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. 

New Ferry begins operations - 24/10/2014 (Panama - Cartagena - Bocas del Toro)

On October 24th the ferry 'Adriatic' will begin operations, which will connect with the Panamanian Caribbean city to Cartagena in Colombia.

According to the company Tropical Cruises, boat, remodeled in 2005, can accommodate one-thousand passengers, 300 crew members and 500 cars.

The ferry will sail on two routes. From the port of Colón to Cartagena 2000, called 'Cartagena Express'; the reverse route (Cartagena-Colon 2000) will be sold as' Panama Express, "and the 2000 Columbus-Bocas del Toro (Isla Colon) route will be promoted as' Bocas Weekend '.

The onboard amenities include three restaurants, a nightclub, casino and duty free shop.

The route statement raises out every Monday and Wednesday from Colon to Cartagena 2000, and the return would then be Tuesday and Thursday. Fridays sail from Colon to Bocas del Toro 2000, returning Sundays.

Prices are around $ 90 traveling chair and $ 190 traveling in the cabin, both per person each way. The Columbia-Bocas section would cost about $ 95 via traveling without a cabin, or $ 277 per sleep the three nights of travel in the cabin, reported the source, adding that the tickets could be purchased through travel agencies nationwide .

Mayra Zebede of Tropical Cruises, said the 'Adriatic' is a new option for business travelers, tourists and cargo that will impact positively on the economy of the ports that will come.

'The ferry is an opportunity to reduce costs in shipping goods to the islands of Bocas, for the arrival of tourists to a destination with over 100 small hotels. The trip to Bocas is 12 hours, Zebede added.

The boat's dimensions are: Length: 164.4 meters, beam 27.6 meters, draft 6.3 meters and has 31,910 tons.

Surely the Atlantic coast will receive a new injection of tourists, partly mitigate the volume that was lost with the removal of one of the cruise company Royal Caribbean from Port Columbus Home 2000.

 

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Protect the Goose That Lays the Golden Eggs

Eduardo Morgan is a well known and respected attorney in Panama and he is also a fellow blogger. He posts some interesting story's about Panama from the viewpoint of a patriot and conservative. In the excerpt below, he argues against  the statements made by U.S. ambassador to Panama, Barbara Stephenson, that came out in Wikileaks regarding the Tocumen airport being a hub for money laundering. He makes some valid points and also a brief defense of the tourism authority manager Salo Shama. I am meeting with Shama next week and will post regard his side of those allegations. You can view Eduardo Morgans blog here.

Excerpt: I allude to this experience in light of the assertions by the U.S. Embassy regarding the laundering of drug money in Panama’s Tocumen Airport. It is absurd to think that travelers coming from, mainly, the Caribbean, and South and Central America, are full of drug money, since the $600 billion generated by the drug trade is produced at the sites of consumption, i.e., in the United States. Drug money flows from north to south: from the U.S. to Colombia, Bolivia, Peru, etc. Drug dealers are not so dumb as to move large amounts of cash by plane from a U.S. airport (with strict controls). Narco-dollars are used for imports and exports, for example, the so-called black market for Colombian pesos and the cash purchases of mobile goods like cars and helicopters. This is documented by FinCEN, a U.S. government agency, on its website. Our hub is no different from London’s or Amsterdam’s, and neither are the duty-free shops managed by successful entrepreneurs who have long been engaged in this business.

Be sure to read the entire post here.

Copa adds three new destinations

Copa continues to expand and starting June 2011 it will open three new destinations to the cities of Toronto, Canada; Porto Alegre, Brazil and Nassau, Bahamas.

Copa Airlines, subsidiary of Copa Holdings, SA {NYSE: CPA} announced that from June 2011, in order to offer more options to passengers, it will increase daily flight frequencies to various countries in its extensive route network, it will offer more convenient schedules and will open three new destinations to the cities of Toronto, Porto Alegre and Nassau.

