Panama Canal Outlook Jorge L. Quijano Administrator/CEO Panama Canal Authority Japan November 21, 2014
Yesterday
PANAMA AT A GLANCE GDP growth rate last 10 years 7.5% GDP (P) 2013 (billion of dollars) $42.6 GDP per capita - 2013 (P)(in US$) $10,032 Population (million) 3.8 Unemployment Rate (%) 4.0 Inflation Rate 2013 (%) 4.1 Source: ACP/INEC (Contraloría General de la República) 2014.
The Panama Canal Trade and Main Users Total Cargo Movement FY 2014 USERS FY 2013* FY 2014* 2014 (%) United States 136.5 154.1 68.5 China 46.4 51.5 22.8 Chile 29.0 29.5 13.1 Japan 20.0 21.7 9.5 Colombia 17.5 19.2 8.6 South Korea 16.8 19.1 8.5 * Measured in Million of Long Tons Total Cargo Movements 224.9 Million Long Tons
Tolls in Million Dollars Transits Composition of Top 40 Customers by Country In Tolls and Transits 300 250 239 1,140 Tolls Transits 1,200 1,000 210 200 800 162 150 600 100 109 107 97 88 87 80 77 400 50 0 57 54 28 23 19 19 9 200 0
Main Commodities to and from Japan in FY 2014 12,000,000 10,000,000 8,000,000 6,000,000 Origin Total of 21.7 million long tons Destination 4,000,000 2,000,000 0
Panama Canal s share of global seaborne trade 3.0% of world maritime trade 10.6% of grains 5.8% of chemicals 4.7% of containers
Millions of dollars The Panama Canal s Performance 2014 Transit Revenues (thousand of US dollars) $2,323,931 2014 Other Revenues (thousand of US dollars) $305,220 2014 Total Revenues (thousand of US dollars) $2,629,151 Employees 10,016 3,000 2,500 2,000 1,500 1,000 500 0 Revenues 2,411 2,411 2,629 1,852 1,850 1,910 395 374 414 163 187 305 2012 2013 2014 Fiscal Year 20,000 15,000 10,000 5,000 Vessel Transits 14,54 4 13,66 0 13,48 2 400 200 Vessel Tonnage In millions of PC/UMS 333.7 320.6 326.8 Toll Revenues Transit Related Services Revenues Other Revenues 0 2012 2013 2014 0 2012 2013 2014
The Panama Canal s value added service
The Panama Canal Service Offer Economies of Scale Connectivity Sustainabilit y Reliabilit y
Reliability Operates 24 hours a day, 7 days a week, 365 days a year Safe and secure 98% customer satisfaction Predictability: Published tariffs and fixed transit date with reservation
Sustainability The Green Route The CO 2 emission reduction in the planet as a result of the Panama Canal route The actions taken by ACP: Environmental management in operations and Canal Watershed sustainability programs Become carbon neutral
Sustainability Capital Investment Program Dredging Accumulated Investment Capex (USD millions) 2,914 2,232 2,403 1,869 Bridge over Atlantic side 1,548 1,360 1,194 1,262 912 1,027 750 600 463 350 511 211 102 321 363 139 113 137 150 162 115 167 188 102 109 68 98 171 FY 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2000 Launches Ground dams Fuel Pipeline and Tank Farm Tugboats
Connectivity Panama: The Transportation and Logistics Hub of the Americas Achieving the maximum potential of its geographical position Panama s Air Hub 69 destinations 30 countries 144 trade routes 1700 ports 160 countries
Economies of Scale
Dimensions of Locks and Vessels Existing Locks Max Vessel: 4,400 TEU s 33.5 m (110 ) 32.3 m (106 ) 12.04 m (39.5 ) 55 m (180 ) 12.8 m (42 ) Beam 49 m (160 ) 18.3 m (60 ) 15.2 m (50 ) New Locks Max Vessel Size: 13,000 14,000 TEU s
Expansion Program Components 17.66 M m 3 Atlantic Site Post-Panamax Locks Increase of Gatun Lake s maximum operating level Existing Locks Atlantic entrance deepening and widening Gatun Lake widening and deepening and widening of Gaillard Cut s navigation channels 26.7 m 27.1 m Access channel Pacific Site Post- Panamax Locks Existing Locks 8.7 M m 3 New Pacific entrance deepening and Pacific Access Channel 49 M m 3 Locks widening
