Panama Canal Expansion Discussed At Maritime Conference

by Mike Godfrey, Tax-News.com, Washington

14 February 2007

Panama Canal Authority (ACP) executives last week briefed maritime industry leaders on the state of the Panama Canal at the Panama Maritime VIII World Conference and Exhibition, held in Panama City.

Canal Administrator/CEO Alberto Alemán Zubieta outlined some key decisions the ACP has made since the handover from US administration. In particular, he underscored the benefits of the ACP’s decision to run the Canal like a business. Today, the ACP looks at its “users” as customers who are different with different needs. In 2002, the ACP segmented the market into eight key segments and began offering unique products and services for those markets.

Moreover, he outlined capital investments made to enhance reliability and customer service at the Canal.

Mr. Alemán focused on the need for expansion, explaining that the Canal is nearing maximum capacity. He revealed that during the expansion project there will be no interruption of service within the existing Canal, and that the ACP will use some of the same construction areas as the Americans did in 1939, when expansion was stopped because of World War II.

"The project will double capacity, allow post-Panamax ships and will be environmentally sound, using state-of-the-art water-saving basins," Mr. Alemán stated.

The conference came soon after the ACP’s decision to increase prices to customers – an effort to move to a charge that reflects the true value of the service and the route the Canal provides. The ACP did extensive research and modeling and proposed an average increase of 10% per year for three years.

Other key topics discussed during the conference included the impact of expansion on global trade and Panamanian commerce, trends in port logistics and the impact of expansion on worldwide port infrastructure.

International Maritime Organization Secretary-General Efthimios E. Mitropoulos was featured as a keynote speaker. At a press conference, he stressed the three maritime mandates of the IMO: safety, security and environment. He also heartily endorsed expansion, calling it “the right decision for Panama and the industry”.

Considered one of the main maritime events in Latin America and the Caribbean since 1991, the Panama Maritime VIII World Conference and Exhibition provides attendees an opportunity to discuss the latest trends and issues in maritime and port management. Organized by the Panamanian Maritime Law Association, the Panama Chamber of Shipping, the ACP and the Panama Maritime Authority, the event attracted more than 100 companies and other representatives from the maritime sector.

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