"With the opening of these new destinations and increased frequencies from our Hub of the Americas in Panama City, Copa Airlines continues to expand coverage and reaffirming its leadership in Latin America and the Caribbean, offering more international destinations than any another hub in Latin America," stated Pedro Heilbron, president of the airline.

Heilbron also said, "The Hub of the Americas remains the most effective and convenient connection in the continent and the increase in frequencies of our flights will allow us to significantly improve daily arrival and departure schedules, so to continue to offer better connectivity and more options as well as frequent flights and connections throughout the day - even up to six connecting flight options for some markets."

 

Panama City is really a labyrinth

In Greek mythology, the Labyrinth  was an elaborate structure designed and built by the legendary artificer Daedalus  for King Minos of Crete. Its function was to hold the Minotaur, a creature that was half man and half bull and was eventually killed by Theseus. Daedalus had made the Labyrinth so cunningly that he himself could barely escape it after he built it. Sounds familiar doesn't it?

If Panama is to move forward into the next 10 years as the Singapore of Latin America it needs to make some changes in it signage and addresses. The old way of giving directions by number of blocks past the bridge or big tree in the park won't cut it. All of these new high rises, the Cinta Costero and the coming metro would make one believe that Panama is heading towards being a first class city, but with the antiquated or non-existent system of addresses and directions it will only be a first class city in its advertising.

From La Prensa

The labyrinth called Panama City

Change the meaning of the streets, the nomenclature does not have a numerical sequence and rename it floods every five years.

ADDRESSES. Both local and foreign are easily lost in the floods. PRESS / File1473923

Edith Castillo Duarte
[email protected]

Manuel Ferreira, director of Economic Studies of the Chamber of Commerce, Industries and Agriculture of Panama, decided to withdraw from traditional speeches and talk about a problem that deducts points to Panama as a city of business and tourism.

In a recent forum organized by the Chamber of Commerce and the builders could not ignore the headache it poses to foreign investors navigate the city.

Attracted by the growth of approximately 6% in the first half of this year and are tax incentives and opportunities for wealth. But paradoxically, find themselves with a little friendly city where you can not move without major problems.

Every now and then rename it streets, often depending on the political affinities of the government. And besides, as noted architect and urban planner Andrión Rodrigo Mejia, while in European cities and in other parts of the world draws a classification with a numerical sequence, in Panama insists on using names.

Citadina culture is giving directions by reference to places close to the address you are looking for, and among traders, town planners and builders there is some concern about this situation, although long-standing may aggravate in the coming years.

There is talk of major infrastructure investments, a meter will cost thousand $ 500 million and which aims to change the way you move in the capital, however, nobody has said what the plan is to sort the names of the streets in the great "reorganization" of the city.

The municipality is the entity that should be responsible for all matters relating to signs, addresses or classifications, but the city engineer of the capital's mayor, Juan Manuel Vasquez, warns that no budget for hiring staff engaged in these duties.

"The nomenclature is as important as the other projects we have in the direction of Works, and we have not put aside, but we are addressing the urgency of the patient to heal after the wounds," he says.

In his view, the first thing to do is to order a plane to the streets to give the proper consistency. Subsequently, and with the help of other entities, enter the correct road signs, but will undergo changes as the city "does not seem right to invest resources in this time ... That are obviously both employers and Vasquez contends that a good date to start with this work is 2012. Although ink and no paper work schedule.

In the annual ranking conducted by the magazine América Economía, Panama came this year as the seventh best city for business.

According to the annual survey conducted by the magazine to a 37 cities in Latin America, the country recovered in 2010, having been in position 11 in 2009.

In interviews with foreign executives said Panama's strategic location and its facilities in infrastructure that allow easy and quick access to all locations in Latin America.

The advantages are worthy, well-earned, and no reason to ignore, but is unusual in a small town like ours, every day more often used a GPS to get to a place located a few blocks away.

---

A GPS for tourists

The Tourism Authority of Panama working on a program that will develop and implement interactive maps global positioning system (GPS) that includes the addresses of hotels, restaurants and tourist sites in the country.

