November 17, 2017 Panama Canal Performance Overview Silvia de - - PowerPoint PPT Presentation

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Busan International Port Conference November 17, 2017

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Panama Canal Performance Overview

Silvia de Marucci

Executive Manager Forecasting & Market Research Panama Canal Authority November 17, 2017

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Agenda

Panama Canal performance overview Complementary activities to maximize the value of the route

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Transits and PC/UMS Tonnage

50 100 150 200 250 300 350 400 450

5,000 10,000 15,000 20,000 25,000 30,000 35,000

1915 1918 1921 1924 1927 1930 1933 1936 1939 1942 1945 1948 1951 1954 1957 1960 1963 1966 1969 1972 1975 1978 1981 1984 1987 1990 1993 1996 1999 2002 2005 2008 2011 2014 2017

PC/UMS TONS

MILLION

TRANSITS

Transits PCUMS Tons 403.8 million tons

4,832 9,931 18,940 28,204 FY 1955 FY 1975 FY 2016 FY 1995

13,548 transits

29,807 FY 2017

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Central America West Coast – U.S. East Coast

Total: 241.0 millions

(long tons) West Coast North America - Europe

South America West Coast – U.S. East Coast South America West Coast - Europe Asia – U.S. East Coast

Main Routes – FY 2017

34% 13% 7% 7% 4%

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Total cargo movement: 241.0 millions long tons 68.3 % of Canal cargo traffic originates in,

• r is destined to, the United States.

Total Cargo Movements FY 2017 User FY 2016* FY 2017*

China 38.7 44.0 Chile 25.3 27.5 Colombia 15.5 23.6 Japan 19.0 27.4 Mexico 15.4 25.2

Main Users of the Panama Canal

* Measurement in million long tons

United States 137.2 164.5 Peru 19.2 21.9 South Korea 16.4 19.7

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143 105 79 43

10 8 8

20 40 60 80 100 120 140 160

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Million of PCUMS Tons Fiscal Year

PCUMS Tonnage by Market Segment

Container Dry Bulk *Tankers Vehicle Carriers Refrigerated General Cargo Passengers Others *Tankers include LNG & LPG

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PC/UMS 97 Tons (In million of tons)

FY2017 - from October 1st to September 30th

100% 74.1% 62.5%

Container Dry Bulk Tankers RoRo Passengers Others LNG LPG Refrigerated General Cargo

PANAMAX NEOPANAMAX FY2016 FY2017

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NPx Px

269 2,295 2,564

Total

(From 26-Jun-2016 through 16-Nov-2017)

Neopanamax Locks – Vessel Transits

Updated as of 16-Nov-17 (inclusive)

*Liquid Bulk: Crude, chemical products and tankers

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Connectivity of Liner Services through Panama

Shanghai Hong Kong Mobile Busan Singapore Chiwan Ningbo Housto n Jacksonville Manzanillo Manzanillo, Mex Kingston P. Caucedo Manzanillo Ensenada Cartagena Port of Spain Kingston Halifax Savannah Norfolk New York Los Angeles Oakland Boston Wilmington (NC) Mia mi Philadelphia Rotterdam Tilbu ry Le Havre Dunkirk Chalmers Melbourne Sydney Tauranga Napier Auckland Southampto n Bremerhave n Vancouver Seattle Long Beach Leghorn Barcelona Geno a Valencia Cagliari Tanger Med Sines Callao Mejillones San Antonio Guayaquil Buenaventura San Vicente Coronel Balboa Cristobal Busan Vostochniy Papeete Noumea Tokyo Yokohama Nagoya Kobe

Commercial route # of services Annual capacity in

• ne direction

# of vessels Average vessel size Feedier Services Atlantic

23 2,643,247 83 2,931

Feeder Services Pacific

12 2,947,622 71 7,035

Total

35 5,590,869 154

Charleston Port Everglades

Canal Transit Services

Port feeder services

Commercial Route # of Services Annual capacity in one direction # of vessels Average vessel size

