In April 22-25, I attended the 2015 Spring World Conference in Scottsdale, Arizona. The event was hosted by the SOCIETY OF INDUSTRIAL AND OFFICE REALTORS®. As the 2014-2015 President for the Florida Chapter, this was a great opportunity to other SIOR’s and others involved in commercial real estate. SIOR’s meet every spring and fall at various locations nationwide. The meetings held during these conferences include educational programming, in addition to a variety of business and social opportunities. SIOR conferences are designed to help attendees connect, build relationships and facilitate business logistics with other SIOR’s, in addition to industry colleagues and exhibitors. In addition, Independent Florida SIOR’s, Bob Dikman and Ed Redlich, explored the McDowell Sonoran Preserve in Scottsdale, Arizona on a 10 miles hike after the Spring Conference. Below are a few photos from my trip…

Port Miami wants to establish itself as the ideal port of entry for both Peru as well as all of Latin America because of it’s close proximity. The goal is for Miami to be to Peru what Philadelphia is to Chile. At the present time, much of the produce from Latin America is shipped up to Philadelphia then transported via truck or train back down south to Miami. This is a waste of time. Port Miami’s new slogan is: “Faster is Fresher” which is ideal for produce and other foods being imported to the USA. In addition, Miami’s rail connections can reach 70% of the population in the USA within only 1 to 4 days. For more information, please view this flyer on Port Miami, the “Perishables Gateway for Peru”. >>>

The main attraction of the trade mission was Expoalimentaria. This expo is one of the largest trade shows in the world focusing on the foods and produce industries. More than 30,000 attendees visit Expoalimentaria in Lima every year. For more info, check out the website at www.expoalimentariaperu.com. In addition to the expo, we also had the opportunity to meet with Peru’s Ministry of Foreign Trade, AMCHAM as well as Camara de Comercio de Lima (CCL) chamber of commerce.

John Dohm and Ed Redlich representing Miami Realtors on Port Miami trade mission to Expoalimentaria in Lima, Peru

According to Miami Realtors and National Realtors, Peruvians are 9th in foreign buyers purchasing property in Miami, Florida, USA.

Just south of Lima is an area called Ica. Ica is to Lima what the Redland is to Miami. Ica has a very large agricultural community. Our delegation was delighted to tour farms that were producing avocado, asparagus, grapes and citrus.

This trip to Peru meant a lot to me. Not only was it an amazing business opportunity, but it reminded me of my days as a kid farming avocados. Back then, my family owned a small, 5-acre fruit grove in the Redland, South Florida, just south of Miami. For over 15 years, we spent many seasons packing several bins of avocados and then taking them to the local packing house, Brooks Tropicals. This gave us (small, family growers) a chance to sell our produce. Our family enjoyed avocados for dinner during the season and gave bags of them away as gifts to very happy recipients.

In the early years, we had mowed the five acres with a push lawn mower. This took us two full days; about one full weekend every month. Each one of us took turns mowing. Then finally (after years of pestering) we convinced my father to purchase a Sears Craftsman riding lawn mower with a 36” deck. Then it only took us one day to mow. Sometimes when I share this story, people ask me: “Don’t you wish that you had just hired someone else to mow the yard?” My answer is simple: “No way!”. I wouldn’t have traded this for anything. It built a strong family bond and instilled character which you can never put a price on.

From the Redland (Miami, Florida) to Peru and back again…

You might say that American farmers would lose some of their advantage if more produce were allowed to be imported from Latin America into the USA. This might be true, however American importers and distributors are certainly missing out on opportunities for growth right now. Not to mention that this causes the American consumer to have less choices plus higher costs. Americans do have the right to be concerned with the health effects of eating imported produce that has additional chemicals required by USDA (as lobbied by American farmers) some of which may or may not even be necessary.

In addition to its amazing food and produce, Peru has plentiful opportunities for hiking, exploration and adventure! I plan to visit Peru again and will share more stories of my travels there. In the meantime, please contact me anytime if you would like to discuss the opportunities between Peru and Miami.

Miami is to Latin America what the Netherlands is to Europe. Miami has the relationships and trade routes to Latin America, South & Central America and the Caribbean; just like the Netherlands has with the rest of Europe. Last week, I had the opportunity to tour the Netherlands with a small delegation which included representatives from Port Miami, Florida East Coast Railway (FEC) and Miami logistics providers.

