Arosemena Noriega & Contreras

Category: Maritime Law

  • Panama Canal at 111 Years: Future Diversification Projects

    Panama Canal at 111 Years: Future Diversification Projects

    Panama Canal at 111 Years: Future Diversification Projects

    The Panama Canal, one of the great landmarks of world engineering and a driving force of Panama’s economy, celebrated this year 111 years of operation. Since its opening in 1914, the interoceanic waterway has become a strategic pillar for global trade, facilitating the connection between the Atlantic and Pacific Oceans.

    On the occasion of this anniversary, the Administrator of the Panama Canal Authority (ACP), Ricaurte Vasquez, presented the entity’s vision for the coming years: to diversify activities beyond the operation of the waterway and strengthen the Canal’s role as a hub of logistical, energy, and social development for the country.

    The main projects included in this strategy are:

    1. Development of Port Terminals

    The ACP is evaluating the creation of up to four new port terminals, mainly on the west bank of the Canal.  The goal is to expand logistics capacity and recover a strategic model that will allow Panama to obtain greater benefits. For this, concession schemes will be reviewed so that the country receives a fairer return for the use of its assets.

    2. Energy Corridor

    One of the most ambitious projects is the construction of a pipeline between both banks of the Canal.  This corridor would be designed to transport Liquefied Petroleum Gas (LPG) and other fuels, helping to reduce congestion in the maritime route and optimize its operation.

    3. Complementary Road Ring

    The diversification vision is not limited to maritime and energy matters.  The ACP is also planning the construction of a road ring that would complement the land connectivity around the Canal, facilitating the transport of goods and people in strategic areas.

    4. Rio Indio Project: water security and drinking water

    One of the greatest challenges the Canal faces is water supply.  For this reason, the Río Indio Project is being promoted, which consists of the construction of a reservoir or artificial lake. This will be essential not only to guarantee the operation of the interoceanic waterway, but also to secure drinking water for millions of Panamanians.

    5. An Investment Plan

    All these projects are part of an investment plan estimated at USD 8 billion, which the ACP will carry out over the next decade. It is the most ambitious undertaking in years, aimed at consolidating the Canal not only as a maritime route but also as a comprehensive platform for logistics and energy services.

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  • Colon Free Zone Single Window: Panama’s One-Stop-Shop for Trade Facilitation

    Colon Free Zone Single Window: Panama’s One-Stop-Shop for Trade Facilitation

    Colon Free Zone Single Window: Panama’s One-Stop-Shop for Trade Facilitation

    The Colon Free Zone, recognized us one of the main free trade zones in Latin America, has implemented the Single Window for Procedures, a mechanism that centralizes various administrative and regulatory processes in one place.  With the participation of entities such as the National Customs Authority, the National Bank, the Fire Department, the Ministry of Health, the Ministry of Agricultural Development, and various departments of the Colon Free Zone, this platform allows that permits, payments, and key procedures be carried out more efficiently, reducing time, costs, and bureaucratic steps.

    This “one-stop shop” model, which will soon also feature a digital version, represents an important progress in the modernization of the public services and makes it easier for companies to establish and operate in the Colon Free Zone, strengthening Panama’s competitiveness as an international logistics hub.

    Furthermore, the Single Window aligns with international trade facilitation standards and helps position the Colon Free Zone as a more attractive, secure, and efficient business hub.  This measure reflects the Panamanian State’s commitment to transparency, efficiency, and the creation of a more favorable environment for sustainable economic growth for investors and foreign companies.

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  • Puerto Armuelles: Panama’s New Multipurpose Port and Economic Hub

    Puerto Armuelles: Panama’s New Multipurpose Port and Economic Hub

    Puerto Armuelles: Panama’s New Multipurpose Port and Economic Hub

    The Panama Maritime Authority (AMP) has redesigned the Puerto Armuelles dock project, in the Province of Chiriqui, transforming it into a multipurpose port that will boost the economic development of the western region of the country.

    With an investment of B/.21.2 million and an additional 35 hectares, the new port will feature modern infrastructure for storage, transportation, and industrial development. It is expected to generate at least 200 direct jobs during construction and even more once operational. Currently, the project is 48% complete, with an estimated delivery date in 2026. In parallel, new AMP offices in the region are also under construction, which are currently 40% complete.

    The port aims to reactivate the regional economy, attract investments, and strengthen maritime connectivity through the Pacific, positioning Puerto Armuelles as a new logistics and commercial hub for Panama.

