Juni 2008: Nieuwsflits Panama
From Handelswijzer Midden-Amerika van de Koninklijke Nederlandse Ambassade te Costa Rica
Netherlands-based Chicago Bridge & Iron Co. gets $ 40 million storage tank contract from Petroterminal
Chicago Bridge & Iron Co. was awarded a storage tank contract for more than $40 million by Petroterminal de Panama S.A. associated with the Trans-Panama Pipeline Expansion Project. Under the terms of the contract, CB&I will design, fabricate and construct petroleum storage tanks. The tanks will be built at two sites, Chiriqui Grande on the Atlantic coast and Puerto Armuelles on the Pacific coast.
India and Panama to strengthen economic ties
Source: Prensa Latina
Relations between India and Panama are fine, fluid and may be further enhanced, said Panama Senior Vice President and Foreign Minister Samuel Lewis. "We share views on several matters, both in terms of world politics as in dealing with challenges related to developing our countries”, assured Lewis who is on his second visit to India. Panama and India established diplomatic ties in 1962 and India opened an embassy in 1981, which has supported excellent bilateral ties ever since. He also expressed India’s positive determination and legitimate wish to become non-permanent member of the UN Security Council from 2010-2011 and reaffirmed Panama’s support.
Canada announces new air transport agreement with the Republic of Panama
Canada’s Minister of Transport, Infrastructure and Communities (L. Cannon), and Minister of Foreign Affairs and International Trade (D. Emerson) announced the singing of a new agreement between both countries. It includes a modern method for scheduled air services between Canada and Panama, consistent with Canada's Blue Sky policy. According to Minister Cannon, "The new agreement will benefit passengers, businesses, air carriers and airports through a greater range of travel options". Airlines from both countries can serve any point in each others' territory, with greater flexibility for establishing airfares, and greater certainty surrounding operational business issues. The agreement also includes strong safety and security provisions, reflecting the importance both countries attach to these subjects. The agreement also complements Canada's recently launched exploratory discussions with Panama on a possible Free Trade Agreement. In 2007, bilateral merchandise trade between Canada and Panama totalled $115 million, with Canadian exports accounting for $86.4 million and imports totalling $28.7 million. From 2005 to 2007, Canadian merchandise exports to Panama increased 44%.
Viet Nam and Panama seek agriculture ties
Viet Nam and Panama want to broaden co-operation in the agriculture sector and related fields. The expansion includes: scientific cooperation like capacity building, agricultural research and development offices providing legal services facilitating advise concerning the laws and regulations of each country, on the basis of equality, mutual benefit and respect. A Memorandum of Understanding on Agriculture was signed by the Minister of Agriculture and Rural Development, Cao Duc Phat, and Minister of Agricultural Development of Panama, Guillermo Salazar, on June 10th in Ha Noi. The two sides will exchange experts, scientists, apprentices, crops, livestock, information and technical documents. The two countries will also work together to co-organize seminars while co-operating to implement research projects relevant to both sides. The memorandum of understanding is valid for five years, and has the option to be extended annually.
ACP will transfer USD 748 million to the state
According to the budget proposal by the National Assembly; the Panama Canal in 2009 will directly contribute USD 748 million to the state, 13.1% more than this year and USD 179.1 million more than 2006. It hereby complies with Law 28, which obliges revenues during the expansion to be higher than in 2006. New record fee set at Panama Canal crossing The Disney Cruise Line has paid a record US$331,200 for one of its ships to cross the Panama Canal. The Panama Canal Authority says the 964-foot (295-meter) "Disney Magic" passed through last month. Panama increased canal fees last year and now charges cruise liners according to number of beds rather than cargo capacity. The "Disney Magic" has 875 staterooms. Canal authorities said that the previous record fee paid by any ship was US$317,142, set on May 7 by the cargo vessel "MSC Fabienne." The record for a cruiser was US$313,000, set last October paid individually by a set of Norwegian Cruise Line ships.
China to Construct Ten Tugboats
The Autoridad del Canal de Panamá (ACP) informed to have awarded a contract to the Chinese company Cheoy Lee Shipyards, LTD to construct ten tugboats, an order worth USD 98.5 million.
