Panama Canal Expansion - staging.files.cms.plus.com

Panama Canal Expansion:
Increase in Route Value
and Service to
World Maritime Industry
Alberto
Alberto Alemán
Alemán Zubieta
Zubieta
Administrator
Administrator
Panama
Panama Canal
Canal Authority
Authority
1999 – World expectation on
Panama’s capacity to manage and
operate the Panama Canal.
Main Differences in Business Models
“
“
“
“
“
“
“
USA PCC
Foreign enclave
Managed by its principal
user
Responded to US interests
Non-profitable agency
Budget administration
Ample capacity
Near monopoly
“
“
“
“
“
“
PANAMA ACP
Inalienable patrimony of
the Republic of Panama
Administered by its
owners
Profitable and competitive
enterprise
Resource Management
Operates near capacity
Faces increase competition
USA PCC MISSION
¾Ensure the safe and efficient operation of
the Canal;
¾Take all appropriate steps to achieve a
seamless transition to Panamanian control
of the Canal on December 31, 1999.
September 7, 1977 - December 31, 1999
PANAMA ACP MISSION
¾To produce maximum sustained
benefit from our geographic position.
Transition in Business Model
USA PCC
Model
Break-Even Operation
Managed by its
principal user
Panama
ACP
Business
Model
For Profit, and
Efficient Operation
Managed by its Owner
ACP Panama Canal Business Model
The
The Legal
Legal structure
structure is
is based
based on:
on:
¾
¾ The
The Constitution
Constitution of
of the
the Republic
Republic of
of Panama
Panama
¾
¾ The
The Organic
Organic Law
Law of
of the
the Panama
Panama Canal
Canal Authority
Authority
¾
¾ ACP
ACP regulations.
regulations.
Some
Some of
of the
the key
key elements
elements of
of the
the Canal
Canal Business
Business Model
Model are:
are:
• The
The Canal
Canal constitutes
constitutes an
an inalienable
inalienable patrimony
patrimony of
of the
the Panamanian
Panamanian
Nation.
Nation.
• The
The Canal
Canal has
has to
to be
be efficient
efficient and
and profitable
profitable
• The
The Canal
Canal has
has its
its own
own patrimony
patrimony and
and the
the right
right to
to manage
manage it.
it.
• Special
Special employment
employment regime
regime based
based on
on the
the principles
principles of
of merit
merit and
and equal
equal
opportunity.
opportunity.
• Special
Special procurement
procurement and
and contracting
contracting regime.
regime.
• Code
Code of
of Ethics
Ethics and
and Conduct.
Conduct.
• Special
Special procedure
procedure for
for dispute
dispute resolution.
resolution.
• Strikes
Strikes are
are prohibited.
prohibited.
Panama Canal ACP Business Model
ƒ The Canal’s current legal framework
changes the business philosophy to one
oriented to enhance the value of the
route by providing a safe, reliable and
efficient service to its customers while
generating a return to its owner, The
Republic of Panama.
Panama Canal Change in Business Model
Historical Background
ƒ2000 – Change in the reservation system rules
ƒ 2002 – Tolls are modified for the first time
under Panamanian administration.
Differentiated market segment by type of vessel
is established.
–
–
–
–
–
–
–
–
Dry bulk carriers
Container ships
Liquid bulk
Refrigerated cargo
Vehicle carriers
Passenger ships
General cargo
Others
Panama Canal Change in Business Model
Historical Background
ƒ 2005 – Change in the
admeasurement system of container
vessels. The phased-in
implementation over three years, is
as follows:
ƒ May 2005 $42 per TEU.
ƒ May 2006 $49 per TEU.
ƒ May 2007 $54 per TEU.
ƒ April 2006 – Implementation of a
daily reservation slot made available
through an auction process to the
best bidder.