The project could be completed within two years and have two phases. The first would be to create interactive maps that might be found on the Internet, while the second step would include the updated system with GPS directions in tourism offered by the rental car at the Tocumen International Airport. In the country there are several companies that sell GPS service and say business is growing.

The advantage of this system in a city like Panama is that makes locations with street names in existence, crossing intersections and streets, and if one seeks a point of particular interest.

Panama, a leader in cross-border trade and logistics

From La Prensa:

Triny MARY ZEA
[email protected]

Panama, a small country in Central America is close to reaching the same level of leading nations of Europe and Asia to market processes.

This means that if you are a trader, just by being in this piece of land has an advantage over its competitors to put time their products in other markets.

This was demonstrated, the Panama occupy leading positions worldwide in the ranking of Border Trade, evaluating processes, time and cost to import and export goods starting with the contractual agreement between the two parties and ending with the delivery of goods.

The ranking of trade, as well as other comparative indices and a report of the Economic Commission for Latin America (ECLA) left Panama in the best locations in Latinamerica, preceded only by Chile and Argentina.

The document Diagnosis and proposals for the improvement of logistics and customs processes in Central America and Panama, published in April 2010, assesses the export logistics in Central America from the perspective of the employer to the micro, small and medium enterprises.

Procedures

Panama is the only country in the region that significantly reduced the number of documents to export from nine to three, close to France that called for just two in 2009.

As for imports, Panama is the country closest to the lower number of required documents worldwide with only four forms, for the two of France in the same year.

This issue becomes important because each new authorization must obtain an undertaking international trade is reduced by 4.2% according to Doing Business.

Meanwhile, all countries have reduced their time to prepare documentation for export and import but are still nine days away from requiring both paperwork in Panama.

Singapore, Denmark and Estonia lead the shortest time to prepare documentation for export, with five days, and Singapore only requires three days for the import paperwork.

"Every day of delay in export amounts to a cost of 1% of the volume of trade," the report said.

Costs

Panama had the lowest value in terms of costs associated with the export process in Latin America in 2009 with $ 729.

El Salvador registered the lowest cost of import processes $ 820.

Malaysia and Singapore were the most competitive globally, they report costs between $ 450 and $ 456 for export and $ 439 and $ 450 for import.

Meanwhile, the indicator of the World Bank's logistics performance, which measures the ability of countries to connect to global markets, highlighting Panama in terms of port logistics infrastructure throughout the hemisphere.

"The next step as a country should be scanning the documents and processes," said Eric Dormoi, international sales manager Selects Canned Panama, who says his company takes maximum two days to do the paperwork.

For its part, the report suggests improving delays at the borders of Central America and Panama recommends extending the opening hours of customs.

One would think that at this stage of exports of goods should be thriving, which is the opposite, it fell 6% from January to August compared to 2009.

"The report is based on procedures and costs, not only are the costs, other related things that are needed to stimulate the sector," said Fernando Marquez, president of the National Union of Small and Medium Enterprises.

The problem, according to Marquez, is that the bank is not financing for exports, and "you have to buy boxes, labels. If you do not have the resources are not exported, "he said. Another point is that insurance is needed to export.

Manuel Fernandez, president of the Panamanian Association of Exporters, said that the only delay you have is in port for customs clearance and shipping, where they have to wait on average about six hours to enter the container to the terminal.

For the union the problem of logistics, but Panama is not financial, weather and pests, which triggered a crisis three years ago and the authorities still do not have a strategy to lift the sector.

Telecom status in Panama looking good!

Panama has come a long way in a short time with telecommunication. Just a few short years ago getting internet in our neck of the woods was difficult and now it can be found just about everywhere in the country. This insiders article provides an excellent overview of the telecom status and where it is headed.

From TMCNET.com

Shake up in Panamas Internet and mobile markets With one of the regions highest GDP growth forecast for 2010/11, the outlook is promising for Panamas telecom market. In 2010, telecom revenues are expected to exceed US$1 billion, with mobile services and broadband being the fastest growing sectors.