Port of New Orleans renews alliance with Panama Canal Authority (Source: Maritime Global Net) The Panama Canal Authority (ACP) and the Port of New Orleans – which has recently adopted a 2020 growth Master Plan of $1.04 billion, partially driven by the Canal’s expansion – has been renewed it’s strategic alliance. Both organizations share the belief it “will help spur investment, increase trade and promote the “All-Water-Route” During an official ceremony in Panama, ACP Administrator/CEO Alberto Alemán Zubieta reaffirmed the ACP’s commitment to mutual growth and cooperation with Port of New Orleans President and CEO Gary LaGrange and members of the Port’s Board of Commissioners, by renewing a Memorandum of Understanding.
Panama sees continued container growth
Source: Reuters
Despite the downturn in the U.S. economy Panama expects its shipping container volumes to increase by around 10 percent next year. The Panama Maritime Authority (AMP) expects Panama's ports handling 5.6 million 20-foot (6.1 meter) shipping containers in 2009, up from around 5 million this year and 4.1 million in 2007. Panama has seen shipping volumes nearly double since 2006 because of increasing Chinese demand for raw materials as well as growing exports in finished goods from the world's most populous country. "Latin America faces a great challenge because of the accelerating maritime transportation growth triggering urgent needs for infrastructure" stated maritime authority chief Fernando Solorzano. Panama has earmarked around $1.6 billion for upgrading current facilities. China's state-owned shipping giant China Ocean Shipping, COSCO, has expressed interest in building a new mega-port at the Panama Canal's Pacific entrance. Panama handles around 40 percent of Latin America's containers via its U.S.-built, 50 mile (80-km) canal between the Atlantic and Pacific oceans.
Panama's Balboa continues its strong growth, now third port in Latin America
The port of Balboa, located near the Pacific entrance to the Panama Canal, increased its container traffic by 85.5 percent last year, reaching a total of 1.8 million TEU's. That was the highest growth in real terms - 845,195 TEU's - and the second-largest in terms of percentage of any port in Latin America (data from the United Nations Economic Commission for Latin America and the Caribbean (ECLAC) and individual ports). As a result of the strong growth, Balboa now ranks third among Latin America's top 50 ports. It also marks a positive trend when compared to a fifth place in the 2007 ranking and 10th in the 2006 ranking. Last year's TEU traffic was nearly five times higher than in 2002.
New Port Pacific
Manzanillo International Terminal (MIT) is analyzing feasibility to construct a new terminal on the Pacific coast. This possible new terminal forms part of an already signed contract with the government concerning expansion of the port. On the Pacific side this will be the forth port, next to Balboa and Farfan and Rodman that are both still in the project fase.
Ports Will Benefit Growth LA
The coming five years the growth in TEU´s in Latin America is expected to be 6%. According to maritime consultants Halcrow, Panama, as logistical centre, will benefit. This growth, which will partially offset the economic down turn in the US, is mainly the result of economic growth of large nations as Brazil, Argentine and Mexico of augmenting trade with Asia.
AMP Evaluates Proposal Administration Port Mensabé
The Autoridad Marítima de Panamá is evaluating the proposal by a Panamanian group of investors to invest USD 45 million in a 20 year concession to develop port Mensabé in the province of Los Santos.
Tourism in Panama continues to show strong growth
Source: Panama America
The number of tourists coming to Panama continues to increase. From January through April 2008 some 554,126 tourists have arrived, according to statistics provided by the Panamanian Tourism Institute (IPAT). During the same period last year 507,920 tourists had arrived (reflecting an increase of about 9% over last year). According to the IPAT report 370,806 tourists came in by air, 42,113 via ground routes, and 141,207 by sea. Last year in 2007 more than 1.4 million tourists visited the country spending more than $1.7 billion dollars, according to IPAT data.
TACA starts direct flights
TACA started direct flights from El Salvador to Panama the 12 of June.