    The private sector has welcomed the multipurpose port project in Puerto Armuelles with great enthusiasm. The AMP has reported numerous inquiries from companies interested in establishing operations in the area, reflecting high expectations for investment and confidence in the port’s logistical and commercial potential.

    René Gómez, President of the Panama Maritime Chamber (CMP), expressed support for the initiative, highlighting the importance of such projects in attracting vessels safely and efficiently. He also called for investment in English language education, pointing to it as a key tool for the development of the sector and for making the most of the opportunities that this new port will bring.

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  • Panama Joins Mercosur as an Associated State: New Opportunities for Trade and Investment

    Panama Joins Mercosur as an Associated State: New Opportunities for Trade and Investment

    Panama as a New Associated State of Mercosur

    On the 6th of December 2024, Panama became an Associated State of Mercosur. The incorporation of Panama marks a strategic milestone for the regional integration and the economic strengthening of the country. By becoming an Associated State, Panama significantly expands its trade opportunities by joining one of the main economic platforms in Latin America. This step not only consolidates its position in the region but also allows it to participate in the exchange of trade, customs, and productive policies alongside full members such as Brazil, Argentina, Uruguay, Paraguay, and Bolivia, as well as fellow Associated States such as Chile, Peru, Colombia, Ecuador, Guyana, and Suriname.

    One of the main benefits for Panama is serving as a hub for exports between South and North America. As President José Raúl Mulino stated during a press conference on Thursday, July 17, Mercosur countries are especially interested in leveraging Panama’s logistics platform to boost their exports and reexports to markets in Asia, North America, Europe, and the Caribbean, which translates into new business opportunities, investments, and jobs for the country.

    Furthermore, Panama strengthens its appeal as a destination for foreign direct investment by offering greater legal certainty and access to regional value chains. Its association may also foster the transfer of technology, technical cooperation, and the development of regional infrastructures.

    There is no doubt, that the participation of Panama in Mercosur consolidates its role as a strategic bridge of the Americas.

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  • 5 Advantages of the Panamanian Ship Registry

    5 Advantages of the Panamanian Ship Registry

    5 Advantages of the Panamanian Ship Registry

    Panama is internationally recognized as one of the leading open ship registries. Its strategic location, strong institutional support, and extensive experience in the maritime sector have positioned its flag as one of the most sought-after by shipowners and operators worldwide. Over the years, the Panamanian flag has become synonymous with efficiency, reliability, and competitiveness.

    Below are 5 key advantages of registering a vessel under the Panama flag:

    1. Various types of registration options are offered depending on the owners’ needs, including: dual registration for chartering, special navigation registrations for delivery or scrapping of the vessel, among others.
    2. Discount percentages on registration fees, annual tax, and annual consular fees are available for economic groups with three or more vessels, for ships with no detentions in the last 24 months, for newly built vessels, and those enrolled in the MODUS program.
    3. Fast and efficient technical service available 24/7 through Maritime Security (SEGUMAR) 14 international offices. These offices provide ongoing support and technical guidance to users of the Panamanian registry, as well as the issuance of technical certifications essential to daily vessel operations.
    4. New issuance of digital documents with QR codes, which allows for fast delivery of certificates to vessel owners and helps reduce courier and document handling costs.
    5. Benefits for recreational vessels (such as yachts and pleasure sailboats) engaged in international service, which are subject to a fixed biennial fee of US$1,000.00 or US$1,500.00, depending on whether the vessel is owned by a Panamanian citizen, a Panamanian corporation, or a Panamanian private interest foundation.
    Interested in registering your vessel under the Panamanian flag?
    Contact us today for personalized advice.
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  • Impact of the Panama Canal on the Global and Local Economy

    Impact of the Panama Canal on the Global and Local Economy

    Impact of the Panama Canal on the Global and Local Economy

    The Panama Canal is one of the greatest engineering projects of history, not only does it connect the Atlantic and Pacific Oceans, but it is also an economic motor crucial for international commerce.

    Impact of the Panama Canal to International Commerce

    The Panama Canal facilitates the transit of more than 13,000 vessels yearly, transporting more than 500 million tons of cargo.  This flow represents a savings of up to 30% in maritime transporation costscompared with alternative routes such as Cape Horn.

