1. LOGISTIC SECTOR: THE PANAMA CASE
Augusto R. Arosemena
Viceminister of the Presidency
Republic of Panama

2. Economic Reality of Panama
GDP Per Capita at Current Prices
(US $ )
Panama Growth v . Latin America Growth % % %
2014 – 6.2%
2015 – 6.0%
Latin America %
2009-(0.6%) %
PIB Per capita
(in thousands US$) % %
2015: Forecast
Strength:
Open and dollarized economy
Strong investment in infrastructure
Robust financial sector
Geographic position
Source : IMF e INEC, Contraloría General de Panamá.

3. Measured by their impact on increment of GDP and Job Creation
Panama´s key growth drivers &
Opportunities
Measured by their impact on increment of GDP and Job Creation
Logistics
Financial services
Tourism
Science and Technology
Agriculture
Education
Science & Technology .

4. FIVE YEAR GOVERMENT INVESTMENT PLAN
Over 80% of public investments are aimed at improving the Quality of Life of the Panamanian population, emphasizing in the social and infrastructure sectors.
(in millions)
Infrastructure
$6,371
Social
$10,790
56%
56%
56%
34%
Metro Line 1 extension
Expansion and improvement of water and sewage
Metro Line 2
Housing Pan -
“Techos de Esperanza”
Mass transportation system for Panama West side
Colon Urban Renovation
Panamá Bilingual

5. FIVE YEAR GOVERMENT INVESTMENT PLAN
A significant allocation of resources to areas that complement the institutional strength of the country, the economic and environmental development is contemplated.
(in millions)
$1,209
$216
56%
56% 1% 6%
Environment
Economic
National Land Use Plan
The Cold Chain
Planning of Canal Watershed and Tocumen Area
Irrigation system
Tourism development in protected areas
200km land production
Improve the environmental performance Index
Fourth transmission line
Electrical interconnection with Colombia
CHAN 2

6. FIVE YEAR GOVERMENT INVESTMENT PLAN
For the next five years the Government has allocated 19.5 billion for investment projects
SECTOR ($ million)
2015
2016
2017
2018
2019
TOTAL
SOCIAL AREA
2,066
1,991
2,124
2,171
2,366
10,719
Health
455
361
247
249
323
1,635
Potable Water
353
355
452
459
534
2,151
Sanitation and Sewerage
297
308
318
300
311
1,535
Housing
217
332
333
327
1,456
Education & Culture
499
486
463
487
529
2,466
Vulnerable Groups Relocation
180
215
265
298
1,257
Urban Cleanliness 21 17 14 12 10 74
Labor and Social Protection 13 31 32 33
143
ECONOMIC AREA
288
225
244
223
228
1,209
Agricultural
212
166
164
163
869
Industry and Trade 34 20
117
Tourism 43 38 59 39 44
222
INFRASTRUCTURE AREA
1,236
1,465
1,259
1,196
1,216
6,371
Roads and civil engineering
763
771
440
500
2,959
Mass Transport
449
652
776
667
668
3,210
Maritime Transport 11 24 23 28
109
Air Transport 7 4
Electricity 8 16 68
ENVIRONMENT AREA 45 54 55
216

7. Panama's economy is based primarily on services delivery
The Panama Case
Panama's economy is based primarily on services delivery
The Canal is a key point for the economic activities dependent on maritime traffic.
It also has many positive externalities, and its the sum of these that make up the Panamanian logistics cluster.
Other sectors that benefit from an efficient logistics are the Colon Free Zone, the ports, the Tocumen International Airport, tourism and the agroindustry.
The booming financial and insurance sector, as well as legal services and dollarization , complement the physical platform of the cluster, providing competitiveness and potential to Panama
Source :ABCO Global

8. Panama’s Logistics Cluster Support Infrastructure
Manzanillo International Terminal (MIT)
Colon Container Terminal
Panama Ports Company
Cristobal
Transisthmian Highway
CARIBBEAN SEA
Tocumen International Airport
Transisthmian Railway
Corozal Container Terminal - Proposed
Container Movements at Panamanian Ports
2000 – 2014 (p)
Panama Ports Company
Balboa
PSA
The Panama Canal
PACIFIC OCEAN
PANAMA: 50 MILES OCEAN TO OCEAN

9. Logistics Park Development
Manzanillo Logistic Park
Total: 16.9Has
898,787ft2 warehouses
Colon Free Zone
Total: 1,064.58Has
63,507,071ft2 warehouses
CARIBBEAN SEA
ACP Master Plan for Logistics Park Development
Total: Has
16,647,469ft2 warehouses
Panama Pacific Special Economic Zone
Total: 88Has
3,982,647ft2 warehouses
PACIFIC OCEAN
PANAMA: 50 MILES OCEAN TO OCEAN

10. The Panama Canal Relevant Vessel Capacity Increase
Operational Optimization with Economies of Scale
Economies of scale - Efficiencies in the supply chain – Connectivity
Existing Locks
New Locks
Exporters
Shipping Lines
Importers
Consumers
294 m
366 m
32 m
49 m
Maximum capacity of transiting vessels 4,400 TEU
Maximum capacity of transiting vessels up to 14,000 TEU
Higher capacity to strengthen ACP’s market position
Increasing Market Participation Persuading New Players to Consider the Panama Canal Route
The Expansion will increase attended vessels from 294 to mts
Transported capacity increase from 4,400 TEU to 14,000 TEU
Increase Canal’s cargo market share to ~50% in one of the main seaborne routes(1)
Just-in-time; Reservation System 
Up to 14,000 TEU
new volumes from:
Latin America
Recover market from:
West Coast United
States
Suez Canal
Container Vessels
Dry Bulk
Up to 170,000 DWT
Coal from Colombia
Metalurgical coal from Vancouver
Iron Ore from Brazil in Minicapesize (85, ,000 DWT)
Up to 150,000
DWT
Tankers
Petroleum Products
Liquid Bulk
LNG Up to 177,000m3
and VLGC
LNG/LPG   
Source: ACP
ACP preliminary estimation on container cargo market share on the Northeast Asia to U.S. East coast route

11. Metro Line 2 –
From East to West

12. Thank you!