Panama Investor Blog

Panama gets a Royal Visit

I for one have never been too interested in modern royalty although my family and most other Panamanians I know read a great deal of the tabloids when they have anything to say about royalty. Of course the recent visit by the 4rth in line to be King of Great Brittan, Prince Andrew, got a lot of attention by the public as well as the politicians. This is understandable as one of her majesty's subjects is London & Regional, who are doing a mega project near the Pacific entrance to the canal. Here is their press release with a  photo of Prince Andrew"s visit to the project.

Press release: His Royal Highness, Prince Andrew, Duke of York, who was in the Republic of Panama on an official visit, stopped at Panama Pacífico, where he met with Henry Kardonski, Managing Director and JuliAnne Murphy, Marketing Director of London & Regional Panamá, Master Developer of this multiuse community located on the Banks of the Panama Canal. Prince Andrew was accompanied by H.E. Richard Austen, United Kingdom Ambassador to Panama and by H.E. Gilberto Arias, Panamanian ambassador to the United Kingdom, who also admired the level of quality and the progress of this development and emphasized on the need to promote British investment within this Special Economic Area. The fourth in line for the British crown, could appreciate the progress that has been made in the Panamerica Corporate Center (PCC), where the most modern logistics infrastructure are being built, the great highways that have been constructed fulfilling the highest global standards and the new Class-A office buildings located at the International Business Park (IBP), that now welcomes everyone. The Duke of York described Panamá Pacífico as a unique place and was very pleased with the progress and quality that this development presents. Also commented, that Panamá Pacífico has the advantage of being located in the most strategic place and that it should be better used by more British companies, and that it was very important to promote de goodness of this Project. At the end of his tour, Prince Andrew, unveiled a plaque that was made to commemorate his visit to Panamá Pacífico, where the world gathers.

Panama rail freight down 25%

I love trains and have always found the people that run them to be down to earth as a whole. The folks running the Panama railroad are no exception. I met the principals of the companies involved back in 1998 when they received the concession to build the new railway and port handling systems. I even had a few beers with one of the engineers who task it was to fly over the existing rail bed with a high tech sonar system to determine how much materials they would need to bring in by barge. Kansas City Southern along with MI-Jack Products  made their plan to build the railroad and carried it out on time and within budget and have been financially successful ever since. Wish I had invested when the offer was made back then.

Thomas Kenna, the  manager of the railroad here in Panama, carries on the tradition of railroading on one of the worlds most important routes. He keeps things running on time on what has come to be the fastest coast to coast train on the planet. If you ever get a chance to ride the train I am sure you will be thrilled and if not, at least spend a little time learning about the history of the Panama train which carried thousands of 49'rs to the California gold rush and then thousands more during the building of the canal. The train now carries mostly container freight to and from the ports at either end of the canal, and although they are down significantly in container volume due to the worlds economic slump, they are still doing better than their freight carrying brothers in the U.S..

From La Prensa

The transportation of containerized cargo through the Panama Railway was a decrease of 25% in 2009 compared to 2008, the product of the international economic crisis.

  The general manager of Panama Canal Railway Company, Thomas Kenna, said that last year moved "a quarter of a million containers" by railroad, 25% less than in 2008. Although Kenna did not elaborate, this fall represents approximately 62 thousand 500 containers.

  As the number of passengers, the manager did not disclose statistical data, but according to information from the Comptroller, in 2008 were transported 192 thousand 333 passengers.

  The report of the Comptroller, who reports the behavior of the transport segment, does not reflect the statistics of the railway for 2009. A source said that the data are not available to the public by a request for confidentiality of the company.

