Rodolfo SabongeVicepresident Market

Research and AnalysisJanuary 15, 2009

Update on the Panama Canal ExpansionUpdate on the Panama Canal ExpansionShifting International Trade RoutesShifting International Trade Routes

• Canal Performance Indicators

• Canal Expansion Program

• Impact and Repercussions of The New Locks

• Canal Performance Indicators

• Canal Expansion Program

• Impact and Repercussions of The New Locks

PCUMS TONNAGEPCUMS TONNAGE

Average PC/UMS Tonnage for Commercial Transits

Average PC/UMS Tonnage for Commercial Transits

4,8324,832 9,9319,931 18,94018,940 23,51023,510

FY 1955 FY 1975 FY 1995 FY 2008

Traffic and RevenuesTraffic and Revenues

OPERATIONAL RESULTS FY-2008

Transits 14,702

Cargo (millions of PC/UMS tons) 309.6

Canal Waters Time (hours) – booked 18.52

31.54Canal Waters Time (hours) – regular

$-

$200

$400

$600

$800

$1,000

$1,200

$1,400

$1,600

$1,800

$2,000

$2,200

FY 2000 FY 2001 FY 2002 FY 2003 FY 2004 FY 2005 FY 2006 FY 2007 FY 2008

Mill

ion

dolla

rs

Revenues Expenses EBITDA

REVENUES

EBITDA

EXPENSES

(B/. MM) 2000 2008* Var.

Revenues 769 1,994 1,225

128

942EBITDA 140 1,082

Expenses 427 555

*Estimated

Investment ProgramInvestment Program

DredgingDredging

LocomotivesLocomotives

Hydraulic SystemHydraulic System

TechnologyTechnology Rail SystemRail System TugboatsTugboats

2000 2001 2002 2003 2004 2005 2006

113113

2007

Accumulated Investment(in millions of US Dollars)Accumulated Investment(in millions of US Dollars)

92 397233144115207126142113

Per year 2008 Proj.

1,5691,569

Project to improve locks chamber lightingProject to improve locks chamber lighting

Started in May 2005, completed in June 200892 high mast light fixtures were replaced, resulting in an increase in brightness as high as 300% between poles.107 retractile luminaries installed in Miraflores Locks; 40 in Pedro Miguel; and 132 in Gatun.

Started in May 2005, completed in June 200892 high mast light fixtures were replaced, resulting in an increase in brightness as high as 300% between poles.107 retractile luminaries installed in Miraflores Locks; 40 in Pedro Miguel; and 132 in Gatun.

New TugboatsNew Tugboats

Eight new tugboats arrived between January 2007 and August 2008 .Contracted 13 more tugboats, the first tugboat is scheduled to arrive by mid 2010.The contract also includes 2 options for 7 additional tugboats each, which will augment the current fleet to 42 tugboats by FY 2014.

Eight new tugboats arrived between January 2007 and August 2008 .Contracted 13 more tugboats, the first tugboat is scheduled to arrive by mid 2010.The contract also includes 2 options for 7 additional tugboats each, which will augment the current fleet to 42 tugboats by FY 2014.

RFP for 2 new tender dredge tugboats in FY 2009, to assist dredging work for the Expansion Program.

RFP for 2 new tender dredge tugboats in FY 2009, to assist dredging work for the Expansion Program.

Second Tie-Up Station North of Pedro Miguel Locks

Second Tie-Up Station North of Pedro Miguel Locks

Completed in December 2008.2 additional transits each day, important during fog season. Completed in December 2008.2 additional transits each day, important during fog season.

Merry-Go-Round System in Gatun LocksMerry-Go-Round System in Gatun Locks

Merry-Go-Round operations with the new turn tables began in October, 2008.The gain in throughput, together with the second tie-up station in Cartagena will increase capacity by two Panamax transits a day.

Merry-Go-Round operations with the new turn tables began in October, 2008.The gain in throughput, together with the second tie-up station in Cartagena will increase capacity by two Panamax transits a day.

New Cutter Suction DredgeNew Cutter Suction Dredge

RFP for new cutter suction dredge which will eventually replace the existing dredge, Mindi. RFP for new cutter suction dredge which will eventually replace the existing dredge, Mindi.

ACP PIERCES A3 PANAMA’S COUNTRY CEILING

ACP PIERCES A3 PANAMA’S COUNTRY CEILING

• Moody’s Investors Service rated A1 Government Related Issuer (“GRI”)

• The Proposed Senior Unsecured Debt Obligations of approximately $2 Billion of the Panama Canal Authority received a Prospective (P) A2

• In Moody’s view, the Panama Canal Expansion Program will likely be completed successfullygiven ACP’s management experience

0% 0% 0% 0.1% 0.2% 0.4%0.5% 1% 1.2% 2% 4% 7%10%

14%18%

24%

33%

44%

66%

0%

10%

20%

30%

40%

50%

60%

70%

AaaAa1Aa2Aa3A1 A2 A3 Baa1Baa2Baa3Ba1Ba2Ba3B1 B2 B3 Caa1Caa2Caa3

Credit Rating

Default Probability

Investment Grade

Speculative Grade

0% 0% 0% 0.1% 0.2% 0.4%0.5% 1% 1.2% 2% 4% 7%10%

14%18%

24%

33%

44%

66%

0% 0% 0% 0.1% 0.2% 0.4%0.5% 1% 1.2% 2% 4% 7%10%

14%18%

24%

33%

44%

66%

0%

10%

20%

30%

40%

50%

60%

70%

AaaAa1Aa2Aa3A1 A2 A3 Baa1Baa2Baa3Ba1Ba2Ba3B1 B2 B3 Caa1Caa2Caa3

Credit Rating

Default Probability

Investment Grade

Speculative Grade

Country Ceiling

Sovereign Rating

ACP

In the relevant routes (Asia-east coast of the United States) the Panama Canal transported 43.0% of the Panama Canal trade cargo in 2008.