2007 - Proposal to Modify the Regulations for
the Admeasurement of Vessels for the
Panama Canal and the Panama Canal Tolls
The proposal announced on February 2
includes:
ƒ Administrative changes in the
admeasurement Rules
ƒ New admeasurement method for passenger
ships
ƒ Toll adjustment by segment
0
2006
35,000
1916
1918
1920
1922
1924
1926
1928
1930
1932
1934
1936
1938
1940
1942
1944
1946
1948
1950
1952
1954
1956
1958
1960
1962
1964
1966
1968
1970
1972
1974
1976
1978
1980
1982
1984
1986
1988
1990
1992
1994
1996
1998
2000
2002
2004
Transits
Transits
50,000
PCUMS Tonnage of Commercial Transits
45,000
40,000
23,213
2006
15,000
Fiscal
Fiscal Year
Year
200
30,000
25,000
150
20,000
14,194 100
10,000
50
5,000
0
PCUMS
PCUMS Tonnage
Tonnage in
in millions
millions
Transits vs. PCUMS Tonnage
FY1916 - FY2006
300
296.3
250
CAPITAL INVESTMENT
1,329
Dredging
119
Locomotives
2000
2000
Hydraulic Conversion
2001
2001 2002
2002
Technology
2003
2003 2004
2004 2005
2005
Track system
2006
2006
Tug Boats
Panama Canal Market Share in
N.E. Asia – U.S. East Coast Route
Suez Canal
US Intermodal System
85.7%
90.0%
4.6%
5.0%
82.8%
77.2%
80.0%
4.5%
71.8%
64.6%
70.0%
60.9%
60.0%
58.12%
4.0%
3.5%
3.0%
3.0%
50.0%
40.0%
2.5%
2.0%
30.0%
1.5%
20.0%
1.0%
0.5%
10.0%
2.1%
2.0%
1.75%
1.5%
0.93%
0.0%
0.0%
1999
2000
2001
2002
2003
2004
1999
2005
2000
2001
2002
2003
2004
2005
Panama Canal
100%
45.0%
38.2%
40.0%
40.12%
33.8%
35.0%
30.0%
20.8%
25.0%
20.0%
15.0%
23.6%
15.1%
11.3%
10.0%
5.0%
0.0%
1999
2000
2001
2002
2003
2004
2005
Source: Estimate based on different industry
sources (PIERS, AAR, ACP Ship Data Banks)
Growth of Panamax Vessel Transits
100’ (30.5m) + Beam
FY1995 – FY2006
55%
50%
46.6%
44.5%
45%
38.5%
40%
35.4% 36.3%
35%
33.4%
30.1%
30%
29.0%
30.7%
3,816
3,998
4,128
4,359
4,424
4,566
4,737
5,329
5,633
6,160
25%
4,125
27.1%
3,695
% of Total Transits
40.4%
42.6%
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
20%
Fiscal Year
Growth in Transits of
Vessels >900’(274.3m) Overall Length
FY1995 - FY2006
1800
1610
1600
1400
1310
1190
Transits
1200
980
1000
715
800
528
600
400
222
284
292
301
AF96
AF97
AF98
340
364
AF99
AF00
200
0
AF95
AF01
AF02
Fiscal Year
AF03
AF04
AF05
AF06
Average Canal Waters Time
45
40.0
40
Canal Waters Time (hrs)
With reservation
Without reservation
33.9
35
34.5
33.0
30
37.9
37.4
28.6
26.7
25
20
17.2
16.7
15.6
16.1
16.2
16.4
16.5
16.0
15
10
5
1999
Available
21
Slots
2000
2001
21
21
2002
2003
2004
2005
2006
21
21
21
22
24
Accidents
FY1996
FY1996 –
– FY2006
FY2006
40
35
37
32
30
28
Accidents
25
29
24
20
17
15
17
12
12
10
10
10
5
0
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
PCUMS Net Tons per Market Segment
(in millions - FY 2000-2006 / 2007 proj)
160
Containerships
Containerships
Dry
Dry Bulk
Bulk
Liquid
Liquid Bulk
Bulk
General
General Cargo
Cargo
Reefers
Reefers
Cruise
Cruise
Vehicle
Vehicle carriers
carriers
Others
Others
150
140
130
120
110
100
90
80
70
60
50
40
30
20
10
1995
1996
1997 1998
1999
2000
2001 2002
2003
2004
2005
2006
2007
(proj.
