Panama Canal Customer newsletter

cust-news-200012 ( .pdf )

Pana a Canal ACP


December 2000


Canal Improves Efficiency And Safety Indicators


During the first year under
Panamanian administration, the Panama
Canal workforce performed
exceptionally well, managing record
transits by Panamax vessels and, at the
same time, achieving an excellent safety
record (16 accidents during transits
under the command of a Canal pilot).
This record represents 0.16 percent of
total transits and it is below the figures
recorded for the past two years.
According to reports provided by the
Panama Canal Authority Board of Local
Inspectors, from a total of 9,762 ships
that transited the Canal between January
and September, only 16 suffered
accidents. During that period in 1999,
the accident rate was 0.2 percent, while
in 1998, itwas 0.18 percent.


It is noteworthy that the safety
record was achieved while the
Gaillard Cut widening efforts are
underway. Transits by Panamax
vessels require great coordination
between the pilots assigned to the ships
and the personnel and equipment
working in the Cut-widening project,
24 hours aday.
At present, the Panama Canal has
289 pilots, of which 264 are
Panamanians. The progressive
transition to this large number of
Panamanian pilots was seamless due
to the fact that 97 percent of the
workforce was already Panamanian by
the time the Canal was turned over to
Panama. The experience and training
of the Canal pilots are key factors that


have contributed to reduce the number
of accidents, in spite of the increase of
Panama Canal Universal Measurement
System (PC/UMS) tonnage.
In addition, the professionalism
displayed by the Canal workforce,
coupled with the technological
advances already in place, permitted
reducing Canal Waters Time (CWT) from
33 to 29.7 hours, thus demonstrating the
commitment of all with the safe and
efficient operations of the Panama
Canal. There is no doubt that Panama
can do it and can do it well. Our
performance during these first months of
Panamanian administration is a
testimonial of our deeds, and we are
proud to say this to the maritime
community.


Personalities Express Their Views About The Panama
The Latin American Presidents and Chiefs of State, gathered in Panama for the X
Latin American Summit held November 17 to 18, 2000, certified the efficient
operation of the Panama Canal under Panamanian stewardship, the full
consolidation of the Republic of Panama as a sovereign State, and the strengthening
of its national identity and democratic vocation, as essential elements to foster and
strengthen the relations and historic ties that bound the Latin American community
of nations. The written statement signed by the Latin American Presidents and Chiefs
of State, evidenced the satisfaction of these dignitaries for the efficient operation of
the waterway under Panamanian stewardship and the measures taken by the
Panamanian Governmentto insurethe safe, uninterrupted and efficient operation of
the Panama Canal and its modernization plans to continue serving world trade and
navigation.


Canal Administration
Former United States President
James Carter, during a recent visit to this
country, assured that Panama is
managing the Canal as well as the U.S.
government or even better, referring to
the first year of Panamanian stewardship
of the waterway. Carter, who made the
historical decision of turning over the
Canal to Panamanians through the
signing of the Torrijos-Carter Treaty of
1977, recognized the admirable work of
the people of Panama who received this
great feat of engineering and managed it,
during this first year, beyond
expectations.
Engineer Gilberto Guardia, the first
Panamanian Administrator of the
Panama Canal and the first foreign
national to serve as chief executive
officer of a U.S. agency, expressed
satisfaction and pride of the
achievements and abilities
demonstrated by the Canal
administration and its workforce in the
stewardship of the waterway. Mr.
Guardia urged Panamanians to continue
with the studies to expand the Canal
watershed and to complete those leading
to the next Canal expansion.








Sustained Growth of Panamax-Size Vessel Transits


Transits by Panamax-size vessels,
those of 100-feet beam or more and the
largest vessels that can transit the
Panama Canal, maintained their
increasing trend and rose 6.5 percent
during the first eleven months of
calendar year 2000. During the January
to November period, the Panama Canal
reported 4,048 transits by Panamax-size
vessels, 247 more transits than those
reported duringthe same period in 1999.
During the period in review, Panamax-
size vessel transits represented 32% of
total transits and 35.7% of total
oceangoing commercial transits. This
increasing trend started in the early
1970's, but at that time Panamax vessels
accounted for only 2.0 percent of total
transits. Transits by containership
vessels increased by an impressive
10.3% maintaining their upward trend,
and surpassing the average growth rate
of 8.9 percent depicted during the last 4
years. Accordingly, total transits
depicted a decline of 2.5 percent during
the period January through November


