expanding globally managing greater complexity

“Expanding Globally – Managing

Greater Complexity”

Session 6:

Panama: A Hub for Expansion

into the Americas

Dario Solis Georgia Tech Panama

Logistics Innovation and Research Center

Panama: A Hub for Expansion into the Americas

• Track: Expanding Globally Managing Greater Complexity

• Description: With the strengthening of the Central and South

American markets, and trade agreements with many countries in

those regions (including the Caribbean), Panama is bolstering its

reputation as a regional Distribution Center for the Americas.

• Panama’s geographic location and existing resources mean that it is

poised to become one of the most important trade hubs in the area.

• You will hear from experienced professionals and discover the

challenges and opportunities involved in centralizing your regional

distribution center operations in Panama.

Content

• Global Supply Chain Management Trends

• Reaching Latin America

• Panama’s Logistics and Transportation

System

• Trade Facilitation in Latin America

• North-South Trade Opportunities

• Final Remarks and Discussion

2

BASIC PROCESS DESCRIPTIONS

Import, Export, Re-export in Panama

Key processes are mapped with the objective

of giving visibility to users and suggesting ways

to streamline and make them more efficient.

For inbound and outbound logistics operations

of an international DC in Panama, knowing

these processes well is of great importance

together with the corresponding processes at

origin and destination.

IMPORTS

Broker prepares and saves customs pre-

declaration and special requirements

Container leaves port of

origin

Importer sends BL draft and invoice to

customs broker

Broker prepares customs declaration

and pays taxes at bank

Trucker goes to port and through customs

doc inspection

Container arrives at Panamanian Port

Trucker goes into yard to pick up container

Trucker leaves port with container

Start

End Trucker goes through container physical

inspection Container arrives at

warehouse

Customs brokers issue a pre-declaration and comply with special requirements

(this will depend on product type). When cargo arrives, brokers issue the

declarations and pay taxes at the National Bank. Importers will then need the

declarations and bills of lading to go through all government inspections and

retrieve cargo at the point of entry.

4

START Container arrives

at Manzanillo Port

Importer prepares

paperwork

Trucker goes to port and goes through doc inspection

Go to Free Zone’s on-site customs to

get container arrival clearance

Trucker retrieves container at port

yard

MANUFACTURING, ADDED VALUE,

ORDER PROCESSING

Arrange shipment, prepare export

paperwork

Go to single window for paperwork processing and

approval

Return to free zone and go to on-site customs with

container

Trucker delivers container at port

yard

Customs verifies export paperwork against SIGA and

places seal on container

Trucker goes to port and gets carrier, government and port’s clearance

Trucker returns to free zone to

deliver documents

END

Container is

cleared and

unloaded

Product

ready to be

exported

Trucker

goes to port

This process uses a Goods Movement Declaration document. This form validated

by customs officials registers all goods going in, out and through the special zone.

On-site customs offices at Free Zone facilities check documentation and carry out

goods inspection. They keep control by using a D6 form and a metal seal. This

form registers all non-nationalized cargo entering Panama roads network to be

moved from one customs location to another.

RE-EXPORTS

EXPORTS

Exporter prints draft and gathers

all export documents

Exporter loads container and gives export

paperwork to trucker

Product is ready to be

shipped

Exporter sends BL draft and copy of

invoice to customs broker

Broker generates and prints export declaration, fills out certificate of

origin and delivers docs to exporter

Empty container arrives 48 h prior

to ship departure

Trucker goes to port and through

customs doc inspection and

port office

Trucker goes into yard to leave container and Port unloads

container

Trucker leaves port

Trucker takes stamped export documents to

importer

Exporter gives documents to

customs broker

Broker takes documents to

single window for processing export and returns docs

to exporter

Exporter files documents

Start

End

Exports require a declaration of goods, certificate of origin and any other special

requirements (depending on the product type). Exporters or truckers will take all

documentation to port, go through document inspection and leave container at port

yard. Exporters will then need to take documentation to Single Window to register the

transaction at the Ministry of Commerce.