Spain Donates EC-135 Eurocopter to Panama
Spain donated an EC-135 Eurocopter to the government of Panama during an encounter between Martin Torrijos and the Minister of the Interior of Spain, Alfredo Pérez Rubalcaba. In addition to the aircraft, Spain will offer specialized technical training for the crew members and mechanics to be assigned to service the helicopter. During their meeting Torrijos and Alfredo Pérez Rubalcaba discussed subjects related to cooperation between both countries on matters of security. Needs where expressed in terms of equipment and training.
Suez Energy to Develop Energy Projects
The French company Suez Energy Central América will execute three energy projects with a total capacity of 500 MW, involving an investment of USD 650 million. With the plants already existent Suez Energy will hold a share between 25 to 30% of the total energy market.
Operational Centre 3M
The company 3M will invest USD 50 million to establish an operational centre in Panama. Minister of Commerce Carmen Gisela Vergara says she sees Panama´s position as regional hub reaffirmed every day.
Panama lowest ´Brain Drain´ Latin America
According to a study by Goethals Consulting based on data from the World Bank, ECLAC and OECD, Panama counts with the lowest ´brain drain´ in Latin America. When more than 10% of the academic personnel leave the country it is considered to be ´brain drain´; Panama counts with less than that. Panamanian students studying abroad tend to return and besides there´s an influx of experts as a result of the economic growth. Haiti and Jamaica are struck the worst with 8 out of every 10 highly educated people leaving.
Economic growth 8.4% in 1st trimester
The Panamanian economy realized the largest growth of Latin America last year. The first trimester of 2008 showed a growth of 8,4% which is one percent less than the same period last year. The sectors that propelled this growth were construction, restaurants, hotels, transportation and telecommunications while the banking sector and agriculture showed decrease.
Inflation up to 7.5%
Inflation in Panama will hit 7.5% in 2008 according to a study by the Instituto de Estudios Nacionales de Universidad de Panamá. This will be 1.1% higher than last year and is somewhat worrying. The same institution advocates a rise of the minimum wage which is USD 325. The consumption basket is currently USD 243.53. According to ECLAC standards the minimum wage should be twice the consumption, equaling USD 496.44 whilst the ILO advocates a minimum wage of USD 750.
Loan IDB
The Interamerican Development Bank (IDB) is granting a loan of USD 90 millions to counteract the effects of the crisis provoked by sharp rising food prices. These funds will be directed to improve the competitiveness of the agricultural sector by reinforcing programs already in execution. Pensioner benefits raised and several subsidies announced Martin Torrijos, President of Panama, announced today new benefits and retirement pensions to help the 175 thousand pensioners face the high cost of living. In a message to the Nation, the leader informed next July a convertible bond for 60 balboas (dollars), from a fund approved by the government, will be given to these people. The second regulation announced by the President is to include 10 thousand extremely poor elders without social security assistance in the Opportunities Net. The leader stated that 15 thousand elders are included in the program that hands 35 dollars a month to almost 50 thousand poor families on the condition they pay attention to their children’s education and health. Other governmental measures; a subsidy for those whose electric bill consumption is less than 500 kilowatts a month, to keep the price of the 25 pounds gas cylinder at 4.37 dollars and public transportation tickets at 25 cents.
Popularity President Torrijos is waning
Source: Reuters Soaring food and fuel prices in Panama have knocked President Martin Torrijos' flagging popularity to 34 percent. Panama, one of Latin America's fastest-growing economies, depends on imports. Consumer prices rose 8.8 percent last year. Retail fuel prices increased 24.3 percent. Many Panamanians are unhappy that the double-digit economic growth figures are not trickling down to the poor. Social tension is increasing.
Taiwan donates money for hospital construction
Source: CAN Republic of China Ambassador to Panama Tomas Ping-fu Hou donated US$2.6 million to the Panamanian government to help build a hospital in an impoverished area of Panama City. After accepting the donation, Panamanian Minister of Health Rosario Turner expressed gratitude to Hou, saying that establishing the Hospital de Panama Este in an eastern suburb of the city is one of the Ministry's main construction projects. Once inaugurated, the hospital, equipped with advanced facilities, is expected to provide some 342,000 local residents with a wide range of medical services, including hospital care, operations, outpatient treatment and emergency care, as well as women's and children's health care. Hou said the donation is aiming at helping Panama improve its medical care and further enhancing bilateral relations.