The Panama Canal Trade and Main UsersThe Panama Canal Trade and Main Users

64% of Canal cargo traffic originates in or is destined to the United States

Total Cargo Movement FY 2008USERS FY 2007* FY 2008* 2008 (%)

United States 136.8 133.7 64

China 43.7 43.7 21

Chile 22.0 26.7 13

European Union 26.5 26.1 12

Japan 29.2 24.7 12

South Korea 17.3 17.3 8

Peru 13.1 14.1 7

* Measured in Million of Long Tons

Importance of the Panama Canal Countries of America

(in millions of metric tons) CY 2007

Importance of the Panama Canal Countries of America

(in millions of metric tons) CY 2007

Carga a través del

CanalImportancia origen/Total Exportaciones

Importancia del Canal para

las exportaciones

Carga a través del

Canal Importancia

Destino/Total Importaciones

Importacia del Canal para las importaciones

País Origen % % Destino % %Argentina 0.2 0.1 93.1 0.2 0.1 0.0 14.4 0.5 Brasil 3.0 1.4 445.7 0.7 0.8 0.4 87.1 0.9 Canadá 7.5 3.6 233.1 3.2 2.3 1.1 151.5 1.5 Caribe 7.3 3.5 76.8 9.5 7.8 3.7 86.2 9.0 América Central y Panamá 5.1 2.5 19.4 26.5 16.3 7.8 41.1 39.8 Chile 12.4 5.9 42.3 29.3 10.7 5.1 20.4 52.6 Colombia 6.1 2.9 90.4 6.7 4.9 2.3 18.2 26.8 México 4.9 2.3 133.4 3.7 5.7 2.7 63.5 8.9 Otros países CE Suramérica 0.1 0.0 14.8 0.5 0.1 0.0 13.4 0.4 Ecuador 7.6 3.6 24.7 30.9 6.7 3.2 8.1 82.0 Perú 6.9 3.3 26.9 25.8 6.6 3.1 12.8 51.4 Venezuela 5.1 2.4 304.5 1.7 2.0 1.0 14.8 13.6 Estados Unidos 71.8 34.4 449.2 16.0 66.0 31.6 985.7 6.7 Total carga del Canal 208.9 208.9

Sorce: ACP with maritime trade projections of Global Insight (“Global Trade Navigator”), Jun 2008.

PC/UMS by Market Segment(in millions - FY 2002-2008)

PC/UMS by Market Segment(in millions - FY 2002-2008)

-10

10

30

50

70

90

110

130

Container 64 79 86 98 113 128 124

Dry Bulk 57 50 53 55 59 50 51

Liquid Bulk 30 26 30 34 33 39 43

General Cargo 8 7 7 7 8 8 8

Refrigerated Cargo 16 17 18 19 17 18 18

Passenger 7 8 11 10 9 9 9

Vehicle Carrier 35 37 37 36 37 41 40

Others 17 19 24 20 20 19 17

2002 2003 2004 2005 2006 2007 2008

Growth of container traffic throughthe Panama Canal (1995 - 2008)

Growth of container traffic throughthe Panama Canal (1995 - 2008)

0

500

1000

1500

2000

2500

3000

3500

4000

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

Tran

sits

0

2

4

6

8

10

12

14

16

Mill

ion

TEU

s

Transits (1,302 - 3,544)

Capacity TEUs (0.75M-12.9M)

Based on the capacity of transiting vessels – Source: ComPair Data

IMPACT OF U.S. ECONOMIC SLOWDOWN ON CONTAINER SERVICES THROUGH THE PANAMA CANAL

IMPACT OF U.S. ECONOMIC SLOWDOWN ON CONTAINER SERVICES THROUGH THE PANAMA CANAL

Oct. Oct.

20012001

Oct. Oct.

20022002

Oct. Oct.

20032003

Oct. Oct.

20042004

Oct. Oct.

20052005

Oct. Oct.

20062006

Oct. Oct.

20072007

Oct. Oct.

20082008

Capacity (M. TEUs) 2.9 3.3 4.0 4.2 5.1 6.5 6.3 6.4

Vessels Deployed 181 198 256 264 270 324 290 299

Average Vessel Size (TEUs) 2,816 2,942 3,189 3,201 3,298 3,516 3,559 3,595

Number of Services Through the Canal 20 23 32 33 34 42 38 37

• Canal Performance Indicators

Short-term Forecast

• Canal Performance Indicators

Short-term Forecast

World Economic OutlookWorld Economic Outlook

4.22.5-1.54.97.49.1Goods

World trade growth (%)

8.07.47.09.411.911.6China

1.40.5-1.21.12.62.9Euro area

0.90.5-1.70.12.42.0Japan

2.10.7-2.01.12.02.8US

2.71.5-0.42.43.94.1World (market exchange rates)

Real GDP growth (%)

201120102009200820072006

Economist Intelligence UnitJanuary, 2009

8.59.18.55.84.68.88.47.66.8Unemployment Rate (percent)

69.065.157.163.785.657.255.258.057.7Consumer Sentiment (Univ. Of Michigan)

1.3390.9760.6040.9061.3410.6020.5610.5660.670Housing Starts (Millions)

3.42.4-2.23.82.92.2-0.9-6.9-9.3Consumer Price Index (% change y/y)

77.3851.2534.2599.5972.1835.0030.0032.6758.45Oil Price, WTI (Dollars/barrel)

4.863.362.333.674.632.342.222.183.26Ten-Year Treasury Yield (percent)

3.340.940.131.935.020.130.130.130.54Federal Funds Rate (percent)

3.22.2-2.51.22.00.5-1.8-5.4-5.6US Real GDP (percent change)

2011201020092008200709:309:209:108:4

AnnualQuarterlyIHS Global InsightJanuary, 2009

Source: ACP with information from The Economist Intelligence Unit.