Exporter prints draft and gathers

all export documents

Exporter loads container and gives export

paperwork to trucker

Exporter sends BL draft and copy

of invoice to customs broker

Broker generates declaration,

certificate of origin and delivers docs

to exporter

6

Maritime Connectivity

• Panamanian Seaports

• Atlantic/Caribbean

• Pacific

Maritime connectivity

• 1914 Panama Canal Inauguration

• 1999 Panama Canal under Panamanian

Administration

• Sea Ports given in Concession

• New Ports in Development

• 2007 Panama Canal Expansion Project

Panama’s Maritime Connectivity

Country Min days

Costa Rica 0

Grenada 0

Honduras 1

Venezuela 1

Cuba 1

Dominican Republic 1

Colombia 1

Ecuador 1

Jamaica 1

Guyana 1

United States 2

Guatemala 2

Puerto Rico 2

Peru 2

Curacao 2

El Salvador 3

Nicaragua 3

Bahamas 4

Aruba 4

Trinidad & Tobago 4

Mexico 5

Chile 6

Brazil 7

Haiti 7

Guadeloupe 8

French Polynesia 10

Canada 10

Country Min days

Netherlands 11

Spain 12

Germany 12

Italy 13

Belgium 13

Sweden 13

Ireland 14

United Kingdom 14

Morocco 14

Bonaire 15

Russia 16

Fiji 17

France 18

New Zealand 18

Suriname 19

Turkey 19

Japan 20

South Korea 20

New Caledonia 20

Australia 21

China 22

Taiwan 23

Portugal 23

Ukraine 23

Uruguay 35

Argentina 37

Algeria 37

Egypt 38

Lebanon 39

Malaysia 45 Min days selected from all existing services

to that country destination

US to South America

Panama to South America

US to South America


Panama has better

connectivity to the West Coast

(15 services)

There are some services to

the Northeast Coast, but

only one service to the East

Coast

US to Panama

Origin country and port

Services to Panama Min transit time

(days)

United States

Charleston SC 8 3

Savannah GA 8 3

Miami FL 5 3

New York NY/NJ 11 4

Jacksonville FL 3 4

Port Everglades FL 6 5

Norfolk VA 5 5

Baltimore MD 2 5

Los Angeles CA 4 7

Freeport TX 1 7

Oakland CA 4 8

Houston TX 2 8

Gulfport MS 1 8

Long Beach CA 1 8

Wilmington DE 1 9

Philadelphia PA 2 10

Tacoma WA 2 11

Seattle WA 1 13

Portland OR 1 17

Most services have a 7 day frequency (call once a week)


Most services have a 7 day frequency (call once a week)

Destination country and port Services from Panama Min transit time

(days)

Colombia Buenaventura 7 1 Cartagena, Colombia 10 1 Santa Marta 2 1 Barranquilla 3 2

Venezuela La Guaira 3 1 Puerto Cabello 5 2 Puerto Sucre 1 4 Maracaibo 1 6 Guanta 1 8 El Guamache 1 19

Guyana Georgetown, Guyana 1 1

Curacao Willemstad 3 2

Ecuador Guayaquil/Puerto Bolivar 8 2

Peru Paita 4 2 Callao 9 4

Destination country and port Services from Panama Min transit time

(days) Brazil Macapa 1 7 Manaus 2 10 Vila do Conde 1 17 Recife 1 26 Santos 1 31 Paranagua 1 40 Itajai 1 42

Chile Valparaiso 3 9 San Antonio 6 11 San Vicente 4 12

Suriname Paramaribo 1 19

Uruguay Montevideo 1 35

Argentina Buenos Aires 1 37

Luci Part I (Maritime Connectivity)

• From US and Panama to

Central America, Caribbean and

Northeast Coast of South America

– Ports and Min transit time

From Houston To Central America, Caribbean and Northeast Coast of South America

9 Services

Destination Min days

Guatemala

Santo Tomas de Castilla 3

Dominican Republic

Caucedo, Dom Rep 4

Costa Rica

Puerto Limon 4

Bahamas

Freeport, Bahamas 5

Colombia

Cartagena, Colombia 5

Barranquilla 7

Jamaica

Kingston 7

Puerto Rico

San Juan PR 7

Panama

Cristobal, Panama 8

Manzanillo, Panama 15

Honduras

Puerto Cortes 9

Venezuela

Puerto Cabello 15

La Guaira 22

From Port Everglades To Central America, Caribbean and Northeast Coast of South America