Our first meeting was a visit to Schiphol Airport in Amsterdam with the Senior Vice President of Air Cargo. His presentation was both comprehensive and  informative. Not only did we learn about air cargo, but we were also given an overview of both the Netherlands and the European Union economies. Schiphol is the 3rd largest cargo airport in Europe. Fokker Logistics Park and Schiphol Logistics Park are located nearby. Schiphol Airport was voted #1 for global connectivity according to DHL. We also learned that the Netherlands is a nation that is more of a service provider than of production. They are the 5th largest exporter and the 7th largest importer in the world. These are two astounding statistics, however it is important to understand that most of the products that pass through the Netherlands are originated from or destined to other countries within Europe. Just as “Miami is the gateway to the Americas”, the “Netherlands is the gateway to Europe.” In fact, the Netherlands has over 170,000,000 consumers within a 300 miles radius. Europe has a total population of over 500 million people. The Netherlands truly has a strategic location in Europe; ideal for logistics (logistiek in Dutch). As we say in the real estate profession: “location, location, location.”

The Netherlands is very similar to Miami because they have more service related (than production) industries such as logistics. We both have the international relationships and trade routes. Interestingly, both business communities take advantage of the use of foreign trade zones (FTZ’s). Schiphol is focused on marketing it’s air cargo services to American manufacturers and distributors. The largest flowers auction in the world is also in Amsterdam; in comparison, Miami International Airport receives over 90% of all fresh flowers that enter into the USA. On a side note, the Netherlands also has water issues as they have to constantly battle sea water pouring inland since they are below sea level; this reminds me of our water issues here in South Florida versus the Everglades.

Our delegation then visited with the following Ministries of the Netherlands: Infrastructure and Environment, Economic Affairs, and Foreign Affairs. Here we learned how the Dutch operate their economy. Private / public partnerships are encouraged and promote co-operation and harmony. A few of the major industries that the Dutch are best known for include: farming (produce, fish and flowers), energy, chemicals, data ports and logistics  (logistiek). They are extremely focused on agri-products (both imports and exports).

Did you know this?! The Netherlands is the 3rd largest investor in the USA, according to the Netherlands Consulate in Miami.

The Foreign Trade Agreement (FTA) between the USA and the European Union known as the trans-Atlantic agreement could liberalize trade, reduce tariffs and other penalties which could benefit the people of all countries involved. However, there are many Americans and Europeans that are against free trade which may likely destroy this opportunity. A representative that I chatted with from the US Department of Commerce stated that the free-trading Dutch do have some frustrations with the USA and the rest of the European Union’s anti-liberalism. This is disappointing since both the Netherlands and the USA could have so much to benefit from one another. Some descriptions that I came up with for the Dutch that seem to best describe them are efficient, forward-thinking, productive, trustworthy and friendly. They are also very tall! The Dutch are very impressive overall and seem to desire win-win relationships in trade.

On a cool day in the 40’s with some refreshingly windy rain, we visited the Port of Rotterdam. It stretches nearly 30 miles along the Maas River! This enormous size is understandable when you then consider it is the largest port that serves over 500 million people in the European Union. Our purpose here was to promote Miami as the “Perishables Gateway of the Americas”. Specifically we hope to serve as the primary entry point for fruits, vegetables, plants, flowers, seafood and meats from Central and South America destined for Europe via Port Miami as a transshipment hub then on to Port of Rotterdam. At this time already, the Netherlands is Port Miami’s 7th largest importer and 12th largest exporter. Visit the Port of Rotterdam at www.portofrotterdam.com.

The Port officials highlighted several important trends. First, there is a growing demand for foods everywhere. Second, there is a global shift in the countries that traditionally produce products versus those that consume them. And finally, there is an increased focus on sustainability, efficiencies and intermodal transport. The Dutch are long term planners. They have a plan that they are in the process of implementing by 2030.

To take advantage of the increase in the transportation of perishables, the Port is constructing a new warehouse known as “Cool Port”. The refrigerated warehouse will be ready in 2015, just in time for the opening of the new Panama Canal which will allow larger ships to travel from Central and South America (countries such as Peru, Argentina and Chile) to the Netherlands via Miami. In reverse, the Netherlands is the world’s 2nd largest exporter of agricultural products.

Port Miami has spent over $2B for improvements such as the Miami Tunnel, deep dredge to 50′, the FEC Rail, cranes, bulkheads, and more. In addition, Miami has been improving our roadways and expressways for transportation. New speculative warehouse construction was about 2M sq. ft. in 2012 with an additional 2M to 4M sq. ft. expected within the next couple of years. I think Miami is being viewed globally as a major logistics city. In fact, Miami may become a “Dutch hub” for logistics (or logistiek). Learn more about Port Miami at www.miamidade.gov/PortMiami.

Personally, this was a very exciting trip for myself. My 10th great grandfather, Gerret van Sweringen, sailed from Holland in 1656 on the ship, Prince Maurice, to New Amstel, Delaware in America. He served as the ship’s “supercargo”; which was the person responsible for both the cargo and passengers. It was somewhat nostalgic to visit Port Rotterdam and to wonder what he may have been thinking when he left from Holland for America so long ago. I bet he would’ve never believed that nearly four hundred years later, one of his descendants would return to Holland; let alone be in nearly the same profession as himself!

