Panama remains focused on acquiring new opportunities and forming strategic partnerships to enhance its regional position. The nation plans to drive its economic transformation by investing in Panama’s logistics and port services with private funding and international partnerships. Panama has implemented this strategy to maintain its position and avoid being surpassed by emerging regional competitors.
While Panama stands out as a major maritime center with a strong economy and strategic location, the country must improve its logistics efficiency to maintain its position as an essential international trade hub. The Caribbean nations, together with Mexico and Colombia, are aggressively pursuing market share.
The ongoing access to new business ventures and strategic economic discussions makes Panama stand out in the current global trade policy changes. Panamanian logistics development relies on its strategic partnerships with major global players, including China.
During the forum “Logistics and Exports in the Trump Era: At the event “Impacts and Opportunities,” Capital Financiero brought together industry experts who discussed the modernization of existing infrastructure as well as the needs of key players in Panamanian logistics and the port chain.
Logistics Expansion to Meet Supply and Demand
Rommel Troetsch, who served as president of the Panama Maritime Chamber, said that Panama’s persistent port development and adaptability have established its capability to process substantial cargo volumes between the Pacific and Atlantic, making the nation a primary transshipment hub and a fundamental part of its logistics system.
Troetsch pointed out that Panama’s port infrastructure allows efficient management of diverse cargo types. The executive pointed out that constructing new ports would ensure Panama’s logistics capabilities remain robust for the future.
The Port of Balboa along with Panama International Terminal (PSA) represent the primary Panamanian ports located next to the interoceanic canal on the Pacific coast. The primary ports on the Atlantic side include Cristóbal – Panama Ports Company (PPC), Manzanillo International Terminal (MIT), and Colón Container Terminal (CCT). The Panamanian ports constitute the fundamental infrastructure for logistics operations that facilitate transshipment and trade circulation throughout the Americas.
Panama stands on the brink of its second transformation in port infrastructure. We stand at the beginning of new opportunities for port development. The acquisition of the Balboa and Cristóbal ports by BlackRock and Terminal Investment Limited will lead to increased shipping traffic and cargo volumes and require additional crew members to handle these operations.
The transaction involved selling the remaining contract years and transferring ownership to interested parties, including MSC, which stands as one of the world’s largest shipping lines, according to his clarification.
The Panamanian government retains negotiation authority over new economic conditions and strategic development for the Balboa and Cristóbal ports following BlackRock’s acquisition of 90% of these ports from Hutchison as part of a $22.8 billion transaction that also encompasses 41 ports across 23 countries.
In 2024, Panama commanded the Pacific coast market for container transshipment measured in TEUs, with a 60% market share by processing 3,616,674 units. Lázaro Cárdenas in Mexico accounted for 14%, and Callao in Peru matched this percentage, followed by Manzanillo in Mexico at 10% and Buenaventura in Colombia at 2%. Colón port led the Atlantic market with 4,846,748 TEUs, making up 42% of the market share, followed by Cartagena at 23%, Kingston in Jamaica at 19%, Freeport in the Bahamas at 10%, and Caucedo in the Dominican Republic at 6%.
Troetsch identified Cartagena as an emerging logistical threat because of its port expansion and called for Panamanian government initiatives to stimulate the Panamanian logistics sector.
He demonstrated exponential growth in TEU volume since port concessions began as evidenced by the rise from 195,097 units in 1993 to 9,569,771 units in 2024, which showcases the consolidation of a privately operated system that plays a crucial role in Panamanian logistics expansion.
“There is current demand for two new ports: The country needs to build two new ports with one location secured on Isla Margarita in the Atlantic Ocean while the second location remains undetermined. Farfán, Corozal, and Palo Seco are the evaluated options in the Pacific located within the canal area.
He revealed that building a new port would demand about $1 billion in investment and emphasized that national leadership for the project was essential to create wealth and jobs.
He concluded with the recommendation that Panama should consider port examples, including Singapore’s massive transshipment capabilities of up to 60 million TEUs; Jebel Ali’s operations with 15 million TEUs capacity; and Rotterdam’s substantial €2 billion investment in port expansion.