Bahamas Freeport, Bahamas 1 Nassau, Bahamas 1

Cuba Havana 1

Jamaica Kingston 2 Montego Bay 3

Honduras Puerto Cortes 2

Guatemala Puerto Barrios 3 Santo Tomas de Castilla 3

Dominican Republic Rio Haina 3

Aruba Aruba 3

U.S. Virgin Islands St Thomas VI 3 St Croix VI 4

Costa Rica Puerto Limon 3

Bonaire Bonaire, Kralendijk 4

Colombia Cartagena, Colombia 4 Barranquilla 7 Santa Marta 8


Panama Manzanillo, Panama 5 Almirante 5 Balboa 29

St Lucia Castries, St Lucia 5

St Vincent and the Grenadines Kingstown, St Vincent 5

Haiti Port-au-Prince 5

Venezuela Puerto Cabello 5 La Guaira 6 El Guamache 10 Maracaibo 11

Curacao Willemstad 5

Trinidad & Tobago Point Lisas, Trinidad 6

Grenada St George's, Grenada 7

Barbados Bridgetown, Barbados 8

Guyana Georgetown, Guyana 8

Suriname Paramaribo 10

16 Services

From Miami To Central America, Caribbean and Northeast Coast of South America

19 Services


Dominican Republic Rio Haina 2 Boca Chica 3 Caucedo, Dom Rep 4 Puerto Plata 4

Guatemala Santo Tomas de Castilla 2 Puerto Barrios 3

Jamaica Kingston 2

St Maarten St Maarten-Philipsburg 3


Panama Manzanillo, Panama 3 Balboa 3 Cristobal, Panama 4

Bahamas Freeport, Bahamas 4


Belize Belize City, Belize 4


St Kitts and Nevis Basseterre, St Kitts 4

Antigua & Barbuda St John's, Antigua 5

Colombia Cartagena, Colombia 5 Barranquilla 6 Santa Marta 7 Puerto Bolivar, Colombia 8



Puerto Rico San Juan PR 6

St Lucia Vieux Fort, St Lucia 8




Guadeloupe Pointe-a-Pitre, Guadeloupe 10

From Jacksonville To Central America, Caribbean and Northeast Coast of South America

10 Services


Bahamas Freeport, Bahamas 2 Nassau, Bahamas 3

Puerto Rico San Juan PR 2

Jamaica Kingston 3 Montego Bay 21

Panama Balboa 4 Manzanillo, Panama 9

Guatemala Puerto Barrios 5

Aruba Aruba 5

U.S. Virgin Islands St Thomas VI 5 St Croix VI 6

Dominican Republic Rio Haina 5

Bonaire Bonaire, Kralendijk 6


St Lucia Castries, St Lucia 7 Vieux Fort, St Lucia 9


Venezuela Puerto Cabello 7 La Guaira 9 El Guamache 28


St Vincent and the Grenadines Kingstown, St Vincent 7

St Maarten St Maarten-Philipsburg 8



Grenada St George's, Grenada 9



Guadeloupe Pointe-a-Pitre, Guadeloupe 11

Colombia Barranquilla 14 Cartagena, Colombia 15

Curacao Willemstad 23


From Savannah To Central America, Caribbean and Northeast Coast of South America

15 Services


Bahamas

Freeport, Bahamas 1

Jamaica

Kingston 2

Panama


Balboa 5

Colon, Panama 10

Dominican Republic

Caucedo, Dom Rep 4

Rio Haina 6

Guatemala


Puerto Rico

San Juan PR 8

Honduras

Puerto Cortes 9

St Maarten

St Maarten-Philipsburg 9

St Lucia

Vieux Fort, St Lucia 10

Barbados

Bridgetown, Barbados 11

Guadeloupe

Pointe-a-Pitre, Guadeloupe 12

From Charleston To Central America, Caribbean and Northeast Coast of South America

