Singaporean company wants to build port in Panama

Feb 12, 2007, 20:15 GMT

Panama City - Singaporean company PSA International wants to build a port to handle containers in an area of Panama's Pacific coast adjoining the Panama Canal, the Central American country's trade minister confirmed Monday.

Panamanian Trade and Industry Minister Alejandro Ferrer said in a press conference that the country's government will evaluate the technical aspects of the project once PSA International provides the details.

The plan would use land that was formerly part of the Rodman US Naval Base.

Ferrer's announcement caused surprise in Panama's economic circles, because the installation of a mega-port on the western entrance of the canal has already been approved.

However, the minister hinted that both investments on the Pacific coast could complement each other, and he stressed that all initiatives will be properly evaluated.

Until now, the British company P&O Ports, Japan's NYK, the United States' Stevedores Services of America SSA, Denmark's APM Terminals and the United Arab Emirates' DPA have shown an interest in participating in the mega-port, which would involve an investment of 600 million dollars.

Ferrer said PSA International's project consolidates Panama's position as the main centre for logistics in Latin America and as the most important cargo-distribution centre in the world.

PSA International is one of the most important companies in its sector and annually handles over 50 million tonnes of TEU (twenty- foot equivalent unit).

In a referendum in October, Panama voted to add a third set of locks to the two existing in its canal to allow two-way traffic, accommodate larger ships and almost double the tonnage that can be carried the canal.

The construction is projected to cost around 5.25 billion dollars and would be scheduled for completion by 2015.