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Container Management

Mega problems for Panama terminal plan

July 21, 2006
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One of those expressing concerns about the plan is Roberto Alfaro, former Minister of Commerce and Industry (1990–94) – during which time he signed the contract with MIT to build and operate the first private port in Panama – and subsequently Panamanian ambassador to Italy (2000–02) and to the US (2002–04). Another is Lic. Julio Ross, Administrator of the Interoceanic Region (ARI) 2004–06 and yet another is Rommel Troetsch, president of Panama’s Chamber of Shipping.

The preliminary design for the ‘mega-terminal’, to be constructed on a man-made peninsula near the west-side Pacific entrance to the Canal, envisions a facility occupying up to 113 ha, with a 1,600 m berth with 15 m depth alongside, and a throughput capacity of 2.4m teu. Said to be costing in the order of US$600m for the initial stage, the project is being handled by the Office of the President of Panama in conjunction with the Panama Maritime Authority (APM), as part of the country’s maritime strategy.

The proposed mega-terminal has initiated significant debate, with a number of practical and political issues yet to be resolved. One argument against the proposal is that there will not be sufficient volumes of cargo to support another mega transhipment terminal in Panama, particularly when the PPC/Cristobal/MIT developments are completed. Panama Ports alone is expanding its facilities there to double their present capacity.

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