    Key 2024 statistics:

    • Volume of cargo: 500+ million tons
    • Principal users: United States, China, and Japan
    • Income generated: US$3,300 million

    Primeros 15 Países que circulan por el Canal de Panama

    Economic Benefits for Panama and the World

    The Panama Canal is not only an economic motor for Panama, but also a strategic pilar for the world economy.  Since its opening, it has generated direct and indirect benefits which go beyond borders and sectors.  Following, we explore these effects in more detail:

    Contribution to the GDP of Panama

    The Panama Canal contributes approximately between 6% to 8% of the Panamanian GDP (with recent exceptions due to climate phenomenon).  This percentage translates annually in billion of dollar which benefit the country directly, promoting infrastructure programs, health and education.

    Key data:

    • In 2023 the Canal genetared US$3,300 million in income, representing 3.1% of GDP, a slight reduction due to adverse climate conditions which affected operations.
    • The expansion of the Canal in 2016 increased significantly its capacity, allowing the transit of larger vessels (Neopanamax) and multiplying potential income.

    Generation of Direct and Indirect Employment

    The Panama Canal is a principal source of employment for the country.  Moreover, of the 10,000 direct jobs that the Panama Canal Authority (ACP) offers, the Canal generates thousands of indirect jobs in sectors such as logistic, commerce, tourism and services.

    Key employment impacts:

    • Logistics sector: Transportation companies, storage and port services are benefited by the constant flow of cargo through the Canal.
    • Tourism: The Canal is also a global tourist attraction, attracting visitors that generate additional income to the local economy.

    Reduction of costs in the International Commerce

    The Canal permits the transit of more than 13,000 vessels annually, reducing significantly transportation times and costs between the Atlantic and Pacific Oceans.

    Benefits for global companies:

    • Savings in costs: The Canal tariffs represent a fraction of the total maritime transport cost.  This results in savings of up to 30% for companies in comparison with alternative routes, as Cape Horn.
    • Reduction in time: A vessel that transits the Canal can save up to 20 navigable days, depending on their route.

    Global Benefit:  Facilitate the Commerce of Strategic Goods

    The Panama Canal is fundamentally to mobilize key goods, such as food, oil, electronic products and cars.  In 2024, it facilitated the transport of more than 500 million tons of cargo, ranking as a critical point for global commerce stability.

    Example of products transported:

    • Technology: Electronic products from Asia to Latin America.
    • Food: Grains and agricultural products from North America to Asia.
    • Oil and natural gas: Exports from the United States to Asia and Europe.

    Attraction for Foreign Investment

    The Panama Canal is not only a point for maritime transit, but also an attraction for direct foreign investment (DFI).  Global companies use the country as a logistic base due to its strategic geographic position and the connectivity that the Canal offers.

    Impacts related to the investment:

    • Multinational companies have established centers of distribution in Panama to faccilitate access to Latin America markets.
    • The Colon Free Zone, one of the largest free zones in the world, depends directly of the traffic generated by the Canal to stock up and distribute merchandise.

    Environmental Contribution:  Reduction of Emissions

    Even though maritime transport has an environmental impact, the Panama Canal reduces significantly cargo emissions by reducing transport routes.  In 2024 it is estimated that the Canal saved more than 16 million tons of CO₂ in comparison with longer routes.

    The Panama Canal not only generates significant income for the country, but also drives global commerce, reduces costs, generates employment and attracts strategic investments. With this benefits, the Canal continues to be a key element not only for the Panamanian economy, but also for international commerce. However, to maintain and expand these benefits, it is crucial to confront the climate challenges and take advantage of the tecnological opportunities in the following years.

    What do you think about the impact of the Panama Canal has on the global economy? Let us know your comments.

    At ANORCO, our Maritime Law team specializes in providing legal services tailored to the unique needs of businesses operating in the maritime industry. From advising on Canal-related regulations to assisting with international trade and vessel compliance, we are here to ensure your operations remain seamless and legally sound.

    Visit our Maritime Law practice area to see how we can support your growth in this dynamic sector.

  • Panama Canal prepares to increase ship transits amid rainy season

    Panama Canal prepares to increase ship transits amid rainy season

    Panama Canal Prepares to Increase Ship Transits Amid Rainy Season

    Due to the recent drought that affected the water levels of the Gatun and Alajuela lakes, the Panama Canal was forced to reduce to 27 the daily transit of ships. However, with the onset of the rainy season, the Panama Canal is now preparing to gradually increase the number of ships passing through the locks. In this respect, it is predicted that the daily transits will gradually increase, approaching the normal capacity of 36 transits by late 2024 or early 2025, if weather conditions permit.
     
