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

Busan International Port Conference November 17, 2017

Panama Canal Performance Overview Silvia de Marucci Executive Manager Forecasting & Market Research Panama Canal Authority November 17, 2017

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

Transits and PC/UMS Tonnage 450 35,000 28,204 29,807 MILLION 18,940 9,931 4,832 Transits 403.8 million tons 400 30,000 PCUMS Tons FY 1955 FY 1975 FY 1995 FY 2016 FY 2017 350 25,000 300 PC/UMS TONS TRANSITS 20,000 250 13,548 transits 200 15,000 150 10,000 100 5,000 50 0 0 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

Main Routes – FY 2017 34% Asia – U.S. East Coast 13% South America West Coast – U.S. East Coast Total: 241.0 millions South America West Coast - Europe 7% (long tons) Central America West Coast – U.S. East Coast 7% West Coast North America - Europe 4%

Main Users of the Panama Canal Total Cargo Movements FY 2017 User FY 2016* FY 2017* United States 137.2 164.5 China 38.7 44.0 Chile 25.3 27.5 Japan 19.0 27.4 Mexico 15.4 25.2 Colombia 15.5 23.6 Total cargo movement: 241.0 millions long tons Peru 19.2 21.9 68.3 % of Canal cargo traffic originates in, South Korea 16.4 19.7 or is destined to, the United States. * Measurement in million long tons

PCUMS Tonnage by Market Segment Refrigerated 160 General Cargo Million of PCUMS Tons 143 140 Passengers Others Container 120 *Tankers include LNG & LPG 105 100 Dry Bulk *Tankers 79 80 60 43 40 Vehicle Carriers 20 10 8 8 0 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Fiscal Year

PC/UMS 97 Tons FY2017 - from October 1st to September 30th (In million of tons) 62.5 % Container Dry Bulk Tankers RoRo Passengers PANAMAX 100 % Others NEOPANAMAX 74.1 % FY2016 LNG FY2017 LPG Refrigerated General Cargo

Neopanamax Locks – Vessel Transits (From 26-Jun-2016 through 16-Nov-2017) 2,295 NPx Px 269 2,564 Total Updated as of 16-Nov-17 (inclusive) *Liquid Bulk: Crude, chemical products and tankers

Connectivity of Liner Services through Panama Bremerhave Tilbu Rotterdam n Southampto Dunkirk ry Canal Transit Services Vancouver Le Havre n Seattle Vostochniy Halifax Geno Boston Leghorn a Barcelona New York Valencia Annual Tokyo Cagliari Philadelphia Yokohama # of Average vessel Sines Nagoya Norfolk Commercial Route capacity in one # of vessels Busan Busan Kobe Oakland Wilmington (NC) Services size Los Angeles Charleston Tanger Med Long Beach direction Savannah Ensenada Jacksonville Shanghai Mobile Ningbo Housto Port Everglades n Mia Panamax Hong Kong Chiwan mi Asia - USEC / Gulf 3 708,977 29 4,552 Manzanillo, Mex Kingston P. Caucedo Kingston WCSA - Europe 3 426,399 27 2,754 Cristobal USWC - Europe 2 498,086 21 4,786 Manzanillo Cartagena Port of Spain Manzanillo Balboa WCSA - USEC 3 292,337 11 2,716 Buenaventura Singapore Australia - USEC 1 182,312 10 3,506 Guayaquil Papeete Australia - Europe 2 159,597 15 2,584 Sub-Total 14 2,267,708 113 3,633 Callao Neopanamax Mejillones Noumea Asia – USEC 10 4,497,549 110 8,653 San Antonio 988,515 19 9,470 Sydney WCSA - Europe 2 Auckland Port feeder services Melbourne Tauranga San Vicente Asia – Caribbean 1 472,061 11 9,078 Napier Coronel WCUS – Europe 1 468,640 10 9,012 Annual # of # of Average Chalmers Pendulum 1 349,450 10 6,720 Commercial route capacity in services vessels vessel size one direction Sub-Total 15 6,776,215 160 8,681 23 2,643,247 83 2,931 Feedier Services Atlantic 12 2,947,622 71 7,035 Feeder Services Pacific 29 9,043,708 273 Total 35 5,590,869 154 Total Source: ACP MEMN, Compair Data, August 2017

Gas Trade and the Panama Canal Post-expansion Expanded Canal LNG – New Market Segment 1,5 M long begins operations 2,750,000 Chemicals tons/month (aver.) 2,500,000 Ammonium 2,250,000 Liquefied petroleum gas (LPG) 2,000,000 LNG Liquefied natural gas (LNG) 1,750,000 Average load: 70,000 mt 1,500,000 LNG is mainly used for electric generation Long tons of cargo 1,250,000 Pre-expansion ECONOMIES OF SCALE 0,5 M long tons/month 1,000,000 LPG-Panamax VLGC (aver.) 750,000 LPG 500,000 250,000 0 Feb-15 Apr-15 Jul-15 Sep-15 Nov-15 Feb-16 Apr-16 Jul-16 Sep-16 Nov-16 Feb-17 Apr-17 Jul-17 Sep-17 Jan-15 Mar-15 May-15 Jun-15 Aug-15 Oct-15 Dec-15 Jan-16 Mar-16 May-16 Jun-16 Aug-16 Oct-16 Dec-16 Jan-17 Mar-17 May-17 Jun-17 Aug-17 Average load: 25,000 mt Average load: 43,000 mt LPG is used for cooking and as a petrochemical raw material

