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 >>>