Canal
From The Report: Panama 2015
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A pillar of the economy, the Panama Canal’s contribution to the national treasury exceeded $1bn in the 2014 fiscal year, while its direct contribution to GDP reached $2.7bn (6%). The canal saw 325.8m PC/UMS tonnes of cargo pass through the same year, an increase of 2% on 2013, driven primarily by the dry bulk segment, which grew by 20% year-on-year. The Panama Canal Authority estimates its indirect contribution to GDP to be 29%. The canal’s eight-year expansion project, which reached 90% completion in June 2015, will double the waterway’s capacity and have a wide impact on the Panamanian economy. Beyond an increase in toll revenues, it is expected to impact areas as varied as the supply chain, trans-shipment activity and industrial real estate space. Ultimately, it should help Panama retain the importance in global shipping the country has enjoyed for the past century, while solidifying its status as a regional hub.

This chapter features interviews with Jorge Luis Quijano, CEO, Panama Canal Authority; and Juan Carlos Croston, President, Maritime Chamber of Panama.

Articles from this Chapter

Overview

Panama Canal capacity set to double as expansion nears completion
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Since 1914 the Panama Canal has been a key conduit for international trade. Connecting 144 routes and reaching 1700 ports in 160 countries, the man-made waterway has positioned the country as a transportation and logistics hub in the Americas. In 2014 the canal marked its 100th anniversary since completion, and the 15th since Panama assumed control of the waterway. As its eight-year expansion programme reaches its final stages, the canal is now approaching another milestone. The expansion will double…

Interview

Jorge Luis Quijano, CEO, Panama Canal Authority: Interview
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Interview:Jorge Luis Quijano Do you think that rising costs in China are likely to push manufacturers to relocate to South-east Asia, benefitting the Panama Canal? JORGE LUIS QUIJANO: We are constantly evaluating cargo flows and the possible relocation of manufacturing plants, and have seen how the Association of South-East Asian Nations countries have developed. There has been a shift, but China is still – and will continue to be – the main source of manufactured products. We are exploring…

Analysis

Canal plus: The eight-year expansion programme, the largest single investment in the country’s history, is in its final stages
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At a cost of $5.25bn, the Panama Canal expansion programme is the largest single investment in the country’s history. Approved by national referendum in October 2006, the project will see the addition of a third lane of traffic to the existing two-lane canal. Since it began in September 2007, the expansion programme has created more than 30,000 new jobs, according to the Panama Canal Authority ( Autoridad del Canal de Panamá, ACP). Almost eight years later, the overall expansion programme reached…

Interview

Juan Carlos Croston, President, Maritime Chamber of Panama: Interview
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Interview:Juan Carlos Croston How much will the number of trans-shipped containers be increased by the presence of post-Panamax carriers, once the canal expansion is complete? JUAN CARLOS CROSTON: Over the past decade, 13% to 14% of the world’s containers went through the Panama Canal. Peaks in growth are largely associated with reforms in the network offered by shipping companies, and it is still too early to be able to adequately determine how the expansion of the canal will impact trans-shipment…

Analysis

Locks and loads: In preparation for the opening of the third lane of the Panama Canal, a new toll structure is set to come into effect in 2016
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In preparation for the opening of the third lane of the Panama Canal, a new toll structure was approved in April 2015 by the Cabinet Council. This followed more than a year of informal consultations with industry stakeholders, an open call for comments and a public hearing, with interested parties given an opportunity to provide feedback. Jorge Luis Quijano, the CEO of the Panama Canal Authority (Autoridad del Canal de Panamá, ACP), told local media that the new toll structure “safeguards the…