U.S. GDP Growth Forecasts(Source: EIU)

-0.50.00.51.01.52.02.53.03.54.0

2005 2006 2007 2008 2009 2010 2011

(ann

ual g

row

th ra

te %

)

April 2006

Jan 2007

Real

Feb 2008

Jul 2008

Sep 2008

Nov 2008

World trade could decrease for the first time in more than 20 years

World trade could decrease for the first time in more than 20 years

World Trade Growth(EIU, Dec 2008)

-202468

101214

2006 2007 2008 2009 2010 2011 2012

Rat

e of

Gro

wth

(%)

World Developed Countries Developing Countries

US Containerized Imports from North East AsiaUS Containerized Imports from North East Asia(in million TEUs)(in million TEUs)

Q1 Q2 Q3 Total Q1 Q2 Q3 Total Q1 Q2 Q3 TotalUS East Coast .6 .6 .7 2.0 .6 .6 .7 2.0 3.5% 3.7% -3.9% 0.8%Us Gulf Coast .0 .0 .1 .1 .0 .0 .0 .1 9.6% 3.7%-15.7% -2.2%US East C. Total .7 .7 .8 2.1 .7 .7 .8 2.1 3.9% 3.7% -4.7% 0.6%US West Coast 2.0 2.2 2.3 6.4 1.8 1.9 2.0 5.7 -8.6%-10.8%-10.0% -9.9%Total 2.6 2.8 3.0 8.5 2.5 2.6 2.8 7.9 -5.5% -7.4% -8.6% -7.3%

2007 2008 % Var

Source: PIERS

China´s GrowthChina´s Growth

UPDATE 1-IMF: lower China growth, unprecedented slowdownMon Dec 15, 2008 7:22am EST MADRID, Dec 15 (Reuters) - The IMF could cut its forecast for Chinese 2009 economic growth to around 5 percent in its next revision as theglobal economy suffers an unprecedented slowdown, IMF Managing Director Dominique Strauss-Kahn said on Monday.In its last forecast released in November, the International Monetary Fund had predicted that China's growth would fall to 8.5 percent in 2009 from 9.7 percent this year. November's forecast for 2009 was 0.8 percentage points lower than the IMF's previous forecast."We started with China at 11 pct growth, then 8, then 7 then China will probably grow at 5 or 6 percent. The possibility of a global recession isreal, we realize something must be done," " said Strauss-Kahn during a conference in the Spanish capital."We are facing an unprecedented decline in output and we have evidence of substantial uncertainty limiting the effectiveness of some fiscal policy measures," he said."We anticipate that the gross effect will last some time. We need large and diversified stimulus support that will last longer than one or twoquarters.""An adequate level will be around 2 percent of (world) GDP -- $1.2 trillion -- and this may make a sizeable difference and reduce the risk of a damaging global recession," he said."The good news, with some exceptions, maybe a lot of exceptions, we can see the beginning of the recovery end of 2009, beginning of 2010, butthere are a lot of downside risks," he added. (Reporting by Andrew Hay; Editing by Jason Webb and Christian Lowe)

UPDATE 1-IMF: lower China growth, unprecedented slowdownMon Dec 15, 2008 7:22am EST MADRID, Dec 15 (Reuters) - The IMF could cut its forecast for Chinese 2009 economic growth to around 5 percent in its next revision as theglobal economy suffers an unprecedented slowdown, IMF Managing Director Dominique Strauss-Kahn said on Monday.In its last forecast released in November, the International Monetary Fund had predicted that China's growth would fall to 8.5 percent in 2009 from 9.7 percent this year. November's forecast for 2009 was 0.8 percentage points lower than the IMF's previous forecast."We started with China at 11 pct growth, then 8, then 7 then China will probably grow at 5 or 6 percent. The possibility of a global recession isreal, we realize something must be done," " said Strauss-Kahn during a conference in the Spanish capital."We are facing an unprecedented decline in output and we have evidence of substantial uncertainty limiting the effectiveness of some fiscal policy measures," he said."We anticipate that the gross effect will last some time. We need large and diversified stimulus support that will last longer than one or twoquarters.""An adequate level will be around 2 percent of (world) GDP -- $1.2 trillion -- and this may make a sizeable difference and reduce the risk of a damaging global recession," he said."The good news, with some exceptions, maybe a lot of exceptions, we can see the beginning of the recovery end of 2009, beginning of 2010, butthere are a lot of downside risks," he added. (Reporting by Andrew Hay; Editing by Jason Webb and Christian Lowe)

_

Crecimiento del PIB - China

0.02.04.06.08.0

10.012.014.0

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013Fuente: EIU, Dec 2008

?

China´s GDP Growth

Freight Rates for Dry Bulk Carries by Route(Nov 2007 through Dec 2008)

Freight Rates for Dry Bulk Carries by Route(Nov 2007 through Dec 2008)

Fuente: Clarkson Research Services Limited 2008

0

20

40

60

80

100

120

140

160

11/2

4/06

12/2

4/06

1/24

/07

2/24

/07

3/24

/07

4/24

/07

5/24

/07

6/24

/07

7/24

/07

8/24

/07

9/24

/07

10/2

4/07

11/2

4/07

12/2

4/07

1/24

/08

2/24

/08

3/24

/08

4/24

/08

5/24

/08

6/24

/08

7/24

/08

8/24

/08

9/24

/08

10/2

4/08

11/2

4/08

12/2

4/08

Weeks

$ / t

on

Golf of Mexico to Japan Pacific NW to Asia Difference

Price of Corn (FOB)

165

177

171

160

155

165

147 15

016

416

4 171 18

020

622

023

424

624

428

726

523

523

418

316

4

130

150

170

190

210

230

250

270

290

Jan-07

Feb-07

Mar-07

Apr-07

May-07

Jun-07

Jul-0

7Aug-07Sep

-07Oct-

07Nov-0

7Dec

-07Ja

n-08Feb

-08Mar-

08Apr-0

8May

-08Ju

n-08Ju

l-08

Aug-08Sep

-08Oct-

08Nov-0

8

Pric

e pe

r Met

ric T

on( $

)

Fuente: World Bank, Pink Sheets. Costo FOB de maíz amarillo en puerto del Golfo, EE.UU.

Price of Coal (FOB)

52.9

52.9 55

.2 56.1 58

.1 61.6 67

.3 69.6

68.4 74

.8 84.6 91

.0 91.8

132.0

123.3

123.0

133.2

159.8

180.0

157.5

150.0

111.3

92.3

40

60

80

100

120

140

160

180

200

Jan-07

Feb-07

Mar-07

Apr-07

May-07

Jun-07Ju

l-07

Aug-07Sep

-07Oct-

07Nov-0

7Dec

-07Ja

n-08Feb

-08Mar-

08Apr-0

8May

-08Ju

n-08Ju

l-08

Aug-08Sep

-08Oct-

08Nov-0

8

Pric

e pe

r Met

ric T

on($

)

Fuente: World Bank, Pink Sheets. Costo FOB de carbón australiano en puerto de Newcastle