11 Services


Bahamas

Freeport, Bahamas 1

Panama


Balboa 4

Colon, Panama 8

Cristobal, Panama 8

Jamaica

Kingston 4

Colombia


From Norfolk To Central America, Caribbean and Northeast Coast of South America

11 Services


Bahamas

Freeport, Bahamas 3

Guatemala


Panama


Colon, Panama 6

Balboa 6

Honduras

Puerto Cortes 6

Jamaica

Kingston 6

Dominican Republic

Rio Haina 8

Caucedo, Dom Rep 10

Puerto Rico

San Juan PR 10

St Maarten


St Lucia


Barbados


Guadeloupe


From New York To Central America, Caribbean and Northeast Coast of South America

19 Services


Panama

Colon, Panama 4


Balboa 8

Cristobal, Panama 11

Bahamas

Freeport, Bahamas 4

Dominican Republic

Puerto Plata 5

Rio Haina 6

Caucedo, Dom Rep 8

Jamaica

Kingston 5

Montego Bay 10

Puerto Rico

San Juan PR 5

Colombia 9


Haiti

Port-au-Prince 12

St Maarten


St Lucia


Barbados


Guadeloupe


From Panama To Central America, Caribbean and Northeast Coast of South America

41 Services (31 from Manzanillo)


Grenada

St George's, Grenada 0

Costa Rica

Puerto Limon 0

Dominican Republic

Caucedo, Dom Rep 1

Rio Haina 4

Puerto Plata 5

Jamaica

Kingston 1

Montego Bay 5

Colombia


Santa Marta 1

Barranquilla 2

Cuba

Havana 1

Venezuela

La Guaira 1

Puerto Cabello 2

Puerto Sucre 4

Maracaibo 6

Guanta 8

El Guamache 19

Honduras

Puerto Cortes 1

Guyana

Georgetown, Guyana 1


Puerto Rico

San Juan PR 2

Curacao

Willemstad 2

Guatemala


Puerto Quetzal 4

Puerto Barrios 4

El Salvador

Acajutla 3

Nicaragua

Corinto 3

Aruba

Aruba 4

Trinidad & Tobago

Point Lisas, Trinidad 4

Port of Spain, Trinidad 12

Bahamas

Freeport, Bahamas 4

Haiti

Port-au-Prince 7

Guadeloupe


Bonaire

Bonaire, Kralendijk 15

Suriname

Paramaribo 19

Luci Part II (Maritime Connectivity)

• From US and Panama to the

West Coast of South America

– Ports and Min transit time

From Port Everglades To the West Coast of South America

1 Service


Ecuador

Guayaquil/Puerto Bolivar 8

Peru

Callao 11

Chile

San Antonio 16

San Vicente 17

Colombia

Buenaventura 27

From Charleston To the West Coast of South America

2 Services


Ecuador


Peru

Callao 12

Colombia

Buenaventura 13

Chile

San Antonio 17

San Vicente 18

Arica 19

Coronel 24

From New York To the West Coast of South America

2 Services


Ecuador


Colombia

Buenaventura 16

Peru

Callao 16

Chile

San Antonio 21

Arica 22

San Vicente 22

Coronel 27

From Panama To the West Coast of South America

15 Services (10 from Balboa)


Colombia

Buenaventura 1

Ecuador

Esmeraldas 1


Peru

Paita 2

Callao 4

Matarani 10

Chile

Iquique 6

Arica 7

Mejillones 8

Valparaiso 9

San Antonio 11

Coronel 11

San Vicente 12

Luci Part III (Maritime Connectivity)

• Port Connectivity Comparison

New York to the World

Norfolk to the World

Savannah to the World

Miami to the World

Port Everglades to the World

Panama to the World

Air connectivity

Connectivity for airfreight

http://logistics.gatech.pa/en/assets/airports/connectivity/#/cargo

Indirect connections = 1 intermediate stop

COPA DHL

http://logistics.gatech.pa/en/assets/airports/connectivity/#/cargo

Airfreight Connectivity (DHL)

Destination country and airport

Flights per day Time (hours) M

o Tu

We

Th Fr Sa Su

Colombia El Dorado Intl 1 1 1 1 1 1 1:30

Costa Rica Juan Santamaría Intl 1 1 1 1 2 1 1:20

Ecuador José Joaquín de Olmedo Intl 1 1 1 1 1 1 3:00

Guatemala La Aurora 1 1 1 1 1 2:17

Honduras La Mesa Intl 1 1 2:07

Venezuela Simón Bolívar Intl 1 2 1 2 1 1 2:13 Arturo Michelena Intl 1 1 2:00

United States Cincinnati Northern Kentucky Intl (HUB) 1 1 1 1 1 Miami 1 2 1 1 1 1 2:51

COPA Airfreight

Connectivity for Passenger Flights (may also carry cargo)

Added slides

Melissa slides

PANAMA LOGISTICS ASSETS

47

Sea Ports

Airports

Panama Canal Locks

Road Network

Special Economic Zones

MAIN CONTAINER PORTS

Cristóbal CCT MIT

PSA Balboa

LOGISTICS CLUSTER IN THE ATLANTIC AND PACIFIC

• Colon Free Zone

• Panama Pacifico

• Free Zones (Law 32)

SPECIAL ECONOMIC ZONES

SPECIAL ECONOMIC ZONES

• Colon Free Trade Zone

– Established on 1948

– Biggest free zone in the

Western Hemisphere

– 1680 acres

– $19 Billion commercial

activity (import and exports)


• Colon Free Trade Zone – No sales tax, no production tax.

