#Logistics & #Transportation in Panama

Hello all:

It is a great pleasure to be here @ Panama…I had a great visit to the Canal. I want to share some facts with you all, so that you have good information for the next year supply chain & transportation planning for you & your company:

-During 2010 the Canal is celebrating 10 years of the ownership transfer from the US to the Panamanian governemnt

-This is also the year which the crossing 1 million was made through the Canal, by the Fortune Plum STX Pan Ocean Cargo steamship

-The Canal has actively signed and renewed some of the MOU’s (Memorandum of Understandings) between the main originating / receiving ports around the world.

-Once the Canal expansion is completed in 2014 the Canal will be able to handle #ships Pospanamax, rather than the Panamax ships handled today. The Pospanamax ships can carry up to 12,000 #TEU’s (International measuerment of a container). The Panamax ships are alble to handle up to 6,000 to 7,000 #TEU’s today. In consequence during 2010-2014 the Canal will be signing agreement also with the worldwide terminals that will be able to adapt their infrastructire to the Pospanamax ships!

-5.2 billion usd is costing the expansion of the Canal. Just to keep things in perspective…the approximate GDP of the whole country is 11 billion usd…

-Up to date the expansion of the Canal is in a 15% of completion

-The dwell & crossing time has improved dramatically from 2 to 3 days to 21 hours per ship during 2010!!

-There is also a pricing change structure now…before it was a fee per crossing and now thet Canal is more into a Marketing and Pricing per type of equipment, so they will be able to charge on a per #container and a per bed basis (depending if it passenger or cargo)

-In January 2011 there will be a price increase the Canal crossings, due to the delay in increasing this charge during 2010. The reefer service will feel the increase on april 2011.

-It is worth to mention that the Panama #Railway Company owned and operated by Kansas City Southern Industries (same owner as KCSM in Mexico) is expanding it’s capacity to handle more conatiners…today they are able to handle up to 500,00 TEU’s per year!

I’ll send some pics on a later post!!

Please send me your comments…best regards & happy Christmas & New Year’s eve!

Saul Romero-Blake.