Title: News from ... the Panama Canal
Full Citation
Permanent Link: http://ufdc.ufl.edu/UF00099414/00005
 Material Information
Title: News from ... the Panama Canal
Physical Description: Serial
Language: English
Publisher: Autoridad del Canal de Panama
Place of Publication: Balboa, Panama
Publication Date: September 2003
 Record Information
Bibliographic ID: UF00099414
Volume ID: VID00005
Source Institution: University of Florida
Holding Location: University of Florida
Rights Management: All rights reserved by the source institution and holding location.


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SeTptember 2003

Panama Canal and U.S. Ports Set Alliances to Improve Customer

With more than 60 percent of Panama
Canal traffic originating from and traveling
to the East and Gulf Coasts of the United
States, the Panama Canal Authority (ACP)
made an historic move to boost trade by
striking strategic alliances with the major
ports of the United States; specifically, the
port authorities of New York/New Jersey;
Norfolk, VA; Savannah, GA; Miami, FL;
Charleston, SC; New Orleans, LA; and
Houston, TX.
Through the alliances, the Panama Canal
and the Ports will share market information
that will help to anticipate the needs of the
shipping industry and plan ahead future
capacity and capability requirements.

Hanjin and Maersk vessels transiting through Pedro Miguel

The alliances also aim at generating new business by promoting on the many benefits of the all-water
route, the most reliable and economical link between U.S. East and Gulf Coasts and the Far East. The
agreements foresee joint advertising and public relations activities; sharing of forecast future trade
flows and market trends; interchange of studies that may benefit the parties in future development
projects; and technological interchange of advanced technology and programs in the shipping and
maritime community, among others.
The U.S. East and Gulf Coasts states and ports are pursuing aggressive marketing strategies to
increase cargo at their terminals while satisfying their customer needs for efficient and expedite
In the same manner, the Panama Canal is constantly modernizing and improving the waterway to
provide safe, efficient and reliable service to the shipping community. As Panama Canal
Administrator, Alberto Aleman Zubieta said on the onset of the signing ceremonies: "We are all part of
the global supply chain, all of this is integrated, so the agreements are important to handle increases
in the volumes of cargo."

ACP Obtains ISO Environmental Quality Certification

On June 5, in a memorable ceremony held at
the Panama Canal's Administration Building,
Lloyd's Register Quality Assurance awarded I
the ACP's Department of Security and
Environment the coveted ISO 14001
The ISO 14001 international standard
specifies the requirements for establishing
and implementing an environmental policy
into a company's operations. By adhering to
this standard, the ACP reinforces its
commitment to incorporate and implement
environmental policies in its daily business
operations and achieve its long-term
sustainable development goals, mainly in
the management of the Panama Canal From left to right: Luis Alvarado, ACP Manager of the
watershed The ceremony had added Environmental Management Division; Alberto Alemin
watershed. The ceremony had added Zubieta, Panama Canal Administrator; and Juan H. Diaz, ACP
significance as it coincided with the Director of Safety & Environment holding the ISO 14001
United Nations World Environment Day. certification.


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Containerized Cargo, Leading
Commodity at the Panama Canal
Canal cargo tonnage reported an overall increase of 0.4 percent
to 158.3 million long tons in the ten-month period (October-
July) of fiscal year 2003. Containerized cargo has consolidated
as the single most important commodity group shipped
through the Panama Canal, sharing 24.5 percent of total Canal
cargo tonnage.
This is due to the large number of new "all-water" services from
Asia to the United States East Coast using the Canal. Trade in
this route has increased faster than the worldwide average.
This route recorded 19.9 million long tons, accounting for 51.5
percent of overall container cargo. Cargo volumes have
experienced an increase of 28.9 percent in this important
route, as a result of the introduction of new services and vessels
of greater capacity.
ZIM and Evergreen announced capacity increases in their
current services. In addition, two new services started in May:
"PGX" of CMA-CMG and P&O Nedlloyd, in which China Shipping
Container Line shares space; and the "AUX" of ZIM, Lloyd
Triestino and Evergreen. The forecast for the "all-water" route
remains positive, and it is expected that new services will be
The table below shows the comparison of cargo flows between
fiscal year 2002 and 2003.

