When port partnership makes sense

- October 17th, 2016
Source: Logistics Management

Just a little more than one year ago, the ports of Seattle and Tacoma joined together to launch The Northwest Seaport Alliance (NWSA) – an unprecedented demonstration of regional solidarity.

One might think that the newly expanded Panama Canal could pose a threat to the NWSA, but quite opposite seems to be happening.  The first-call visit by the Wallenius Wilhelmsen Logistics (WWL) MV Thalatta last summer indicates the larger locks in Panama open new opportunities for both roll-on/roll-off (Ro/Ro) and container cargoes moving through the Pacific Northwest.

“The wider Panama Canal provides our gateway with expanded capacity to global markets, particularly in Europe, the Mediterranean and South America,” says Bari Bookout, the NWSA’s chief commercial officer for non-container. “The new locks allow carriers like Wallenius Wilhelmsen Logistics to develop larger, more efficient vessels to meet shipper demand and regulatory requirements.”

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Expanded Panama Canal Changes Tanker, Rail Traffic Flows in U.S.

- October 17th, 2016
Source: Tank Terminals

The Panama Canal expansion will shift cargoes from the U.S. West Coast to the U.S. East and Gulf coasts, and will in turn allow rail shipments inland to move farther west from the East Coast and reduce U.S. West Coast rail shipments with little net change in inland diesel demand, Kevin Lindemer, managing director of downstream consulting at IHS Markit, said this week.

Lindemer spoke on projected imports and exports of gasoline and diesel as well as the Panama Canal expansion at the OPIS Supply and Transportation Summit held in Scottsdale, Ariz., this week. The expanded Panama Canal is encouraging larger container ships to move the rail "null point" farther west in the U.S., and it also is allowing larger vessels to move from the Pacific to U.S. Gulf and East Coast ports, he said.

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S. Korea, Central America to Begin 7th Round of FTA Negotiations

- October 24th, 2016
Source: KBS World Radio

South Korea will kick off another round of free trade negotiations with six Central American countries in Seoul on Monday.

The Ministry of Trade, Industry and Energy said the seventh round of free trade agreement(FTA) talks between South Korea and the six countries will be held until next Monday.

Declaring the launch of free trade talks in June 2015, South Korea held six rounds of talks through September with El Salvador, Honduras, Nicaragua, Panama, Guatemala and Costa Rica. South Korea's trade volume with the six countries reaches some four to five billion dollars annually.

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Liverpool and Panama Ports agree major partnership

- October 25th, 2016
Source: American Journal of Transportation

The Panama Canal Authority (ACP) has entered into a significant Memorandum of Understanding (MOU) with major UK ports operator, Peel Ports, who own the Port of Liverpool, as the latter gears up for the formal opening of its Liverpool2 container terminal in early November. The agreement was signed yesterday (24 October) by Jorge L. Quijano, Administrator of the Panama Canal Authority (ACP) and Mark Whitworth, Chief Executive of Peel Ports Group, during a formal visit to the Port of Liverpool by a senior delegation from Panama.

The formal agreement creates a strategic alliance aimed at facilitating international trade and generating new business by promoting trade routes between Liverpool and the west coast of South America via the Panama Canal.

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Moody's: Panama's buoyant economy will remain a key credit strength

- October 25th, 2016
Source: BNamericas

Panama's Baa2 rating with a stable outlook reflects the country's strong economy and its broad macroeconomic stability, says Moody's Investors Service. This buoyant growth will help Panama's government reduce the nation's fiscal deficit over the coming years.

A series of large investment projects since 2007, including the expansion of the Panama Canal, have contributed to the country's strong economic performance. Private sector residential and commercial construction activity has also been very dynamic. Consequently, investment has been the main driver of economic growth, accounting for over 40% of GDP between 2010 and 2014.

While Panama's economy has slowed this year as global trade has weakened, Moody's expects that it will rebound and continue to grow at a strong rate in coming years. Moody's forecasts that growth will average just below 6% from 2017 to 2020, as Panama's economy benefits from increased transport through the expanded Canal.

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