– Tax exemption on income derived

from abroad.

– No tax or duty on imports to or re-

exports from the Free Zone to

foreign countries.

– Income tax for companies

established in the Colon Free Zone

is the same one that applies at

the national level (1% over total

yearly income)


• Panama Pacifico

– Former U.S. military base

(Howard)

– 3,460 acres

– At Pacific Entrance of the

Panama Canal

– Mixed Real Estate (Industrial

and Residential)

– World-class commercial and

business hub capitalizing on its strategic location


• Panama Pacifico

– One-Stop Shop

– Special Immigration and Labor Standards

– Special Custom Regime

– Tax Incentives

– Investment Stability Law

– Single Registration

– Training Center

Logistics Opportunities in Free Zones

• Reductions on transportation costs by establishing free zones closer to

ports, airports or railroad

• Establishing free zones closer to local sources (suppliers, raw materials,

etc.)

• Fiscal exemptions enable:

– Importing and exporting goods without paying duties

– More competitive final goods

– Improve velocity of movement through customs

• Special labor provisions allow for:

– Reduction of labor cost due to more flexible provisions and migratory incentives

• Opportunities to locate in areas that will allow for future expansion


• Cluster development– dedicated to products or activities

• Warehousing – storage capacity

– Seek low costs for building or leasing warehousing space

– Flexibilty to design facilities based on specific needs

• Market specialization services (kitting, labeling, sub-manufacturing or assembly, repackaging, localization of

product features, etc.)

• Inventory – Postponement, Cross-docking, Service and Parts

distribution, Customer Service programs

• Transportation–transhipment, consolidation, direct store

delivery for select markets

• Improve service levels


• Opportunity to relocate production and distribution points to increase speed and access to markets

Henri slides

Panama Metro Project

• $1.88 billion for line 1 to be operational Q1, 2014

• Lenght: 14km

• Extension project for line 1 to be completed Q4, 2014

• Line 2 project to be awarded Q4, 2013

• Initial capacity: 15,000 per hour each way

Panama Cold Chain project

• Improve quality, distribution and longevity of perishable food products

• Investment: $288 million

• 4 post harvest centers(Volcan, Cerro Punta, Dolega, El Ejido)

• 5 markets(David, Chitre, Panama, Chorrera, Colon)

• Planned completion Q1, 2014 and fully operational Q3, 2014

252 km from Panamá

486 km from Panamá 80 km from Panamá 20 km from downtown Panamá

32 km from Panamá

Cold Chain Markets and Post-Harvest Centers

within Zones of Influence

Panama Road System improvements

• Via Brazil interconnect to North and South corridors

• 4th of July and Albrook tunnels and overpasses

• Via Tocument expansion to 6 lanes

• Cinta costera phase 3

• Panamá Colon freeway

• Total investment of around $1 billion

Future infrastructure projects

• 4th bridge over the Pacific side of the Panamá Canal

• Adjudication: 2014

• 6 vehicle lanes and center light rail tracks

• Cost no yet determined

• Permit expansion of Metro lines to the West suburbs of the capital


• 3rd bridge over the Atlantic side of the Panamá Cal

• Anticipated opening: Q2, 2015

• 6 vehicle lanes




• Capacity 2 million TEUs/year

• Area: 92 hectares

• Yard capacity: 36,000 TEUs

• Anticipated opening Q4, 2014

Panamá Colon Container Port Corozal Container Port

• Investment: $600+ million

• Area: 120 hectares

• 2.5 km quay

• Anticipated opening: N?A



• Area: 80,000 sq meters

• 20 gates

• Anticipated opening: Q4, 2016

Tocumen Airport South Terminal

Galores Cold Storage Solutions

• Area: 28,000 sq. Meters

• 20,000 pallet positions

• 20 docking spaces

• Blast freezing tunnel


Panamá Ports Expansion Projects Pacific Side

Balboa Port

• Expansion of yard space

• Additional RTG equipment for yard

Panamá International Terminal

• 800m of additional berth

• 10 new PPX STS cranes

• Expansion of yard to manage an annual

throughput of 2 Million TEUs.