Panama now has world's second largest pool

I suppose you could say that this gives Panama another "wonder of the world" as it is an incredibly large swimming pool. I visited the project as it was being constructed about 6 months ago and was amazed at its size. But what amazed me even more, were the billboards nearby showing the vast numbers of high rises that were to grow up around it. I believe those will be a long time in coming as the world economy has put a damper on the sale of vacation properties all around the world. In this article you can see they are offering special deals for people who might want to use the pool but have not bought property that includes use. Obviously with a pool of this size comes significant maintenance costs which need to be met. It looks a little empty as the photo shows only a pool with a few buildings in the distance. I don't know if the billboards are still there, but I offer these photos I took of some of them below.

Machine translated from La Prensa;

Raul A. Bernal Bernal
[email protected] [email protected]

  Within two months the largest pool in Central America and second worldwide will be operational at the  resort of Playa Blanca, Residences & Hotel, located in the province of Cocle.

"After the Panama Canal is considered one of the new wonders that the country to attract international and domestic tourism," said Sandy Schwartz, president of the sponsoring Farallon Resort Development, the company responsible for this work.

However, the company will not allow the facilities to be used by tourists staying at the Hotel Playa Blanca Resort, located in the same complex. He did not even offer the possibility that a tourist can swim in the pool during their stay in Panama.

  The employer Schwartz explained that those interested can purchase a membership for three years, not renewable, and a value of 9 thousand dollars, of which a thousand are consumable.

  Membership also will have other amenities, such as discounted hotel and apartments who wish to rent.

  However, any person who acquires ownership of new projects that rise in Playa Blanca Resort, it will be credited towards the cost of it.

  Facilities

  This new product, to be called Sea Club, consists of 6.5 hectares and its first phase has already covered about 4 acres, where they have invested about $ 4 million.

  The first phase, besides the great lake-includes two pools at the ends for adults and children, an outdoor gym, restaurant, and even already started the construction of this new spa that will recreation center.

Users can also perform activities such as diving, kayaking, sailing and all kinds of non-motorized water sports.

  Privilege

The Sea Club of Panama is the second largest pool in the world. . The first, according to the Guinness Book of World Records, is located in Chile.  It is called San Alfonso del Mar which was built by the company Crystal Lagoons, the biochemist Fernando Fischmann.

  Crystal Lagoons is known for building swimming pools and salt water, which are characterized by crystal clear for a long period of time without turning green and dirty as usually happens with traditional pools.

 
The company uses technology that is inexpensive and does not require high levels of chlorine or chemicals.  The company, in addition to bringing this product to Panama and have other projects of its kind in India, also plans to develop similar work in Brazil, Peru, Egypt, Dubai, Jordan and other countries.

  The environmental impact assessment (EIA) adopted by the National Environmental Authority, said it was a Category 1 and which does not generate significant environmental impacts to the health of the population and for flora and fauna.

. The EIA notes that the positive impact of this project is generating new jobs, bring municipal income, increases property values such as tourism and improve the area's economy.

GE decides against Panama

Panama may have the geographical advantage for Latin America but from an education point of view it is sadly lacking, which is costing it more than just jobs. GE had seriously looked at Panama for a new logistical center but due to inadequacy of human resources has decided to open in Chile. Canal Expansion. metro's and new airports are all great, but without education of the locals and opening up immigration to teachers from outside the country, it is only show without substance for the people. The job creation by big projects is only temporary during construction and then what? 

Machine translated from La Prensa

The multinational General Electric (GE) ruled out to install in Panama a center for export of software and services to serve its customers worldwide because the lack of qualified personnel in new technologies in the country.

 This project would have required the efforts of  a 1500 engineers and computer scientists who have mastered English.  An application that the Panamanian market could not satisfy.

Panama could not even score a goal with three years to hire and train workers, and reducing by 50% the number of engineers who were fluent in English, and give assurances that the installation would prove successful, GE assured sources of La Prensa.

At the option of Panama, GE also contemplated hiring Costa Rican staff, but the company realized that the number of foreigners employed would be too high, something that does not fit their policies, whicch are more directed toward local recruitment.

  Moreover, it would far exceed the 10% foreign personnel that can be hired by firms established in Panama.