Please contact me anytime if you would like to discuss the opportunities between the Netherlands and Miami as well as Miami warehouses for the Dutch from the Netherlands. I would be happy to share with you the presentation on Miami’s warehouse market that I handed out. In addition, please stay tuned to read about part two of our trade mission to the 2013 Fruit Logistica convention in Berlin, Germany. You might also be interested in joining the Miami Dutch Chamber of Commerce at www.dutchbizmiami.com. >>> . Dank Je Wel (thank you very much)!!!

Click here to read in Dutch (Klik hier om te lezen in het Nederlands) >>>

Ship passing through the Panama Canal on its way back to Singapore

Buenos dias! You are now reading Part II of II of the story of my trip on the Miami-Dade County trade mission to Panama. If you would like to read from the beginning, then please visit Miami and Panama Canal Expansion Part I >>>

Just a twenty minutes ride outside of Panama City, I also had the opportunity to tour Panama Pacifico’s International Business Park to meet with their staff. Visit www.panama-pacifico.com >>>. One of the largest commercial construction projects in all of Latin America which consists of industrial, office and retail spaces plus residential in a master-planned development creating a live, work, play community. Since this is such a massive development, there are special economic and tax advantages. Over eighty companies now occupy the warehouse  buildings. The foundations of the warehouse buildings are constructed with concrete. Since there are no hurricanes or earthquakes in Panama, the walls and roofs are made of steel which is sufficient. The industrial warehouse spaces can be rented from 10,000 to 500,000 sq. ft. Ideal for light manufacturers, assembly, logistics and more. It is located on the Pacific Ocean side very near the Panama Canal just off the Pan-American Highway.

In my opinion, this is the type of product that many American industrial warehouse users would be comfortable with. Especially if you are from tropical Miami, South Florida. The surrounding jungle and mountain scenery is something you’d expect to see on a postcard. The beach, fishing and surfing are just a few minutes away. The development firm, London and Regional, is truly constructing a “live, work and play” environment. If you are considering expanding your business operations to Panama, then Panama Pacifico is an absolute must see.

Click Photo >>> for a YouTube Video on Miraflores Locks in the Panama Canal

Visiting the Miraflores Locks in the Panama Canal was a great, vivid experience by learning exactly how much Panama plays a central role in all of Latin America’s logistics. The Panama Canal is known as “the only port with two oceans”. On the Pacific Ocean side ships enter the Panama Canal via the Miraflores Locks; on the Atlantic Ocean side it is via Gatun Locks. There are several ports on either side and within the Panama Canal itself. Visit this website for more: www.pancanal.com >>>

While we were cruising by the Port of Balboa in the Canal of Panama, I counted twenty-two Post Panamax cranes and lost count of how many containers. Here is a good website on the ports of Panama at www.ppc.com.pa >>> Unfortunately, too many of the containers are empty when headed back to Asia from the east coast of the USA. There is a great opportunity for American manufacturers and exporters to fill them back for the ride back! Surely the freight forwarders, logistics, importers and exporters here in Miami are doing their best to position themselves into this supply chain.

As you may know, ComReal Miami and I relocated our main office into the Miami Free Zone earlier this year. One of the highlights of my trip to Panama was to ride on the Panama Canal Railway from Panama City to Colon to visit the foreign trade zone. Zona Libre in Colon, Panama is the 2nd largest foreign trade zone in the world; Hong Kong is 1st. (visit www.colonfreezone.com ). Zona Libre consists of over 3,000,000 square feet of warehouse, office and retail spaces or roughly over 300,000 square meters. Let’s just say that with over 1,800 companies and 24,000 workers in a foreign trade zone it is an extremely entrepreneurial, capitalist environment creating $22 billion in trade in 2010.

Recently, Panama passed the new Law 32 regulating “Zonas Francas” (free zones) in Panama. Some experts state that the laws further liberalize international trade by reducing taxes and regulations thus creating more opportunities for manufacturing, assembly and distribution via these foreign trade zones. According to CB Richard Ellis, the newer warehouse spaces (or galeras) in Zona Libre are for lease for a rental rate of between $5.00 and $6.00 per square meter.  The older warehouses are between $3.00 to $4.00 per Mt2. New development continues with the construction of Interplaza which looked about 75% complete.

According to the U.S. Department of Commerce “Zona Libre in Colon, Panama may be one of the best investment opportunities for 3rd party logistics activity and for consumer retail. It is a fact that it is the second largest foreign trade zone (FTZ) in the world and will continue to benefit from canal traffic and transshipment activity.” For more information, you may also visit this website about Zona Libre de Colon at www.zonalibredecolon.com.