Panama Canal Main Commodities October-July

Containenzed Cargo

Petroleum Products
Minerals and Metals
Chemical and Petrochemicals
Refngerated Products
Phosphates and fertilizers

Manufactures of Iron and Steel
Coal and Coke
Lumber and Related Products
Auto and Parts

5,000 10,000 15,000 20,000
Thousand Long Tons

25,000 30,000 35,'

Panamax Transits Continue

Panamax vessels, the largest that can transit the
Panama Canal locks, continue to increase their share
through the waterway. A total of 3,978 Panamax
vessels transited the waterway during the October- July
period of Fiscal Year 2003, a 4.7% increase relative to
last year. A consistent growth in transits by Panamax
containerships has been a primary factor in this positive
trend. The table below shows the monthly comparative
breakdown in fiscal years 2002 and 2003.

Panamax Transits 100' Beam & Over

Oct. 355 379 6.8%
Nov. 389 397 2.1%
Dec. 370 417 12.7%
Jan. 395 421 6.6%
Feb. 346 398 15.0%
Mar. 383 417 8.9%
Apr. 383 376 -1.8%
May 383 398 3.9%
Jun. 390 364 -6.7%
Jul. 404 411 1.7%
Total 3798 3978 4.7%

Gatun Lake Channel Deepening
Project will Benefit Canal

To improve and modernize the waterway and provide
safe, reliable and efficient transit service, the ACP has
begun a $190 million project to dredge 7.1 million cubic
meters in the Gatun lake and Gaillard Cut channel. The
deepening project entails the dredging of the 52 km-
long navigational channel from the south end of Gatun
Locks to the north end of Pedro Miguel locks, and is
designed to increase water reservoirs' capacity to
safeguard the Canal against uncontrollable natural
hindrances such as low precipitation levels and
unpredictable weather conditions. As of July 2003, one
third of the deepening project has been completed.
The deepening project, which started a year and a half
ago and should be completed within the next four to five
years, will benefit Canal customers because the
additional water reservoirs will allow the ACP to
accommodate traffic demand and delay the need to
impose draft restrictions during extended dry periods.

Locks Maintenance

Dates No. Of Days Miraflores Pedro Miguel Gatun Daily Transit Capacity Status

Sept. 15 25 11 days Lane Outage N/A Lane Outage 26 -28 Tentative
Oct. 20 30 11 days Lane Outage N/A N/A 30 32 Tentative
Nov. 25 27 3 days N/A N/A Lane Outage 30 32 Tentative

For additional information visit our website www.pancanal.com

I~F 2003I
FY 2002

Panama Canal Keeps Improving its
Safety Record
The third quarter operational metrics indicate that the Panama
Canal is operating more safely and efficiently than ever before
in its 89-year history. In the third quarter of April to June 2003,
there was an increase in tonnage and a reduction in Canal
Waters Time (CWT), the average time it takes a vessel to
navigate the Canal including time waiting for passage.
The Canal reduced CWT from 25.6 hours during the third
quarter (April through June) of fiscal year 2002 to 21.4 hours
during the third quarter of fiscal year 2003, reflecting a 16.4
percent improvement, or 4.2 hours transit time reduction.
In addition, tonnage as measured by the Panama Canal
Universal Measurement System (PC/UMS) increased during
the third quarter compared with last year, rising from
59,810,870 PC/UMS in the third quarter of fiscal year 2002 to
60,214,717 PC/UMS during the third quarter of fiscal year
For the first three quarters of fiscal year 2003, there were a
total of nine maritime accidents compared to 16 accidents in
the first three quarters of fiscal year 2002 representing a 43.8
percent drop in official accidents. This safety record is the
result of operational improvements and continuous
modernization efforts.

Mark your Calendar in December for
Maritime Security Pre-TOC Meeting

On December 1, 2003, the ACP will host a conference on "The
Impact of the Maritime Security Code on Latin American
Trade". This forum, to be held in Panama, will provide
participants with an insight on the impact that the new SOLAS
amendments will have on the operations of ports, shipping
lines, importers and exporters. For additional information,
please contact the ACP Customer Relations Unit at 011-507-
272-1747, or e-mail "customerelations@pancanal.com"