Panamá Ports Expansion Projects Atlantic Side

Colon Container Terminal:

• New berth No. 4 and dredging to

16m depth

• Additional land concession to

expand yard capacity

Cristobal Port

• 8 ha of new yard space

• Additional yard equipment

Manzanillo International terminal

3 new berths

38 ha additional yard space to

increase yearly throughput to 4

Million TEUs

Additional yard and berth equipment

Central America Pacific Corridor

• 3,200 km from Panamá to Puebla, Mexico

• Investment: $2.5 billion

• Travel time: 48 hours from Panamá to Mexico

• Estimated completion: 2018

• Will reduce travel time from 9 to 2 days

• 72% of EU exports to Central America trucked

from Panama


USPA PPT / slides

Definition of Logistics Platform

• “a defined area within which all activities relating to transport, logistics and the distribution of goods, both for national and international transit, are carried out by various operators. It must encourage intermodal transport … served by a multiplicity of transport modes (road, rail, deep sea, inland waterway, air)… run by a single body, either public or private, … equipped with all the public facilities to carry out the above mentioned operations”. European Association of Freight Villages EUROPLATFORMS

http://www.freight-village.com/definition.php




Logistics Platforms Types

• Unimodal distribution centres – storage facilities for managing product flows and

stocks

– operated by one or several firms, and do not necessary involve joint operations

– typically ground transportation only

• Logistic areas

– involve integrated operations, stock consolidation, local and re- directioning activities…include traffic concentration and freight division points for switching to different transport modes…enabling geographical (or distribution) postponement and cross-docking activities

– Typically air or maritime freight centers

Logistic Platforms Types

• Multimodal Logistics Platforms – logistic nodes connecting different modes of

transport, emphasising added value services and not the specific transport modality used

– also known as hubs, which are usually linked to ports, in order to make the most of scale economies on international routes

– Their nodal function does not only include transport-related activities but also national and international logistics and distribution

– They are generally run by several operators

– Due to the large volumes handled and their excellent locations, they enable the implementation of nearly all different postponement strategies (geographic, manufacture and assembly)

Why Panama?

• Panama has a great potential to become the Trade Hub

of the Americas

• Ideal geographical position

• Well positioned to consolidate exports from Latin America to North America, Europe and Asia

• A natural regional distribution center for Latin America

• Excellent maritime and aerial connectivity for efficient, timely and safe movement of people and cargo

• World-class logistics assets – Panama Canal, two ocean seaport operations, free zones and

special economic areas, road and rail transportation, Tocumen International Airport, etc.

• Long term economic growth and political stability

• Thriving financial sector

Well Positioned Logistics Platform

* Foreign Direct Investment (FDI)

Global Competitiveness Report 2013-2014

(World Economic Forum)

12 11 10 10

2013-2014

2012-2013

Venture Capital Availability

Prevalence of Foreign

ownership

Country Capacity to

Attract Talent

Availability of financial service

Ease of Access to Loans

Soundness of banks

Affordability of financial services

Gov't procurement of advanced tech

products

Quality of port infrastructure

Quality of air transport

infrastructure

Business impact of rules

on FDI

Mobile Telephone

Subscriptions

FDI and technology

transfer

RANK COUNTRY RANK COUNTRY RANK COUNTRY RANK COUNTRY RANK COUNTRY RANK COUNTRY RANK COUNTRY RANK COUNTRY RANK COUNTRY RANK COUNTRY RANK COUNTRY RANK COUNTRY RANK COUNTRY

1 Hong Kong SAR Luxembourg Switzerland Switzerland Qatar Canada Hong Kong SAR Qatar Netehrlands Singapore Ireland Hong Kong SAR Ireland 1

2 Qatar Hong Kong SAR Singapore South Africa Hong Kong SAR New Zealand Luxembourg Singapore Singapore Hong Kong SAR Sinagapore Kuwait U. Arab Emirates 2

3 United States Singapore Qatar Hong Kong SAR U. Arab Emirates South Africa Qatar U. Arab Emirates Hong Kong SAR U. Arab Emirates Hong Kong SAR Gabon Panama 3

4 Norway United Kingdom United Kingdom Luxembourg Singapore Hong Kong SAR Singapore Malaysia U. Arab Emirates Netehrlands Luxembourg Panama Qatar 4

5 Sweden Czech Republic Hong Kong SAR Singapore Malaysia Singapore Switzerland Rwanda Finland Panama Panama Saudi Arabia Singapore 5

6 Singapore Ireland United States United Kingdom Oman Finland Finland Saudi Arabia Panama Finland Bahrain Russian Fed Costa Rica 6

7 Malaysia Slovak Republic U. Arab Emirates United States Bahrain Panama Panama Panama Belgium Switzerland Rwanda Suriname Luxembourg 7

