Browse the complete Report on: Panama Freight Transport Report Q4 2010
Browse All - Business Monitor International Market Research Reports
In mid-July BMI believed a strike conducted by nearly 700 workers involved in the expansion of the Panama Canal was likely to be resolved quickly and would not affect the completion of the Panama Canal expansion project. Nevertheless, we cautioned that political risk, and in particular public unrest, remained a major obstacle to the development of the maritime sector in Latin America, and that it could yet hinder the canal's expansion.
Negotiations had started between representatives of the striking workers and Grupo Unidos por el Canal (GUPC), the international consortium handling the project. It was hoped that the talks would bring an end to the dispute, which had paralysed work on the project for 10 days. Workers were demanding better wages, transportation, more sanitary working conditions and other improvements, taking industrial action just six days after the official inauguration of the US$3.1bn project, which will see a third set of locks added to the canal.
Local market conditions are supportive for the Panamanian freight transport industry, although there is both light and shade in the outlook. Following the 2009 recession, weak demand is persisting in the US economy, and the recovery that is playing out in Panama is consequently moderate. After growth slowed to 3.4% in 2009, we see the pace picking up to 4.1% this year, and then to 5.1% in 2011. Two recent decisions bode well: increased Panama Canal rates and the liberalisation of mining laws to allow the development of the Cerro Colorado copper project could boost fiscal revenues, diversify exports, and in the case of Cerro Colorado create a major new source of demand for dry bulk freight. On the other hand these and other moves on labour legislation by President Ricardo Martinelli could boost opposition protests, particularly from trade unions and environmental groups.
Panama is performing well in the airfreight sector. Copa's June 2010 figures showed significant business growth. Airfreight tonnage growth slowed, but did not turn negative in the recession-dominated year of 2009. For 2010, we see a reasonably strong recovery, with growth of 5.1%.
At the Port of Balboa, Panama's most active terminal, BMI expects volume growth of 5.8% this year, coming after a virtual standstill in 2009. The recovery in world trade and the use of Panama as a transhipment point are key factors in this growth. Recent increases in Canal Zone rates will, we believe, be absorbed without a loss of shipping business. The story at Manzanillo International Terminal (MIT) is similar, although a little less pronounced. After a flat 2009, volume at MIT will grow 2.8%.
Total Panamanian trade grew by 3.7% in real terms in 2009, but is picking up pace with an advance of 5.2% expected in 2010. For the five-year forecast period running to 2014, real growth will come in at an annual average of 5.4%, almost one percentage point ahead of GDP. Over that period imports will be a little more dynamic than exports (annual average growth of 6.1% vs. 4.7% for exports).
We believe the risks to our Panama freight forecasts are marginally on the downside. The major risk remains lower-than-expected US growth, which would impact on trade levels. Labour and opposition unrest is, we believe emerging as a potentially important second risk, Government policies to liberalise labour and mining legislation could attract controversy and opposition; while normal in a democracy, prolonged protests might give investors second thoughts.
About Us
ReportsandReports comprises an online library of 10,000 reports, in-depth market research studies of over 5000 micro markets, and 25 industry specific websites. Our client list boasts almost all well-known publishers of such reports across the globe. We as a third-party reseller of market research reports employ a number of marketing tools, such as press releases, email-marketing and effective search-engine optimization techniques to drive revenues for our clients. We also provide 24/7 online and offline support service to our customers.
Contact:
Ms. Sunita
7557 Rambler road,
Suite 727, Dallas, TX 75231
Tel: +1-888-989-8004
http://reportsandreports.blogspot.com/
http://reportsandreports.proarticles.co.uk/
http://reportsnreports.wordpress.com/
Browse All - Business Monitor International Market Research Reports
In mid-July BMI believed a strike conducted by nearly 700 workers involved in the expansion of the Panama Canal was likely to be resolved quickly and would not affect the completion of the Panama Canal expansion project. Nevertheless, we cautioned that political risk, and in particular public unrest, remained a major obstacle to the development of the maritime sector in Latin America, and that it could yet hinder the canal's expansion.
Negotiations had started between representatives of the striking workers and Grupo Unidos por el Canal (GUPC), the international consortium handling the project. It was hoped that the talks would bring an end to the dispute, which had paralysed work on the project for 10 days. Workers were demanding better wages, transportation, more sanitary working conditions and other improvements, taking industrial action just six days after the official inauguration of the US$3.1bn project, which will see a third set of locks added to the canal.
Local market conditions are supportive for the Panamanian freight transport industry, although there is both light and shade in the outlook. Following the 2009 recession, weak demand is persisting in the US economy, and the recovery that is playing out in Panama is consequently moderate. After growth slowed to 3.4% in 2009, we see the pace picking up to 4.1% this year, and then to 5.1% in 2011. Two recent decisions bode well: increased Panama Canal rates and the liberalisation of mining laws to allow the development of the Cerro Colorado copper project could boost fiscal revenues, diversify exports, and in the case of Cerro Colorado create a major new source of demand for dry bulk freight. On the other hand these and other moves on labour legislation by President Ricardo Martinelli could boost opposition protests, particularly from trade unions and environmental groups.
Panama is performing well in the airfreight sector. Copa's June 2010 figures showed significant business growth. Airfreight tonnage growth slowed, but did not turn negative in the recession-dominated year of 2009. For 2010, we see a reasonably strong recovery, with growth of 5.1%.
At the Port of Balboa, Panama's most active terminal, BMI expects volume growth of 5.8% this year, coming after a virtual standstill in 2009. The recovery in world trade and the use of Panama as a transhipment point are key factors in this growth. Recent increases in Canal Zone rates will, we believe, be absorbed without a loss of shipping business. The story at Manzanillo International Terminal (MIT) is similar, although a little less pronounced. After a flat 2009, volume at MIT will grow 2.8%.
Total Panamanian trade grew by 3.7% in real terms in 2009, but is picking up pace with an advance of 5.2% expected in 2010. For the five-year forecast period running to 2014, real growth will come in at an annual average of 5.4%, almost one percentage point ahead of GDP. Over that period imports will be a little more dynamic than exports (annual average growth of 6.1% vs. 4.7% for exports).
We believe the risks to our Panama freight forecasts are marginally on the downside. The major risk remains lower-than-expected US growth, which would impact on trade levels. Labour and opposition unrest is, we believe emerging as a potentially important second risk, Government policies to liberalise labour and mining legislation could attract controversy and opposition; while normal in a democracy, prolonged protests might give investors second thoughts.
About Us
ReportsandReports comprises an online library of 10,000 reports, in-depth market research studies of over 5000 micro markets, and 25 industry specific websites. Our client list boasts almost all well-known publishers of such reports across the globe. We as a third-party reseller of market research reports employ a number of marketing tools, such as press releases, email-marketing and effective search-engine optimization techniques to drive revenues for our clients. We also provide 24/7 online and offline support service to our customers.
Contact:
Ms. Sunita
7557 Rambler road,
Suite 727, Dallas, TX 75231
Tel: +1-888-989-8004
http://reportsandreports.blogspot.com/
http://reportsandreports.proarticles.co.uk/
http://reportsnreports.wordpress.com/
