With all of the excitement over the Panama Canal expansion project – currently slated for completion in 2016 – it’s no surprise that Colon has missed many people’s radar. That’s all going to change in the next few months. The port of Colon, Panama’s 2nd largest city at the Caribbean mouth of the canal, will be getting an $8 billion overhaul over the next few years. The project, which is tentatively named “Atlantic Panama Puerto Verde” will incorporate the current port, as well as a few neighboring islands, and will be customized to accommodate much larger vessels.
Colon’s location as a strategic port cannot be underestimated, as it has one of two entrances to the canal (the other in Panama City), and contains the world’s 2nd largest free trade zone. This free trade zone will also be getting a makeover during the port upgrade, making it more accessible, modern, and able to store more cargo, as well as accommodate more people.
According to press reports from La Presidencia de Panama in February of this year, “… The master plan for marine structure includes a multimodal port with areas for an industrial port, fishing, cruises (tourist), terminals for solid and liquid bulk cargo and fuel, logistics zone, singular building (five towers), tourism and trade zone, power plant, eco-park, connections and infrastructures in approximately 432 hectares of marine area and 225 acres of land area. ”
That same report states that “… the main objective of the Marine terminal is to meet future demand for shipping services and fuel supply of post-panamax boats that pass through the Canal, as well as serving as a complementary port for docking larger vessels with expanded dimensions which do not pass through the waterway. That is to say, those ships known as super post-Panamax. ”
Why a New Port in Colon, Panama?
Colon, despite its strategic location, is also well known for being one of the poorest cities in Panama. Colon is a mere 45-minute drive from the capital, but is very different in its layout, and culture. Whereas Panama City has seen a business and construction boom in the past 10 years, Colon has remained relatively stagnant. Due to the lack of investment, the Free Trade Zone is currently going through an economic slump. The port upgrade plans to change all that by adding new jobs, creating better infrastructure, and attracting more tourism, which is desperately needed in the area.
Where’s the Money Coming From?
The port investment, estimated at $7.972 billion, will surpass the canal expansion budget by billions. Funding will be coming from private sources, namely a number of foreign and domestic investors. Though a list of investors has not been made public yet, the government has solidified the Spanish company SMC Barcelona, SA, who recently bought state-owned land in preparations for development. Linden Partners, another Spanish firm, will look for external investment from some of the world’s biggest construction consortiums and civic developers, and promote the project.
As of now (April, 2014) there has been no set timetable for breaking ground, or completion. However, construction will be hurried in order to stay relatively on schedule with the current canal expansion. Once finished, the goal is to turn Colon into a Caribbean version of Panama City, giving the country two strategic business and trade points at either end of the canal. The Puerto Verde development will also help generate more tax revenue for the country, as it will open up business to much larger ships, and trade agreements.