LNG Flows at the Panama Canal FY2017 Origin Destination Long Tons % U.S. 1,586,533 Mexico 1,302,071 China 79.4% South Korea 918,844 Japan 844,251 Chile 128,625 Trinidad & Chile 357,710 Tobago Mexico 120,583 11.3% 60,223 South Korea 57,645 Taiwan 56,936 China Peru Spain 395,315 7.2% Origin Destination Long Tons % United Kingdom 59,931 Equatorial Trinidad & Peru U.S. Chile Mexico 1,586,533 357,710 Equatorial Guinea Spain 395,315 64,295 1.0% Tobago Guinea China Mexico 1,302,071 120,583 Mexico 1.0% 7.2% Mexico 64,295 11.3% 78.0% South Korea South Korea 918,844 60,223 70,591 1.1% United Kingdom Japan Taiwan Others 844,251 59,931 57,645 Chile China 128,625 56,936 Total 6,359,634

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%

Milestones of Neopanamax Locks

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

National Logistics Strategy: Panama 2030 8. Modernization and 1. Connectivity and 4. National Public Bidirectional Hub Logistics Interinstitutional Integration 1. Connectivity and Bidirectional Hub - What to do? Integration 2. Integration of the Hub of the Interoceanic Zone - What to do? 3. Value Added Logistics - What to do? 5. Technological Bet 9. Proactive Private 4. National Logistics Integration - What to do? Sector 5. Technology bet - What to do? 6. Consensus 6. Strategic Consensus - How to do it? Estratégico 2. Regional 7. Institutional Logistics - How to do it? Interoceanic Hub 10. Sustainable Integrations Financing- APP 8. Modernization and public inter-institutional - How to do it? 9. Private Sector Pro-activeness and Grassroots Partnership - How 7. Strong Logistics Institutions to do it? 3. Value Added Logististics 10.Sustainability of Financing Strategy - How to do it? 11. Risks of Slow Implementation 11.Risks of a Slow Performance - When?

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. 9% 8% 29 2% % 11 % 31 Facilitates imports % and reduces costs 28 % Provides a 27 Promotes intra- platform for % regional trade exports from the region Source: IHG Global Trade Navigator, April 2017 Forecast and ACP

Pacific Alliance: 4 member countries, 52 observers - Panama? O BSERVING COUNTRIES EL SALVADOR SLOVAKIIA SLOVENIA SPAIN UNITED STATES FINLAND FRANCE GEORGIA GREECE GUATEMALA HAITÍ GERMANY HUNGARY PORTUGAL NETHERLANDS ARGENTINA INDIA U NITED K INGDOM HONDURAS AUSTRALIA INDONESIA D OMINICAN R EP . AUSTRIA ISRAEL C ZECH REPUBLIC BELGUM ITALY ROMANIA Members CANADÁ JAPAN SINGAPORE CHINA LITHUANIA SWEDEN SOUTH KOREA MORROCCO SWITZERLAND COSTA RICA NORWAY THAILANDI CROACIA NUEVA ZELANDIA T RINIDAD & TOBAGO DENMARK PANAMÁ TURKEY ECUADOR PARAGUAY UKRAINE EGYPT POLAND URUGUAY

Leveraging on Independent Treaties - Potential for Panama

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

OBOR in Latin America connecting the world ZE ZE ZE ZE ZE ZE ZE ZE ZE ZE X Z ZE ZE ZE E ZE ZE ZE ZE X ZE ZE ZE ZE

Complementary activities to maximize the value of the route Container Terminal in Corozal

Corozal Proposed Terminal

Complementary activities to maximize the value of the route Corozal Container Terminal Ro-Ro Terminal

RoRo Terminal • Focused on light vehicles and heavy equipment • Mainly a transshipment facility • Capacity for development of vehicle enhancement services PSA Port

Roll-On/Roll-Off Terminal Machinery Vehicles Cars Construction Vehicle yard Mining Buses Vehicle Agriculture Processing Center Trucks Projects Patio for Heavy Equipment

Complementary activities to maximize the value of "the route" Corozal Container Terminal Ro-Ro Terminal Logistics Park

Area for Development: 736 has. Solar Panel Park 70 ha 4. La franja PSA 66 ha 5. Rousseau 2. Valle Port 3. Cocolí 125 ha 164 ha 24 ha 1. Centenario 180 ha 559 ha for the development of activities 140 ha for basic infrastructure 37 ha for artificial lake Tolls Highway 736 ha total