Price of Copper

5616 5676

6452

7766

7651

7474

7973

7502 76

49 8008

6967

6588

7061

7888

8439 86

8583

8382

61 8414

7635

6991

4926

3717

3000

4000

5000

6000

7000

8000

9000

10000

Jan-07

Feb-07

Mar-07

Apr-07

May-07

Jun-07Ju

l-07

Aug-07Sep

-07Oct-

07Nov-0

7Dec

-07Ja

n-08Feb

-08Mar-

08Apr-0

8May

-08Ju

n-08Ju

l-08

Aug-08Sep

-08Oct-

08Nov-0

8

Pric

e pe

r Met

ric T

on($

)

Fuente: World Bank, Pink Sheets. Costo del metal de cobre grado A (incluye cátodos y cables)

Price of Steel Bars (FOB)48

548

8 515 53

3 545

545

493

475

545

545 56

955

7 575 59

974

579

079

093

398

010

3079

376

068

3

400

500

600

700

800

900

1000

1100Ja

n-07Feb

-07Mar-

07Apr-0

7May

-07Ju

n-07Ju

l-07

Aug-07Sep

-07Oct-

07Nov-0

7Dec

-07Ja

n-08Feb

-08Mar-

08Apr-0

8May

-08Ju

n-08Ju

l-08

Aug-08Sep

-08Oct-

08Nov-0

8

Pric

e pe

r Met

ric T

on($

)

Fuente: World Bank, Pink Sheets. Costo FOB de barras de acero(steel rebar) en Japón.

PC/UMS Tonnage ProjectionsPC/UMS Tonnage Projections

PCUMS Tonnage Projections

0

100

200

300

400

500

600

700

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

2015

2017

2019

2021

2023

2025

2027

2029

2031

2033

2035

Mill

ion

tons

Historical Projections

• Canal Performance Indicators

• Canal Expansion Program

• Canal Performance Indicators

• Canal Expansion Program

Panama Canal Expansion Program Objectives

Panama Canal Expansion Program Objectives

Maintain Canal competitiveness as well as the value of the route

Increase capacity and allow the transit of larger ships

Reduce water consumption

Improve safety and efficiency

Sustain tonnage and profitability growth

Maintain Canal competitiveness as well as the value of the route

Increase capacity and allow the transit of larger ships

Reduce water consumption

Improve safety and efficiency

Sustain tonnage and profitability growth

Canal Expansion Program Components

Canal Expansion Program Components

• Deepening of Pacific and Atlantic entrance channels

• Deepening and widening of the Gatun Lake navigation channel

• Construction of new access channel for Pacific Locks

• Construction of new Post PanamaxLocks and water saving basins in the Atlantic and the Pacific

• Increase the maximum operating level of Gatun Lake

294.1 m (965’)294.1 m (965’)

33.5 m (110’)33.5 m (110’)

32.3 m (106’)32.3 m (106’)

294.1 m (965’)

294.1 m (965’)

366 m (1,200’)366 m (1,200’)

55 m (180’)55 m (180’)

49 m (160’)49 m (160’)

427 m (1,400’)

427 m (1,400’)

12.8 m (42’)

18.3 m (60’)

6

12.4 m(39.5’)12.4 m(39.5’)

15.2 m(50’)

15.2 m(50’)

Existing Locks –Maximum Vessel:Existing Locks –Maximum Vessel:4,400 TEUs4,400 TEUs

New Locks –Maximum Vessel:New Locks –Maximum Vessel: 12,600 TEUs12,600 TEUs

New LocksNew Locks

Existing Locks

Existing Locks

Dimensions of the Locks and Post-Panamax ShipsDimensions of the Locks and Post-Panamax Ships

7

Atlantic Entrance Deepening & WideningAtlantic Entrance Deepening & Widening

width: 225m (740´) ▶width: 225m (740´) ▶

Volume: 14 M m3

Bid scheduled for: December 31, 2008

8

Post-Panamax LocksPost-Panamax Locks

Atlantic and Pacific Locks(30 M m3 Dry Excavation)

Atlantic and Pacific Locks(30 M m3 Dry Excavation)

1 Contract1 Contract

Gatun LocksGatun Locks

Gatun LakeGatun Lake

Atlantic OceanAtlantic Ocean

New LocksNew Locks

Gatun DamGatun Dam

9

Atlantic Locks Atlantic Locks

West LaneWest Lane East LaneEast Lane

New LaneNew Lane

10

Pacific LocksPacific Locks

East Lane East Lane

West Lane West Lane

New Lane New Lane

North Access Channel to New Pacific Locks 46M m3 of Dry Excavation - 4 Contracts

North Access Channel to New Pacific Locks 46M m3 of Dry Excavation - 4 Contracts

PAC 4PAC 4PAC 2PAC 2PAC 3PAC 3

PAC 1PAC 1

PAC 1PAC 3

PAC 2

New Locks

PAC 4

Elev

atio

nin

Met

ers

Post-Panamax Water Saving BassinsLocks Operation

Post-Panamax Water Saving BassinsLocks Operation

Basin 1 Basin 2 Basin 3

Existing LocksExisting LocksNew LocksNew Locks

Wat

er U

tiliz

atio

nW

ater

Uti

lizat

ion

With the reutilization water basins the new Locks will use 7% less water than the existing Locks

With the reutilization water basins the new Locks will use 7% less water than the existing Locks

12

13Arrived October 10, 2008

Pacific Entrance Deepening and Widening(9.1 M m3)

Pacific Entrance Deepening and Widening(9.1 M m3)

Companies

Dredging International Boskalis International BV

Jan De Nul N.V/Van Oord Dredging and Marine Contractors BV

RFP issued: August 30, 2007.Pre-Bid Conference: September 20, 2007.Site visit: September 19, 2007.Bid Opening: March 14, 2008.Awarded: April 01, 2008.Amount: $177,500,676.78Company: Dredging International (Belgium)Start date: July, 2008.

RFP issued: August 30, 2007.Pre-Bid Conference: September 20, 2007.Site visit: September 19, 2007.Bid Opening: March 14, 2008.Awarded: April 01, 2008.Amount: $177,500,676.78Company: Dredging International (Belgium)Start date: July, 2008.