  Since the company pointed out that the decision was taken when the Panamanian government was in transition, they could not negotiate a special labor regime for the project. GE ultimately decided on Chile, one of the options being considered, and last August, GE, UST Global and its partner Chilean officials announced at the Palacio de la Moneda in Santiago the installation of the center.

  ICT Strategy

  Human capital development in information technology and telecommunications (ICT) is one of the priority objectives of the ICT National Strategy in Panama 2008-2018.

The National Secretariat for Science, Technology and Innovation (Senacyt) and the Panamanian Chamber of Information Technology and Telecommunications (CAPATEC) launched the second phase of implementing the strategy.

  This stage, which runs this year, has a budget of 1.2 million dollars, of which 80% (960 thousand dollars) will be provided by Senacyt and 20% by private enterprise.

Mars attacks Panama

Ok, not the planet, but the candy bar.

Mars U.S. company, will establish its regional headquarters in Panama, where subsidiaries provide services to the region as part of the group, mostly from Central America and the Caribbean.

  The maker of M & M's, Snickers, Mars, Dove, and products of animal feed Pedigree, is the sixth largest private company in the U.S., with sales totaling 30 billion dollars annually, according to a statement sent yesterday by the Ministry of Commerce and Industry (Mici).

  This is the number 31 company that installs office in Panama through Act 41 of 2007, which promotes the establishment of Multinational Companies Regional Headquarters.

  Under this law, and established their headquarters as Procter & Gamble, Maersk, 3M, Caterpillar, Sinopec, Western Union, Cemex, Kumho Tire, and more recently announced the arrival of Heineken and the automaker BMW.

Business Climate

The head of Mici, Roberto Henriquez, referred to the "excellent business climate offered by our country for its economic stability, its highly competitive international environment and quality of life offered by the city" as some of the elements that helped companies decide to settle in Panama.

Panama Development wins Best in Americas award

The Emerald monkey eco-development project in Bocas del Toro continues to get great press and now has received a Best Development in the Americas award in a number of categories.

November 30, 2009 at 6:00 AM

The project won't be completed until late next year, but Kimberly and Frank DeLape's Emerald Monkey Eco-Luxe Resort & Residences in Panama has already garnered eight  Americas Property Awards. 

The high-profile couple (they co-chaired the 2009 Houston Ballet Ball) were in San Diego recently to receive the honors presented in association with CNBC, the New York Times and Kohler.  

Already a member of the prestigious Preferred Hotels & Resorts family, the development is nestled on Isla Pastor in the Boca del Toro archipelago, just off the coast of Panama. Balinese -inspired villas with private plunge pools and indoor/outdoor baths and showers with private gardens are spread across the property.

Amenities will include a fitness center, gourmet restaurant, spa, dive center and two private beaches. The resort's focus on eco-friendliness includes hydro-electric power, a biomass septic system and on-island transportation restricted to solar-powered golf carts.

All of this has added up to the awards recognition — Best Property, Best Development, Best Interior Design, Best Development Marketing and Best Architecture for Panama. And, for all of the Americas, Emerald Monkey received Best Property, Best Development and Best Development Marketing honors.  

The DeLapes couldn't be happier. The honors will be choice marketing tools for the villas priced from $564,000 in full or from $75,000 for fractional ownership. Rentals are available as well, that aspect managed through Preferred Hotels.

Sam's tips on residential project marketing

 This post is part important marketing information and part shameless self promotion, both of my genius at web design, copy-writing and marketing and to get your eyeballs on my projects new website.

I have struggled over the years with getting websites built in a timely and cost effective fashion. I have great guys with talent to do the work, but I still have to provide the content which is a very time consuming job in itself. I then have to contact them for every little change I want to make and it takes them time to get to it and additional costs. I have tried different programs to let me build a website myself, but all were too complicated and the end product never looked very good. Besides, I am usually too busy as a project developer to spend time learning web design.

