Science and Technology at the Service of Logistics in Panama

by | Apr 12, 2025 | FDI Latin America

Innovation and Sustainability: Dual Engines of Growth

Innovation, the development of specialized talent, the integration of new technologies and services, and sustainability in logistics operations represent both challenges and opportunities. Logistics is more than just transporting goods—it is a bridge between global producers and consumers. It is a fundamental pillar of international trade that drives employment, economic development, and national competitiveness.

In this context, logistics in Panama stands out due to its robust ecosystem, which includes its interoceanic canal, modern airports, and special economic zones such as Panama Pacifico and Colón. Around 30% to 35% of the national economy is tied to logistics activities, highlighting its vital importance.

Key Players and Global Institutions Supporting Logistics

There are many actors involved in the logistics supply chain: producers or suppliers of raw materials; operators; land, sea, or air transportation companies; firms that store, package, and distribute goods; ports, airports, special logistics zones, customs, retailers, commercial businesses, and the end consumer. In addition, various national and international government institutions are involved in planning, regulating, and promoting innovation in logistics activities.

International organizations such as the International Maritime Organization, the World Trade Organization, and the World Customs Organization play active roles in shaping global logistics practices.

Expo Logística 2025: A Platform for Insight and Strategy

At the recent Specialized Logistics Congress “Data and Innovations Impacting the Supply Chain and Sector Development,” held as part of Expo Logística 2025 in Panama and supported by the National Secretariat for Science, Technology, and Innovation (Senacyt), experts and professionals in the logistics sector discussed Panama’s advantages, opportunities to strengthen the local logistics ecosystem, and global challenges.

“In an increasingly interconnected and demanding global environment, innovation and the efficient use of data not only optimize supply chain processes but also strengthen the competitiveness of our businesses and economies,” stated Manuel José Paredes, President of the Commission for Exhibitions, Events, and Professional Training of the Chamber of Commerce, Industries, and Agriculture of Panama (CCIAP).

Panama as a Multimodal and Integrated Logistics Hub

Jorge Barnett, Director of the Center for Innovation and Logistics Research at Georgia Tech Panama and moderator of a panel on the outlook for multimodal transportation in Panama, noted that logistics in Panama has evolved far beyond being a maritime or air hub. He emphasized that Panama is now a valid point of convergence for various modes of transportation, global routes, and value chains.

“Due to this scale, a range of enabling infrastructure and a portfolio of favorable services for global trade have emerged. However, there are also challenges,” he said.

Resilience Amid Global Disruptions

Indeed, supply chains can be vulnerable to environmental factors such as natural disasters, health crises, geopolitical conflicts, wars, cyberattacks, transportation disruptions, talent loss, and, more recently, tariff adjustments announced by the U.S. government. In response to these challenges, countries must adapt to remain resilient, efficient, and sustainable.

In this ever-evolving scenario, logistics in Panama must incorporate science and technology to remain globally competitive.

Technology: A Catalyst for Transformation

Science and technology play a direct and strategic role in logistics processes, including digital infrastructure, interconnectivity, and operational sustainability. From academia, research centers, and emerging tech companies, innovation can support logistics operations through:

  • Fleet management platforms
  • Internet of Things (IoT) for real-time monitoring of goods and containers
  • Artificial intelligence for demand prediction and dynamic inventory management
  • Big data for predictive analytics and process optimization
  • Blockchain for supply chain security and traceability

Green Logistics and Sustainable Practices

Science also contributes to reducing energy and resource consumption in the logistics sector. Environmental impact studies of routes and transportation modes, clean energy solutions for fleets, and sustainable infrastructure design are leveraged to make Panama’s logistics greener and more efficient.

Data-Driven Decision-Making in Uncertain Times

Gordon Wilmsmeier, Director of the Center for Global Transport and Logistics (CSGL) at Kühne Logistics University in Hamburg, Germany, emphasized the importance of digital skills and the challenges of digital transformation. He observed that while more data is generated daily, many companies struggle to identify which data truly adds value to decision-making.

He also pointed to unpredictable factors—such as climate events and armed conflicts—that increase the complexity of planning, underscoring the need for relevant and actionable data.

According to the United Nations, the total volume of data is expected to reach 175 zettabytes by 2025. Data science and web analytics have great potential to support global trade and sustainable development, especially in strategically positioned countries like Panama.

Human Capital: The Core of Innovation

“The training of professionals for success in logistics and the supply chain is a global challenge,” said Dr. María Heller, Director of Learning at Senacyt. “Senacyt offers training programs and scholarships in key areas such as data science, robotics, and automation. These scholarships help train highly qualified Panamanians to conduct research and design systems that optimize supply chains.”

Senacyt has launched a National Strategy to integrate Panama into the global supply chain for microelectronics and semiconductors to support long-term development. This initiative positions logistics in Panama as a key player in the transit and distribution of technological products. Two scholarship calls have already been issued to train local talent in the semiconductor field.

Structural Challenges and Opportunities for Improvement

Despite the progress, challenges remain. Speakers at the congress identified several obstacles to the sector’s continued growth:

  • Poor road infrastructure and traffic congestion
  • Disruptions caused by protests
  • Limited digitalization in customs procedures
  • Need for better coordination and integration across logistics actors
  • Underutilization of multimodal transport options

Experts also emphasized equipping potential collaborators with digital skills, practical experience, and a proactive mindset. They recommended updating academic curricula to reflect current and future industry needs better.

Looking Ahead

Integrating science, technology, and talent development is vital to unlocking the full potential of logistics in Panama. As digital transformation accelerates, Panama’s strategic location and infrastructure give it a unique advantage in serving as a leading logistics hub in the region. However, success will depend on the country’s ability to invest in innovation, human capital, and sustainable practices.