Panamax

Asia - USEC / Gulf 3 708,977 29 4,552 WCSA - Europe 3 426,399 27 2,754 USWC - Europe 2 498,086 21 4,786 WCSA - USEC 3 292,337 11 2,716 Australia - USEC 1 182,312 10 3,506 Australia - Europe 2 159,597 15 2,584

Sub-Total 14 2,267,708 113 3,633

Total 29 9,043,708 273 Neopanamax

Asia – USEC 10 4,497,549 110 8,653 WCSA - Europe 2 988,515 19 9,470 Asia – Caribbean 1 472,061 11 9,078 WCUS – Europe 1 468,640 10 9,012 Pendulum 1 349,450 10 6,720 Sub-Total 15 6,776,215 160 8,681

Source: ACP MEMN, Compair Data, August 2017

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Gas Trade and the Panama Canal

250,000 500,000 750,000 1,000,000 1,250,000 1,500,000 1,750,000 2,000,000 2,250,000 2,500,000 2,750,000

Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15 Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17

Long tons of cargo

Chemicals Ammonium Liquefied petroleum gas (LPG) Liquefied natural gas (LNG)

LPG LNG

Expanded Canal begins operations

ECONOMIES OF SCALE

LPG is used for cooking and as a petrochemical raw material Average load: 70,000 mt

LNG – New Market Segment

LNG is mainly used for electric generation

LPG-Panamax VLGC

Average load: 25,000 mt Average load: 43,000 mt Post-expansion 1,5 M long tons/month (aver.) Pre-expansion

0,5 M long tons/month (aver.)

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LNG Flows at the Panama Canal

FY2017

U.S. Mexico

1,586,533

78.0%

China

1,302,071

South Korea

918,844

Japan

844,251

Chile

128,625

Trinidad & Tobago Chile

357,710

11.3%

Mexico

120,583

South Korea

60,223

Taiwan

57,645

China

56,936

Peru Spain

395,315

7.2%

United Kingdom

59,931

Equatorial Guinea Mexico 64,295

1.0%

Origin Destination Long Tons %

U.S.

Mexico

1,586,533

79.4%

China

1,302,071

South Korea

918,844

Japan

844,251

Chile

128,625 Trinidad & Tobago

Chile

357,710

11.3%

Mexico

120,583

South Korea

60,223

Taiwan

57,645

China

56,936 Peru

Spain

395,315 7.2%

United Kingdom

59,931

Equatorial Guinea Mexico

64,295 1.0% Others 70,591 1.1% Total 6,359,634

Origin Destination Long Tons %

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Fiscal Year2017 vs 2016

(from 1-Oct-2016 to 30-Sep-2017)

FY2016 FY2017 Variation %

Transits 13,114 13,548 434 3.3% CPSUAB Tonnage 330,433,370 403,831,352 73,397,982 22.2% Revenues B/. 2,354,269,926 B/. 2,690,691,527 B/. 336,421,601 14.3%

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Milestones of Neopanamax Locks

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Canal performance overview Complementary activities to maximize the value of the route

Agenda

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National Logistics Strategy: Panama 2030

• 1. Connectivity and Bidirectional Hub - What to do?
• 2. Integration of the Hub of the Interoceanic Zone - What to do?
• 3. Value Added Logistics - What to do?
• 4. National Logistics Integration - What to do?
• 5. Technology bet - What to do?
• 6. Strategic Consensus - How to do it?
• 7. Institutional Logistics - How to do it?
• 8. Modernization and public inter-institutional - How to do it?
• 9. Private Sector Pro-activeness and Grassroots Partnership - How

to do it? 10.Sustainability of Financing Strategy - How to do it? 11.Risks of a Slow Performance - When?

