Maart 2008: Nieuwsflits Panama
From Handelswijzer Midden-Amerika van de Koninklijke Nederlandse Ambassade te Costa Rica
IHC wins $96 million cutter suction dredge order from ACP
(Source: La Prensa / ACP) The Panama Canal Authority (ACP) has awarded a contract to design and build a new, more powerful cutter suction dredger to Dutch shipyard IHC Beaver Dredgers. The new 12,000KW vessel will replace the Mindi which has been in service at the Canal since 1942 and has only a 9,000KW capacity. With an expected delivery date of May 2011, the new dredge will, the ACP says, have the modern equipment, systems and components required for efficient operation. “IHC Beaver Dredgers B.V. is very well-respected in the industry and has the expertise to meet our needs. The construction of a dredge with more pumping capacity and the ability to dredge deeper will allow us to continue to make the waterway even more navigable, safe, reliant and efficient,” said ACP Vice President of Operations Manuel Benitez. “With this new dredge, the ACP will boost the production capacity of our dredging fleet. This increase is necessary to meet the demands of the expansion, as well as the maintenance and modernization projects of the waterway.” The new dredger will be constructed in the Netherlands and will have the capacity to dredge along the entire Canal including the Gaillard Cut (the narrowest stretch in the Panama Canal), Gatun Lake, and both Atlantic and Pacific entrances, at a depth of 25 meters, even after the expansion concludes.
ACP receives bids from Dutch companies for dredging project
(Source: ACP) After months of preparation, interested bidders among them, Dutch companies Royal Boskalis and Van Oord, submitted proposals to the Panama Canal Authority (ACP) for the opportunity to dredge the Expansion Program’s Pacific entrance. This phase of the project will widen the Canal’s 8.9 mile-long (14.2 km) navigation channels at least 715 feet (218 meters) and deepen them to a maximum level of -51 feet (-15.5 meters) Mean Low Water Springs (MLWS) to ensure that longer, wider ships can reach the new locks. The ACP will review the bids and award the contract to the bidder that offers the best price and meets the project’s terms and criteria established in the Request for Proposal (RFP). The ACP expects to award the contract in the coming weeks and work will likely begin during the third quarter of this calendar year.
Call for participation for Dutch trade mission to Central-America
The Dutch Embassy will be present at the Rueda de Negocios-Centroamerica on 31st of March till 04th of April. The business meetings will take place in Guatemala and Costa Rica, where national and international agricultural businesses from the region can meet with 35 Dutch companies active in the agricultural sector and government entities to exchange their supplies and demands needs, as well as the services and products in the following areas: public and private consultantcy, commerce, technologie, logistics, producers and buyers of fruits, plants and vegetables. The organization of this fair is in the hands of IDEAVELOP, Cadexco and Agexport with support from the EVD and the Dutch Embassy. For more information or participation you van contact Mr. Edwin Smit at ideas@ideavelop.biz , Tel.: 00506 2273 0981.
Dutch Embassy information session at Hotel Panama on 29 April
The Dutch Embassy will host an information session on the 29th of April in Hotel Panama. Information on import and export opportunities, Dutch trade magazines on numerous sectors, and information on government programs. Dutch companies or local representatives of Dutch companies or products are welcome to participate. During the month of April several Dutch activities will take place in Panama among them; the start of KLM direct flights to Amsterdam, Rembrandt exhibition at the Panama Canal Museum and celebration Queen Beatrix’s birthday.
Dutch Embassy participation at Expocomer on 05-08 March
The Dutch Embassy together with more than 600 companies of 33 countries participated in the 26th commercial fair Expocomer 2008 of Panama. The speaker of the inaugural ceremony was Mexico President Felipe Calderon, demonstrating the excellent relations in all areas between the two countries. The fair offered a unique opportunity to establish business contacts with businessmen, high ranking multinational executives, products and services suppliers, government authorities, international companies and agencies, seminars, among others.
