Panama Investor Blog

Panama's Balboa Port ready for a US$110 Million Expansion

The Panama Balboa Port is home to the PPC (Panama Ports Company), which is part of a huge conglomerate named Hutchinson Whampoa, based out of Hong-Kong. This company is ready for a great investment in expansion and renewal of its port and equipment said to take place in 2015, with a budget of $110,000,000.00 Dollars.

Aitor Ibarreche, Hutchison Whampoa's CEO made this announcement and said the investment will boost its capacity by 11%  up to 5M TEU ( twenty-foot equivalent unit) by adding loading and unloading spaces. Also the Pacific Port's crane zone with now be wired and using electricity instead of burning fuel, a great plus for saving on the long run.

There is no doubt that this investment and expansion is designed so that the port can be ready for the new locks of the Canal expansion. This project is said to be delivered by early 2016, and so will this expansion. Since the Balboa Port is #45 largest in the world, also Panama's 2nd largest one, it makes sense to improve and justify such an investment. 

Coffee - "The Best of Panama 2014" hits average price per pound $34.61

Chiriqui: Valley of the Moon is where the best coffee of Panama is produced, thanks to its biodiversity and fertile earth located at the skirts of the Volcan Baru.

Panama Prensa –  A total of 46 batches of the best Panamanian coffee will be offered in the second electronic auction "the best of Panama" on August 26th with a base of $ 4 per pound price, confirmed today the Specialty Coffee Association of Panama.

The Association noted that the contest for the batches obtained XVIII last international coffee cupping Panama over 85 points corresponding to 14 lots of washes Geishas, ​​Geishas Natural 7, 7 and 18 Traditional Traditional Natural Washed be included.

 

The traditional coffee varieties include Bourbon, Typica, Pacamara, Caturra and Catuai added the Association.

Plinio Ruiz, President of the Association, explained that this second auction this year is to expand the sales channel, using the electronic auction to the future Panama place all production of specialty coffee processing in demanding international markets.

"The Best of Panama 2014" achieved the best average price of $ 34.61 per pound and producers are now ready for a second auction where they hope to get very good prices.

This week the second electronic auction aimed and international buyers have begun to compete for enrollment each batch of coffee for auction.

Want to invest in coffee? Let us know, and we will help you find available land for the production of high quality products.

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Best of Panama 2014

Panama is one of the most Economically Stable places where Multinationals can have their Operations.

Panama has played its cards right when it comes to business, because of the enacted tax breaks and broad economic incentives it is becoming an allure for companies looking to relocate.

There are many exemptions and benefits offered by the Law 41. It exempts money earned abroad from income tax. This is the biggest benefit that multinationals get especially that they only operate in Panama but render services abroad. Panama's infrastructure and location also allows these corporations to operate from a strategic point without undergoing the usual red tape for foreign owners and CEO's.

Hiring personnel and staff have also become easy through the said law. It allows international companies to hire foreign born employees without worrying about immigration restrictions. This even includes visa assistance to employee's families which allow them to stay in Panama even without obtaining work permits.

It is also a big plus that the country uses the US dollar as its official currency. Multinationals have the convenience of being in a global banking hub, as well as having a strategic geographical location which connects the North and South America.

Companies from around the world have already began their Latin American presence in Panama.

A few companies that have decided to benefit from Panama's laws include: Procter and Gamble, Caterpillar, Dell, Hyundai Heavy Industries, , Western Union, 3M, Vanity Fair, Peugeout, Roche and Merck.

Executive relocations mean furnished rental demand and increased home sales in certain sectors of Panama City for example in Panama Pacifico. 

The Panamanian Government has made key decisions to continue alluring foreign investment, with its continuous pursuit to improve infrastructures around the country such as airports, metro system, bridges, roads and more – We see a bright future in Panama for the decades to come. That is – if, we began to improve the overall distribution of resources to continue receiving the waves of people entering Panama and thus be more self-sustainable, independent and free when uncertain times come (we all remember the world economic crisis and to many degrees people believe we are yet to experience the unfolding of the global monetary system) – time will tell. 

Until then, Panama seems to be in an advantageous country for business - because of its geographic position, strategic importance (Panama Canal) and continuous economic growth.

The Panama Canal: Money making Machine

South Korea investing big into Panama

I for one am happy that we have South Korea investing heavily in the country. Even though only 1% of their exports come to Central America, 80% of that is to Panama. Of course it is then distributed throughout Latin America. But now they are putting real capital into the country with a number of projects, the largest, a 20% stake in the copper mine.

From La Prensa

ary Triny Zea
[email protected] 

The interest generated by the visit of Korean President Lee Myung-bak has been exploited by a Korean delegation of 60 people between entrepreneurs and officials, who will meet with Panamanian in the Korean Economic Cooperation Forum and the Central American Integration System (SICA .)

Some 15 executives from leading companies in South Korea as Samsung Electronics, Hyundai Motors Company, LS-Nikko Copper, Korean Air, Hanjin Shipping, Korea Federation of Textile Industries and The Export-Import Bank of Korea, will be in the country to "establish new business opportunities, or strengthen existing relationships," said Promotion Agency of Korea Trade and Investment in Panama.

Samsung Electronics has 21 years of operating successfully in Panama, the Hyundai brand is the second most in demand by the Panamanians and LS Nikko Copper keeps the interest of 20% stake Copper Project Panama. 

In addition, Panama is Korea's largest trading partner in the region, according to the Korea Institute for International Economic Policy (Kiep, for its acronym in English), and the fifth largest user of the waterway. 

