Cabinet Council Of Panama News

The Panama Canal is nearing full capacity and should seriously consider expansion to continue to be a major player in world trade, according to maritime experts and Canal customers at the Panama Maritime VII Conference, held February 20-23. Participating in the event were Panamanian President Martin Torrijos, Secretary General of the International Maritime Organization (IMO) Efthimios Mitropoulos, and several representatives of the Panama Canal Authority (ACP), including Administrator/CEO Alberto Alemán Zubieta. For the past two years, the ACP has commissioned research and studies related to the Canal’s modernization and the future of the maritime industry, including whether to expand the waterway. At this time, a final decision on whether to expand the Canal has not been made.

Following a recommendation from the Board of Directors of the Panama Canal Authority (ACP), the Cabinet Council of the Republic of Panama approved the proposal to restructure the Panama Canal's pricing system and certain regulations. On February 2, 2007, the ACP announced its desire to move toward a charge that moves closer to the commercial value of the service and route. After a more than 30-day public consultation period, in which a total of 21 written submissions were received, the ACP conducted a hearing on March 14 where a total of 14 representatives from shipping and government expressed their views. On April 5, in response to industry requests, the proposal was slightly modified: implementation of the new charges, for certain segments, was postponed from May 2007 to July 1, 2007.

Panama have approved the proposal to expand the Panama Canal. Yesterday, Dr. Ricaurte Vásquez, Chairman of the Panama Canal Authority’s (ACP) Board of Directors and concurrent Minister for Canal Affairs, submitted the said proposal to the National Assembly. The National Assembly will review the proposal and hold discussions that will be open to all Panamanian citizens. If approved, the Assembly will then create a law mandating a referendum to be held after 90 days in which the people of Panama will vote on expansion. The Panama Canal expansion would be the largest project at the Canal since its original construction. The project would double the waterway’s capacity and allow more traffic by creating a new lane along the Canal through the construction of a new set of locks.

The Chairman of the Panama Canal Authority's (ACP) Board of Directors announced recently its recommendation to build a new lane along the Panama Canal that will double capacity and allow more traffic. This is the result of comprehensive analyses and studies by the ACP. The project is estimated to cost $5.25 billion and will be paid entirely by users of the Canal through a graduated toll system. Dr. Ricaurte Vásquez M., Chairman of the ACP's Board of Directors, submitted the recommendation to President Martín Torrijos at a Town Hall meeting in Panama today. The president will discuss the recommendation with his Cabinet, make a recommendation to the National Assembly, and the process will culminate with the Panamanian people voting in a national referendum.

The Cabinet Council of Panama voted to approve a two-phase increase in Panama Canal tolls. The first phase, an average increase of approximately 8 percent, will be implemented on October 1, 2002; the second phase, consisting of an average increase of 4.5 percent, will take effect in July 2003. The Cabinet Council characterized the new pricing structure, which was proposed by the ACP, as an innovative move toward a customized toll system that is based on vessel type and tonnage and will allow for a permanent modernization program for the Canal. In a further effort to address the specific needs of individual Canal customers, the Council approved a locomotive charge of $200.00 per wire.