PANAMA CANAL: Driving Panama ’S Development Strategy
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PANAMA CANAL: Driving Panama ’s Development Strategy H.E . Samuel Lewis Navarro FFiirrsstt VViicceepprreessiiddeenntt aanndd MMiinniisstteerr ooff FFoorreeiiggnn AAffffaaiirrss BACKGROUND Torrijos -Carter Canal Treaties September 7th, 1977 Transfer of the Canal to Panamanians December 31st, 1999 PANAMA TODAY Panama Ports Cristobal Colon Container Terminal (Hutchinson Whampoa) (Evergreen) Manzanillo International Terminal (Stevedoring Services of America) Panama Ports Balboa (Hutchinson Whampoa) International Bidding for Concession of New Port Terminal Panama ’s Economic Growth and Foreign Direct Investment FDI - 2004 (in millions of USD) 1,500 1,012 758 1,000 557 459 156 293 186 500 0 Panama Costa Rica El Salvador Guatemala Honduras Nicaragua Dominican Republic Panama's GDP - Fiscal Years 2000 - 2005 (in billions of USD) 13.9 11.7 12.2 13.1 15 11.4 11.44 10 5 0 FY 2000 FY 2001 FY 2002 FY 2003 FY 2004 FY 2005 Comprehensive Reform Period CONSTITUTIONAL FREEDOM OF INFORMATION ACT FISCAL REDUCE FISCAL DEFICIT SOCIAL SECURITY FORECASTED TO COLLAPSE BY 2011 Panama's Strategic Location PANAMA CANAL The Canal Offers a Reliable, Efficient and Safe Service Canal Water Time Accident Rates 31.7 hours 37 30 35 Number of acciidents 24.6 25 30 20 25 20 15 15 12 10 10 5 5 1996 2000 2005 1996 2000 2005 Canal Waters Time decreased 20% 2004 had the fewest accidents from 32.9 hours in 1999 to 26.7 occurring in 81 years. hours today. CWT *Courtesy of DDiirreecctt CCoonnttrriibbuuttiioonnss ttoo tthhee GGoovveerrnnmmeenntt ((iinn mmiilllliioonnss ooff UUSSDD)) Publliic Serrviice Fees 117711 59 Diiviidends Publliic Serrviice 202 Fees 202 Diiviidends 993399 Annuiitty 227777 1,877 2,277 Fees perr Nett 11,,333399 Fees perr Nett Ton Ton 11,,116677 FY 1913 – 2000* FY 2000 – 2006** *Includes 3 months of the Panama Canal **Includes approved FY 2006 Commission (PCC) Panama Canal Modernization Program Atlantic Ocean . N Deepening and Widening of Atlantic Dredging Tugboats Entrance to 41.5 ´ draft . Gatun Locks Lighting System . Al hajuela Lake Deepening of the Straightening and Navigational Channel Deepening of Culebra to 34 PLD. Cut to 34 PLD. Gat ún Lake Increased draft to New Vessel Tie -up 40.5 ´. Station . Pedro Miguel Locks Deepening of the Lighting System . Pacific Entrance to 41.5 ’. Locomotives Miraflores Locks Lighting System . Pacific *Courtesy of Ocean Panamax -vs - Post -Panamax Panama Announces Expansion Project Panama Canal Authority presents expansion project to Presiden t Martin Torrijos and the people of Panama THE PROJECT Summary of Expansion Proposal Deepening and Widening of Atlantic Entrance. Atlantic Locks Widening and Deepening of Gatun Lake . Pacific Locks. Deepening of the Gaillard Cut. Deepening and Widening of Pacific Entrance. New Third Set of Locks *Courtesy of Source: ACP Expansion Proposal SECURITY Rotterdam Bremerhaven Rotterdam Tilbury Felixstowe Osaka Hamburg Nagoya Dunkerque Nagoya Halifax Thamesport Dunkerque Shanghai Seattle Zeebrugge Kwangyang Tokyo NJ/NY Qingdao Wilmington Le Havre Pusan Shimizu Newport News Antwerp Keelung Oakland Charleston Baltimore Port Said Yantian Miami Yantian Yokohama Los Angeles Miami . Savannah Hong Kong Los Angeles Everglades Hong Kong Long Beach Marseilles Kobe New Orleans Colon Colombo Kingston Chabang Hakata Veracruz Manzanillo La Spezia Kaohsiung Manzanillo (Mx) Cartagena Maracaibo Buenaventura La Guaira Tanjung Priok Puerto Lim ón Guanta Balboa Puerto Cabello Doniambo Manta Guayaquil Callao Santos Tahiti Arica Singapore Iquique Paranagua Brisbane Coquimbo Itajai Sydney Antofagasta Valpara íso San Antonio Auckland San Vicente Melbourne Source:“CPomapnaiar Dmata a ’s strategic location has long defined its role in world affairs ” Gen. Bantz J. Craddock, SOUTHCOM “… both in time of peace and in time of war it shall remain secure and open to peaceful transit by the vessels of all nations on terms of entir e equality, so that there will be no discrimination against any nation ” Torrijos – Carter Canal Treaties, 1977 .