So, the other day my hosting service sent me an email about a new program that would allow me to Drag and Drop all the elements onto a page while online and publish it with a press of a button, very similar to how I post this blog. I did not have to know HTML or FTP, SWF or anything more than I do when blogging.  It really is web site design for dummies. I built the site in about 12 hours, start to publish! Now, I don't have a dog in this hunt and won't make a dime if you end up using this program, but it is so cool that I wanted to share it with you and get some publicity at the same time.

Now for some helpful info if you have a development project you want to promote.

If you will take the time to look over the site there is a marketing theme that I have used throughout the site that development promoters may want to take notice of. In my first page I am trying to connect with my potential client by conveying specific information about the quality of the project, its amenities and access to THINGS. Access to THINGS is extremely important to WOMEN who plan on living any length of time in the property. And guess what, it is women that you must convince to buy in your project. After over 175 sales I know for a fact that it is usually the men who have done the research and want to move to Panama, but it is the women who makes the final decision on where they will settle. As a side note, there are a number of single or widowed women living in Valle Escondido which greatly surprised and pleased me. For a women to pick up stakes and move to a foreign land tells you something about her and the project. She is extremely independent and the project makes her secure and happy enough to go it alone.

I go on to tell about the people who inhabit our piece of paradise so they can connect and feel that they could fit in. I provide some information on the activities and amenities beyond our gates so they can see that there is more to do than just be in this project. There is a residents testimonial page which is extremely important. Just as TravelAdvisor testimonials can make or break your lodging business, great testimonials can really help people connect with your project.

The second page goes into my story of why I selected and built Valle Escondido. I call it the "safe haven" story. Just about every MAN who comes through our sales doors say they connect with it, because they too are looking for a safe haven. Think of it like this. Men are always seeking safety for their ass and their assets and women are thinking  more about comfort and knowing there are others like them to connect with. Nothing new here, so if you apply that line of thinking into your marketing you may have similar success.

Then there are details on all aspects of the projects amenities such as HEALTH AND BEAUTY SPA, fitness center etc.. Most things catering to women. And then there are lots of photos. Of course I have the benefit of the project being nearly completed and do not have to resort to computer renderings, but also the handicap of little else to sell. But,  I don't really care because I want to retire and enjoy the fruits of my labor and my wife wants to work and run the business as she has for the past 5 years. A happy wife is a busy wife I always say. I will hopefully live my life as do the other 350 or so folks that live in Valle Escondido, enjoying the third age as they now call it.

The site really was built in 12 hours, which I think is very fast when you consider I am the copywriter and had to hunt down all the photos out of the many thousands in my files. Not to mention my first time using the program. You can go here to view my site and here to find out more about the program. They let you use it free to a certain level and then it is $10 a month. Cheap IMO. Please feel free to comment on my work as I can surely use some feedback. Don't worry about hurting my feelings, after cancer treatment I am impervious to pain!

Deep sea aquaculture startup in Panama prepares for harvest

I have posted on this company before because I find it fascinating that a sport fish can be farm grown in deep water. The fact that it is being accomplished here in Panama makes it even better, Interesting read from Cleantech.com.

Cobia fish may be the next big thing in high-end restaurants, replacing the now high-priced Chilean seabass, which is suffering from illegal and overfishing.

New York-based Open Blue Sea Farms specializes in developing environmentally safe and sustainable deep ocean aquaculture methods, known as free-range fish farming, the company’s Executive Vice President Clive Zickel told the Cleantech Group.

But Zickel said even though the company is initially focused on raising cobia—a white, firm fish often caught for sport—it is planning to grow other species as well.

Zickel said most fish farming tends to be done close to shore or in ponds, where the fish often swim in dirty water, eat what they excrete, and mercury and polychlorinated biphenyls can become a problem.

“Out in the deep water, our lab tests don’t show any of that,” Zickel said.

The fish at sea are raised in large geodesic domes, about the size of a six-story building, which are raised only for cleaning. The structures are more expensive to build and secure to the ocean floor than traditionally-used methods.