14

Contractor’s Equipment and the Pacific Entrance Dredging Works begins

Contractor’s Equipment and the Pacific Entrance Dredging Works begins

Cut & Suction DredgeCutter of 1,766 kW

Suction and Discharge of 900mm of diameter

Cut & Suction DredgeCutter of 1,766 kW

Suction and Discharge of 900mm of diameter

Hopper DredgeCapacity: 5,200 m3 / 11,650m3

Drilling & Blasting Barge of 10 TowersDrilling & Blasting Barge of 10 Towers

Cut & Suction DredgeCutter of 8,160 hp / 6,000 KwSuction and Discharge of 1,000mm of diameter

Cut & Suction DredgeCutter of 8,160 hp / 6,000 KwSuction and Discharge of 1,000mm of diameter

Vlanderen XIXVlanderen XIX

Locks Design-Build ProjectProcurement Schedule

Locks Design-Build ProjectProcurement Schedule

New dateLast Individual Meeting with

Consortia17-DIC-08

AGO SEP OCT NOV DIC ENE FEB MAR ABR MAY JUN JUL AGO SEP OCT NOV DIC ENE FEB MAR APR MAY

2007 2008 2009

Issue RFQ27-AUG-07

Issue Draft RFP21-DEC-07

SOQ Due15-NOV-07

Short-ListSelection

14-DEC-07

One-on-One Meetings with

Consortia29-JAN-08

Pre-BidConference26-MAR-08

Final RFP Issued

18-APR-08

Designation of the Technical

Evaluation Committee

14 months14 months

InformationMeeting

13-SEP-07

Bid Proposal Due In

3-MAR-09

ContractAward

JUNE 2009

15

Consortio Members Designers Gate Frabricators

ACS Servicios, Comunicaciones y Energía, S.L. – Líder Sener Ingeniería y Sistemas

Acciona Infraestructuras, S.A. Haskoning Nederland BV

Fomento de Construcciones y Contratas, S.A. Mott Macdonald Limited

Hochtief Construction AG Hochtief Consult

C.A.N.A.L.

Constructoras ICA S.A. de C.V.

ACS Servicios, Comunicaciones y Energía, S.L.

Bouygues Travaux Publics – Líder

Bilfinger Berger

VINCI Construction Grands Projets

Construcoes e Comercio Camargo Correa S.A.

Construtora Andrade Gutierrez S.A.

Construtora Queiroz Galvao S.A.

ALSTOM Hydro Energia Brasil

Atlántico-Pacífico de Panamá

BARDELLA Ind. Mecánicas

AECOM – Líder ALSTOM HydroEnergia Brasil

Bechtel, Taisei, Mitsubishi Corporation

Bechtel Internacional, Inc. – Líder

Bechtel Internacional, Inc. –Líder Wuchang Shipyard Taisei Corporation

Mitsubishi Corporation

Grupo Unidos por el Canal

Sacyr Vallehermoso S.A. – Líder Montgomery Watson Harza(MWH) – Líder

Heerema Fabrication GroupImpregilo S.p.A. IV-Groep

Jan de Nul n.v. Tetra Tech

Constructora Urbana, S.A.

Prequalified ConsortiaPrequalified Consortia

Expansion Program Financing StructureExpansion Program Financing Structure

Multilateral Agencies Amount

European Investment Bank (EIB) $ 500 million

Japan Bank for International Cooperation (JBIC)

$ 800 million

Inter-American Development Bank (IDB) $ 400 million

International Finance Corporation (IFC) $ 300 million

Corporación Andina de Fomento(CAF)

$ 300 million

Terms and Conditions of the ProposalTerms and Conditions of the Proposal

EIB EIB JBIC JBIC IADBIADB IFCIFC CAFCAF

Commercial Commercial Banks with Banks with

NEXI NEXI guaranteeguarantee

Amount up Amount up toto (millions) (millions) $500 $500 $800 $800 $400 $400 $400 $400 $400 $400 $400 $400

Tenor /GraceTenor /Grace(years) (years) 20/1020/10 20/1020/10 20/1020/10 20/1020/10 20/1020/10 20/1020/10

Fees rangeFees range5.55% 5.55% (Fixed)(Fixed)

L + 48 bpsL + 48 bps

L + L + 7575 bpsbps

L+ 120 L+ 120 bpsbps L+ 135 bpsL+ 135 bps L+ 140 L+ 140

bps (3)bps (3)

6.35% (Fixed)6.35% (Fixed)L+ (120 + 42) L+ (120 + 42)

bpsbps

Commitment FeeCommitment Fee Not Not ApplicableApplicable 0.25%0.25% 0.25%0.25% 0.25%0.25% 0.25%0.25% 0.40%0.40%

Initial Initial CommissionCommission

Not Not ApplicableApplicable 0.50%0.50% 0.50%0.50% 0.50%0.50% 0.50%0.50% 0.85%0.85%

Agency Agency CommissionCommission 0.02%0.02%

As ofAs of October 8, 2008 October 8, 2008 -- Libor 6M = Libor 6M = 4.1075%4.1075%

EXPANSION PROGRAM´S PROGRESS COMUNICATIONEXPANSION PROGRAM´S PROGRESS COMUNICATION

19

• Canal Performance Indicators

• Canal Expansion Program

• Impact and Repercussions of The New Locks

•In Panama

•Trade Patterns

• Canal Performance Indicators

• Canal Expansion Program

• Impact and Repercussions of The New Locks

•In Panama

•Trade Patterns

21

294.1 m (965’)294.1 m (965’)

33.5 m (110’)33.5 m (110’)

32.3 m (106’)32.3 m (106’)

294.1 m (965’)

294.1 m (965’)

366 m (1,200’)366 m (1,200’)

55 m (180’)55 m (180’)

49 m (160’)49 m (160’)

427 m (1,400’)

427 m (1,400’)

12.8 m (42’)

18.3 m (60’)

21

12.4 m(39.5’)12.4 m(39.5’)

15.2 m(50’)

15.2 m(50’)

Existing Locks –Maximum Vessel:Existing Locks –Maximum Vessel:4,400 TEUs4,400 TEUs

New Locks –Maximum Vessel:New Locks –Maximum Vessel: 12,600 TEUs12,600 TEUs

New LocksNew Locks

Existing Locks

Existing Locks

Dimensions of the Locks and Post-Panamax ShipsDimensions of the Locks and Post-Panamax Ships

22

U.S. Port Working DepthsU.S. Port Working Depths

U.S. East Coast MLW

Boston 38’

New York / New Jersey 43’

Philadelphia 38’

