American Association of Port Authorities

Alberto Alemán Zubieta Administrator Authority January 26, 2010 The 1914 The Panama Canal Today The Panama Canal 2014 Panama Canal Traffic and World Events

US Housing- 350 Financial Crisis China (2007-2009) Enters WTO 300 Alaskan Oil (1980-1982) 250 Gulf War (1990- Suez Canal 1991) Re-opened 200 (1975) Suez Canal Iraq II World Closure Invasion War Korean (1967) 150 (1939-1945) War (1950-1953) Opening of Great Vietnam War

Million Canal tons Canal Million Trans- 100 (1958-1975) Second I World War Depression isthmian Ports' strike (1929-1934) Oil (1914-1918) Pipeline in California Crisis (1983) (1979) "El Niño" and (2004) 50 First Oil Asian Crisis Crisis (1997-1998) 1973

0

1929 1935 1939 1945 1915 1917 1919 1921 1923 1925 1927 1931 1933 1937 1941 1943 1947 1949 1951 1953 1955 1957 1959 1961 1963 1965 1967 1969 1971 1973 1975 1977 1979 1981 1983 1985 1987 1989 1991 1993 1995 1997 1999 2001 2003 2005 2007 2009f

Source: Transits vs. PC/UMS Tonnage FY 1914 – FY 2009

PC/UMS Tonnage for Commercial Transits

299.1

4,832 9,931 18,940 23,227

FY 1955 FY 1975 FY 1995 FY 2009

14,342 Dredging Investment Program

Accumulated Investment 1,570 (in millions of US Dollars)

Locomotives

113

FY 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

113 142 126 207 115 144 233 92 347 51

Technology Rail System Tugboats

Hydraulic Systems Average Canal Waters Time by Fiscal Year Global

Average Canal Waters Time by Fiscal Year Global 36

31.6 32 30.0 28.5 28

24 23.1

20

Hours 16

12

8

4

0 2006 2007 2008 2009 Fiscal Year Expansion Program Update Expansion Program 15.8 Mm3 Components

Atlantic Ocean

Atlantic Post Increase the Maximum Existing Locks Operating Level of Gatún Lake Deepening & Locks widening of the Atlantic entrance ▼

Pacific Post Panamax Locks 26.7 m 27.1 m Access Channel ► Deepening & widening of the & Culebra Cut navigational channels Existing Locks ▼

9.1 Mm3

Post Panamax Pacific Locks Access Channel Deepening & New Lockswidening► of the 48 Mm3 Pacific entrance

Pacific Ocean Dimension of Locks and New-Panamax vessels

Existing Locks Max Vessel: 4,400 TEU’s 33.5 m (110’)

32.3 m (106’)

12.4 m (39.5’) 55 m (180’)

12.8 m (42’) Beam 49 m (160’)

18.3 m (60’)

New Locks Max Vessel: 12,600 TEU’s Pacific Access Channel

Excavation of Cleaning of 146 Relocation of 3.5 km PAC 1 7.3 Mm3 hectares of MEC of Borinquen Road

Deviation of 3.5 km of Excavation of Relocation of 1.3 km PAC 2 Cocoli River 7.4 Mm3 of Borinquen Road

Cleaning of 190 Excavation of hectares of the PAC 3 8.0 Mm3 remainingT6 area Construction of Borinquen Dam Excavation of Cleaning of 80 15,367 Ton Met of Length 2.3 km PAC 4 26.2 Mm3 hectares of MEC piling Ridge 30 m Base 150 m Height 26 m TOTAL 48.9 Mm3 416 hectares

140Pacific Access Channel Dimensions 140

110Longitude 6.1 km (3.79 mi) 110 ELEVATION

80 Width PAC-1 80 50 218 m (715.2 ft) 50 PAC-2 PAC 3 20 PAC-4 20 Depth - 10 - 10 16.7 m (55 ft) - 40 - 40 0+175 0+675 1+175 1+675 2+175 2+675 3+175 3+675 4+175 4+675 5+175 5+675 6+175 6+675 7+175 Projects Underway Pacific Access Channel - PAC 1

Programmed 99.1%

Current 99.1% Project Scope: 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 7.3 Mm3 of earth removal, Cleanup of 146 ha of UXO disposal area 3 7.3 Mm excavated Relocation of 3.5 km of Borinquen Road Awarded : July 17, 2007 Amount: $40,431,196.00

MEC 1 146 Ha Cleaned-up

Borinquen

13 Projects Underway Programmed 100% Pacific Access Channel - PAC 2 Current 99% 7.4 Mm3 excavated 0 10 20 30 40 50 60 70 80 90 100

Excavation

Project Scope : Excavation of 7.4 Mm3 Relocation of 1.3 km of Borinquen Road Deviation of 3.5 km of Cocolí River. Awarded: November 27, 2007

