Pacific View

Located on the Pacific side of the Panama Canal, the Port of Balboa, operated by the company Hutchison Port Holdings, has shown its importance in regional and international trade. Since 2010, the port has increased its handling capacity to become the leading port in container movements in Latin America. According to the ranking elaborated by America Economia Intelligence, Balboa witnessed a minor increase in container movements in Latin America during the first seven months of 2014, with a growth of 1.6% in respect to same period of 2013. It should be noted, however, that in 2013 total TEUs fell to 3.06 million, down on the 2012 figure of 3.25 million TEUs, according to the Panama Maritime Authority. In fact, the Port of Balboa handles around one-half of all cargo moving through Panama’s ports. The slowdown recorded over 2013 was largely related to industrial action in the port.

Balboa is ideally positioned to grow as a hub connecting major freight line services from Asia and North America to the west coast of South and Central America, as well as the Caribbean region. The port has continued to expand its capacity since it was privatized, and in 2013, transshipment represented 91% of the total.

In terms of infrastructure, according to the World Economic Forum’s Global Competitiveness Report 2013-2014, Balboa is also ranked first place. “The port infrastructure in Panama is excellent. We are prepared to receive vessels of 15,000 TEUs and our ports are equipped with the newest Super Post-Panamax Cranes on both sides of the Canal,” said Aitor Ibarreche, CEO of Hutchison Port Holdings Panama, to TBY.

Over 182 hectares, the Port of Balboa features a 2.27-kilometer quay at a depth of 17 meters alongside the quay, according to the Panama Ports Company. Through its networked infrastructure of four Super Post-Panamax, 10 Post-Panamax, and eight Panamax cranes, the port can handle up to two Post-Panamax, two Panamax, and one feeder container vessel at the same time. In order to move containers and other freight around, the port utilizes 64 rubber-tired gantry cranes, five reach stackers, 20 empty container handlers, and three top loaders.

According to the Georgia Tech Logistics Innovation and Research Center, transshipment operations of container cargo accounted for 92.8% of total container throughput, while the remaining is directed to the local market. A shortcut to the railway allows for the transshipment of containers to the ports of Colón by crossing the country from the Pacific to the Atlantic in about one hour. Balboa is also capable of receiving and dispensing dry and liquid bulk and specialized cargo, having a total of 2,184 connections for refrigerated containers.

Both Hutchison Port Holdings and the Panamanian government have made great efforts to have the most modern port facilities in Latin America in their attempt to become a global logistics hub. Additionally, with the expansion of the Panama Canal, the country’s importance is growing and the country is becoming a backbone of international trade as well as a strategic foreign trade partner for those countries for which the route is highly relevant owing to the benefits of reducing time and cost of transportation. “It is an excellent time for Panama to assume the role of the logistics hub for the Americas, if not the world. The high demand and traffic of vessels and planes gives Panama an incredible opportunity to literally connect your business with any part of the world,” explained Aitor Ibarreche, CEO of Hutchison Port Holdings Panama.