TOC 2003 Americas Meets in Panama

The 3rd Terminal Operations Conference and Exhibition for the
Americas TOC 2003 Americas will be held in Panama City
from December 2-4, 2003.
Organized by Informa Maritime & Transport, TOC 2003
Americas will bring together senior level maritime executives
from around the globe to network and discuss important topics
related to terminal operations, shipping and global commerce
such as policy issues, strategic insights and operational
matters. Key speakers at the conference include: William
Hamlin, President, Americas APL; Peter Keller, COO, NYK Line
(NA) Inc.; John Meredith, Group Managing Director, Hutchison
Port Holdings; Jon Hemingway, President & CEO, SSA Marine;
Jose Balau, CEO, Libra Terminals; Bernard Groseclose,
President & CEO, South Carolina State Ports Authority. For
further information please visit: www.toc-
events.com/tocamerica or e-mail: cust.serv@informa.com

ACP Chairman Shares Canal Vision
in IAPH 2003
On May 29, 2003, the Minister of Canal Affairs and
Chairman of the Panama Canal Authority Board of
Directors, Mr. Jerry Salazar, and the Director of Corporate
Planning and Marketing, Rodolfo Sabonge, participated in
the 23rd International Association of Ports & Harbors
(IAPH) World Ports Conference in Durban, South Africa.
In this renowned maritime event, Mr. Salazar shared the
ACP vision with more than 900 participants. Mr. Salazar
stressed the importance of the Panama Canal to world
trade and the numerous achievements made by the ACP
since the transfer of the Canal, including the reductions in
Canal Waters Time (CWT) and safety records. He also
updated the audience on the ACP's permanent
modernization program.

From left to right: Rodolfo R. Sabonge, ACP Director of Corporate
Planning and Marketing; Patricia Arias, Secretary General, Office
of the Minister for Canal Affairs; Jerry Salazar, Minister for Canal
Affairs and Chairman of the ACP Board of Directors.

ACP Participates in AISA 2003

The Panama Canal Authority Administrator, Mr. Alberto
Aleman Zubieta, and the Director of Corporate Planning
and Marketing, Mr. Rodolfo Sabonge, participated in the
American Institute for Shippers' Associations (AISA)
annual meeting in Santa Monica, California.
AISA is the United States' leading trade group
representing the interests of the cooperative shipping
industry and allied enterprises.
At this meeting, the Panama Canal representatives
presented the many benefits that the Canal route offers
to shippers, and emphasized the safe, reliable and
efficient service being offered to the maritime


ACP Administrator, Alberto Aleman Zubieta, and/or members of his
staff will attend the events listed below. If you are interested in
meeting with a Panama Canal representative in your area of
interest, please contact the Customer Relations Unit at 011-507-
272-1747 orsend an e-mail tocustomerelations@pancanal.com

September 2003

Visit to the Berendrecht Locks and meeting with
representatives of the Government of Belgium, Antwerp
Port Authority, Technum Corporation, and Post-Panamax
Dates: September 9-10
Place: Antwerp, Belgium

VIII Meeting of the Panama Canal Authority Advisory Board
Dates: September 12-13
Place: Copenhagen, Denmark

Seatrade London International Maritime Convention
Dates: September 16-18
Place: ExCel Convention Center, London, England

The 92nd Annual Convention of the American Association of
Port Authorities (AAPA)
Dates: September 28 October 3
Place: World Trade Center Curacao, Netherlands Antilles.

October 2003

The 3rd Port of New York & New Jersey Port Industry Day
Date: October9
Place: Bayonne Harbor, New Jersey

November 2003

The 37th Georgia Foreign Trade Conference
Dates: November9-11
Place: The Cloister at Sea Island, Georgia.

The 2003 Business for Social Responsibility Annual
Conference: "Building and Sustaining Solutions"
Dates: November 12-13
Place: Century Plaza Hotel and Spa in Los Angeles, California.

"China U.S. Relations: Past, Present and Future" 2003
Dates: November 5-8
Place: College Station, TX

December 2003

The Impact of Maritime Security on Latin American Trade
Pre-TOC Meeting
Dates: December 1
Place: Panama Canal Authority installations

Terminal Operations Conference and Exhibition -TOC
2003 Americas
Dates: December 2-4
Place: Hotel El Panama, Panama City, Republicof Panama.