Carretera Borinquen

Río Cocolí

CAP - 2 14 Projects Underway Pacific Access Channel - PAC 2 Borinquen Road - Phase III, Borinquen Road - Phase II, 80% completed by ACP 100% completed

Borinquen Road

Cocolí River

PAC - 2 End of Cocoli River Deviation

DecemberJulyOctoberApril 31, 2009 200926, 29, 2009 2009 Projects Underway Awarded: December 16, 2008 Company: Constructora MECO, S.A. Pacific Access Channel - PAC 3 Scope: 8.0 Mm3 Prorammed 39% Clearing 190 ha of UXO area Currentl 48% 3.35 Mm3 excavated 0 10 20 30 40 50 60 70 80 90 100 190 hectares cleaned-up

PAC 3

MEC 190 Ha

140 140

110 110

80 CAP-1 80 50 50 CAP-2 CAP- 3

20 20 ELEVATION

- 10 - 10

- 40 - 40 0+175 0+675 1+175 1+675 2+175 2+675 3+175 3+675 4+175 4+675 5+175 5+675 6+175 6+675 7+175 Projects Underway • Scope: 26.2 Mm3 Pacific Access Channel - PAC 4 • Receipt of proposals: 22-DEC-09 26.2 M m3 of dry excavation • Awarded: 7-JAN-10 • Ending date: 1,288 days as of the Programmed 5% order to Proceed (estimated 1-AUG-13) Current 5%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

PAC 3 PAC 4

PAC 2

PAC 1 Borinquen Dam

140 140

110 110

80 CAP-1 80 50 50 CAP-2 CAP 3 20 20

ELEVATION CAP-4

- 10 - 10

- 40 - 40 0+175 0+675 1+175 1+675 2+175 2+675 3+175 3+675 4+175 4+675 5+175 5+675 6+175 6+675 7+175 Borinquen Dam

Pacific Access Channel Castled Lake

Clay seal Canal Expansion Dredging Components Dredging • Pacific entrance deepening and widening (9.1 Mm3) • Gatun Lake & Culebra Cut dredging (30 Mm3) • Atlantic entrance deepening & widening (15.8 Mm3) Total Volume: 54.9 Mm3 Projects Underway Pacific entrance deepening and widening (8.7 M m3)

Programmed 42% 5.03 Mm3 dredged Current 59%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Awarded: April 1, 2008 Company: Dredging International Amount: $177.5 M Dredging Amount: 8.7 Mm3 Projects Underway Programmed 27% Gatun Lake and Culebra Cut dredgingActual 24% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Gatun Lake

Scope: 30 Mm3 6.62 Mm3 dredged

Barro Colorado

Gamboa De Lesseps Island

300,000 lb = 136 Metric tons Projects Underway •Widening: of 198 m to Atlantic entrance deepening & widening 225 m (navigational Channel)

Volume 15.6 M m3

Awarded to: Jan de Nul NV

Date of award: September 25, 2009

Awarded amount: $89,617,317 Option: Additional 60 cm in $16,411,600 depth Turnoaround area for End of project: May 2013 PostPanamax

Width: 225m (740´) ▶

•Canal width to 218 m (Approach channel - North) Design and Construction of the Locks Atlantic Pacific

Excavation: Excavation: 15.6 Mm3 22 Mm3

Dredging: Dredging: 9.2 Mm3 861 Km3 Concrete: Concrete: 2.5 Mm3 2.3 Mm3

Total length: Total length: 2.2 km 2.7 km

Reinforcing Reinforcing steel: steel: 123,000 T 170,000 T

Lock Chamber Vessel size Gates and Gates and Length: 427 m LOA: 366 m valves steel: valves steel: Width: 55 m Beam: 49 m 30,000 T 37,000 T Depth: 18.3 m Draft: 15.2 m Post Panamax Locks Operation

WSB 3 WSB 2 WSB 1

With the water saving basins

the new locks will use 7% less Water Utilization Water water than the existing locks New Locks Existing Locks Clearing Atlantic Locks Area Clearing Atlantic Locks Area Clearing Pacific Locks Area Pacific Locks Area Impact of the Panama Canal Expansion

WORLD MAIN LOGISTICS HUBS

ROTTERDAM

NY/NJ HAMBURG SHANGHAI BUSAN HAMPTON LA/LB RDS. SHENZHEN SAVANNAH ALGECIRAS FREEPORT HONG KONG KINGSTON DUBAI PANAMÁ SINGAPORE

Panama is the main logistical, transportation and transshipment hub of the Americas. U.S. Ports Main Channel Depths

Depths at Mean Low Water (MLW)

U.S. East Coast MLW U.S. East Coast MLW Boston 40’ Everglades 44’ New York / New Jersey 45’ Manatee 40’ Philadelphia 40’ U.S. Gulf Baltimore 50’ Houston 45’ Norfolk 50’ New Orleans 45’ Wilmington 38’ U.S. West Coast Charleston 45’ LA / Long Beach 50’ Savannah 42’ Oakland Jacksonville 40’ 50’ Portland Tampa 43’ 40’ Miami 42’ Seattle / Tacoma 50’