• 1. Connectivity and

Bidirectional Hub

• 2. Regional

Interoceanic Hub Integrations

• 5. Technological Bet
• 3. Value Added

Logististics

• 8. Modernization and

Public Interinstitutional Integration

• 4. National

Logistics Integration

• 7. Strong Logistics

Institutions

• 6. Consensus

Estratégico

• 9. Proactive Private

Sector

• 10. Sustainable

Financing- APP

• 11. Risks of Slow

Implementation

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31 % 29 % 28 % 27 % 11 %

8%

9% 2%

Source: IHG Global Trade Navigator, April 2017 Forecast and ACP

Relevance of the Latin American Maritime Trade Canal

The Panamanian port system addresses the need for import and export from Panama, but also serves as a logistic hub for the Latin America region. Facilitates imports and reduces costs Provides a platform for exports from the region Promotes intra- regional trade

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PORTUGAL

UNITED KINGDOM DOMINICAN REP. CZECH REPUBLIC

ROMANIA SINGAPORE SWEDEN SWITZERLAND THAILANDI

TRINIDAD & TOBAGO

TURKEY UKRAINE URUGUAY HUNGARY INDIA INDONESIA ISRAEL ITALY JAPAN LITHUANIA MORROCCO NORWAY NUEVA ZELANDIA PANAMÁ PARAGUAY POLAND GERMANY ARGENTINA AUSTRALIA AUSTRIA BELGUM CANADÁ CHINA SOUTH KOREA COSTA RICA CROACIA DENMARK ECUADOR EGYPT

Pacific Alliance: 4 member countries, 52 observers - Panama?

Members

EL SALVADOR SLOVAKIIA SLOVENIA SPAIN UNITED STATES FINLAND FRANCE GEORGIA GREECE GUATEMALA HAITÍ NETHERLANDS HONDURAS

OBSERVING COUNTRIES

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Leveraging on Independent Treaties - Potential for Panama

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The Silk Road (OBOR): Another Opportunity to Expand International Trade

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X X

ZE

ZE

ZE

ZE ZE ZE ZE ZE ZE ZE ZE ZE ZE ZE ZE ZE ZE ZE ZE Z E ZE ZE

OBOR in Latin America connecting the world

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Container Terminal in Corozal

Complementary activities to maximize the value of the route

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Corozal Proposed Terminal

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Corozal Container Terminal Ro-Ro Terminal

Complementary activities to maximize the value of the route

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RoRo Terminal

• Focused on light vehicles and heavy equipment
• Mainly a transshipment facility
• Capacity for development of vehicle

enhancement services

PSA Port

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Construction Vehicles Machinery Mining

Roll-On/Roll-Off Terminal

Projects Agriculture Cars Buses Trucks Vehicle yard Vehicle Processing Center Patio for Heavy Equipment

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Corozal Container Terminal Ro-Ro Terminal

Complementary activities to maximize the value of "the route"

Logistics Park

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• 3. Cocolí

24 ha

• 4. La franja

66 ha

• 2. Valle

164 ha

• 1. Centenario

180 ha

• 5. Rousseau

125 ha

559 ha for the development of activities 140 ha for basic infrastructure 37 ha for artificial lake 736 ha total

Area for Development: 736 has.

Tolls Highway Solar Panel Park 70 ha PSA Port

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Evolution of logistics services

Transfer HUB HUB of value- added logistics services Industrial complex of light manufacturing

Panama serves as transportation hub for the region Panama as logistical hub for basic value-added activities: blending repacking relabeling assembly

• thers

Panama is an attractive alternative for light manufacturing activity where the cost of the logistics chain is a critical factor

As logistics services evolve in the country, the national conglomerate and its position at the global level strengthen

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Mixed development activities

Ro-Ro:

Allows to add value to vehicles in Panama and redistribute parts from Panama

Perishables:

Refrigerated storage to serve exports from Peru, Mexico and Chile.

Distribution and manufacturing:

It allows the assembly and redistribution to the entire region from Panama

Development of multiple logistics / industrial activities

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Corozal Container Terminal Ro-Ro Terminal

Complementary activities to maximize the value of the route

Logistics Park LNG Terminal

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Potential Demand for an LNG Terminal

Electric Plant Bunkering Industrial Transportation Regional redistribution

 Vessels transiting the Canal  Vessels arriving at Panamanian ports  Energy purchase contracts  Reconditioning of existing plants in ACP  Industrial potential  Public transportation  ACP Tugs  Central America West Coast

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LNG Terminal Pipeline Top-Off Operations Electric power generation Bunkering Logistics Park Ro-Ro Terminal Corozal Container Terminal Vessel Repair

Complementary activities to maximize the value of the route

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Busan International Port Conference November 17, 2017