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AGOST 2008 Issue No: 15/2008

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List of Contents:

Business Opportunities in Panama

§         Panamá Canal Authority renews MoUs with Tampa and South Carolina Port Authority.
§         ACP taps Willis Limited as expansion insurance advisor.
§         Panama flag takes drastic measures.
§         Marriot to open Renaissance Hotel in Panamá City.
§         Copa Airlines Announces Orders for Two Boeing.
 
Panama in the International News
§         Panama tops foreign investment in Latin America.
§         US business leaders push for Panama Free Trade Agreement.

BUSINESS OPPORTUNITIES IN PANAMA

PANAMA CANAL AUTHORITY RENEWS MOUS WITH TAMPA AND SOUTH CAROLINA PORT AUTHORITY

The Authorities of the Panama Canal and the US Port of Tampa signed an agreement to promote the trade route that connects North America with Asian countries. With transpacific volumes down this year US ports are starting to market themselves more heavily and the Panama Canal Authority (ACP) and the South Carolina State Ports Authority, which owns and operates the Port of Charleston, have formally renewed a memorandum of understanding for three years, a move intended to help the two entities increase cooperation and information sharing. Both entities will collaborate on joint marketing efforts, exchange of data, market studies, expansion plans, training and technology. This newly extended partnership also will seek to grow the increasingly important “all-water toute” from Asia to the U.S. East Coast via the Panama Canal. Major products traveling through the Panama Canal via Charleston include household products, such as furniture, machinery, forest products and consumer goods.

If you are interested in receiving details of the Panama Canal expansion and of the tenders opportunities launched by the Panama Canal Authority (ACP) and opportunities in the maritime sector, please contact Ms. Maria de Lourdes Marengo, mmarengo@pmalawyers.com and Ms. Ivette Martinez, imartinez@pmalawyers.com

ACP TAPS UK’ WILLIS LTD AS EXPANSION INSURANCE BROKER ADVISOR

Laying the groundwork for the next phase of the Panama Canal’s expansion, the Panama Canal Authority (ACP) has awarded the contract for insurance advisory services to UK-based Willis Ltd. The firm will now assist the ACP in obtaining construction risk policy and general liability insurance coverage for three contracts under the expansion program. The ACP bidding system for contracts follows a rigorous and strict transparency process within an open and fair competition. The ACP selected the firm with the lowest bid amount that met all of the project’s criteria. The contract will be renewable on an annual basis for the duration of the expansion program with services to begin January 1, 2009

PANAMA FLAG TAKES DRASTIC MEASURES

The Panama Maritime Authority’s Marine Merchant Marine Directorate, which administers the Panama Registry, issued a resolution requiring vessels more than 20 years old to submit to a check by a recognized inspection organisation (RO) before docking at a port within the Paris MOU. If the vessel fails to go through such an RO inspection, it could ‘be deleted from the registry or subject to a fine,’ the authority warned. In addition, any vessels of that age that have been detained twice in six months will be cancelled from the register. Further, such ships must be approved by Panama’s Department of Navigation & Maritime Safety Section Port State Control before registering under the Panama flag.

If you are interested in receiving details of business opportunities and commercial ventures in the maritime sector, please contact Mrs. Maria de Lourdes Marengo, mmarengo@pmalawyers.com and Mr. Belisario Porras, bporras@pmalawyers.com

MARRIOTT TO OPEN RENAISSANCE HOTEL IN PANAMA CITY

The Marriott chain will open a Renaissance hotel in Panama in 2011 under a management agreement with Hotel Properties of Panama, Inc. In addition, Marriott plans to expand its existing properties and to add two additional hotels, tripling its presence in the country, over the next 30 months to five hotels and 1,200 rooms. The 300-room Renaissance Panama Hotel Financial District will be located in the heart of the financial district on a prime site immediately adjacent to the existing 295-room Panama City Marriott. The hotel will be part of a mixed-use project that will include two towers above a podium. One of the towers will house the hotel and up to 150 unbranded residential condominiums on the floors above the hotel. The second tower will house offices. Hotel Properties of Panama also owns the Panama Marriott and is currently expanding that hotel to 376 rooms. The economic outlook of Panama is strong and the hotel industry is booming here, said Marriott officials.
In addition to Hotel Partners’ new Renaissance property, the Courtyard by Marriott Panama will be expanded from 120 rooms to 248 rooms by its owner, Grupo Poma that is also opening the 150-room Courtyard by Marriott Panama near the Los Pueblos Mall in 2010. Meanwhile, Caribe Hospitality plans to open the 100-unit Residence Inn Panama in 2010 for extended stay travelers. Final agreements on both the Courtyard by Marriott Panama and the Residence Inn Panama are expected to be executed within the next 60 days.