China becomes Panama's third largest export market
(Source: Prensa Latina) China has become the third largest export destination for Panama, whose exports to China soared almost 80 % last year according Panama's General Comptroller's Office statistics. China was only the 17th largest export destination for Panama in 2006, but jumped to third place last year after its exports to China grew to $62.9 million U.S. dollars, a 78.6 % rise over the previous year. China now ranks third in terms of imports from Panama, next only to the United States and the Netherlands, importing mainly scrap iron, coffee and chicken from Panama. Bao Esheng, a Chinese trade official, said China's rapid economic growth guarantees the development of trade between the two countries. About 40 % of Panama's exports go to the United States and some 33 % end up in Europe. With an economic slowdown in the United States, Panamanian exporters are seeking to explore other markets.
Commerce minister Alejandro Ferrer resigns
(Source: Reuters) Panama's minister of commerce and industry, Alejandro Ferrer, will leave the cabinet at the end of March, he has resigned after three years in office. Considered a key economic reformer in the government, 40-year-old Ferrer was recently nominated to be one of the World Economic Forum's "Young Leaders of the Year" for 2008. Ferrer, a lawyer, was formerly Panama's ambassador to the World Trade Organization in Geneva. His resignation comes amid a period of frosty relations between Panama and the United States, which is delaying a bilateral free trade deal. Ferrer led a trade mission to Holland last year.
Panama, Mexico to Foster Links
(Source: Prensa Latina) Panama and Mexico will sought to foster diplomatic, economic and trade relations during Mexican President Felipe Calderon´s visit to Panama City. President Calderon attended the opening ceremony of the 26th International Trade Fair "Expocomer 2008" along with his Panamanian counterpart Martin Torrijos. Calderon held talks with Torrijos, to boost businesses and trade exchange, and foster diplomatic and cooperation relations. Mexico and Panama inked two years ago two cooperation agreements, including nine projects on the sugar cane industry, public affairs, environment, technology and health.
Texas-based Harken to explore for oil off Panama's Pacific coast
(Source:International Herald Tribune) Texas-based Harken Energy Corp. has signed a contract with Panama to explore for oil and gas off the country's Pacific coast. The concession allows Harken to explore an area of 690,000 acres (280,000 hectares) in the Gulf of San Miguel, Commerce and Industry Minister Alejandro Ferrer said. Harken will invest US$10 million (€7.4 million) in the exploration phase, which could last up to four years, said Stephen Voss, director of Harken de Panama Ltd. "There is considerable evidence that there is as much oil as gas in Panama, and what we'll try to determine is if it is of commercial value," Voss said. Ferrer said the five-year concession could be extended as long as 20 years and requires Harken to assess potential environmental impact.
Panama’s distribution hub sees continued growth in 2008
(Source: Reuters) Panama's ports expect shipping container volumes to grow by a fifth this year despite a slowing U.S. economy as Chinese trade surges. Fernando Solorzano, head of the Maritime Authority, expects the country's principal ports to handle up to 5 million 20-foot (6.1-meter) equivalent units (TEUs) in 2008. In 2007, Panamanian ports handled just under 4.1 million TEUs, up from 2.7 TEUs in 2006, thanks in part to increased trans-shipping through the Pacific port of Balboa on the mouth of the Panama canal. Rising imports like cars and consumer goods to China are expected to offset the slowing U.S. economy at Panama's ports. Solorzano still believes that there is still enough business for the construction of another Pacific mega-port to be feasible. Despite billions of dollars in investment in recent years, Panama still lacks the port infrastructure to handle the huge mineral imports from Latin America that China needs to fuel its economic growth. China's largest shipping conglomerate, China Ocean Shipping COSCO, is still interested in establishing a new billion-dollar port that could be located at the Pacific entrance of the Panama canal. Panamanian government will soon make a decision on how to move forward with the project, which could now be awarded by a direct contract and not via a tender process.