2000 when 323 less
transits were
r e p o r t e d ,
representing a loss
of almost a vessel Month 10
per day, as compared
to the same period Jan
during the previous Feb
year. T h e
Mar
i n c r e a s i n g
proportion of transits Apr
by Panamax-size May
vessels impacts Jun
negatively on Canal Jul
capacity as a Aug
consequence of the
one-way traffic Sep
restriction for large Oct
vessels in the Nov
Gaillard Cut. The Total
accelerated Gaillard
Cut Widening
Program, scheduled
for completion in December 2001,
will allow for flexible two-way traffic
of wide-beam vessels in the Cut


0' Beam and Over


1999
340
334
329
330
339
340
379
364
320
382
344
3,801


- i


2000
350
352
376
383
349
379
334
372
355
419
379
4,048


Total
1999 2000
1,262 1,155
1,245 1,188
1,359 1,346
1,386 1,332
1,284 1,168
1,062 1,124
1,120 1,040
1,121 1,045
965 1,013
1,092 1,125
1,026 1,063
12,922 12,599


without compromising
increasing Canal capacity.


safety, thus


Canal Transits and Cargo Information


Major Canal Cargo Flows [ 1999
Principal Commodities January November 2000
45,000
40,000
35,000
S30,000
25,000
20,000
S15,000
10,000
S5,000
1--
0
= =o =
o -



Comparative Data for Selected Commodities (in long tons)
Commodity January to November %change
1999 2000
Refrigerated Foods 6,624,251 6,976,101 5.31
Grains 37,840,333 36,121,813 (4.54)
Containerized Cargo 27,823,282 31,526,077 13.31
Petroleum and Products 25,419,653 26,632,524 4.77
Manufactures of Iron and Steel 10,220,607 10,628,749 3.99
Coal and Coke (excludes petroleum coke) 8,302,752 8,794,940 5.93
Lumber and Products 8,673,744 8,561,008 (1.30)


During the period January to November of
calendar year 2000, shipments of grain, the leading
Canal commodity group, decreased by 4.5 percent
to 36.1 million long tons from the 37.8 millions
registered during the same period in calendar year
1999. This drop in grain shipments reflects six
consecutive monthly declines from May to
October, only reverted by a 1 percent increase
posted in November. A steady supply of corn from
China to the Asian market, as well as the increasing
use of corn substitutes for animal feeding in South
Korea and Japan, have negatively affected U.S. corn
exports to Asian countries through the Panama
Canal. Transits by full-containerships remained
strong. Containerized cargo flow grew by 13.3%
registering 31.5 million long tons from the 27.8
millions reported in 1999. The second leading
commodity group drove an increase of 13.5% in
tolls collection and accounted for 22.6% of the total
tolls generated by transit operations. Petroleum and
its products, the third leading commodity group,
registered 26.6 million of long tons representing an
increase of almost 4.8 percent as compared to the
25.4 millions registered during the same period in
1999. The above chart shows the major Canal
commodity flows for the first eleven months period
of FY 1999-2000.








Administrator to Attend the World Economic Forum Outreach Efforts


The Panama Canal Administrator,
Mr. Alberto Alemin Zubieta, has been
invited to participate in the Annual
Meeting 2001 of the World Economic
Forum in Davos, Switzerland from
January 25 to 30.
The annual meeting of the World
Economic Forum has emerged as the top
international event bringing together
business and political leaders from
around the world, along with top
academic experts, media leaders and
representatives from civil society as key
partners sharing analysis, insights and
experiences to assess the implications of
rapid changes in the global economic,
political and social environment. This
year's meeting will integrate views and
leaders from different regions around
key themes, such as: Addressing the


Globalization Backlash, Shaping the
Global Corporation, The Second
Phase of the Digital Revolution, and
Global Business: Values-Free or
Values-Driven?
Mr. Aleman Zubieta will
participate in the Governors Meeting
for the Transport Services Industry
where chief executives of the industry,
including couriers, logistics providers,
posts, ocean shipping and ports, rail,
air freight and trucking, will discuss the
important developments and trends in
the industry and explore strategic,
non-competitive issues that affect the
industry and society at large.
For more information regarding
the World Economic Forum visit its
website at: http://www.weforum.org


Canal's Advisory Board will Meet in Panama


The Panama Canal Authority
Advisory Board will meet in Panama
from February 14 to 16, 2001. The
meeting will be presided by the
Chairman of the Board, Mr. William
O'Neil, Secretary General of the
International Maritime Organization
(IMO). Ms. Lillian Borrone of the Port
Authority of New York/New Jersey;
Gerhard Kurz of Hvide Marine Inc.; Y.F.
Chang of Evergreen Marine Corp.;
Phillip Embiricos of Embiricos
Shipbrokers; Joe Reeder of Greenberg


Traurig; Tommy Thomsen of Maersk
Sealand; Andronico Luksic of Luksic
Companies and Michael Barnes of the
Panama-US Business Council have
confirmed their participation. This
will be the third meeting of the
Advisory Board since its inauguration
in December 1999, and will give the
Board members the opportunity to
observe firsthand the advancements in
the Panama Canal modernization and
capacity enhancement program.