BENEFITS FROM TRANSPORTATION COST SAVINGS EXPORTERS SHIPPING LINES IMPORTERS CONSUMERS Economies of scale; efficiencies in the supply chain; connectivity
Container Vessels Dry Bulk Liquid Bulk LNG/LPG 13,000 to 14,000 TEU New volumes from: - Latin America Market Recovery from: - West Coast United States - Suez Canal Up to 170,000 DWT - Coal from Colombia - Metalurgical coal from Vancouver - Iron Ore from Brazil in Minicapesize (85,000-120,000 DWT) Up to 150,000 DWT - Tankers - Petroleum Products - LNG Up to 177,000m 3 and VLGC
Full Containership Services Northeast Asia East Coast of the United States Vancouver Seattle Vancouver Tilbury Rotterdam Antwerp Hamburg Bremerhaven Inchon Qingdao Yokohama Masan Shanghai Kobe Nagoya Ningbo Hong Kong Taipei Chiwan Kaohsiung Manila Singapore Muara 70 Days Roundtrip. Weighted Avg. Total Cost per TEU 5,000 TEU $1,356 8,000 TEU $1,200 12,000 TEU $1,095 Tacoma Halifax New York Oakland Newark Baltimore Port Hueneme Charleston Long Beach Jacksonville Brunswick Galveston Miami Freeport Veracruz P. Caucedo Lázaro Cardenas Kingston San Juan PR Pto. Quetzal Cartagena P. Cabello Manzanillo Balboa Buenaventura Guayaquil Jakarta Fremantle Darwin Brisbane Port Kembla Melbourne Noumea Auckland Tauranga Napier Callao Vitoria Santos Antofagasta Paranagua San Antonio Rio Grande Zarate 84 Days Roundtrip. Weighted Avg. Total Cost per TEU 5,000 TEU $1,430 8,000 TEU $1,254 12,000 TEU $1,138 Roundtrip: Panama Canal: 22,000 nm Suez Canal: 26,600 nm Approx. 14 days less Savings of 4,600 nm 2 Vessels less required Average roundtrip utilization: 60% full TEU Headhaul: 80% full TEU Backhaul: 40% full TEU
Dry Bulk Grain Trade Grain Belt New Orleans, USA to Dalian, China Vancouver Seattle Tórshavn Oslo Norway Denmark Vancouver London Rotterdam Antwerp Dalian Inchon Qingdao Yokohama Masan Shanghai Kobe Nagoya Ningbo Hong Kong Taipei Chiwan Kaohsiung 30 Days 55K DWT: $103/MT 95K DWT: $98/MT San Francisco Los Angeles Boston New York Baltimore Charleston New Orleans Manila Santa Marta Singapore Muara Jakarta Fremantle Darwin Brisbane Port Kembla Noumea 45 Days 55K DWT: $77/MT 95K DWT: $67/MT 61 Days 55K DWT: $86/MT 95K DWT: $73/MT Melbourne Auckland Tauranga Napier Panama Canal Sea distance: 10,069 nm Savings of 5,284 nm Approx. 16 days less Cape of Good Hope Sea distance: 15,353 nm Sources: ACP Route Choice Model
Vehicle Carrier Services Northeast Asia East Coast of the United States Vancouver Seattle Vancouver Tilbury Hamburg Bremerhaven Rotterdam Antwerp Tacoma Halifax Inchon Qingdao Yokohama Masan Shanghai Kobe Nagoya Ningbo Hong Kong Taipei Chiwan Kaohsiung 32 Days Shipping Cost 6,500CEU $454/CEU 8,000CEU $440/CEU Oakland Port Hueneme Long Beach Galveston Lázaro Cardenas New York Newark Baltimore Charleston Jacksonville Brunswick Miami Freeport Veracruz P. Caucedo Kingston San Juan PR Singapore Manila Pto. Quetzal Cartagena P. Cabello Manzanillo Balboa Buenaventura Muara Jakarta Darwin Guayaquil Callao Vitoria 40 Days Shipping Cost 6,500CEU $532/CEU 8,000CEU $512/CEU Brisbane Noumea Antofagasta Paranagua Santos San Antonio Rio Grande Fremantle Port Kembla Zarate Melbourne Auckland Tauranga Napier Panama Canal: Suez Canal: 10,859 nm 14,490 nm Approx. 8 days less Savings of 3,631 nm
Lower 48 States Shale Plays { Source: Energy Information Administration, May 9, 2011.
LNG Trade U.S. Gulf to Fukuoka, Japan 32 Days Shipping Cost LNG 155,000 m 3 : $47.56/m 3 22 Days Shipping Cost LNG 155,000 m 3 : $33.7/m 3 Panama Canal: 9,623 nm Savings of 4,494 nm Approx. 10 days less Suez Canal: 14,117 nm
LPG Trade U.S. Gulf to Chiba, Japan Panama Canal: 9,229 nm Savings of 5,754 nm Approx. 15 days less Cape of Good Hope: 15,765 nm