Welcome to the Panama Weekly News Roundup! Here’s the latest.
Cruise Ships Seek Discount for Canal Passage
The Panama Canal expansion will mean lots more ships, and lots more business for Panama’s economy. Cruise companies will be one of many industries that will see a massive benefit. However, cruise companies aren’t so sure that a bigger Canal will necessarily create more incentive to create business. So, they’re asking for a discount.
Cruise companies have been pressuring Panama for years for incentives to expand their presence in Colón. During the 2015-2016 season, it is estimated that 220 cruise ships will transit the Canal, 20 more than last season.
The transit through the Canal is one of the main attractions offered to cruise passengers. A total of 206,112 cruise passengers disembarked in Panamanian ports between January and August.
Source: La Prensa Panama
Chinese State Developer Launches Panama’s Biggest Property Project
The Arraijan area of Panama has long been an neglected suburb, sitting just a few miles outside of the city on the west of the Canal. This is changing, however, as major investment is headed that way to improve local quality of life, and offer good, low-cost housing to middle class and working families who can no longer afford to live in the city. The project, funded by China, could be a blueprint for similar affordable housing projects in and around the country.
The US$137 million project, to be constructed by China Construction America-MCM Consortium, will benefit 11,250 people in the city of Vista Alegre, in the province’s Arraijan district. China Construction America is a fully-owned subsidiary of state-owned China State Construction Engineering Corporation.
Panamanian President Juan Carlos Varela spearheaded the City of Hope project, which calls for 2,250 homes, as well as schools, recreational centers and sports facilities, cultural centers and a new roadway in Arraijan.
Source: The Standard (Hong Kong)
PortMiami Expects to Benefit From Panama Expansion
US ports have been preparing for the Panama Canal Expansion for quite some time now. And none has been more aggressive that of the Port of Miami (PortMiami). They expect to have so much increased business after the new Canal opens, that they’ve massively overhauled their port in anticipation.
“After the extension to the Panama Canal opens, southeast United States will capture up to 400,000 additional moves and this makes it a highly competitive market for us,” Kevin Lynskey, assistant director of PortMiami told IHS Maritime.
PortMiami invested USD1.6 billion in infrastructure development over the past four years, primarily aimed at capturing a greater share of Asian trade, which currently accounts for 35% of the port’s total throughput. With the canal extension, that share is expected to rise to 50%.
Source: IHS Maritime 360
Panama Investing Big in Clean energy and Sustainable Development
There’s an energy demand in Panama, and in order to meet it the country needs to be smart. That’s why Panama is investing big into clean energy solutions and sustainable development projects. Not just for more energy, but for cleaner energy output, and more environmentally sound solutions. Here’s more from one of our latest blogs.
Filling an overwhelming demand with clean, sustainable solutions
Part of the reason Panama is so ripe for clean energy and sustainable development investment is the increasingly high demand for energy. Panama City consumes exponentially more energy per capita than it did even 15 years ago; and that’s not necessarily a bad sign. Panama’s high energy demand comes from rapid growth, a population surge, and a heavily logistics/service dependent economy.
The demand is so high, that Panama has had to ration power in recent years due to drought, and lack of ready energy surpluses created by hydroelectric plants that power the majority of the country. In order to find a sustainable, long-lasting solution that can fit the demand given the countries parameters, Panama has to go green.
Read more about investing in Panama clean energy