Meetings with Customers

During the visits to the U.S. ports, Mr. Jerry Salazar, Minister for
Canal Affairs; Mr. Alberto Aleman Zubieta, Panama Canal
Administrator; and Mr. Rodolfo Sabonge, Corporate Planning
and Marketing Director, met with valued customers in the area
to exchange views on the state of the maritime industry and
explore new and better way to satisfy customer needs.
On June 17, 2003, the Panama Canal representatives met with
Thomas Thune Andersen, President & CEO of Maersk Sealand,
New York, and members of his staff.
In Norfolk, Virginia, the ACP representatives had the
opportunity to share information with Mr. Shaul Cohen-Mintz,
President & CEO of ZIM Israeli Navigation. In Savannah,
Georgia, a meeting was held with Wallenius Wilhelmsen
representatives, Mr. Gary Jones, Senior Vice-President and Mr.
Jim Clement, Vice-President and CFO.
Additionally, on July 8, 2003, Canal Administrator Aleman
Zubieta and Mr. Sabonge met with Mr. Manny Fernandez,
President Latin America Region of APL Limited in Miami, Florida.

From left to right: Rodolfo R. Sabonge, ACP Director of Corporate
Planning and Marketing; Jorgen Stevens, Operations Vice-President
Maersk Sealand-NY; Alberto Alemin Zubieta, ACP Administrator; Thomas
Thune Andersen, President & CEO Maersk Sealand-NY; Jerry Salazar,
Minister for Canal Affairs and Chairman of the ACP Board of Directors; and
Mark Malambri, President of Maersk Gulf Inc.

New Member of the ACP Advisory Board

Recently, Mr. Mikio Sasaki, President & CEO of Mitsubishi
Corporation, was appointed as member of the Panama Canal
Advisory Board. The Panama Canal Advisory Board is composed
of renowned leaders in the maritime shipping, business,
transportation and educational sectors. Mr. Sasaki will
participate in the VIII Advisory Board Meeting to be held in
Copenhagen, Denmark on September 12-13, 2003.

We wan you comet fo mor inforatio

Your comments and suggestions are very important to us. If you would rather
receive it electronically, please send us a note with your correct e-mail address
to: customerelations@pancanal.com If you need additional copies mailed to
other officials within your corporation, please contact us at the address
indicated in the next box.

Panama Canal Authority
Corporate Planning and Marketing
ACP-PM P.O. BOX 025513,
Miami FL. 33102-5513

Tel. (507) 272-7961
Fax: (507) 272-5916
e-mail: customerelations@pancanal.com

(then click on "Canal News")

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June 17, 2003
"This agreement fits in with our long-term plans to increase cargo
volume in the port by 4 percent a year, and to shippers' increased
demand for all-water services," said Joseph J. Seymour, the Port
Authority's Executive Director.
East Asia is the Port of New York and New Jersey's largest trading
partner, accounting for approximately 35 percent of all containerized
cargo handled at the Port last year. Thirteen of the 16 all-water services
carrying cargo from Asia to New York use the Panama Canal; the other
three use the Suez Canal, according to the Port Authority.

June 18, 2003

In the eight months since the West Coast lockout, the Virginia Port
Authority (VPA) has seen a significant growth in Asian goods. In April
2003, the port set a record for containerized cargo moving through its
terminals. More than 21 percent of April's cargo came to Hampton
Roads through the Panama Canal, with much of it originating in Asia.
"We do a large amount of Far East business that is almost equal to
Europe, and it is growing very rapidly," J. Robert Bray, VPA Executive
Director, said. "I've been here a long, long time, and I've never seen
growth like this."
VPA and ACP trade officials cited the many retail distribution centers
such as Wal-Mart, Target, Dollar Tree and Home Depot in Hampton
Roads as one of the main triggers of the pact.

From left to right: Jerry Salazar, Minister for Canal
Affairs and Chairman of the ACP Board of Directors;
Alberto Alemin Zubieta, ACP Administrator; Ernesto
Butcher, Chief Operating Officer of the Port Authority of

From left to right: Shaul Cohen-Mintz, President ofZim-
American Israeli Shipping Co.; George S. Dunlop, Deputy
Assistant Secretary Policy & Legislation U.S.
Department of the Army; Jerry Salazar, Minister for
Canal Affairs and Chairman of the ACP Board of
Directors; J. Robert Bray, Virginia Port Authority
Director; Alberto Alemin Zubieta, ACP Administrator;
and Rodolfo R. Sabonge, ACP Director of Corporate
Planning & Marketing.

