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Panama Pacifico
The Power of Free Zones, Special Economic Areas and Strategic
Business Centers in Panama

TRENDS
• Implications of Canal Expansion
• FTAs
• Increased trade of commodities
Where we are
– Exports to Asia (Colombia, Brazil,
Peru, etc.)
• Cold Storage
• Sustained growth of Latin America

Required Actions
• Government focus on improving infrastructure
• Public‐Private partnerships
– Qualified labor force
• Aligning all actors of the logistics chain
–Improve import and export processes
‐ Modernizing Customs
• Increase connectivity
• Regional Trade and Border Control Alliances
• Emphasis on Specialized economic areas:
– Focus on cluster development of targeted industries

Panama Canal, the main international trade
engine. Moved 6.6 million TEUs in 2011.
A network of highways and roads connecting
both shores
Panama: Platform to the
World Business Community
A state‐of‐the‐art port system operates in
both the Pacific and Atlantic shores
A railroad that connects both oceans in 1 hour
and handles over 350,000 containers each year.

PORT INFRASTRUCTURE
Panamanian seaports have demonstrated a sustainable growth on container movements
becoming the leading seaports in Latin America and the Caribbean, as per CEPAL’s ranking
for 2011 .
4,000,000
3,500,000
3,000,000
2,500,000
2,000,000
1,500,000
TEU Movement of Panamanian Ports
TEU 2009 TEU 2010 TEU 2011
Colon (MIT, Evergreen, Panama Port) Balboa
Port TEU 2009 TEU 2010 TEU 2011 Var. 2011/10
Colon (MIT, Evergreen,
Panama Port) 2,210,720 2,810,657 3,371,714 20,0%
Balboa 2,011,778 2,758,506 3,232,265 17,2%

ATLANTIC HUB
Statistics:
3,371,714 TEUS in 2011
Capacity: 7.7 million TEUs
35 quay cranes
16 berths
88 RTGs
Manzanillo International Terminal
Colon Container Terminal Panama Ports Company ‐ Cristobal

Balboa Port
Operated by Panama Ports Company
Moved 3,2 million TEUs in 2011
Plan: 22 Cranes 8 Panamax
10 Post Panamax
7 Super PostPanamax
Expansion: 30 hectares
5 boats/day, 45/50 weekly
Connected with MIT, Cristobal, and CCT by
railroad
During the first quarter 2011, Balboa has
increased a 32.6% the number of teus
handled compared to the same period in
2010. Increasing rates are shown in the
following quarters, even by the end of 2011
that reflected a growth of 10.7% by
comparing both periods.
Source: Georgia Tech Logistics Portal

Rodman Port:
Operated by PSA
Maximum Capacity: 2,2 milllion TEUs
Today: 3 Panamax Cranes
Expansion: 10 Cranes
Current Capacity: 150,000 TEUs
Container Berths: 1
Quay lenght (m): 330
Area (ha): 22.5
Max depth at chart Datum (m): 14.5

PANAMA CANAL RAILWAY
In‐Bond Railway Station
Operation
Port‐to‐Port Transshipment
Approximate travel time between terminals 1.5 hours
Current trains/day each direction 10
Potential trains/day each direction 32
Average containers per trip 100
Current container handling capacity 650,000 containers/year
Max container handling capacity 2,000,000 containers/year

STRATEGIC LOCATION

FORMER AIR FORCE BASE
• Operated as Howard U.S. Air Force Base until 1999
• Government hired the World Bank to perform a two year search for a Master
Developer
Law 41, 2004
created the
Panama Pacifico
Special
Economic Area
and the
AAEEPP
April 2007:
London &
Regional
Panamá was
awarded the bid
for Master
Developer
July 2007: The
AAEEPP signed
MDC with LRP;
December
2007: Master
Plan was
approved
January 2008:
LRP began
development

MASTER DEVELOPER
• Joint‐venture between Southstone Investment and UK‐based London & Regional
Properties.
• London & Regional Properties has over $20 billion in assets across three continents.
• Southstone owns 130 companies worldwide, in banking and finance.
• Awarded the bid to master develop in 2007 as part of the public‐private partnership.
• Started construction November 2008; $215 million in development as of May 2012.
• $405 million in development by 2015.

Simplified
Procedures
Special
Economic
Area Status
Government
Agency APP
LAW 41 OF
2004
BEST PRACTICE
LABORATORY
SPECIAL ECONOMIC AREA
Master Plan:
Mixed use
development
Master
Developer:
L&RP
� An Economic regime designed to
attract new direct Foreign
Investment into Panama
� Site Characteristics
� Large, integrated site
� Mixed‐use community
� Very low or no taxes for
targeted activities
� Best Practice Laboratory
� Simplified procedures
� Flexible zoning, land use

