With the expansion of the Panama Canal, Panama is poised for explosive growth, not only from shipping more and larger cargo but also from the trickle down effect of the increased ancillary businesses in energy, infrastructure, conservation, banking and tourism, according to speakers at a seminar held at the Metro Atlanta Chamber Aug. 27 including Robert Roy, minister for Canal Affairs and chairman of the Panama Canal Authority.
Titled Doing Business in Panama, the seminar was sponsored by the American Chamber of Commerce & Industry of Panama (PanAmcham) and Delta Air Lines Inc. with a large number of supporting organizations including the chamber, InvestAtlanta, Georgia Foreign Trade Zone, Georgia Hispanic Chamber of Commerce, the World Affairs Councils of America, the Panama Gateway International Association and the City of Atlanta Office of the Mayor.
The importance of Panama as a trading hub, which supports 144 trade routes that go to 1,700 ports in 160 countries not to mention its air hub that handles 73 destinations to 30 countries, was underscored often by both local and Panamanian officials.
And figures alone show its importance to the U.S. Sixty-nine percent of canal cargo traffic either originates in or is destined for the U.S. with 22.8 percent going to China, Chile (13.1 percent) and Japan (9.5 percent) respectively.
Mr. Roy, a graduate of the Georgia Institute of Technology, referred specifically to the importance of the Colon Free Zone (CFZ) that is the second largest in the world after Hong Kong and accounts for 92 percent of Panama’s exports and 64 percent of its imports.
He added that the canal’s expansion is a marvel of modern engineering and will allow larger cargo ships due to the deepening and widening of the Pacific and Atlantic entrances and the navigation channels in Gatun Lake and the Culebra Cut.
Ten to 12 ships will pass through the canal daily once the expansion is completed in addition to the current 40 that the canal now handles, according to Mr. Roy, who added that the expansion has been undertaken with care to its impact on the environment, wildlife, reforestation, and paleontological research as well as noise, vibration, and air and water quality.
Due to the economic stimulus of the expansion, he said that there will be a continuing need for additional container capacity at the terminal port as well as rail capacity to augment the 47-mile railway that connects both oceans and already carries more than 650,000 containers per year.
Meliton Arrócha, the minister of Commerce and Industry of Panama, said that Panama is the “best kept secret of Latin America.” “Where else can you swim in the Atlantic Ocean and an hour later be swimming in the Pacific Ocean?” he quipped.
In view of Panama’s current growth rate of 6 percent, it should advance, he said, from being the 14th largest economy in the world to the ninth in 10 years. Indicative of its growing international recognition as a business base, he announced three new international flights from Panama City, Frankfurt, Turkey and Dubai, which will be the longest flight of 17 hours and 35 minutes.
Peter Ross, general manager of multi-national accounts for Delta Air Lines, mentioned that Delta has increased its capacity to Latin and South America by 40 percent and is becoming more “Latinized.”
The airline is getting more involved with Latin American cases, will serve more Latin American-inspired food and will increase the number of signs in Spanish. “‘Somos Delta’ (We are Delta),” he said to enthusiastic applause.
Also speaking at the luncheon were Robert St. John, president of the PanAmcham, Brian P. McGowan, EVP and COO of the Metro Atlanta Chamber and Raisa Banfield, deputy mayor of the Office of the Mayor, Panama City.
In addition a panel on special economic areas was moderated by Julie Brown, president and CEO of the Georgia Foreign Trade Zone. Participating on the panel were: Leo González, administrator of the Panama Pacifico Agency, Special Economic Zone, Arisitides Chiriatti, CEO of the Colón Import and Export, Colon Free Zone Process Zone and Dr. Jorge Arosemena, executive director of the City of Knowledge.
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