Baltimore 40’

Norfolk 48’

Wilmington 42’

Charleston 47’

Savannah 42’

Jacksonville 38’

Miami 39’

35’New Orleans

40’Houston

MLWU.S. Gulf

U.S. West Coast MLW

Los Angeles / Long Beach 50’

Oakland 50’

Portland 35’

Seattle / Tacoma 50’

Depths at Mean Low Water (MLW)

Tampa 43’

23

NS’ Intermodal Network

Norfolk Southern System

Intermodal Terminal

Market Expansions thru 2011

New Facilities/Markets

IM Port Terminal

TCS Terminals

24

NS Is Currently Engaged in Over $3 billion in Network improvements Targeting IntermodalNS Is Currently Engaged in Over $3 billion in Network improvements Targeting Intermodal

• Meridian Speedway: $300mm– Complete 2010

• Heartland Corridor: $250mm– Complete 2010

• Patriot Corridor: $140mm– Complete 2010*

• Crescent Corridor: $2.4bb– Completion tbd

• Meridian Speedway: $300mm– Complete 2010

• Heartland Corridor: $250mm– Complete 2010

• Patriot Corridor: $140mm– Complete 2010*

• Crescent Corridor: $2.4bb– Completion tbd

*Still under review by STB

25

Norfolk Southern System

NS Intermodal Routes

Clearance Restrictions

NS’ Core Intermodal Network4 Corridor Strategy

26

Dry Bulk Carriers Additional Cargo Capacity in the Expanded Panama Canal

Dry Bulk Carriers Additional Cargo Capacity in the Expanded Panama Canal

Existing Canal

Vessel data:

Cargo carrying Capacity ( tons) 80,238 100,000 -119,000

120,000 –150,000

151,000 –169,000

170,000 –200,000

Utilization rate via the Panama Canal 78% 98% 78% 76% 74%

Cargo (Metric Tons) 62,430 107,310 105,300 121,600 136,900Length (meters) 272.5 260.5 273 289 292Beam (meters) 32.3 43.9 43 43.1 48Salt Water Draft (meters) 14.1 13.8 17.5 17.4 18

Length (meters) 294.1 365.8 365.8 365.8 365.8Beam (meters) 32.3 48.8 48.8 48.8 48.8Tropical Fresh Water Draft (meters) 12 15.3 15.3 15.3 15.3

Utilization rate via the Panama Canal without restrictions 100% 100% 100% 100% 100%

Cargo without restrictions (Metric Tons) 80,238 107,310 132,300 156,800 181,300

Expanded Canal

Typical Panamaxvessel

Maximum size

ConceptSize Range for Dry Bulkers carrying Coal in the expanded canal

Panama Canal Restrictions:

27

Tankers Additional Cargo Capacity in the Expanded Panama Canal

Tankers Additional Cargo Capacity in the Expanded Panama Canal

Existing CanalTanker Vessel with Maximum

DimensionsVessel Data Aframax Suezmax VLCCTotal Cargo Capacity of vessel 88,170 100 - 119,999 120 - 199,999 > 200,000Utilization percentage of vessel through the Canal 70.0% 94.7% 89.6% 73.9%

Cargo in metric tons 64,257 107,520 146,316 226,205 LOA (m) 272.5 269 267 326Beam (m) 32.2 39.3 46.3 49Fresh water draft (m) 15.5 16.0 17.02 20.64Dimensions allowed by the Panama CanalLOA (m) 294.2 366 366 366Beam (m) 32.2 49 49 49Fresh water draft (m) 12 15.2 15.2 15.2Unrestricted vessel utilization percentage 100% 100% 100% 100%

Cargo carrying capacity with maximum draft of 15.2 m 88,170 101,818 131,107 167,064

Additional cargo allowed with expanded Canal (in MT) 23,913

Expanded CanalSize Range for Tanker Vessels in

Expanded Canal

28

CO2 Footprints per TEU: Container Route Shanghai - New York

CO2 Footprints per TEU: Container Route Shanghai - New York

2.62 2.64

4.07

2.863.02

2.182.38

3.37

2.86

2.51

1.92

2.23

2.98

2.53

2.21

0.00

0.50

1.00

1.50

2.00

2.50

3.00

3.50

4.00

4.50

Panama Canal Landbridge Cape Horn Cape of Good Hope Suez Canal

CO

2 Em

issi

ons

PanamaxPost-Panamax 8000 TEU

Post-Panamax 8700 TEU

29

CO2 Footprints per MT: Tanker Route Esmeraldas, Ecuador – Houston, U.S.

CO2 Footprints per MT: Tanker Route Esmeraldas, Ecuador – Houston, U.S.

0.000

0.020

0.040

0.060

0.080

0.100

0.120

0.140

0.160

Panama Canal Cape Horn Cape ofGood Hope

Suez Canal

CO

2 Em

issi

ons

in M

T

PanamaxAframaxSuezmax

30

International Ports Connected through the Panama Canal every Week

International Ports Connected through the Panama Canal every Week

Source: ACP and ComPairData, 2007Source: ACP and ComPairData, 2007

SavannahSavannahYantianYantian

KwangyangKwangyang

Hong KongHong Kong

PusanPusan

SavannahSavannahKeelungKeelung

WilmingtonWilmingtonPusanPusan

NJ/NYNJ/NY

RotterdamRotterdam

Le HavreLe Havre

HalifaxHalifax

FelixstoweFelixstowe

Long BeachLong BeachLos AngelesLos Angeles

BremerhavenBremerhaven RotterdamRotterdam

KaohsiungKaohsiung

CharlestonCharleston

NagoyaNagoya ThamesportThamesport

OaklandOakland

SeattleSeattle

TokyoTokyo

ColomboColombo

ShanghaiShanghai

YokohamaYokohama

Newport NewsNewport News

HakataHakata Manzanillo (Mx)Manzanillo (Mx)

RotterdamRotterdam

KobeKobe

OsakaOsaka HamburgHamburg

ShimizuShimizu Port SaidPort Said

ZeebruggeZeebrugge

ChabangChabang

TahitiTahiti

AucklandAuckland

DoniamboDoniambo

BrisbaneBrisbaneSydneySydney

MelbourneMelbourne

Tanjung PriokTanjung Priok

SingaporeSingapore

MarseillesMarseilles

La SpeziaLa Spezia

TilburyTilbury

DunkerqueDunkerque

QingdaoQingdao

BuenaventuraBuenaventuraGuayaquilGuayaquil

CallaoCallaoAricaArica

CoquimboCoquimbo

San AntonioSan AntonioSan VicenteSan Vicente

Puerto LimónPuerto Limón

IquiqueIquique

MantaManta

AntofagastaAntofagastaValparaísoValparaíso

..