Panamas fixed-line teledensity is well below average for Latin America and the Caribbean; in fact, it is at least three percentage points lower than one would expect, considering the countrys relatively high economic indicators. To make up for the shortfall, the number of fixed lines is increasing, albeit slowly, thanks to alternative operators using fibre-coaxial or fixed-wireless networks.

Find Solutions for Enterprises, SMBs & Service Providers at the INTERNET TELEPHONY Conference and EXPO West, October 4-6, 2010. Los Angeles, CA.

Find Solutions for Enterprises, SMBs & Service Providers at the INTERNET TELEPHONY Conference and EXPO West, October 4-6, 2010. Los Angeles, CA.

Find Solutions for Enterprises, SMBs & Service Providers at the INTERNET TELEPHONY Conference and EXPO West, October 4-6, 2010. Los Angeles, CA.

Find Solutions for Enterprises, SMBs & Service Providers at the INTERNET TELEPHONY Conference and EXPO West, October 4-6, 2010. Los Angeles, CA.

Find Solutions for Enterprises, SMBs & Service Providers at the INTERNET TELEPHONY Conference and EXPO West, October 4-6, 2010. Los Angeles, CA.

Find Solutions for Enterprises, SMBs & Service Providers at the INTERNET TELEPHONY Conference and EXPO West, October 4-6, 2010. Los Angeles, CA.

Find Solutions for Enterprises, SMBs & Service Providers at the INTERNET TELEPHONY Conference and EXPO West, October 4-6, 2010. Los Angeles, CA.

Find Solutions for Enterprises, SMBs & Service Providers at the INTERNET TELEPHONY Conference and EXPO West, October 4-6, 2010. Los Angeles, CA.

Competition is limited in the broadband sector, where incumbent Cable & Wireless Panam is reluctant to unbundle its local network and has secured a virtual monopoly in the delivery of ADSL access. The only competition is across technologies, from cable modem and WiMAX services.

The mobile sector, on the other hand, has been flourishing, with penetration well above the 100% milestone and about 30% higher than the regional average. The arrival of two new mobile players around the start of 2009 has resulted in high levels of promotional activity and steep price reductions that have shaken the market. Digicel Panam began operations in late 2008, and Amrica Mvils Claro in early 2009. Previously, Panamas mobile market had been a duopoly between Cable & Wireless Panam and Telefnicas Movistar.

Internet penetration is expected to grow substantially in 2010/11 thanks to the governments Internet for All project. In 2010, Panama became one of the first countries in the world to offer free wireless broadband access nationwide, reaching 80% of the population. The government project, dubbed National Internet Network or Internet for All, may partly reduce the need for people to buy fixed or mobile broadband accounts, and could push providers into improving their broadband service.

However, Panamanian President Ricardo Martinelli made a point of emphasising that the National Internet Network project does not compete with private broadband providers, because its aim is digital inclusion and not the provision of high-speed access. He stressed that the network offers basic Internet access only, with a speed limit of 256Kb/s in the first phase and the option to go up to 512Kb/s in the future.

Market highlights: - Mobile number portability is to be implemented in Panama by March 2011.

- In November 2009, Cable Onda took over fixed-line company Telecarrier, thus improving its position in the fixed-line market.

- The Internet for All or RNI project was implemented in two phases: the first phase was completed in January 2010, and the second phase in April 2010.

- The RNI network provides coverage to 22 of the most important cities in Panama, where the vast majority of the population lives.

- Three companies offer mobile broadband services over UMTS (WCDMA) networks: Movistar, Claro, and Cable & Wireless Panam.

- In December 2009, Cable & Wireless Panam entered the pay TV sector, heavily dominated by Cable Onda.

- The Panamanian government adopted the DVB standard for digital terrestrial TV in May 2009, and several channels launched digital terrestrial TV trials in the first half of 2010.

