The Panama Canal: A Challenge to Efficiency in the 21st Century

Transcription

1 The Panama Canal: A Challenge to Efficiency in the 21st Century Intertanko Chemical Conference April 8, 2008 Silvia de Marucci Leader, Liquid Bulk Segment smarucci@pancanal.com

2 Physical Profile of the Canal Transition Process Main Aspects of our Trade and Market Trends Products Routes Traffic Content Modernization Plans Long Term View

3 ATLANTIC OCEAN CHAGRES RIVER GRANDE RIVER PACIFIC OCEAN

4 ATLANTIC OCEAN GATUN LAKE CHAGRES RIVER GRANDE RIVER PACIFIC OCEAN

5 ATLANTIC OCEAN COLON CITY GATUN LOCKS GATUN LAKE MADDEN MIRAFLORES LOCKS PEDRO MIGUEL LOCKS PANAMA CITY CHAGRES RIVER PACIFIC OCEAN

6 Canal s Physical Profile

7 Dimensions of Panamax Locks LENGTH OF LOCK: m (1,000 ft) MAXIMUM LOA: 294 m (965 ft) MAXIMUM DRAFT: 12 m (39.5 ft) LOCK WIDTH: m (110 ft) MAXIMUM BEAM: 32.5 m (106 ft)

8 Physical Profile of the Canal Transition Process Main Aspects of our Trade and Market Trends Products Routes Traffic Content Modernization Plans Long Term View

9 And It Was a Party...

10 Main Differences Between the Business Model of the Panama Canal United States Administrated by its main client Break even operation Strategic military importance Panama Administrated by a non client Profitable and competitive Responsible for water resources Strategic economic importance and part of the national maritime strategy

11 Responsibility for the Administration and Preservation to the Hydrographic Basin

12 ISPS CODE COMPLIANCE The Panama Canal adopted the International Ship and Port Facility Security Code (ISPS) on July 1st, 2004 Vessels on international voyage must notify at least 96 hours prior to its arrival to the Canal: Intention of proceeding to anchorage, to port, or to transit Security level at which the vessel is operating Security level at which vessel operated in the previous 10 calls at port facilities. Valid ISSC

13 Environment Around the Canal Galeta Point Sherman Soberania National Park Gatun Locks Escobal Pedro Miguel Locks Miraflores Locks Cuipo Lagarterita Arenosa Barro Colorado National Monument

14 Panama Canal Shipboard Oil Pollution Emergency Plan Vessels over 400 tons of oil are required to submit a plan It indicates: Specific prevention measures Spill reaction and notification procedures Training program Designation of an Authorized Person Tier classification: transit fee

15 Oil Spill Program: PCSOPEP Planning Standards

16 Tier 1, 2 & 3 Exercise: MOBEX 2007 MOBEX DIC-2007

17 Physical Profile of the Canal Transition Process Main Aspects of our Trade and Market Trends Products Routes Traffic Content Modernization Plans Long Term View

18 Main Commodities that Transit the Panama Canal Fiscal Year 2007 Containerized Cargo Grains Petroleum and Products Metals and Ores Chemicals and Petrochem. General Cargo Iron/Steel Manuf. Products Coal Nitrates and Phosphates Wood and Products Canned/Refrigerated Prod. Machinery and Equipment Minerals Other Agricultural Products Animal/Vegetable Oils/Fats Misc. Dangerous Goods Long Tons in millions

19 Main Routes - FY 2007 Total (Long Tons) M East Coast U.S. Asia 82.4 M West Coast South America East Coast U.S M West Coast South America - Europe 15.1 M West Coast Central America East Coast U.S M West Coast U.S. - Europe 8.2 M

20 90.0% 80.0% 70.0% 60.0% 50.0% 40.0% 30.0% 20.0% 10.0% 0.0% 100% 45.0% 40.0% 35.0% 30.0% 25.0% 20.0% 15.0% 10.0% 5.0% 0.0% Canal Market Share for Cargo Flows Between the Northeast of Asia and the East Coast of U.S. Sistema Intermodal EU 85.7% 82.8% 77.2% 71.8% 64.6% 60.9% 58.12% % 15.1% Canal de Panamá 20.8% 23.6% 33.8% 38.2% 40.12% Fuente: Estimado basado en diferentes fuentes de la industria (PIERS, AAR, Banco de Datos Corporativo de la ACP) 5.0% 4.5% 4.0% 3.5% 3.0% 2.5% 2.0% 1.5% 1.0% 0.5% 0.0% 3.0% 2.1% 2.0% Canal de Suez 4.6% 1.5% 0.93% 1.75%