The Panama-David Train: A Key Pillar of Logistics Development
Felipe Rodríguez of the Panama-David-Frontera Train Committee presented details about the project’s anticipated economic benefits and societal effects during a discussion about transportation strategies between Panama’s central and western regions. Panamanian logistics will improve through the increased integration of regional supply chains.
The mega railway project valued at $8 billion is slated to begin construction during the year 2026. The project establishes transportation links between the provinces of Coclé, Herrera, Veraguas and Chiriquí with the Panama Canal logistics corridor.
Rodríguez from the Western Region Competitiveness Center (Cecom-RO) stated that the Panama–David–Frontera Train project will enhance current trade pathways while improving cargo movement to key production zones and border areas and fostering Panamanian logistics network integration.
President José Raúl Mulino announced that the train project heading to Paso Canoas border will feature 14 stations throughout the nation and create 50,000 direct and indirect jobs during its construction phase.
Former President Juan Carlos Varela (2014–2019) first proposed the Chiriquí railway project after presenting a feasibility study conducted by China Railway Design Corporation (CRDC) which aimed to support Panama’s existing air transportation and logistical and financial infrastructure.
The analysis showed that building the railway would require six years and $4.1 billion while generating up to 6,000 direct and indirect jobs.
Rodríguez highlighted that developing local labor skills would empower the population to take part in the project while simultaneously addressing unemployment issues.
Once the train starts operations, multiple beneficial projects will become possible. These include links with the Panama–Colón railway and a terminal at Panama Pacifico, as well as hubs in Arraiján and the Aguadulce port, together with the Penonomé trunk line, the Azuero corridor for rum and ethanol, and a slaughterhouse connected to Mensabé port, while new developments in Soná create a tourism and agro-industrial corridor leading to Santa Catalina beach.
The plans include a tourist and passenger stop at Las Lajas as well as a spur and stop at San Lorenzo and a Panama–Boston link together with Puerto Barú as the main logistics node in Chiriquí town and the Caribbean Dry Canal. The trunk line at Puerto Armuelles connects the border for purposes of transshipment as well as tourism and shipyard operations.
Rodríguez projects that the initiative will develop technology clusters along the route through connections between innovation hubs and industrial and agricultural sectors while making it easier for tech businesses to reach markets and resources thus growing the Panamanian logistics ecosystem.
China and Its Investment in Panama
During the forum, Xu Xueyuan, the Ambassador of China to Panama, revealed trade growth statistics between the two nations since their diplomatic ties in 2017 and presented market opportunities China provides to Panama.
Our economic and trade cooperation between our countries has experienced rapid growth. Panama and China achieved $6.38 billion in trade in 2016, which increased to $12.84 billion by 2024. She indicated the direct investment increased from $270 million in 2016 to $1.4 billion in 2023.
The Colón Free Trade Zone sources its products mainly from China, which also ranks as the second-biggest user of the Panama Canal. The country hosts over 200 Chinese businesses.
The ambassador discussed Panama’s geographic advantage, noting its role as a vital pathway for international shipping and a regional logistics center. Infrastructure development and job creation improve population well-being and strengthens Panamanian logistics’ strategic value.
She presented the Belt and Road Initiative, also called the new Silk Road, as a means to increase connectivity between countries in economic, trade, political, and financial domains via infrastructure investment funding.
The successful momentum with Panama developed through Belt and Road Initiative cooperation will continue if political and financial support from the initiative persists.
The ambassador stated that although bilateral relations between the two nations are stable they face complex challenges which neither China nor Panama have generated. The Trump administration repeatedly accused China of meddling in Panama Canal operations which led to political conflict between the two nations.
Representative Xu explained that China sees Panama as a strategic partner to enhance bilateral trade and encouraged businesses to explore export possibilities in the Chinese market with a focus on beef, pork, poultry, fruit, and coffee industries. China plans to keep sending trade delegations to Panama while they participate in trade fairs to discover fresh investment opportunities and strengthen economic partnerships.
Experts suggested that Panama needs to speed up its logistics platform development while advancing strategic projects, including the Panama-David-Border railway, and drawing international investment to boost regional competitiveness through sustainable planning that provides fair benefits throughout the nation.
The Chinese Embassy in Panama organized an event at the Bristol Hotel located in Panama City. Mambriche Media together with Plataforma Event Production and Radio Ancón and GVA Hospitality provided their support.