The report covers trends and developments in the fixed-line, mobile, Internet, broadband, and pay TV markets. Subjects include: - Market and industry analyses, trends and developments; - Facts, figures, and statistics; - Government policies and regulatory issues; - Major players (fixed, mobile and broadband); - Infrastructure development; - Internet and broadband market (DSL, cable modem, wireless); - Mobile market (including 3G and mobile broadband); - Scenario forecasts for the fixed-line, mobile, and broadband markets for the years 2015 and 2020.

Key Topics Covered: 1. Executive summary 2. Key statistics 3. Telecommunications market 4. Regulatory environment 5. Fixed network operators in Panama 6. Telecommunications infrastructure 7. Forecasts 8. Wholesale 10. Broadcasting 11. Mobile communications Companies mentioned: - Cable & Wireless Panam - Cable Onda/Telecarrier - ClaroCOM (Galaxy Communications Corp) - Advanced Communication Network (ACN) - Optynex Telecom - Movistar - +Mvil (C&WP) - Movistar (Telefnica) - Digicel Panam - Claro Panam (Amrica Mvil) For more information visit http://www.researchandmarkets.com/research/711458/panama_telecoms ((M2 Communications disclaims all liability for information provided within M2 PressWIRE. Data supplied by named party/parties. Further information on M2 PressWIRE can be obtained at http://www.presswire.net on the world wide web. Inquiries to [email protected])).

Food options will finally come to Tocumen

Up until just a few years ago, Panama's international airport was a reflection of what you would get in Panama. Poor service and few choices in shopping or food. As Panama has leaped into the future with shopping malls, theaters, high rises, highways and an abundance of restaurants, the international airport that brings the many visitors to the country has been slow to change. But change has come and it is certainly for the better. According to an article in La Prensa this week, Tocumen will have a food court operating by January 2011. Up until this change, you have had few options on where and what to eat. This is a big change which should have a very positive affect on international travelers and bring in much needed revenue to the airport operators. Like many things in Panama, change comes with difficulty, but it does happen. Now if we can just get rid of Panama's version of the TSA, travel may be a civilized adventure again.

Alex E. HERNANDEZ
[email protected]

On 15 November the company International Meal Company (IMC) will begin work to build the food court formally Tocumen International Airport.

Contract was signed yesterday between the company and managed for the next 15 years the 'food court' and Tocumen SA

Jose Algarin, executive director for Central IMC said that the work will take 90 days and expected end of January 2011 have ended.

The company will set up a zone, 400 meters and will provide $ 4.5 million in the construction and equipping of the food court which will operate 10 restaurants, including Margaritaville, Cinnabon, Quiznos, Teriyaki, Carls Jr., Dominos and Chesters.

Algarin said they are negotiating with two other brands, but Panama, so they too are part of the expected area of food at the international airport, where there is only one restaurant and several small kiosks.

During the 15 years of the contract, Tocumen receive as rental fee $ 133 thousand a month and every two years this payment will increase by 5%.

Copa to allow stop overs in Panama with no extra costs

This is another example of the Panama Tourism Authority going after the low hanging fruit. With millions of passengers passing through Panama on their way to somewhere else, it makes sense to make a deal with the airlines to allow passengers a stay over without penalty. As the article points out, if only 5% of those Passengers decide to stay over for a visit it represents more than 150,000 visitors. Salo Shamah has been diligently working to get more airlines to make direct flights to Panama and then internally to get them to coordinate and take passengers from Tocumen to cities in the interior. This will hopefully begin in the next quarter of 2011. There are many ways to promote Panama, but these fundamental actions of making Panama accessible are the most important IMO.

Translated from La Prensa

Tourists would stop in Panama at no extra cost

Roberto González Jiménez
[email protected]

One of the great opportunities that Panama has to grow as a tourist destination is to attract some of the tourists who pass daily through the Tocumen International Airport but did not visit the country.

The passenger who buys a trip to Copa Airlines with a stopover in Panama may remain in the country several days and then resume the journey to their final destination without extra cost.

Soon will launch a campaign in international media. "If we can nip 5% of that market, would be 150 000 people" in a year, Solomon said Shamah, administrator of the Panama Tourism Authority.

