Strategic Positioning Fuels Panama’s Leadership as the Leading Logistics Hub in Latin America
Panama has long served as a global hub, connecting the Americas and the rest of the world, but in 2024, the country became an even more essential player in global trade as the pandemic disrupted flows and preferences shifted. Behind the changes in the balance of power was the world-class infrastructure, exceptional air and maritime connections, and the critical positioning of the Colón Free Trade Zone. Panama’s strategic location between the Americas made it a natural center for transshipping to North America, Central America, and South America.
The Panama Maritime Authority (AMP) announced that over 9.5 million TEUs were transported in 2024, a 15.1% increase compared to the previous year. This made Panama one of the top 10 hubs in the world, positioning the country as a growing center in global logistics.
Interborders Expands in Panama to Become the Preferred Hub in the Region
As one of the leading players in the Latin American logistics space, Interborders – a multinational firm specializing in Foreign Trade, Logistics, and Customs Services, among other services – decided to cement its operations in Panama. Earlier this year, the Argentina-based firm opened a new headquarters in Costa del Este, Panama City. Interborders will continue its business and investment strategy with the new regional office and its logistics operation in Colón. With this development, the firm consolidates its role in the strategic position that Panama occupies in Latin America.
The firm’s new corporate headquarters represents an annual investment of USD 200,000. It complements the company’s operation in Colón, adding 20,000 m2 of workspace to the logistics area. This means that the company is present in two of the most important cities in Panama, Colón and Panama City. With its operations in these two locations, Interborders can provide a 360° logistics service to its clients in the hemisphere, including the entire logistical process, such as warehousing, distribution, and transportation through different modes of transportation.
“This represents a turning point in Interborders’ history,” said CEO Lucas Bianchi. “We will become the most important company, thanks to new solutions and a first-class logistics offering.”
Panama’s superior performance as the leading logistics hub in Latin America
Panama is one of the strongest and most appealing options for international trade and logistics due to its investments in ports, its excellent multimodal connectivity, and efficient regulatory framework. The Colón Free Trade Zone, the second-largest free zone in the world, has a strategic role in facilitating the free movement of goods throughout the region. Coupled with the Panama Canal, one of the most efficient in the world, the country forms an efficient logistics system that few competitors in Latin America can replicate.
In the World Bank’s 2023 Logistics Performance Index (LPI), Panama achieved a score of 3.1, placing it 57th in the world. This score was driven by the high performance in customs efficiency and port infrastructure, allowing Panama to remain among the top-ranking logistics markets in Latin America, along with Chile and Brazil. These rankings reflect the position that Panama has as a logistics hub in Latin America, an attractive region for companies to establish their supply chains.
New Investment in Human Resources in Panama
Interborders’ decision to open a new office in Panama also aims to expand the company’s human resources in the country by the end of 2025. The new office will offer jobs for local talent and boost the region’s economy, investing nearly USD 700,000 in Panama in 2025 between the company’s Colón logistics operation and the new corporate office in Costa del Este.
Interborders’ decision to invest in Panama’s logistics ecosystem stems from the strategic value of its position. According to CEO Lucas Bianchi, “Panama City is the place where major decisions for the region are made. It adds to our presence in Colón and allows us to service different client profiles.”
Panama has been Interborders’ choice since the company started its operations in the country a year ago. This strategic decision was taken after noticing Panama’s ability to connect the hemisphere, a factor that will allow the company to efficiently serve clients in South America, Central America, the Caribbean, and North America. Panama has demonstrated its role as a strong regional link for the supply chain, making it the preferred option for logistics.
As more customers, partners, and the logistics industry are turning their attention to Panama, the growth in business is noticeable. This is the motivation for the investment and increase in the Panamanian operation, making Panama the preferred hub in the hemisphere for foreign trade, logistics, and customs services.
Innovation is at the forefront: AI and logistics in 2025
Regional and international speakers recently met at a roundtable to discuss logistics in the face of geopolitical changes, new technologies, and changes in trade. Interborders’ Country Manager in Panama, Miguel Vallejos, talked about the advantages that Panama’s transport tri-connection has on business to navigate tariffs and the volatility of the markets. “Diversification of routes and the adoption of new technologies are key for the region’s competitiveness,” he stated.
One of the most interesting speakers was Jorge Barnett Lawton, Director General of the Panama Logistics Innovation and Research Center at Georgia Tech. Lawton stated that Artificial Intelligence (AI) is a key tool in the future of logistics. According to him, artificial intelligence enables the detection of risks, better flow, and more efficient decision-making throughout the supply chain.
Another interesting panelist was Yohane Mavel López, board member of Women in Supply Chain Panama (Wins Panama). She argued that logistics professionals need to be very flexible when making decisions about the future of logistics. In this new era of alliances and conflicts in global trade, only those with resilient and intelligent logistics systems will remain competitive. Panama is the leading option in Latin America, with the necessary tools to compete.
Attendance from various ambassadors and representatives of several countries in the region confirmed that they are watching Panama’s growth in logistics. It is worth mentioning that different countries and private companies, such as those from Argentina, had ambassadors and representatives at the roundtable to review Panama’s new proposal. Since global trade is heavily influenced by China, the US, and the European Union, Latin America needs to be nimble in its decisions.
Logistics companies, like Interborders, have a strong relationship with Panama and remain confident in the Panamanian logistics ecosystem. Interborders will grow exponentially and expect to serve over 100 regular clients in 2025. They also plan to reach a monthly volume of 900 TEUs, a considerable achievement for the company and a target in line with Panama’s growth plans.
Despite everything, participants were optimistic. Attendees shared similar opinions about Panama’s unique characteristics, as the following aspects make it the leading option in Latin America as a logistics hub:
- Panama is the strategic center in the Americas.
- Panama’s infrastructure is modern, technologically advanced, and efficient.
- The government supports these innovations and improvements, giving logistics a competitive advantage.
- Panamanian companies are adapting to new technologies such as AI, blockchain, and automation, which will become key in the cargo movement, cargo tracking, and cargo security.
What’s Next? Panama Must Expand to Maintain Its Success
Although Panama has taken significant steps to remain the leading logistics hub in Latin America, there are still many challenges that must be overcome. Some of the critical points for development are the following:
- Global standards are becoming more environmentally conscious, and more and more efforts are being made to integrate this concept into daily life. Low-carbon logistics and the circular economy are some of the proposals that will play a vital role in Panama.
- The adoption of artificial intelligence, blockchain, and automation will transform the movement of goods, tracking, and security.
- The workers are as essential as logistics infrastructure in this digital transformation. A well-trained and skilled workforce will lead the region’s development.
For Interborders, Panama is not a crossroads but the heart of the region. More and more companies will have operations in Panama as they make investments in multimodal hubs, digital tools, and the workforce. They will do this to increase their efficiency and adapt to a rapidly changing region.
The Country Positioned as the Leading Logistics Hub in Latin America
Panama is the number one option in Latin America for logistics for various reasons. These reasons are the location, the high investment in the ports, and a solid regulatory framework that enables the continuous growth of the Panama logistics ecosystem. It also motivates companies like Interborders to invest in this important hub in the hemisphere. As companies continue to innovate, develop, and expand, Panama will become the leading logistics hub in Latin America.