Authorities are meticulously evaluating the feasibility, costs, and benefits of establishing a strategic port within the Panamanian Pacific, specifically between Mensabé and Farfán. This critical assessment is driven by the growing recognition of port development’s national and international importance for Panama, especially in light of the recent announcement of the sale of CK Hutchinson Ports to BlackRock. This conglomerate, owning 90% of the Cristóbal and Balboa ports through Panama Ports Company (PPC), underscores the need for a robust and future-proof port strategy.
In this context, a long-term, comprehensive approach is imperative to strengthen Panama’s Pacific Ocean port logistics platform. This initiative aligns with the Strategic Maritime and Port Development Plan of the Republic of Panama, Vision 2040, a forward-thinking framework promoted by the Development Bank of Latin America (CAF) and the Panama Maritime Authority (AMP). Central to this strategy is the careful consideration of the Mensabé port versus the Farfán port, focusing on the technical, logistical, and cost-benefit aspects of these two significant projects under evaluation by the National Government, located within the strategic Panamanian Pacific region.
As a signatory to international treaties related to maritime activity, Panama holds the jurisdiction to develop its port sector, adhering to the rules stipulated in national and international legal instruments. This legal mandate provides the foundation for ambitious port development initiatives.
Panama, a Global Logistics Hub
Historically, Panama has served as a vital nerve center for global maritime trade, owing to its advantageous geostrategic location and the indispensable infrastructure of the Panama Canal. However, Panama must modernize and expand its port and logistics infrastructure to maintain its competitive edge in the rapidly evolving global trade landscape. The National Government’s evaluation of the Mensabé and Farfán ports directly responds to this imperative. Industry experts, recognizing the optimal characteristics of Mensabé, assert that it offers greater economic, operational, and strategic viability, ensuring the sustained supply and demand of port services over the next 25 to 50 years.
The Need to Generate Added Value
In 2020, the Panama Maritime Chamber emphasized the need to generate added value to the cargo transiting the country. The traditional transit and transshipment model has reached saturation, necessitating a strategic shift towards a more sophisticated and decentralized logistics model. A compelling example is the success of ports like Singapore and Rotterdam, which transitioned from mere transshipment hubs to value-added logistics centers.
Dr. Estivenson Girón, an expert in economics and logistics, advocates for the Mensabé port as the optimal national project. He argues, “The Panamanian government faces the challenge of prioritizing a mega port project to guarantee the country’s logistics future. To consolidate itself as the logistics hub of the Americas and compete with emerging projects in the region, such as the Port of Chancay in Peru, the new port infrastructures must have a depth of 18 to 20 meters to accommodate mega container ships of 18,000 to 24,000 TEUs over the next 25 to 50 years; in addition to ample space for the development of value-added logistics parks away from the congestion of large cities.” This necessity for deep water ports is particularly relevant to the future development of the Panamanian Pacific.
The Farfán Port
The Farfán port, proposed by the Panama Canal Authority and located at the Pacific waterway entrance, presents several disadvantages. The high investment costs associated with the extensive dredging required to achieve the necessary depth for mega container ships pose a significant challenge. The construction of the port would also entail substantial infrastructure and maintenance expenses due to its proposed location. Furthermore, the logistical difficulties stemming from congestion in the metropolitan area underscore the global trend of relocating ports away from densely populated urban centers. The development of Farfan, also located on the Panamanian Pacific, is a complex issue.
The Mensabé Port
The Mensabé port offers several distinct advantages. Its significantly lower construction costs, attributed to its natural depth of 18-20 meters, enable it to accommodate mega container ships that currently cannot access Panama. Its strategic location mitigates traffic logistics problems and balances national economic development. The integration of the Mensabé port with the development of a Special Economic Zone for value-added transformation, coupled with the La Candelaria airport and the area’s maritime and tourist activities, facilitates the creation of an optimized and competitive comprehensive logistics platform. This platform promotes the development of logistics, multimodal, and tourism activities, seamlessly integrating maritime and air transport. The possibilities of tax incentives and other advantages for the private sector also reduce the burden on public finances, contrasting sharply with the high investment costs associated with the Farfán port. The strategic importance of Mensabé is evident when considering the entire scope of the Panamanian Pacific.
Connectivity and Regional Development with the Mensabé Port
Mensabé’s development would decentralize port operations and alleviate congestion near the Canal. Its connectivity with other port projects, such as the Aguadulce Multipurpose Port Terminal and the Barú Multipurpose Marine Terminal, will bolster the economic competitiveness of the Panamanian Pacific. Developing a multimodal corridor, the Panama-David-Border Train, would further enhance connectivity, linking Panama with Central America and the Mexican Pacific. The development of the Panamanian Pacific region is paramount, and the Mensabé port is a vital component of this strategy.