Kiep figures show that 1% of Korean trade is for the region and 80% of it to Panama, where they receive their vehicles, appliances, flat screens, and in return, Panama will export raw materials such as aluminum.

Juneyoung Choi, international researchers Kiep, noted that the majority of Korean exports will not stay in Panama, but used the country as a hub for Latin America. 

The recent interest in investing in mining, services and the waterway are the aspects that interest the Korean government, and the visit of President Myung-bak is expected to strengthen China's trade relationship, whose rapid growth it due to exports. 

Panama has expressed interest in negotiating a free trade agreement with China, an issue that the forum will discuss Sica.  However, Young Wook Chun, the Office for Latin America and the Caribbean of the Ministry of Foreign Affairs and Trade, said that Korea currently negotiating agreements with eight countries, so it is unlikely that this year they do so with Panama.

Wal-Mart set to open 300 more mega stores in Latin America

Last week I posted an interesting interactive flowchart that showed the growth of Wal-Mart since its founding in 1962. That explosion of growth to over 3000 stores changed the way the U.S. consumer bought goods and it set the stage for China to hold such a large amount of our collective debts. Now they are preparing to do the same throughout Latin America. I am not against Wal-Mart and find the story of a small town merchant building a mega business fascinating and inspiring. What I don't like is the government regulations that have led to our loss in manufacturing and self sufficiency as a country to where we are now in severe debt (slavery) to a communist regime.

MEXICO CITY, June. 16.-  Wal-Mart de Mexico (BMV: WALMEX) has found 300 new cities in Mexico and Central America (CA) to open stores and where it currently has no presence, said today Scot Rank, president and chief executive of the company to participate William Blair at the conference "30th Annual Growth Stock Conference" in the City of Chicago (U.S.).

  Currently, the trade group has presence in 348 cities, including the two markets where it operates a total of 2.041 stores and 24 distribution centers.  According to the presentation made today by the Executive, between 2000 and 2025 will add 33 million new consumers in Mexico and Central America.

  He estimated the value of retail market in Mexico is 197.000 million dollars (md) and 44,000 md in Central America.  Rank confirmed the plans of the company's growth this year, considering an expansion of 11% on the sales floor in Mexico and Central America 3.5%.

  On the other hand, revealed that in terms of systems integration of operations in Central America has progressed albeit a bit slow.  He added that in Mexico have been seeing signs of improvement in sales of discretionary items (not food) because the economy is recovering from recession, in addition to television sales has been driven by the World Cup in South Africa.

  In May same-store sales (VMT) from operations WALMEX in Mexico grew 5.4%, exceeding the performance shown by the self-services sector that did ANTAD 3.9%.  As revealed by Scot Rank in June has had an encouraging start.

  During the conference, the manager pointed out the strengths of the company including; a strong balance sheet, zero debt cost and investment discipline.  On the operational side, its low price strategy, being a low cost operator and multi-strategy.

WALMEX is a company in the sector, whose shares traded on the NYSE since 1977. 2.041 To date operating business units, including its business in Mexico and Central America.  In the first case handled Bodega Aurrera, Walmart, Sam's Club, Superama, Suburbia, and restaurants, including franchises.  In Central America Discount Stores, Supermarkets, Warehouses, Supermarkets and clubs.

Panama Seeks Special Trade Deal With European Union

Who knows if Panama will be able to pull this off but if they do it will be a major accomplishment for trade.

Machine translated from La Prensa

Taking advantage of a stalemate in Trade Negotiations between Central America and the European Union, Panama has submitted a proposal that would separate it from the other countries in the region.

The proposal sent to the European Commission has been called "Five plus one," in which Panama is committed to making the necessary changes for the agreement to work, without having to sign a general agreement of economic integration with other countries in Central America. The proposal sent to the European Commission has been called "Five plus one," In which Panama is committed to making the necessary changes for the agreement to work, without having to sign a general agreement of economic integration with other countries in Central America.

These changes include adopting a single tariff policy along with the other countries of Central America, but not making institutional changes in sensitive areas such as the banking system. These changes include Adopting a single tariff policy along with the other countries of Central America, but not making institutional changes in sensitive areas such as the banking system.

The EU had refused to negotiate with Panama unless it joined the Central American Economic Integration Organization. The EU had refused to negotiate with Panama unless it joined the Central American Economic Integration Organization. Panama had resisted joining the group because it feared it would lose autonomy over key issues, such as its banking system. Panama had resisted joining the group Because it feared it would lose autonomy over key issues, such as its banking system.

But the EU position may have changed now that the stalemate has occurred. But the U.S. position may have changed now that the stalemate has occurred.

The European Commission has responded to Panama, saying it is prepared to analyze the proposal. The European Commission has responded to Panama, saying it is prepared to analyze the proposal. A meeting has been scheduled Trade Minister Roberto Henríquez, who will travel to Brussels to explain the proposal before the European Commission. A meeting has been scheduled Trade Minister Roberto Henriquez, who will travel to Brussels to explain the proposal before the European Commission.

The Panama trade proposal would also have to be endorsed by the other countries in Central America. The Panama trade proposal would also have to be endorsed by the other countries in Central America. One potential problem, however, is Panama's decision to leave the Central American Parliament. One potential problem, however, is Panama's decision to leave the Central American Parliament. That could complicate the acceptance of the partnership agreement. That could complicate the acceptance of the partnership agreement.