Transportation Symposium

The Panama Canal Authority (ACP) attended the International Transportation
Symposium held in October in Washington, D. C. Mr. Henry Stec, manager of the
Canal's electronics and telecommunications division, made a presentation regard-
ing the CTAN system, which is utilized by the ACP to monitor transiting vessels and
Canal floating equipment.
The CTAN is part of the Enhanced Vessel Traffic Management System, a state-of-
the-art system designed to achieve maximum safety and efficiency during Canal
transits, which provides a method for the integrated management of traffic and transit
resources, incorporating the latest technological advancements in the areas of global
positioning systems and telecommunications.
During the International Transportation Symposium, approximately 1,000
representatives from 95 countries met to discuss tendencies in transportation in the
new millennium.


As part of its intensified outreach
program, the Panama Canal Authority
(ACP) participated in the Latin Ports and
Shipping 2000 Conference and
Exhibition held in Miami Beach, Florida,
from November 14 through 16. Mr.
Anthony Garcia, Canal's Customer
Relations Manager, along with
representatives of the Manzanillo
International Terminal Panama, the
Panama Canal Railway Company, and
the Interoceanic Region Authority
participated as guest speaker and
panelist in the module Modal Integration
in Freight Transport: A Demonstration Of
How A Good Intermodal Network Can
Help Leverage Business Opportunities
For Ports And Terminal Operators.
From January 7-11, Mr. Rodolfo R.
Sabonge, the Canal Corporate Planning
and Marketing Director, will be
participating in the 80th Annual Meeting
of the Transportation Research Board to
be held in Washington, D.C.. TRB's
annual meeting attracts more than 8,000
transportation professionals from all
over the world as it offers an
unparalleled opportunity to share
knowledge and perspectives with
colleagues in the transportation industry
and gain a better understanding of the
latest developments in the transportation
research, policy and practice. Mr.
Sabonge has been appointed as a
member of the Task Force on
Agricultural Transportation representing
the Panama Canal Authority.


Telex is History
Technological changes in telecom-
munications, brought about by the
widespread use of fax machines and
electronic mail, have prompted the
Panama Canal Authority (ACP) to
eliminate the use of the telex for purposes
of communicating with shipping lines
and others in the transportation sector.
The announcement was made by the
Canal's Director of Maritime Operations,
Mr. Jorge Quijano, at a meeting in early
December with representatives from the
Panama Chamber of Shipping. Mr.
Quijano noted that telex equipment was
only maintained by the ACP at the
request of a few in the shipping industry.
He added that the Canal has not received
any telex communications in several
months.


111~








A New Cruise Destination

Government officials and business
leaders hope cruise ships will soon begin
making Panama a port of call. As a lure
for the cruise industry, during the month
of October two important cruise
terminals were inaugurated at the
Atlantic entrance of the Panama Canal,
the Cristobal Cruise Terminal Pier 6,
and the Port of Colon.
For a long time Panama has wanted
to develop tourism as a major source of
revenue. Panama has comparative
advantages over other ports in the
Caribbean, mainly because it is located
outside the hurricane belt; and because it
provides the unique experience of two
oceans on one port of call. Most cruise
lines serving the Alaskan and Caribbean
routes already provide transits through
the Panama Canal.
In 1998 the Panama Canal Authority
inaugurated the Gatun Yatch Club on the
banks of Gatun Lake near the locks at the
Atlantic entrance to the Canal. The
Gatun Yatch Club offers tourist
embarking/disembarking dock facilities


and a complex for limited recreational
activities. Both Ports of Colon and
Cristobal were developed for vessels
larger than those berthing at the Gatun
Yatch Club. The new ports on the
Atlantic offer tourists the opportunity
to visit the Canal plus full-day
excursions, shopping, entertainment,
cultural events and, access to Panama
City on the Pacific and Colon on the


Atlantic, with their many historical sites
and attractions.
The cruise industry is growing
steadily. There are several investments
underway in the country to take
advantage of this fast growing industry
and to position Panama as one of the
most attractive tourist destinations in the
Caribbean.


