The four challenges of Panama to consolidate as logistics and global services hub

The Canal is facing a new challenge after overcoming the challenge of its expansion. It is an ambitious logistic strategy that will help the territorial and social integration of other sectors to economic growth, obtaining greater benefits and profitability from the inter-oceanic route. 

The formula to reach this achievements will result from the execution of the profile and priority logistic roadmap designed by CAF, Development Bank of Latin America, in coordination with the Logistic Cabinet, which includes the authorities of the Ministry of the Presidency, Ministry of Trade and Industry, Ministry of Foreign Relations, Ministry of Public Works, Ministry of Economy and Finance, Authority of the Panama Canal, Maritime Authority of Panama, National Secretariat of Science and Technology, Authority of Civil Aviation, National Customs Authority, Authority of Land Traffic and Transportation, Metro Secretariat, Ministry of Housing and Territorial Zoning, Colon Free Zone, and Tucumen S.A. 

The World Class Connectivity and Logistics Hub designed for Panama has four pillars: First, improve the competitiveness of infrastructure and logistic services; second, expand the services to new areas of the Canal hub and other regions of the country; third, diversify and innovate in value added services; and fourth, urban transportation and road management for the internal and international network. The objective is to consolidate de State as a logistics and global services hub, integrating it and impacting on the development of Latin America at the same time. 

The country has five world class ports at the core of the Canal and a high performance in traffic services. However, there are significant challenges regarding the positioning of the value added services that allow for a comprehensive logistic development. This is reflected in the statistics, as Panama leads in performance in Latin America and the Caribbean, but it is below the more developed regions such as North America, Europe, and Asia, ranked number 45 of a total of 160 countries in the Logistic Performance Index. 

Enrique Garcia, CAF's Executive President, stated, "CAF is collaborating with the Strategic Vision of Panama to advance in its consolidation as a logistic and services hub at a global level, attracting and developing logistic platforms with value added, promoting its air cargo hub and short and medium distance maritime connections with Middle America and Latin America as a whole". 

Panama's Logistic Profile and its Priority Roadmap were developed in the framework of the Regional Logistic Development for Latin America Program, designed by CAF. These documents are tools formulated from a regional advancement point of view, contributing to a country vision which is integrated to the development of logistics in Latin America and the world.