Grupo ASSA net profits jump 58% in 2007
Panama-based financial services group Grupo ASSA posted a 58% rise in net profits last year to US$28.2mn from US$17.9mn in 2006, the group said in its latest earnings report. Written premiums grew 44% to US$123mn in 2007 compared to the previous year, while net written premiums climbed 25% to US$70.9mn. The group said its Panamanian insurance company ASSA increased its market share to 31.1% at end-2007 from 17.3% at end-2006. Net loans more than doubled to US$420mn at end-2007 from US$170mn a year ago. As of December 31, 2007, Grupo ASSA reported US$1.05bn in assets and US$321mn in equity
Waiting time for Panama Canal passage increases
More than 100 ships are waiting in the anchorages of the Panama Canal in the Pacific and Atlantic oceans, waiting for a turn to pass through the canal Some ships have been waiting for more than eight days and delays can significantly increase shipping costs. Regularly scheduled maintenance and repair work on the Panama Canal can often create backups and delays but there have been no major lane outages recently, the next significant lane outage is not scheduled until August of 2008. There are plenty of opportunities for Dutch maritime supply companies to offer their services in areas such as; small repairs, maintenance, bunkering and ship supplies by taking advantage of the waiting period for canal passage.
New tax exemption law
The new tax exemption law, coupled with many other existing tax benefits, make Panama an increasingly popular real estate investment location. Minister of Housing, Balbina Herrera, announcement that the country will be extending its 20 year property tax exemption for foreign investors. Those who purchase property developments with building permits issued prior to 31st December 2009 will be exempt from paying any taxes on property transactions carried out in Panama until 2030.
Panama to pay off IMF
(Source: Prensa Latina) Panamanian Economy Minister Hector Alexander confirmed that Panama will pay off its foreign debt with the International Monetary Fund this year. Panama will pay $ 5.3 million dollars in debt, with this, Panama joins 24 countries that have paid their debts to the IMF. Panama will maintain a consultancy relation with the IMF, including technical evaluations and recommendations.
Economic growth for 2008 remains strong
(Source: Reuters) Panama's economy will grow between 8.5 % and 9.0 % this year, Panama's Economy Minister reported. A very strong economy, although less than in 2007, when Panama's economy grew 11.2 % in 2007 as the country benefited from a booming construction industry. The country, which depends on traffic on the Panama Canal for much of its income, has seen one of the fastest economic growth rates in Latin America over the past three years.
New economic package announced to reduce inflation
(Source: Reuters) Panamanian President Martin Torrijos reported that he planned a package of income tax cuts and reductions of import tariffs on some goods to put the brakes on rising inflation. In a speech to the national assembly, Torrijos also raised the possibility of expanding a program of low-interest mortgages and offering incentives to farmers. He said the government would continue to subsidize domestic fuel and electricity. Twelve-month inflation in Panama was 7.6 % in January, driven by rises in food, housing and transport costs that are becoming a political issue as parties select their candidates for presidential elections in March 2009.
Bidding rules finalised for new mobile licences in Panama
(Source: BNamericas) Panama’s public services regulator, Autoridad Nacional de los Servicios Publicos (ASEP), has finalised details of bidding rules and concession terms for the forthcoming auction of two new mobile licences. The documents are awaiting formal government approval, and once given, an auction is expected to be held within 30 days. According to the preliminary schedule, economic bids are due to be received by 3 April 2008 and are expected to start at USD $58 million. Three companies are prequalified to join the process; Irish owned Digicel, Luxembourg-based Millicom International Cellular (MIC) and Mexico’s America Movil.
Panama’s US $ 1 billion International Merchandise Mart
(Source: BNamericas) The Panama International Merchandise Mart (PIMM), aims to become the largest wholesale merchandise center in Latin America, thanks in part to Chinese and Indian companies. Chinese companies account for the largest contingent of the 1,150 showrooms that have been sold out so far. Panama is China's third-largest export market in Latin America, behind Mexico and Brazil. "Panama is the logistical center of Latin America," according to Reynald Katz, president of PIMM, explaining why the mart was located there. The mart will start construction in Colon province next September and be ready by 2010, at a cost of approximately $1 billion dollars by Mexico’s Bufete Industrial de Ingenieria y Construccion SA de CV (BIICSA).