8 Israel Australia Luxembourg Finland Panama Norway Norway Taiwan, China Iceland Germany U. Arab Emirates Oman Saudi Arabia 8

9 Taiwan, China New Zealand Canada Canada New Zealand Australia Bahrain Israel Germany Norway Mauritius Montenegro Lithuania 9

10 U. Arab Emirates Estonia Panama Panama Sweden Chile United States Brunei Darussalam Sweden France Chile Kazakhstan Bahrain 10

11 Finland Panama Norway Norway Norway Barbados Canada Luxembourg Bahrain South Africa United Kingdom Finland Dominican Rep 11

12 Panama Canada Ireland Netherlands Finland Brazil Taiwan, China Oman Spain Spain Morocco U. Arab Emirates Hong Kong SAR 12

8 7 7 7 6 5 5 4 3

17 9 N/A 4 12 4 2 11 4 6 5 2 3

RANK

Customs 74

Infrastructure 51

International shipments 79

Logistics competence 63

Tracking & tracing 57

Timeliness 56

Logistics Performance Index 2012

PANAMA

Performance by Category

Center Action Lines

61

Improvement Process

• Determine where we are through the development of a

baseline and models that take into account all Panama logistics assets and servicies

• Define and evaluate logistics performance index and

compare Panama to world leaders

• Articulate main country level logistics services and their relation with logistics assets and individual logistics services

• Identify bottlenecks and technological gaps in all processes

associated to country level logistics services

• Consolidate research results with best practices captured

through the NLC collaboration platform and in this way

proceed to validate proposed actions for the Logistics

Cabinet

• Assess impact of actions and begin the process again

Panama Platform Services

• Canal Transits

• Transshipment

• Re-export

• Export

• Import

• In-country logistics

• People mobility

• Tourism

Seaports

Airports

Panama Canal

Rail Road

Colon Free Zone

Panama-Pacifico Area

Road network

Customs

Panama Logistics

Environment

Final Remarks

• Improved Panama´s Competitiveness Performance Year to Year

• Excellent set of Logistics Assets that is in expansion

• Serving local, regional and global markets

• Essential Government-Industry collaboration model for growth being implemented

• Analytical capacity to support decision making is being developed with the support of Georgia Tech Panama Logistics Innovation and Research Center

• Great opportunity for Global and Regional Supply Chain Optimitzation that will result in new value adding activities for Panama and the Region

Panama as Singapore slides

Economic Outlook

Source: World Bank (2013) World Data Base

-2.00

0.00

2.00

4.00

6.00

8.00

10.00

12.00

14.00

2007 2008 2009 2010 2011

An

nu

al G

row

th (

%)

Year

GDP Annual Growth: 2007 - 2011

Argentina Brazil Colombia Panama Peru

Source: World Bank (2013) World Data Base

-4

-2

0

2

4

6

8

10

12

14

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

An

nu

al

Gro

wth

(%

)

Year

GDP Annual Growth: 2003 - 2011

Latin America & Caribbean Panama World

2009 Crisis influenced the world economic growth. The “Panama Miracle”

Panama’s today vision

• Panama is a growing

economy

• Increasing direct

foreign investment

and Multinational

Head Quarters

0

500

1000

1500

2000

2500

3000

2007 2008 2009 2010 2011

US D

olla

r

Year

Direct Foreign Investment in Panama: 2009 - 2011(million of US Dollar)

Source: INEC, Contraloria General de la Republica (2013)

10.1

3.9

7.5

10.8

10.7

0.0

2.0

4.0

6.0

8.0

10.0

12.0

Gro

wth

rat

e

Year

Panama's GDP growth rate:

2008/2007 - 2012/2011

Source: INEC, Contraloria General de la Republica (2013)

Source: MICI, Multinational Head Quarters Office

0

5

10

15

20

25

2007 2008 2009 2010 2011 2012 2013

Nu

mb

er

of

MH

Q

Year

Multinational Head Quarters established in Panama:

2007-2013

Government’s National Economic Plan – Four Pillars

Four Pillars

• Agroindustries

• Turisms

• Financial Services

• Logistics

(Canal, Ports, Airport, SEZ, VAS)

Some facts

• 17 of top 25 global 3 PLs have a significant presence in Singapore

• World’s 2nd Logistics Hub (World Bank, 2010)

• World’s easiest place to do business (World Bank, 2010)

• 90% of electronic permit applications processed within 10 minutes

• All physical cargo cleared within 13 minutes • Changi International Airport is served by over 80 airlines

operating over 4500 weekly schedule flights linking Singapore to 200 cities in 60 countries.