If you are interested in receiving details of business opportunities and commercial ventures please contact Ms. Ivette Martinez, imartinez@pmalawyers.com

COPA AIRLINES ANNOUNCES ORDERS FOR TWO BOEING NEXT GENERATION-737 AIRCRAFT

Copa Airlines, a subsidiary of Copa Holdings S.A. and The Boeing Company announced Copa's order for two Boeing 737-800 aircraft for delivery in 2010 and 2011. The new order continues Copa Airlines' fleet expansion plan and reflects an increase in its orders for Boeing Next-Generation 737 aircraft from seven to nine, with options for future orders. With these future deliveries Copa Airlines will continue to consolidate and strengthen and leadership position in the Latin American airline industry. ‘The Boeing 737-800 is the largest aircraft in our fleet and gives us the lowest cost per seat, allowing us to efficiently serve our high-density routes,’ said Pedro Heilbron, Copa Airlines CEO.
Copa has a fleet of 40 aircraft, of which 27 are Boeing Next-Generation 737s and 13 are Embraer 190s. The Boeing 737-800 seats 160 passengers, 16 in Executive Class and 144 in the main cabin. The comfortable aircraft has a spacious interior, ample overhead luggage space, seats with adjustable headrests, and a 12-channel audio-visual entertainment system.

If you are interested in receiving details of business opportunities and commercial ventures in the aviation sector, please contact Mrs. Maria de Lourdes Marengo, mmarengo@pmalawyers.com

PANAMA IN THE INTERNATIONAL NEWS

US BUSINESS LEADERS PUSH FOR PANAMA FREE TRADE AGREEMENT

LATIN BUSINESS CHRONICLE

AUGUST 4, 2008

PANAMA AND CHILE BEST--While Venezuela ranked at the bottom of our FDI-GDP comparison, Panama ranked at the top, followed by Chile. Interestingly enough, Panama and Chile are ranked at the top of the Latin Business Index from Latin Business Chronicle, while Venezuela is ranked at the bottom. The index looks at five key categories and 27 subcategories to measure the recent, current and future business environment in a country.
Although Brazil and Mexico dominate foreign direct investment in Latin America, measured as a percent of their economies, they are both laggards - ranking below the average for the region. The total FDI of $105.9 billion to the region last year represented 3.1 percent of its 2007 GDP of $3.4 trillion.
Foreign direct investment in Panama last year reached $1.8 billion, which was actually a decline of 29 percent from 2006. However, even the new figure produced favorable results. It represents 9.1 percent of Panama's GDP of $19.7 billion. FDI in Chile reached $14.5 billion last year, nearly double the rate of 2006. That represented 8.9 percent of Chile's GDP last year of $163.8 billion.

PANAMA’S HOTTEST SECRET

CNNMONEY.COM

JULY 21, 2008

WASHINGTON -Dow Jones- A group of U.S. business leaders is hoping a trade mission to Panama will strengthen prospects for congressional approval of a free-trade pact between the nations.
The U.S. and Panama concluded negotiations for a free trade agreement in late 2006. The U.S.-Panama FTA is among three deals waiting for congressional approval. The others are with Colombia and South Korea.
Bill Lane, Washington director of government affairs for Caterpillar Inc. (CAT), said the upcoming visit to Panama by a group of U.S. business leaders will "energize the business communities of both countries."
Federico Humbert, Panama's ambassador to the U.S., said the only roadblock he sees to getting a deal done between Panama and the U.S. is getting on the congressional calendar.
John Murphy, vice president of the U.S. Chamber of Commerce, which is participating in the trade mission to Panama added, "The calendar is a challenge for anything on the Hill these days."
Murphy said the Chamber is continuing to push for expedited congressional approval of all three pending free-trade agreements.
The planned expansion of the Panama Canal makes approval of an agreement with Panama particularly timely, Lane said.
"The notion of being able to sell to all of Panama duty free is very attractive," he said. "There's an incredible business opportunity right now with the expansion of the Panama Canal."

PATTON, MORENO & ASVAT

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