21 PC/UMS by Market Segment (in million - FY ) Containerships Dry Bulk Liquid Bulk General Cargo Reefers Passengers Vehicle Carriers Others

22 4000 Growth of Container Traffic through the Panama Canal ( ) Transits (1,302-3,622) Capacity TEU (2.5M-13.8M) No. of Transits Millions of TEUs Based on the capacity of transiting vessels Source: CompairData

23 Transits PC/UMS Tonnage in Millions 50,000 45,000 40,000 35,000 30,000 25,000 20,000 15,000 10,000 5,000 0 Transits vs. PC/UMS Tonnage FY1915 FY2007 PC/UMS Tonnage of Commercial Transits PC/UMS 4,832 9,931 18,940 23,591 AF 1955 AF 1975 AF 1995 AF ,721 Transits Fiscal Year

24 Requirements by Vessel Type and Size < 80 BEAM Gatun Lockage in One Hour Requires 4 Locomotives Assisted by 3 Tugs 1 Pilot No Transit Restriction PANAMAX Gatun Lockage in 2 Hours Requires 6-8 Locomotives Assisted by 7-10 Tugs 2-3 Pilots Daylight one-way traffic through Gaillard Cut, and daylight transit through the locks for vessels 900 LOA

25 Physical Profile of the Canal Transition Process Main Aspects of our Trade and Market Trends Products Routes Traffic Content Modernization Plans Long Term View

26 CAPITAL INVESTMENT (in million U.S. dollars) 1,329 Dredging 119 Locomotives Hydraulic Conversion Technology Track system Tug Boats

27 Renewal of tugs fleet Renewal of locomotives fleet Rehabilitation of Locomotive Rails Replacement of turntables at Gatun Locks

28 Replacement of valve machinery for a hydraulic system Improvement in the lightning at the locks Tie up stations at Cartagena hill

29 Maximum Capacity of the Improved Canal Demand that will not be captured due to lack of capacity

30 Physical Profile of the Canal Transition Process Main Aspects of our Trade and Market Trends Products Routes Traffic Content Modernization Plans Long Term View

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32 Canal Expansion Program Deepening and Widening of the Atlantic Entrance Atlantic Post Panamax Locks Complex Widening of Channel Reaches and Turns at Gatun Lake Access Channel to the Pacific Post Panamax Locks Pacific Post Panamax Locks Complex Deepening and Widening of the Pacific Entrance

33 Program Components Post-panamax Locks Pacific and Atlantic Locks (29.66 M m 3 Dry Excavation) 1 Contract

34 New Locks Dimensions 294.1m (965 ) Actual Locks Vessel Max: 4, m (110 ) TEUs Draft m (39.5 ) 32.3m (106 ) 12.8m (42 ) 304.8m (1000 ) 49m (160 ) 366m (1200 ) 55m (180 ) 427m (1400 ) 18.3m (60 ) Draft 15.2 m (50 ) New Locks Vessel Max : 12,600 TEUs

35 Post Panamax Locks Operation WSB 1 WSB 2 WSB 3 With the water saving basins the new locks will use 7% less water than the existing locks Water Utilization New Locks Existing Locks

36 Post-Panamax Lock on Pacific Side

37 Post-Panamax Lock on Atlantic Side

38 Conceptual Design

39 Expansion works began on September 3, 2007

40 Beginning of the Works for the Expansion of the Canal Volume: 7.4 Mm3

41 Schedule of Main Projects Activity EIS Expansion Program (Category III) % Progress 78% Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Dredging Access Channel Locks Specifications and Procurement 30% Design & Build Pacific Locks 0% Design & Build Atlantic Locks 0% Excavation Contract 1 13% Excavation Contract 2 8% Excavation Contract 3 0% Excavation Contract 4 0% Excavation Contract 5 0% Dredging of the Pacific Entrance 8% Dredging of Gatún Lake 5% Dredging of Culebra Cut 3% Dredging of the Atlantic Entrance 0% Increase Operating Level of Gatún Lake 0% Expanded Canal Begins Operations Specifications and Design Bidding and Contracting Execution Finish

42 Cluster of Canal Traffic Service Related Activities

43 Main Logistics Hubs ROTTERDAM SHANGHAI SHENZHEN BUSAN HONG KONG LA/LB NY/NJ HAMPTON RDS. SAVANNAH FREEPORT KINGSTON ALGECIRAS HAMBURG DUBAI PANAMA SINGAPORE

44 Main Logistics Hubs ROTTERDAM SHANGHAI SHENZHEN BUSAN HONG KONG LA/LB NY/NJ HAMPTON RDS. SAVANNAH FREEPORT KINGSTON ALGECIRAS HAMBURG DUBAI PANAMA SINGAPORE

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46 THANK YOU!