Interoceanic Route and the Canal’s
Value for Panama and the World
Trans-Pacific Eastbound
Demand Growth
Source
PIERS
Global Insight
Drewry
Morgan Stanley
Goldman
Sachs
Clarkson
UBS
2007e
9.5%
8.8%
9.9%
10-11%
Asia-U.S.
2008e
10.3%
10.6%
10.2%
10-11%
2009e
n/a
n/a
n/a
10-11%
11%
11%
10.3%
12%
8%
n/a
10%
n/a
10%
Evolution of the world TEU carrying capacity
1980
2.91%
1990
17.51% 1.34%
97.09%
.6M TEUs
26.35%
1.6M TEUs
8.1M TEUs
68.60%
2.8M TEUs
2011 (Including newbuildings on order)
37.34%
29.17%
1996
81.15%
June 2006
33.49%
5.05%
40.50%
Other
Other %
%
TEUs
TEUs Panamax
Panamax %
%
TEUs
TEUs Post
Post Panamax
Panamax %
%
31.32%
3.8M TEUs
28.18%
12.1M TEUs
Infrastructure Issues: Current and Future
• Container
imports are
expected to double by 2020
• Rail
freight tonnage is
expected to increase by
50% by 2020
• Air
cargo volume is
expected to increase by 5%
every year through 2016
1970 to 2003, vehicle
travel on highways rose by
161% but road mileage
only increased by 6%
SEATTLE
15,835
costs US$63
billion in wasted time &
fuel
• Half
of the nation’s 257
locks on inland waterways
are functionally obsolete
the 590,750 bridges,
27% are structurally
deficient or obsolete
4,478
1,798 4,396 + 144.5%
TACOMA
NY/NJ
59,420
• From
• Congestion
U.S.
U.S. Maritime
Maritime Container
Container Trade
Trade
Growth
Growth
+ 253.6%
2,557 44.0%
1,776
1,776 2,557 ++ 44.0%
2,043 3,382
OAKLAND
+ 65.5%
13,101
5,566
1,809
ports have not been
dredged to handle the
10,000-TEU jumbo
containerships being built
VIRGINIA
6,165
LA/LB
+ 466.8% 9,420
1,437
HOUSTON
• Of
• Most
+ 207.7%
Å 353.6%
1,662
SAVANNAH
CHARLESTON
1,860 6,639
+ 113.1%
1,010 2,152
Legend:
2004 Volumes (‘000 TEUs)
2020 Volumes (‘000 TEUs)
MIAMI
Source: American Society of Civil Engineers (ASCE) – 2005
Report Card for America’s Infrastructure, U.S. DoT
+ 256.9%
296
The improved existing Canal could sustainably handle
up to 330 - 340 million annual PC/UMS tons
Pospanamax Locks and Vessel Dimensions
Existing Locks
New Locks
Draft
12,600 TEU
Chamber
Chamber Length
Length 305m
305m (1,000’)
(1,000’)
Max.
Max. Vessel
Vessel LOA
LOA 294.3m
294.3m (965’)
(965’)
Chamber
Chamber Length
Length 427m
427m (1,400’)
(1,400’)
Max.