     
  • Panama’s Global Leadership in Ship Registry: Latest Updates

    Panama’s Global Leadership in Ship Registry: Latest Updates

    Panama has maintained its global leadership in Ship Registry

    According to the international platform IHS Markit, Panama has maintained its global leadership in Ship Registry with 8,540 vessels and 251.1 million gross tonnages (GT). By the same token, in the last World Fleet Monitor published this year by Clarksons Research Platform, the Panamanian flag is flown by 16% of the ships that make up the world fleet.

    Of said percentage, 339 ships of new construction, with which the General Directorate of Merchant Marine has managed to get closer to its objective of attracting to Panama vessels of this segment. On the other hand, in order to maintain the standards of the international maritime industry, the Panama Ship Registry canceled ex- officio 161 vessels of around 17 years old, of which an important number of these vessels were related to unreported and not regulated fishing.

    With the measures implemented, Panama remains committed in developing its services in repect to the Registry of Vessels, by promoting the decarbonization of the industry, in order to optimize its assistance to shipowners worldwide.

  • Streamlining Maritime Procedures: Introducing REN

    Streamlining Maritime Procedures: Introducing REN

    Streamlining Maritime Procedures: REN (Maritime Procedures System and Electronic Register of Ships)

     

    The Panama Maritime Authority, as part of its technological modernization plan, has carried out the necessary administrative steps to update the technological platforms used by the Panama Ship Registry.

     

    This project seeks to unify the flag registration process between the Directorate General of Merchant Marine and the registration of the title to property deeds of the vessels in the Directorate of Public Registry of Ship Ownership.

     

    Qualities that the new REN technology platform will have:

     

    • Efficiency, speed and improvement in the quality of the services provided.
    • Facilitates access to information.
    • Ensures the confidentiality of the data.
    • Automatic notification on the progress of the procedures or applications.
    • Enquiries, follow-up and follow-up of procedures or applications  remotely from anywhere in the world.
    • Institutional payment gateway that will allow payment by credit or debit card.
    • Minimizes the requirement and handling of physical documentation within the processes.
    • Application of authentication and digital security in document management, integrating the qualified electronic signature to the processes for a complete traceability of the process and the generation of documents and electronic certificates.

     

    Source: PMA Update Bulletin in its third edition of 2023

  • Qualship 21 Program: Ensuring Safe Maritime Trade and Environmental Commitment

    Qualship 21 Program: Ensuring Safe Maritime Trade and Environmental Commitment

    Qualship 21 Program

     

    This year the Panama Maritime Authority (PMA), marked a milestone by entering the “Qualship 21 Program”.

     

    The Qualship 21 Program is a recognition program implemented by the United States Coast Guard, as of January 1, 2001, with the purpose of insuring safe maritime trade and committed to the environment.

     

    Among the incentives offered by Qualship 21 Program the following standout: (I) for all vessels, the registration is valid for three years and the name of the vessel is posted on the US Coast Guard and EQUASIS website; (ii) for Tank Vessels, Certificate of Compliance (COC) annual examination reduced in scope; (iii) for Freight Vessels, three years of limited Port State Control (PSC) oversight and for Passenger Vessels, reduced scope for the environmental portion of the examination during COC periodic examination.

     

    To qualify for the Qualship 21 Program, the vessels must abide by the policies and requirements established in the program, which encourage those exemplary vessels that have shown compliance and good environmental management.

     

    The list of fully qualified flag administrations is updated on June 30th of each year.

  • The Significance of Maritime Flags in Shipping: Part 2

    The Significance of Maritime Flags in Shipping: Part 2

    The Significance of Maritime Flags in Shipping: Part 2

     

    In addition to the flags used to indicate the nationality of a ship, and to communicate the ship’s status and intentions, flags are used for communications between ships and between ships and shore, there are also a number of special flags used for specific purposes. These include the flags used to indicate the presence of a pilot on board, the flags used to indicate that a ship is carrying hazardous cargo, and the flags used to indicate the presence of a doctor on board.

     

    In conclusion, the significance of maritime flags in the shipping industry cannot be overstated. They serve as a means of communication between ships and between ships and shore and play a critical role in ensuring the safe and efficient operation of ships.

  • The Different Types of Maritime Flags and Their Meanings

    The Different Types of Maritime Flags and Their Meanings

    The Significance of Maritime Flags in Shipping

     

    Maritime flags are an essential part of the shipping industry, and their significance cannot be overstated. They serve as a means of communication between ships, between ships and shore, and between ships and other vessels. In this way, they play a critical role in ensuring the safe and efficient operation of ships.