BalboaBalboa

AntwerpAntwerp

ItajaiItajai

SavannahSavannahBaltimoreBaltimore

New OrleansNew Orleans

ParanaguaParanaguaSantosSantos

Puerto CabelloPuerto Cabello

VeracruzVeracruz ManzanilloManzanilloColon Colon

CartagenaCartagenaLa GuairaLa Guaira

GuantaGuantaMaracaiboMaracaibo

EvergladesEverglades

KingstonKingston

MiamiMiami

Transit the CanalFeeder services that don´t transit the Canal

BostonBoston

31

Port Development in Panama

Port Development in Panama

Manzanillo International Terminal (MIT)

Manzanillo International Terminal (MIT)

Colon Container TerminalColon Container Terminal

Panama Ports Company - BalboaPanama Ports Company - Balboa

Panama PortsCompany –Cristobal

Panama PortsCompany –Cristobal

32

1996: 235 Thousands TEUs2008(e): 4.7 Millions TEUs1996: 235 Thousands TEUs2008(e): 4.7 Millions TEUs

Source: Panama Maritime Authority (AMP).

33

Panamax Cranes PPX TotalPPC-Balboa 8 10 18PPC-CRI 3 3 6CCT 4 6 10MIT 2 14 16

17 33 50

34

Inventory of gantry cranes (Ship-to-Shore gantry cranes) in Latin America and the Caribbean

33 - Mexico

1 – Costa Rica

2 - Guatemala

1 - Nicaragua2 - Honduras

Source: Containerization International Yearbook 2008

17 - Jamaica7 – Dominican Rep.

6 – Puerto Rico10 - Bahamas

4 - Cuba

4 –Trinidad & Tobbago

3 - Guadeloupe

18 - Argentina

31 - Brazil8 - Chile

4 - Colombia

2 - Uruguay

1 - Ecuador

5 – French Antilles

1 - Haiti1 - Aruba

50 – Panama (21%)

187 – LA & the Caribbean

237 – Total

35

Forecast2010: 6.6 millions TEUs2015: 8.4 millions TEUs

Forecast2010: 6.6 millions TEUs2015: 8.4 millions TEUs

Source: Panama Maritime Authority (AMP).

36

PSA Panama International Terminal• ½ million TEUs capacity

• USD$ 70 million investment

• 20 yr concession agreement

37

NEW PORT FACILITY:

FARFAN LOCATION?

NEW PORT FACILITY:

FARFAN LOCATION?

Population Source: International Monetary Fund, World Economic Outlook Database, October 2007

Map of insufficiencies in transportation and logistics in Latin America and the Caribbean

Sources: R. J. Sánchez , G. Wilmsmeier, CEPAL, DRNI, ACPSources: R. J. Sánchez , G. Wilmsmeier, CEPAL, DRNI, ACP

This is a graphic approximationThis is a graphic approximation

• Demand dispersion• Insufficiency in cargo requirements in

density and frequency• Deficient transportation infrastructure• Investments difficult to justify• Topographical problems• Congestion or shortage at borders• Population dispersion• Shipping services restrictions• Waterway insufficiencies• Deficiencies in connectivity among

production and consumption centers

• Demand dispersion• Insufficiency in cargo requirements in

density and frequency• Deficient transportation infrastructure• Investments difficult to justify• Topographical problems• Congestion or shortage at borders• Population dispersion• Shipping services restrictions• Waterway insufficiencies• Deficiencies in connectivity among

production and consumption centers

Short Sea Shipping NetworkShort Sea Shipping Network

POST-PANAMAX MOVEMENT

CO

NN

ECTI

NG

PO

RTS

CO

NN

ECTI

NG

PO

RTS

MANZANILLOLAZARO CARDENAS

ACAPULCOSALINACRUZ

SAN JOSEPUERTO QUETZAL

ACAJUTLALA LIBERTAD

CORINTOPUERTO SANDINO

PUNTARENASCALDERAGOLFITO

PUERTO ARMUELLESBALBOA

BUENAVENTURATUMACO

ESMERALDASGUAYAQUIL

PAITACALLAO

ANTOFAGASTAVENTANAS

VALPARAISOSAN ANTONIOTALCAHUANO

TAMPICOVERACRUZCOATZACUALCOSBELICE CITYPUERTO CORTESPUERTO CASTILLAPUERTO CABEZASEL BLUFFPUERTO LIMONCHIRIQUI BRANDECRISTOBAL-MIT-EVERGREENCARTAGENABARRANQUILLAPUERTO BOLIVARPUERTO CABELLOLA GUAIRASUAP / PCEMRECIFEVITORIA TUBARAURIO DE JANEIROSEPETIBASANTOSPARANAGUAMONTEVIDEOBUENOS AIRESBAHIA BLANCA

Panama key indicators

Indicator 2006 2007 2008e 2009f 2010fReal GDP(% change, annual rate) 8.5 11.5 9.3 5.2 7.5Inflation rate(% change, annual rate) 2.5 4.2 8.7 4.0 2.5Unemployment rate(As % of Economically active population) 7.1 4.9 4.2 4.0 4.0Fiscal surplus (or deficit)(Non Financial Public Sector as % of GDP) 0.5 3.5 1.3 3.8 4.1Total public debt(As % of GDP) 61.0 53.7 45.5 42.1 38.4

Source: ACP with data of Indesa.

The Non-Financial Public Sector (NFPS) had a fiscal surplus in 2006 and 2007. In the following years, the NFPS surplus is expected to be between 1.3% and 4.1 %, which will reduce the public debt as percentage of GDP.

Fiscal Surplus(As pecentage of GDP)

0.5

3.5

1.3

3.8 4.1

0

1

2

3

4

5

2006 2007 2008e 2009f 2010f

% o

f GD

P

Public Debt(As perentage of GDP)

61.053.7

45.5 42.1 38.4

010203040506070

2006 2007 2008e 2009f 2010f

% o

f GD

P

Source: ACP with data of Indesa.Source: ACP with data of Indesa.