However, Zickel said the financial trade off is that by feeding the cobia a healthy fish meal diet and allowing them to be raised in an environment more like their natural habitat, a better product results that can become cost efficient in time.

Will Panama get into the space race?

I found an article in Capitol Financiero very intriguing although rather far-fetched. There is a proposal to have Panama become an aerospace center with its headquarters in the Panama Pacifico project being developed by London & Regional.  They make an interesting argument for Panama being the right place for the project such as its position near the equator and it transport logistics for materials and banking infrastructure. The real challenge would be finding enough skilled aerospace engineers in the country. To my knowledge no universities in Panama are offering courses in this subject. But, after all, it's only rocket science.

Machine translated: 

The project could generate 90,000 jobs

Ivis Leonardo Franco C. 

Latin America could compete with the major centers of economic development in the business of space, constituting Panama as the logistics hub and a launching pad for future aerospace projects.

  Howard would be the place to carry out this project because it has the necessary infrastructure to design, build, serve and aerospace aircraft launch and to test and launch of satellites and inspections of private communications satellite.

According to a proposal made by members of the National Organization for the Development of Aerospace (ONDA), Panama could become a huge competitive advantage for the development of this industry in Latin America, because "no other country in the world is better suitable for the development of a private aerospace industry.

  Sandy Sandfort, one of the promoters of the project, said this initiative would contribute to employment generation, creating a strong economic boost for the country.

Biomuseo should play a major role in attracting tourist to Panama

I'm getting more excited about the Biodiversity museum currently under construction. If this museum is is as successful as the one Gehry designed in Bilbao Spain, tourists will come from all over the world to see it.

Here is a recent video in Spanish and even if you don't speak the language just watch the first 3 minutes. Below it is an article regarding the current construction status.

Here are some more details from the Panama Star.

The construction of the Museum of Biodiversity recorded an increase of 73%.  In September 2011, it will open its doors to the public

PANAMÁ. PANAMA. The construction of the Museum of Biodiversity enters its final stage.  Its construction is to be completed on 30 September 2010 and a year later opened to the public.

  Construction work recorded an increase of 73%, according to executive director Biomuseo, Leader Sucre.

  Shortly they will begin to install the roof, one of the more difficult by the complexity of design.

  According to Sucre, the opening of this project will give Panama an attractive tourist offer on direct competitors such as Costa Rica, Dominican Republic, Colombia, Mexico and Belize.

  According to estimates, the opening of the museum, designed by famed architect Frank Gehry, would increase by 10% the entry of visitors annually, a figure which, he said, "is conservative."

  Not only that, many visitors will extend their period of stay in Panama, he added.

  In the first years of operation is estimated that the museum will receive around half a million visitors each year, of which 70% are foreigners.

  The Museum of Biodiversity in the economy generate around 300 million dollars annually, in the first five years of operation.

  This museum is built at a cost of $ 60 million, mostly provided by the state, but they have also received donations from more than 100 companies, foundations and individuals by the order of $ 7 million.

. But not only about money, says Sucre, but this ambitious project can explain what was and what is Panama.

  "It's a way to connect visitors with the natural and cultural destinations in the country and will also change gradually, the perception of the Panamanians on their own cultural heritage," he noted Sucre.

Although not yet set prices for entry, it is estimated could be $ 12 for tourists, $ 6 for locals and $ 3 for children.The museum administrators estimate that 10% of students from schools and public schools will visit the museum each year, free tours organized jointly with the Ministry of Education, as part of the teaching-learning process.

  The museum has 4,000 square meters and eight permanent exhibition galleries designed by Panamanian professionals from various disciplines, mainly from the Smithsonian Institute and the University of Panama with the participation of the firm Bruce Mau Design.

  The museum will receive $ 12 for visitors, but the country would get an income of about $ 300 million annually, in addition, the cultural contribution, he pointed Sucre.