Source: 2009 AAPA Directory Port Authorities Expansion Projects

Location Project Estimated Completion

Georgia Ports Authority Deepening of the Savannah River Channel 2014 from 42’ to 48’. Port of Miami Deepening draft from 42’ to 50’ and the 2014 construction of Port of Miami Tunnel Project to expedite delivery of goods. Philadelphia Regional Dredging the main shipping channel of the Within 5 – 7 Port Authority Delaware River from 40’ to 45’. years Port Authority of New Harbor deepening project to 50’; $10 Harbor York & New Jersey million approved to analyze alternatives deepening to for Bayonne Bridge (height: 151’). be completed in phases from 2010 to 2014. Port of Houston Authority The Bayport Container & Cruise Terminal All phases project (Phase 1 is completed); future completed in capacity of 2.3M TEU. 15-20 years Broward County’s Port Inauguration of Cruise Terminal 18 for Nov. 2009 Everglades Department megaships.

Source: MERC with information provided by port Authorities, January 2010. Port Authorities Expansion Projects

Location Project Estimated Completion Port of Palm Beach Development of logistics center for storage and distribution of cargo to the South Florida region. Jacksonville Port Development of container terminals by MOL 2011 - 2012 Authority (already in use) and Hanjin with total additional capacity of 1.5M TEU

Maryland Port Construction of the new 50-foot berth at 2012 Administration Baltimore’s Seagirt Marine Terminal. Manatee County Port The 788 acre Logistics Port Manatee (LPM) 2011 Authority multimodal logistic park (Port Manatee’s first container terminal); directly served by CSX railroad.

Source: MERC with information provided by port Authorities, January 2010. Components of the Green Route Concept

The CO2 emission reduction in the planet as a result of the Panama Canal route

The actions taken by ACP: Environmental management in operations and Canal Watershed sustainability programs

Become carbon neutral CO2 emissions by TM (dry bulk carrier) Yokohama, Japan- Louisiana, USA Route Comparison of the Landbridge, Cape Horn, Cape of Good Hope, Suez Canal, and the Panama Canal Routes

CO2 Tons per cargo unit (Dry Bulker) Panama Canal Landbridge Cape Horn Cape of Good Hope Suez Canal 0.14

0.12 0.12 0.11 0.11 0.10 0.10 0.10 0.10 0.10 2,794 m 0.09 0.09 Yokohama, Japón (2,428 nm) 0.09 4,842 nm 0.08 0.08 0.08 Lousiana, USA 14,501 nm 0.07 0.06

0.06 CO2(TON) 9,241 nm 0.05

0.04

0.02

0.00 Panamax Capesize Capesize

62,635 101,275 120,640 Panama Canal Cape of Horn Vessel size (DWT) 16,734 nm 15,737 nm Good Hope Suez Canal Landbridge Port Development in Panama Manzanillo International Terminal (MIT)

Colon Container Terminal

Panama Ports Company – Cristobal

1996: 235 Thousand TEUs 2009: 4.23 Million TEUs Panama Ports Company Balboa 2015: 7.4 Million TEUs

Source: Panama Maritime Authority Colon Free Zone CRISTOBAL CCT (Evergreen) Transisthmian Pipeline MIT TELFERS ISLAND

PORT OF ALBROOK - DIABLO Fiber Optic Duct AND AIRPORT PORT OF BALBOA EXPANSION

TRANS-ISTHMIAN ROAD OPTIC FIBER DUCT ALBROOK AIRPORT

Panama – Colon Highway Tocumen International Airport

Transisthmian railroad Banking Center Special Economic Zone Panama-Pacific Former Howard AFB International Ports Connected through the Panama Canal every Week

Bremerhaven Rotterdam Tilbury Osaka Felixstowe Hamburg Nagoya Thamesport Dunkerque Shanghai Halifax Zeebrugge Kwangyang Seattle NJ/NY Boston Qingdao Wilmington Le Havre Pusan Tokyo Newport News Antwerp Keelung Shimizu Oakland Charleston Baltimore Port Said Yantian Yokohama Los Angeles .Miami Savannah Hong Kong Kobe Long Beach New Orleans Everglades Marseilles Colombo Colon Kingston Chabang Hakata Manzanillo (Mx) Veracruz Manzanillo La Spezia Kaohsiung Cartagena Puerto Limón Maracaibo La Guaira Tanjung Priok Balboa Guanta Buenaventura Puerto Cabello Doniambo Manta Singapore Guayaquil Callao Santos Tahiti Arica Iquique Paranagua Brisbane Coquimbo Itajai Sydney Antofagasta Valparaíso San Antonio Auckland San Vicente Transit the Canal Melbourne Feeder services

Source: ACP and ComPairData, 2007 Panama: the main transportation and logistics hub of the Americas Thank you