Max. Vessel
Vessel LOA
LOA 366m
366m (1,200’)
(1,200’)
Program Components
Dredging
Dredging of
of the
the Sea
Sea Entrance
Entrance Navigation
Navigation Channels
Channels
Pacific Entrance
(6.5 M m3 – Dredging)
1 Contract
225m
(740´)
Program Components
Dredging
Dredging of
of the
the Sea
Sea Entrance
Entrance Navigation
Navigation Channels
Channels
Atlantic Entrance
(Dredging - 14 M m3)
1 Contract
Width: 225m (740´) ▶
Program Components
Pospanamax
Pospanamax Locks
Locks
Pacific and Atlantic Locks
(29.66 – M m3 Dry Excavation)
1 Contract
Program Components
Dredging
Dredging of
of Gatun
Gatun Lake
Lake and
and Culebra
Culebra Cut
Cut Navigation
Navigation Channels
Channels
Deepening and Widening
of Gatun Lake and Culebra Cut
Navigation Channels
(Dredging - 23 M m33)
Program Components
Pacific
Pacific Locks
Locks North
North Access
Access Channel
Channel
Pacific Locks
North Access Channel
46M m3
5 Contracts
Program Schedule
Activity
2006
1T
2T
3T
2007
4T
1T
2T
3T
2008
4T
1T
2T
3T
2009
4T
1T
2T
3T
2010
4T
1T
2T
3T
2011
4T
1T
2T
3T
2012
4T
1T
2T
3T
2013
4T
Advisors
Contracting Legal Advisor
General Legal Advisor
Financial Advisor
Program Management Services
Physical Modeling
Access Channel
Environment
Risk Advisor
EIS Pospanamax Locks (Category III)
EIS Dredging of Pacific Entrance (Category II)
EIA Cartagena – PAC 1 (Category II)
Archeological Salvage & Rescue
Contract 1
Contract 2
Contract 3
Contract 4
Contract 5
Dredging
Deepening & Widening of Gatun Lake
Deepening of the Culebra Cut
Dredging of the Atlantic Entrance Channels
Dredging of the Pacific Entrance Channels
Design and Build Pospanamax Locks
Increase the Max. Op. Level of Gatun Lake
Specifications & Design
Bidding & Contracting
Execution
1T
2T
3T
2014
4T
1T
2T
3T 4T
Max
Max Sustainable
Sustainable Capacity
Capacity of
of
Expanded
Canal
Expanded Canal
Third Set of Locks
New locks
Existing
locks
3
2
1
Conceptual Design
Location for the new Pacific Locks and
access channel
Location for the new Atlantic Locks
Main Logistics Hubs
ROTTERDAM
ROTTERDAM
SHANGHAI
SHANGHAI
BUSAN
BUSAN
SHENZHEN
SHENZHEN
HONG
HONG KONG
KONG
SINGAPORE
SINGAPORE
NY/NJ
NY/NJ
LA/LB
LA/LB
HAMBURG
HAMBURG
HAMPTON
HAMPTON
RDS.
RDS.
SAVANNAH
SAVANNAH
FREEPORT
FREEPORT
KINGSTON
KINGSTON
ALGECIRAS
ALGECIRAS
DUBAI
DUBAI
Main Logistics Hubs
ROTTERDAM
ROTTERDAM
SHANGHAI
SHANGHAI
BUSAN
BUSAN
SHENZHEN
SHENZHEN
HONG
HONG KONG
KONG
NY/NJ
NY/NJ
LA/LB
LA/LB
HAMPTON
HAMPTON
RDS.
RDS.
SAVANNAH
SAVANNAH
FREEPORT
FREEPORT
KINGSTON
KINGSTON
PANAMA
PANAMA
SINGAPORE
SINGAPORE
HAMBURG
HAMBURG
ALGECIRAS
ALGECIRAS
DUBAI
DUBAI
Main Logistics Hubs
ROTTERDAM
ROTTERDAM
SHANGHAI
SHANGHAI
BUSAN
BUSAN
SHENZHEN
SHENZHEN
HONG
HONG KONG
KONG
NY/NJ
NY/NJ
LA/LB
LA/LB
HAMPTON
HAMPTON
RDS.
RDS.
SAVANNAH
SAVANNAH
FREEPORT
FREEPORT
KINGSTON
KINGSTON
PANAMA
PANAMA
SINGAPORE
SINGAPORE
HAMBURG
HAMBURG
ALGECIRAS
ALGECIRAS
DUBAI
DUBAI
Main Logistics Hubs
ROTTERDAM
ROTTERDAM
SHANGHAI
SHANGHAI
BUSAN
BUSAN
SHENZHEN
SHENZHEN
HONG
HONG KONG
KONG
NY/NJ
NY/NJ
LA/LB
LA/LB
HAMPTON
HAMPTON
RDS.
RDS.