This will continue to promote being broadcast on international media, which offers free Atlapa Convention Center the organizers of events that bring a minimum of Congress.

According to latest official figures, which correspond to the month of July in the year to date have entered Panama 991,000 tourists.

For its part, including transit passengers and crew added 1.2 million. In this group of potential tourists will be targeted the next campaign to promote Panama abroad.

32 minute Flight from Tocumen to David to start soon

According to the Panama Tourism manager and this article in Panama America, jet service will be starting in mid December from the International airport in Panama City to David. This is most welcome news as it will reduce time and cost for folks coming to our neck of the jungle. I saw the 70 passenger jet that Air Panama has purchased for this project at the airport in Allbrook this week, just waiting for a new paint job.

This ends first stage of enlargement Enrique Malek Airport

The new runway will be used for takeoff and landing of aircraft, while rebuilding the current.

Marcelino Rosario Marcelino Rosario

[email protected] @ epasa.com provincias.pa

PA-DIGITAL PA-DIGITAL

The new track, one thousand 800 meters long that was built for commercial flights at the airport Enrique Malek in David, Chiriqui, was delivered yesterday. This is the first stage of modernization of the airport.
Modern asphalt concrete track that will start to use today, was designed for takeoff and landing of aircraft, while rebuilding the current that is part of the second stage of the project.

Rafael Barcenas, national director of Civil Aviation, explained that the second stage will be delivered in December 2010, while the third and fourth, on November 29, 2011.

The work is in charge of the company Riva Argentina Real Estate Company, Industrial, Commercial and Agricultural (SAIICFA).

With this upgrade the airport will have the capacity to receive aircraft of 240 passengers, and then rises to category 7, which agree to comply with international standards. Moreover, it was an investment of 3 million dollars to have two fire trucks with capacity for 3000 gallons of foam, chemical and water, which would be used in an emergency.

According Barcenas, within a few months will offer jet service from the capital city and vice versa, travel will take 32 minutes, because the intention is that they may direct flights from Colombia and the United States.

Aixa Santamaría, governor of the province of Chiriqui, explained that this extension is part of the development that needs this province.

La Prensa August 19th

alex e. hernández
[email protected]

The issuance of an airline ticket New York-Panama, Panama-Bocas del Toro can be a reality within the next 12 months if companies Copa Airlines and Air Panama agree to share codes.

A source close to the negotiations said that for 15 days the representatives of both companies sat down to talk about the possibility of an alliance and have a maximum of two weeks from the date, to finalize the partnership.

To reach an agreement with passengers traveling from 45 destinations Cup covering the company would hit the Tocumen International Airport and board a plane from Air Panama to travel to the city of David or Bocas del Toro with a single ticket.

Copa thus enter the business of domestic flights from the hand of Air Panama, while the latter would ensure many passengers to the alliance.

Copa Air Panama If materialize this air link would begin flights in late 2010 or mid next year.

On the other hand, if the agreement fails, there is the possibility that individually target the Copa local business and rent or buy small aircraft that carry the logo of the company to operate the route.

Copa's interest by the domestic market is such that the company sent a letter to the Civil Aviation Authority on the points to be improved at the three airports that would be linked in this connection, Tocumen, Enrique Malek in Chiriqui and Columbus Isle Airport in the province of Bocas del Toro.

Recommended that the terminal Tocumen create a separate registration point for people who would make the transfer to Chiriqui or Bocas del Toro.

Also, FIFA considers it important to have special parking for these passengers and baggage transfer point directly to the small aircraft to prevent passengers pass again by the security checkpoints.

In relation to airports in Bocas del Toro and Enrique Malek in the province of Chiriqui Civil Aviation Organization (ICAO) has recommended building a perimeter fence to prevent access to people and animals to the runway and the installation of X-ray equipment to check the baggage.

Also been asked to increase the number of customs and immigration and implement a contingency plan for avian risk, as well as installing a fire station.

In the specific case of Bocas del Toro was asked to appoint a surgeon at the hospital in Isla Colon to meet passengers in the event of a medical emergency.