• PSA Singapore Terminal handle about one-fifth of the world’s total container transshipment throughput. Over 25 million TEUs in 2009.

Source: Singapore Economic Development Board (2010) www.sedb.com

Comparing Singapore and Panama: what they have in common?

• Strategic geographic location

• Global & Regional connectivity

• Business & Finance Centers

• Attractiveness for Global Players

Comparing Singapore and Panama: In what they differ?

• Singapore looks toward one ocean with all ports next to each other, facilitating transshipment Panama deals with 2 oceans requiring interconnection (rail/road) which is sensitive to externalities.

• Panama has 15 years in port expansion and 10 in aviation. Singapore has over 50 years orienting its economy as a global platform.

• National Strategy for utilizing resouces and developing capabilities in a long term agenda.

• Cultural differences.

Need for Efficiency and Competitiveness

Decision making process must be supported by Thought

Leadership, and Scientific and analytical thinking to

improve capacity and quality of the services.

All process should be efficient and less bureaucratic

Supported by new technologies: e-commerce and e-

logistics

All stakeholders are part of an integrated system, therefore

for a continuous process: collective knowledge

Final Comments

• Historical opportunity for developing a

logistics platform and trade

• Improvement will be driven by emerging

I+D+i, this requires Public and Private sector

support

• This PP relationship need formal and

structured forums for a continuous discussion

• Information is valuable for the decision

making process

• Define short, medium and long term

strategies for national scale up

ABB email Analysis of using Panama as your logistics platform

• GT Panama Center helps companies to

decide why to use Panama

* Description of company’s operations and businesses * Information of products - amount - type - frequency * Questions to be answered * Future Plans

Information Needed * Logistics analysis of maritime distribution network between 2 ports * Origin and destination * Inbound logistics needed * Assembling operations * Logistics Services available * Distribution analysis * Maritime Connectivity (liner services) * Logistics processes for imports and re-exports in Panama * Estimation of time/cost to ship inventory to/from Panama

Analysis that can be done

Danna and William slides

Guatemala Imports & Exports

* Source: Penta Transaction DB 2012 ** Source: http://www.ustr.gov/countries-

regions/americas

http://www.ustr.gov/countries-regions/americas



Costa Rica Imports & Exports


regions/americas




Panama Imports & Exports


regions/americas




Brazil Imports & Exports


regions/americas




Peru Imports &Exports


regions/americas




Uruguay Imports & Exports


regions/americas




Chile Imports & Exports


regions/americas




Saturno slides

Panama’s Free Trade Agreements

In America

• Canada

• USA (Trade Promotion Agreement)

• Central America

o Guatemala

o Honduras

o Nicaragua

o El Salvador

o Costa Rica

• Cuba

• Dominican Republic

• Trinidad and Tobago

• Colombia

• Peru

• Chile

Commercial Agreement

Free Trade Agreement

Rest of the world

• Taiwan

• Singapore

• Israel

• Vietnam

• EFTA - 4 Countries

o Norway

o Iceland

o Switzerland

o Liechtenstein

• ADA - 27 countries

Association Agreement

between EU and Central

America

Panama’s Free Trade Agreements

EFTA : Europe Free Trade Association (Joint Declaration for Cooperation)

South Korea

EFTA - Europe Free Trade Agreement

(Iceland - Liechtenstein - Norw ay - Sw itzerland)

Singapur

Rep. of China

(Taiwan)

Peru

Cuba

In force

Signed

In negotiation

Central America (Costa Rica,

El Salvador, Honduras,

Guatemala, Nicaragua,

Panama) Colombia

Canada

Trinidad

and Tobago

Chile

Aruba

Source: Ministry of Commerce and Industry

Dominican Rep.

ADA Associat ion Agreement

between EU and Central

America (28 countries)

ALADI (13 countries)

Argentina

Brazil

Bolivia

Chile - Colombia

Cuba

Ecuador

Mexico - Paraguay – Peru

- Venezuela – Uruguay -

Panama

Panama’s Free Trade Agreements STATUS

Israel

Mexico

Vietnam

ALADI: Latin America Integration Association

ADA: Association Agreement between EU and Central America

EFTA: Europe Free Trade Agreement

U.S. - Panama Trade Promotion Agreement

entered into force in October 31, 2012

expanding globally managing greater complexity

Documents