SPECIFIC BUSINESS ACTIVITIES

MULTINATIONAL COMPANIES

• 3PL Panamá
• Acqua Clean
• Agencia Aduanas Sellhorn
• Aggreko
• AirPro
• Albacrome
• Alliance Transport Logistics
• Alpha Marine Group
• Arsenal Industries
• Ascon
• Associated Steamships
• AtlasCopco
• Barwil Agencies
• Bombasa
• Boyd Steamship Corporation
• C.B Fenton & Company
• C. Fernie & Co.
• Cable & Wireless
• Cabo Drilling Corp
• Cargotec
• Canal Transit Services
• Cochlear
• Codico
• Consultores Urbanos
• Covidien
• Citibank
• Dynamic Logistics
• Edificar Panamá
• Escharch Panama
• Eternity International Freight
• Express Care
• Flavor Infusion
130+ ONSITE COMPANIES
• GMP Pacifico Architects
• Garal Bravetek
• Gateway Transit
• Gianfranco Agency
• Global Cold Chain System
• Global Profile
• Global Tunnelling Experts
• Grainger
• Green Ivory International
• Grudenthal
• Herrenknecht
• Hidropana
• Hi – Tek Marine
• I.P. Leather Corporation
• IT Lab
• IntelData
• KIO Networks
• KPMG
• Kings Ocean Services
• Marine Engineers Corp
• Mamphara Consulting Services
• Metro Service Logistics
• North American Aircraft Services
• Norton Lilly
• Nuctech
• Orica Mining Services
• Osala
• Quinyx Development
• PROMIX
• PanCo Contruction Consultants
• Panama Canal Port Service
• Panama Pacific Logistics
• Panamericana de Logística
• Petróleos Independientes de Panamá
• Primo Scientific
• Proex
• Quality Freight Corp
• Radio Holland
• Realtime Automation Solutions
• River Canarias
• Rozo & Company (Panama)
• ST Aerospace
• Sirenis Premium Travelers Inc.
• Stratus Building Solutions
• Thermaflex
• Trade Service Panama
• Transcanal Agency
• Transformer Industries (CAIVET)
• Trucks Logic
• VaultMax
• VT Shipping
• Valor Consulting
• W.R. Grace
• Ware Malcomb
• Wartsila
• Wilhelmsen Ship Services
• Wollschlaeger
• Yermont Enterprises

Data transmission
5%
Regional HQ of
Multinationals
5%
Call Center
1%
ONSITE COMPANIES BY INDUSTRY
Maritime
20%
Retail
14%
High tech‐ software
development
2%
Other services
7%
Offshore services
2%
Light manufacturing
and Distribution
11%
Logistics
16%
Professional services
11%
Backoffice
2%
Aviation
services
4%

LOGISTICS CLUSTER
Over 13 Logistics companies in Panama Pacifico
‐ Storage and distribution facilities
‐ Packaging, restocking, and light manufacturing services
‐ Land Freight, local transportation services
‐ Value Added Services (labeling, printing, ticketing)
‐ Logistics consulting
‐ Air Freight
‐ Cold Chain Logistics
‐ Order picking, Inventory Checking
‐ Dispatch
Atlas Copco; Dynamic Logistics; Eternity International Freight; Osala; Panamericana de
Logística; Trade Service Panama; Metro Service Logistics; Panama Pacific Logistics;
Quality Freight Corp; Trucks Logic; Alliance Transport Logistics; Global Cold Chain;
WWL Pacifico S.A.; 3PL Panama

Distribution Facility for Latam
Sea and Air Freight
CASE STUDIES
Merchandise: disposable medical supplies, medical equipment,
healthcare
Inbound and Outbound: Approximately 250 containers imported
and exported yearly
Origin: 90% out of US (west coast) and the other 10% between Asia
and Europe
Destination: Central America and Andean Region

Third Party Logistics Operator
Sea and Air Freight
Local operation: 20 permanent clients.
CASE STUDIES
Industries: Electrical, Electronic, Pharmaceutical, Construction, Consumer
products, Manufacturing.
Statistics: Approximately 220 containers annual import and 280 containers
annual export.
Import and Export destinations include: Europe, Asia, Central and South
America.
Manufacturing: Mixed projects, 3PL offers clients the possibility of installing
production lines. 3PL controls inventory for both raw material and finished
goods, allowing clients to dedicate resources to producing and selling.

MANUFACTURING CLUSTER
Over 11 manufacturing companies in Panama Pacifico
‐ High‐Technology Process Manufacturing
‐ High‐Techonology Product Manufacturing
‐ Laboratories
Manufacturing facilities:
3M, Albacrome, Green Ivory, Samtec, Flavor Infusion, BASF, WR Grace,
Bombasa, PSA Tapes, Panamlam, Hidropana, Wartsila

Printing Manufacturing Facility for Latam
Sea and Air Freight
Merchandise: Magazines, books, and other printing materials.
Statistics: Approximately 120 containers imported and
exported yearly; projected growth of 180 containers
Imports: USA and Europe
Exports: Central America and Caribbean region; PR and DR
Employees: 144 with expected growth
CASE STUDIES

Manufacturing Facility for World
Automotive industry
Sea and Air Freight
CASE STUDIES
Type of Business: Manufacturing Company.
Merchandise: Paint Application System Products.
Abrasive Discs Material.
Statistics: Approximately 90 containers imported and exported
yearly.
Imports: 100% raw material from US.
Exports: America, Europe and Asia.

MARITIME CLUSTER
Over 22 Maritime Companies in Panama Pacifico
Maritime Services to Ships and Passengers
‐ Maritime‐Cargo Services
‐ Shipping Agencies and representatives
‐ Shipchandlers
‐ Ship suppliers
‐ Repair and Maintenance of parts
Associated Steamships; Alpha Marine Group; Barwil Agencies; Boyd Steamship
Corporation; C.B Fenton & Company; C. Fernie & Co.; Canal Transit Services; Gateway
Transit; Hi – Tek Marine; Panama Canal Port Service; Rozo & Company (Panama);
Transcanal Agency; VT Shipping; Eternity International Freight; Gianfranco Agency ;
Kings Ocean Services; Marine Engineers Corp; River Canarias; Wartsila; Wilhelmsen
Ship Services; Yermont Enterprises; MEC

Corozal
Farfán
Future Projections
• Expected growth of 20%
annual increment in TEUs
to continue
• Pacific could receive 6
million TEUs by 2017
Corozal: Port or Logistics
Area?
Farfán: New Port on the west
side?
Prepare to Add Value!

A Legacy for all of Latin America
CONECTADOS POR NATURALEZA