Transport and logistics cluster indicatorsTransport and logistics cluster indicators

Indicator

Canal

Revenues

(% change, annual rate)

Trans-shipment ports

TEU's

(% change, annual rate)

Railway

TEU's

(% change, annual rate)

Colon Free Trade Zone

Re-exports (Thousands of dollars)

(% change, annual rate)

Passenger air hub

Tourist and transiting passenger

(% change, annual rate)

International air cargo

Air cargo

(% change, annual rate)

2001 2002 2003 2004 2005 2006 2007

774.5 829.3 953.5 1,086.3 1,262.5 1,588.1 1,786.2-1.4% 7.1% 15.0% 13.9% 16.2% 25.8% 12.5%

1,591,472 1,672,315 1,991,659 2,428,836 2,774,579 3,029,872 4,074,17817.1% 5.1% 19.1% 22.0% 14.2% 9.2% 34.5%

3,709 28,240 41,550 60,354 142,920 168,229 303,003661.5% 47.1% 45.3% 136.8% 17.7% 80.1%

5,410.1 4,837.1 4,566.9 5,469.8 6,664.3 7,666.1 8,523.31.7% -10.6% -5.6% 19.8% 21.8% 15.0% 11.2%

2,103,861 1,938,933 2,077,657 2,364,756 2,710,857 3,164,582 3,764,8548.8% -7.8% 7.2% 13.8% 14.6% 16.7% 19.0%

74,370 84,361 83,488 92,847 100,063 79,648 93,6331.1% 13.4% -1.0% 11.2% 7.8% -20.4% 17.6%

Source: ACP with data of Contraloría General de la República and Dirección Nacional de Aeronáutica Civil.

Panama Transport & Logistic ClusterPanama Transport & Logistic Cluster

CANALINTEROCEANIC

TRANSIT

ACP

LOGISTICS

WATERSHED

HYDROGRAPHY

TOURISM

BUNKERING

TRAINING

UNIONS

SHIPPINGAGENCIES

RELATED AND COMPLEMENTARY SERVICES

DATABASE

SPECIAL REGULATORYZONES

PUBLICSERVICESAIRPORTS

OVERLAND TRANSPORTATION

FINANCIAL SERVICES

WAREHOUSINGSERVICES

TELECOMMUNICATIONS

MARITIME CHAMBER

PILOTS

INSPECTION

FLOATING CRANES

INDUSTRIALSERVICES

TUGBOATS AND LAUNCHES

INSURANCEBANKING

BOARD OF INSPECTORS

ENERGY

WATER

REFRIGERATION

LABOR UNIONS

DREDGING

TRAFFIC CONTROL

Canal Museum

SPORTSFISHING

TourismInstallations

TOUR GUIDES

TRADE

URBAN TRANSPORTATION

HOTELS

RESTAURANTS

UNIVERSITIES

Maritime Training and Development

PORTS

SCHOOLS

COMMUNICATIONSERVICESLAWYERS

OPTIC FIBER

SHIPFITTERS

INTERNATIONALUNIONS

RAILROAD

SHIP MAINTENANCE AND REPAIR

Source: ACP with information of the Panama Canal Impact.

Transport and Logistics Cluster InvestmentTransport and Logistics Cluster Investment

Source: ACP with information of Capital Financiero, La Prensa and Panama Commerce Chamber.

ProjectUS$

(Millions) Start date End date

Cluster: TRANSPORT AND LOGISTICS 9,762Canal expansion 5,250 2007 2014

Trans-shipment Ports and railway 2,391Panama Port Company terminal (Balboa and Cristobal) 1,000 2008 2010Manzanillo International Terminal 211 2008 2010Colon Container Terminal 450Rodman container terminal (Singapur -PSA Internacional) 100Farfán Container Terminal (Palo Seco) 600Panama Canal Railway Company 30 2008 2008

Cruiseship terminal 18Colón 2000 cruiseship terminal ( Home Port) 14Farfan terminal for ship chandlering and others services 4 2009 2010

Panama-Pacific Economic Area (Howard) 477Howard Development Master Plan 405 2008 2016Caterpillar and Hewlett Packard regional distribution and logistic center 72

Bunker terminal-Colon Oil and Services, S.A. (COASSA) 22

Passenger and cargo air hub 652COPA passenger and cargo air hub 582 2007 2008Tocumen air port 70 2009 2010

Colon Free Trade Zone (Infrastructure, warehousing, etc.) 200 2009

Pipeline expansion (Pumping Capability: Atlantic to Pacific ) 150

Other projects in Canal area 770Real estate in Canal area 700Gehry Museum 70

Economic Impact of the Panama Canal ExpansionEconomic Impact of the Panama Canal Expansion

Unemployment RatePercentages

0

2

4

6

8

10

12

14

16

2000 2005 2010 2015 2020 2025Years

Without ExpansionWith Expansion

InvestmentIn Millions of Dollars at 2006 prices

2,0002,5003,0003,5004,0004,5005,0005,5006,000

2000 2005 2010 2015 2020 2025Years

Without Expansion

With Expansion

Gross Domestic ProductIn Millions of Dollars at 2006 prices

5,000

10,000

15,000

20,000

25,000

30,000

35,000

2000 2005 2010 2015 2020 2025Years

Without ExpansionWith Expansion

Cluster Exports In Millions of Dollars at 2006 prices

4,0006,0008,000

10,00012,00014,00016,00018,00020,000

2000 2005 2010 2015 2020 2025Years

Without ExpansionWith Expansion

Source: ACP.

Main Logistics Hubs Main Logistics Hubs

SINGAPORESINGAPORE

HONG KONGHONG KONG

SHANGHAISHANGHAI BUSANBUSAN

ROTTERDAMROTTERDAM

HAMBURGHAMBURG

DUBAIDUBAI

LA/LBLA/LBNY/NJNY/NJ

SHENZHENSHENZHEN

HAMPTON RDS.

HAMPTON RDS.

SAVANNAHSAVANNAH

FREEPORTFREEPORTKINGSTONKINGSTON

ALGECIRASALGECIRAS

PANAMAPANAMA

Thank You!Thank You!

Rodolfo SabongeVice president, Market Research and Analysisrsabonge@pancanal.com