBG talks to Roberto Roy, Minister for Canal Affairs, and CEO, Metro de Panamá
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Interview:Roberto Roy How much of Panama City’s $1m-a-day congestion cost will Metro Line 1 recoup? ROBERTO ROY: While congestion has been a growing concern for years, it has been exacerbated by massive construction and development. We have tried to ease the burden caused by the ongoing construction of the Metro by working closely with stakeholders. For example, any shop owner who is adversely affected by the project is being compensated up to 50% of their rent for the duration of the disruption.…

Analysis

Flight plan: The nation is bidding to become a leading regional aviation hub
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A continued push to become a major transportation hub in the Americas goes far beyond Panama’s status as a logistics and trans-shipment point for goods traversing the canal. The government is also looking to establish the country as a major aviation hub, again drawing on its advantageous geographical position in the heart of the Americas. On top of that, Panama City and Tocumen International Airport, the primary point of entry, are threatened by neither the dangers of high altitudes that impact…

Interview

Competitive advantage: OBG talks to Pedro Heilbron, CEO, Copa Airlines
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Interview:Pedro Heilbron How will the expansion of Tocumen International Airport impact the wider transport sector? PEDRO HEILBRON: The new South Terminal, which will add 20 new gates, will allow the Panama aviation industry to continue taking advantage of growth opportunities. The South Terminal expansion is a three- to four-year project that is going faster than originally planned. Of course, the new 20 gates will need to be well integrated with the 34 gates of the current terminal to work…

Analysis

Underground works: The first phase of the new metro system is set to be ready in 2014
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Home to around one-quarter of the country’s population of 3.8m, Panama City, the capital, has been facing aggravating traffic congestion for some time. Strong economic growth has resulted in increased automobile purchases, domestic migrations from rural areas and a steady flow of international tourists and businessmen – all of which add pressure to the city’s transportation network. Phase One Coming On-Line Alleviating congestion within the capital through the construction of a new metro…