     

    One of the most important functions of maritime flags is to indicate the nationality of a ship. The flag flown by a ship is used to identify the ship and its owners, and to indicate the country under whose laws the ship is operating. This information is important for a number of reasons, including determining the jurisdiction in which the ship is operating and ensuring that the ship is in compliance with international maritime law.

     

    Another important function of maritime flags is to communicate the ship’s status and intentions. For example, the display of specific flags can indicate that a ship is in distress, that it is entering or leaving port, or that it is carrying dangerous cargo. These flags serve as a visual warning to other ships and to shore-based authorities, allowing them to take appropriate action.

  • Understanding their Importance in the Shipping Industry II

    Understanding their Importance in the Shipping Industry II

     

     

    An Overview of Maritime Flags: Part 2

     

    In the international maritime community, flags serve as a means of communication between ships and between ships and shore. They are used to signal a ship’s intentions, warn of danger, and provide information about the ship’s identity and status. The international maritime community has established a set of internationally recognized flags that are used for this purpose.

     

    The most common flags used in the maritime world are the national flags of the countries whose ships fly them. National flags indicate the nationality of a ship and are used to identify the ship and its owners. In addition to national flags, there are also a number of international flags that are used for specific purposes. Some of these flags include the signal flags used for communications between ships and the courtesy flags used when a ship visits a foreign port.

     

    In conclusion, maritime flags play a vital role in the world of shipping and are a critical part of maritime law. They serve as a means of communication between ships and between ships and shore, and their use is regulated by international treaties and conventions to ensure the safe and efficient operation of ships.

  • Maritime Flags: Understanding their Importance in the Shipping Industry

    Maritime Flags: Understanding their Importance in the Shipping Industry

     

     

    An Overview of Maritime Flags

     

    Maritime flags play a crucial role in the world of shipping and are a vital part of maritime law. The use of flags dates to ancient times when they were used to indicate a ship’s nationality, ownership, and purpose. In today’s world, the use of flags has evolved and become more sophisticated, but their purpose remains the same.

     

    Maritime flags are an important part of maritime law, and the rules and regulations governing their use are set out in international treaties and conventions. These rules are designed to ensure the safe and efficient operation of ships and to ensure that ships can communicate effectively with one another.

  • Future Logistics Strategy for Panama: Vision and Plans for Sustainable Growth

    Future Logistics Strategy for Panama: Vision and Plans for Sustainable Growth

     

     

    Future Logistics Strategy for the Panamanian Sector

     

    The Panama Canal is recognized for playing a central role in the “National Logistics Strategy 2030,” which is contemplated in Executive Decree No. 268 of April 10, 2018. In this regard, the executives of the Canal de Panama believe that the logistics strategy should be directed towards the 30% that complements the logistics sector, represented by maritime auxiliary businesses, to generate added value that can help restore the lost GDP due to the crisis that has arisen in Asia in the last year.

     

    As the first axis of this strategy, support and incentives provided by the Cabotage Law No. 266 of 2021 are sought to boost the local economy by enabling the creation of new national ports, which will allow the integration of all logistics sectors and thus incentivize the exportation of national products to the international market.

     

    The Panama Canal executives expect to put this plan into action with the construction and habilitation of the Baru port in the province of Chiriqui. This project, in addition to generating employment opportunities, will impact the cabotage service, the fishing and tourism industry, and the maritime auxiliary industry, contributing to sustainable growth and national and international connectivity.

     

     

  • Logistics Strategy for Panama: Advances and Objectives for 2023

    Logistics Strategy for Panama: Advances and Objectives for 2023

    Logistics Strategy for Panama

     

    Our lawyer Akeisha Anderson participated in the executive meeting on the topic “Logistics Strategy for Panama,” organized by the Chamber of Commerce, Industries, and Agriculture, held on February 14, 2023, at the JW Marriot Hotel in Panama City.

     

    The purpose of the meeting was to inform attendees about the advances of the logistics strategy that the Panamanian government has adopted for 2023, namely:

     

    • Through Executive Decree No. 268 of April 10, 2018 (which formally adopts the “National Logistics Strategy 2030”), the government intends to create an institutional framework to position Panama’s logistics industry and for each incoming government to work based on what this strategy establishes.
    • To turn Panama into an internationally recognized logistics hub by integrating the different sectors of the logistics area (air, sea, and land) in order to be able to compete with other countries in the region.
    • In cooperation with the National Authority for Government Innovation (AIG), create a technological program called “PORTCEL” that responds to the demands of international trade. In this regard, a single window is created that integrates the various platforms and systems related to logistics and foreign trade activities of the different government authorities, so that the user has access to documentation and procedures in real-time.