June 20, 2003

"We project that nearly 700 vessels representing a total of more than 1
million TEUs, will use the Panama Canal to call on Savannah this year,"
said David A. Schaller, the GPA's Deputy Executive Director, who signed
the agreement in an official ceremony. "This strategic alliance will allow
GPA and the Panama Canal Authority to improve services for our
customers and generate new economic opportunities for Georgia and
the Southeastern United States."
David Schaller, Deputy Director of the Georgia Ports
The Port of Savannah has 13 all-water weekly services to Asia that Authority and Alberto Alemin Zubieta, ACP
transit the Panama Canal, and ranks second among U.S. East Coast Administrator.
ports in receiving imports from Asia. The goal is to increase use of the
all-water Canal route by Asian shippers importing goods to the United
in the Southeast. "A key ingredient to our steady
"Nearly 70 percent of GPA's total cargo volume will travel via the growth in the Asian market is directly tied to our
Panama Canal this year," Schaller said. "So it is absolutely essential excellent partnership with America's major retailers,"
that both authorities work as closely together as possible to enhance he said. Retailers like Best Buy, The Bombay Co., Dollar
international trade." General, Kmart, Lowe's, Michael's and Wal-Mart have
David A. Schaller considers that the agreement would benefit retailers opened distribution centers close to the port.

July 8, 2003

The Port of Miami-Dade sees the alliance with the ACP as a way to
bolster its share of Far East trade, which currently accounts for 13
percent of traffic, said Director Charles A. Towsley. "It's an area we
want to continue to develop," he said. "The Canal's customers are our
customers, so anything we can do to assist them will help us."
The Miami port can also boost the Canal in its quest to lure more
cruise traffic, Towsley noted. "We can help to encourage that."

July 9, 2003
Officials at Charleston, perhaps the most notorious space-constrained
port on the U.S. East Coast, said they were successfully handling
rising U.S. demand for Asian goods. Container volumes at the port
rose 12 percent in the first 11 months of the fiscal year, with Asian
imports leading the way.
"Historically, we have been a fairly well-balanced port, with Europe
accounting for a little over a third of our volume and Asia typically
taking 25 percent-30 percent," a port spokesman said. "Now Asia is
approaching 33 percent."

Po o O -O "OR O

July 10, 2003

"Gulf Coast and East Coast ports are anticipating that lingering
anxiety about the lockout consequences and congestion at West
Coast ports will prompt Asian shippers to send more of their products
through the Canal to the other ports", noted New Orleans Port
Executive Director Gary P. LaGrange.
"Today's agreement will bring real tangible benefits, a win-win for our
customers, the people of Louisiana and the people of Panama," said
Canal Administrator, Alberto Aleman Zubieta.

July 11, 2003

At the Houston signing ceremony, Tom Kornegay, PHA Director
emphasized the potential of the new partnership: "A century ago, the
Port of Houston and the Panama Canal each were nothing more than a
dream. Today, our waterways are vibrant and essential components to
the world's economy," Kornegay said. "Our new line brings
electronics, textiles, school supplies and other products that people
use every day. We're proud to be working together to deliver the
Jim Edmonds, PHA Chairman said "The thing that naturally makes me
very delighted about this is that we're trying to find business
arrangements, and that's what this is... This is a very significant day
for us. We see this as a great growth opportunity."

Charles Towsley, Miami Seaport Director and Alberto
Alemin Zubieta, ACP Administrator

Bernard Groseclose, SCSPA Director and Alberto Aleman
Zubieta, ACPAdministrator

Left to right: Gary LaGrange, PORTNO Director; David P.
Schulingkamp, PORTNO Commissioner; Alberto Aleman
Zubieta, ACP Administrator; David Guidry, PORTNO
Commissioner; Conrad H. Appel III, PORTNO
Commissioner; Rodolfo R. Sabonge, ACP Director of
Corporate Planning & Marketing

a M I d A

Seated: Tom Kornegay, PHA Director and Alberto
Alemin Zubieta, ACP Administrator; Standing: Cheryl
Thompson-Draper, Kase Lawal, Janiece Longoria, PHA
Commissioners; Carlos Arosemena, Consul of Panama to
Houston; Rodolfo R. Sabonge, ACP Director of Corporate
Planning & Marketing; Jim Edmonds, PHA Chairman, &
Wade Battles, PHA Managing Director.

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