SAVANNAH
SAVANNAH
FREEPORT
FREEPORT
KINGSTON
KINGSTON
PANAMA
PANAMA
SINGAPORE
SINGAPORE
HAMBURG
HAMBURG
ALGECIRAS
ALGECIRAS
DUBAI
DUBAI
Ports that Connect with Mother Ships
MANZANILLO
LAZARO CARDENAS
ACAPULCO
SALINACRUZ
SAN JOSE
PUERTO QUETZAL
ACAJUTLA
LA LIBERTAD
CORINTO
PUERTO SANDINO
PUNTARENAS
CALDERA
GOLFITO
PUERTO ARMUELLES
BALBOA
BUENAVENTURA
TUMACO
ESMERALDAS
GUAYAQUIL
PAITA
CALLAO
ANTOFAGASTA
VENTANAS
VALPARAISO
SAN ANTONIO
REGIONAL AXIS
MAIN AXIS MOTHER SHIPS
TAMPICO
VERACRUZ
COATZACUALCOS
BELICE CITY
PUERTO CORTES
PUERTO CASTILLA
PUERTO CABEZAS
EL BLUFF
PUERTO LIMON
CHIRIQUI GRANDE
CRISTOBAL-MIT-EVERGREEN
CARTAGENA
BARRANQUILLA
PUERTO BOLIVAR
PUERTO CABELLO
LA GUAIRA
Value of the Interoceanic Route and the
Panama Canal Service
Bremerhaven
Tilbury
Felixstowe
Rotterdam
Osaka
Hamburg
Nagoya
Dunkerque
Thamesport
Halifax
Shanghai
Zeebrugge
Seattle
NJ/NY
Kwangyang
Tokyo
Qingdao
Wilmington
Le Havre
Newport News
Pusan
Shimizu
Antwerp
Oakland
Keelung
Charleston
Baltimore
Port Said
Yantian
Miami
Savannah
.
Yokohama
Los Angeles
Everglades
Hong Kong
Long
Beach
Marseilles
New Orleans
Kobe
Colon
Colombo
Kingston
Manzanillo
Hakata
Veracruz
Chabang
La Spezia
Kaohsiung
Cartagena
Manzanillo (Mx)
Maracaibo
Buenaventura
La Guaira
Puerto Limón
Guanta
Tanjung Priok
Balboa
Puerto Cabello
Manta
Doniambo
Guayaquil
Callao
Santos
Arica
Tahiti
Singapore
Paranagua
Iquique
Itajai
Coquimbo
Brisbane
Antofagasta
Sydney
Valparaíso
San Antonio
Auckland
San Vicente
Melbourne
Source: ACP Database and Compair Data - 2006
Ports
Ports are
are interconnected
interconnected through
through
Weekly
Weekly Port
Port Container
Container Services
Services
using
using the
the Panama
Panama Route
Route
Manzanillo
Manzanillo International
International
Terminal
Terminal (MIT)
(MIT)
Colon
Colon Container
Container Terminal
Terminal
Panama
Panama Ports
Ports
Company
Company ––
Cristobal
Cristobal
Panama
Panama Ports
Ports Company
Company -- Balboa
Balboa
Port Development
in Panama
1996: 235 KTEUs
2006: 2.94 MTEUs
Panamax Cranes
PPX
Total
PPC-BCZ
7
8
15
PPC-CRI
3
3
6
CCT
4
6
10
MIT
2
14
16
16
31
47
Forecast
2006: 2.94 MTEUs
2010: 4.6 MTEUs
2015: 7.4 MTEUs
Tocumen
Tocumen Airport
Airport
Trans-Isthmian
Trans-Isthmian Pipeline
Pipeline
Inter-American
Inter-American Highway
Highway
Railroad
Railroad
Optic
Optic Fiber
Fiber Duct
Duct
Banking Center
CRISTOBAL
EVERGREEN CONTAINER
TERMINAL
MANZANILLO CONTAINER
TERMINAL
TELFERS
ISLAND
PORT OF ALBROOK DIABLO
AND AIRPORT
EXPANSION
PORT OF BALBOA
TRANS-ISTHMIAN ROAD
OPTIC FIBER DUCT
Colon Free Zone
ALBROOK AIRPORT
Special
Special Economic
Economic Area
Area
Panama-Pacific
Panama-Pacific
Former
Former Howard
Howard Military
Military Base
Base
Panama: America’s Most Important Logistics
and Transportation Hub
Panama Canal Expansion:
Increase in Route Value
and Service to
World Maritime Industry
Alberto
Alberto Alemán
Alemán Zubieta
Zubieta
Administrator
Administrator
Panama
Panama Canal
Canal Authority
Authority