Ed Redlich at Miraflores Locks in Panama Canal

If you are considering doing business within Panama, then for starters I strongly recommend that you get into contact with Mr. Daniel T. Crocker, Senior Commercial Officer, based at the U.S. Embassy in Panama. Read further about doing business to Latin America via Panama and the Panama Canal at www.export.gov/panama/doingbusinessinpanama/index.asp

Another great resource is Mr. Tom Brymer of Panama Advisory Group. Visit his website on real estate, investments and other topics in Panama at www.panamaadvisoryinternationalgroup.com

Fun Fact: “A man, a plan, a canal, panama.” If you spell this phrase backward, it also reads “A man, a plan, a canal, Panama.”

If you are interested in anything that you have read above, please feel free to contact me anytime and I would be happy to discuss further. Muchos gracias!

Maersk Ship docked at Port of Balboa in Panama Canal

Bienvenidos! Miami industrialists are now preparing for the expansion of the Panama Canal. From this year until 2014, we are living in the era that can best be described as “Pre-Post Panamax”. Hopefully, some of the stories, contacts and website links below will be of beneficial resources for your present and future business interests in Panama.

In June, I departed with thirty other delegates on the Miami-Dade County trade mission to Panama. The mission was orchestrated by the county’s Office of Economic Development (OEDIT) and Enterprise Florida. The delegates included directors from the Port of Miami, Miami International Airport and Miami Dade County as well as manufacturers, distributors, freight forwarders, logistics, importers and exporters. The purpose was to explore business opportunities and relationships as well as witness the Panama Canal expansion.

Miami-Dade County delegates tour Panama Canal expansion at Miraflores Locks

Miami entrepreneurs and government officials are positioning themselves to take advantage of the Panama Canal expansion. Both Miami and Panama are making significant investments in their infrastructure and transportation hubs including seaports, airports, railroad and foreign trade zones. According to a Panamanian economist that I met with, Panama does not have an overburdening debt and taxation like the USA does. So what else makes Panama so appealing to Miami businessmen? Some have the perspective that Panama is the logistics hub for the Americas. The direct air flights, canal, seaports and foreign trade zones are very significant factors that other countries do not possess. If Miami and the state of Florida do not capitalize on Panama, others will. For example, private oil companies are investing to dredge the Port of Houston to 50’ deep to accept Post Panamax ships thus making it one of several USA ports on the east coast to do so.

If you are considering the expansion of your global operations in Latin America, then Panama may be a great choice. The economy is based on the US Dollar and they have a long history of dealing with Americans and made in the USA products already. It is also important to note that Panama has over eighty direct flights into Tocumen International Airport >>> In addition, there are direct, three-hours flights between Panama and Miami with Copa Airlines >>> Overall, we found that the Panamanian business people are very ambitious. It is not uncommon for a Panamanian to work more than five days a week while the average American seems to work less than five days. The country is politically and economically stable; pro business; advocates international free trade; and is generally friendly towards Americans. On our second day there, we visited with the chamber of commerce in Panama >>> Their members are patiently awaiting the passage of the Foreign Trade Agreement between Panama and the USA. In addition, the country of Colombia, their neighbor to the south, is also expecting similar legislation to pass simultaneously very soon. What better way for the USA to create employment opportunities and free trade routes for all countries involved than to finalize these FTA’s with two of our best amigos in Latin America.

Miami-Dade County delegates meet with Panama chamber of commerce

Several of the delegates already have business operations in both Miami and Panama so it was very interesting to understand the country from their perspectives as well. It was especially exciting to learn about Panama’s commitment to several targeted industries including food production and agriculture; the transportation of such foods via the supply chain logistics and ultimately the exporting of such foods, produce, vegetables, fruits, coffee, seafood, meats, flowers and other perishables. One company, named Galores, is already leading the logistics industry in Panama with the construction of their state-of-the-art refrigerated, cold storage facility. Checkout their website at Galores Cold Storage Warehouse >>>

For a very helpful website on learning more about news, trends, real estate and investment opportunities in Panama, visit Sr. Tom Brymer at Panama Advisory International Group >>>

Here is a short video on a summary of Panama: YouTube: Panama, where the world meets (Panama Canal) >>>

If you may be considering operating your logistics, freight forwarding, importing and/or exporting business in both Miami and Panama warehouses, then here are a few events in Panama in case  you may want to time your next visit there: Expo Logistics Panama (visit www.expologistica.org ) in September of this year 2011 and Expocomer (visit www.expocomer.com ) in March 2012.

If you are interested in doing business within Panama, then I encourage you to first communicate with the US Department of Commerce in Panama; so be sure to visit www.export.gov/panama

Please feel free to continue reading on to Part II which describes my individual excursions to Zona Libre (free zone) in Colon, Panama Pacifico and the Panama Canal >>>