"Norwegian Wind" a Norwegian
Cruise Line at Cristobal Cruise
Terminal Pier 6. This 1,750
passengers and 650 crew members
Panamax vessel called at Pier 6 for
the first time on December 12, 2000.
Panama Ports Company (PPC), a
member of Hutchison Port Holdings,
operates the Port of Cristobal.


We want your comments
We welcome your comments and suggestions regarding this newsletter. We want to
convey important news for you and your business. Please let us know your views
about this media (format, content, topics) and what you would liketo see in our next
edition. If you rather receive it electronically, please send us a note with the correct
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for address, fax, and telephone numbers).


SEE THIS NEWSLETTER ON
THE ACP WEB SITE AT:
www.pancanal.com
(then click on "Canal News")


I~

PAGE 1

Customer Newsletter Customer Newsletter December 2000 During the first year under Panamanian administration, the Panama Canal workforce performed exceptionally well, managing record transits by Panamax vessels and, at the same time, achieving an excellent safety record (16 accidents during transits under the command of a Canal pilot). This record represents 0.16 percent of total transits and it is below the figures recorded for the past two years. According to reports provided by the Panama Canal Authority Board of Local Inspectors, from a total of 9,762 ships that transited the Canal between January and September, only 16 suffered accidents. During that period in 1999, the accident rate was 0.2 percent, while in 1998, it was 0.18 percent. It is noteworthy that the safety record was achieved while the Gaillard Cut widening efforts are underway. Transits by Panamax vessels require great coordination between the pilots assigned to the ships and the personnel and equipment working in the Cut-widening project, 24 hours a day. At present, the Panama Canal has 289 pilots, of which 264 are Panamanians. The progressive transition to this large number of Panamanian pilots was seamless due to the fact that 97 percent of the workforce was already Panamanian by the time the Canal was turned over to Panama. The experience and training of the Canal pilots are key factors that have contributed to reduce the number of accidents, in spite of the increase of Panama Canal Universal Measurement System (PC/UMS) tonnage. In addition, the professionalism displayed by the Canal workforce, coupled with the technological advances already in place, permitted reducing Canal Waters T ime (CWT) from 33 to 29.7 hours, thus demonstrating the commitment of all with the safe and efficient operations of the Panama Canal. There is no doubt that Panama can do it and can do it well. Our performance during these first months of Panamanian administration is a testimonial of our deeds, and we are proud to say this to the maritime community. Canal Improves Efficiency And Safety Indicators The Latin American Presidents and Chiefs of State, gathered in Panama for the X Latin American Summit held November 17 to 18, 2000, certified the efficient operation of the Panama Canal under Panamanian stewardship, the full consolidation of the Republic of Panama as a sovereign State, and the strengthening of its national identity and democratic vocation, as essential elements to foster and strengthen the relations and historic ties that bound the Latin American community of nations. The written statement signed by the Latin American Presidents and Chiefs of State, evidenced the satisfaction of these dignitaries for the efficient operation of the waterway under Panamanian stewardship and the measures taken by the Panamanian Government to insure the safe, uninterrupted and efficient operation of the Panama Canal and its modernization plans to continue serving world trade and navigation. Former United States President James Carter, during a recent visit to this country, assured that Panama is managing the Canal as well as the U.S. government or even better, referring to the first year of Panamanian stewardship of the waterway. Carter, who made the historical decision of turning over the Canal to Panamanians through the signing of the T orrijos-Carter T reaty of 1977, recognized the admirable work of the people of Panama who received this great feat of engineering and managed it, during this first year, beyond expectations. Engineer Gilberto Guardia, the first Panamanian Administrator of the Panama Canal and the first foreign national to serve as chief executive officer of a U.S. agency, expressed satisfaction and pride of the achievements and abilities demonstrated by the Canal administration and its workforce in the stewardship of the waterway. Mr. Guardia urged Panamanians to continue with the studies to expand the Canal watershed and to complete those leading to the next Canal expansion. Personalities Express Their Views About The Panama Canal Administration

PAGE 2

T ransits by Panamax-size vessels, those of 100-feet beam or more and the largest vessels that can transit the Panama Canal, maintained their increasing trend and rose 6.5 percent during the first eleven months of calendar year 2000. During the January to November period, the Panama Canal reported 4,048 transits by Panamax-size vessels, 247 more transits than those reported during the same period in 1999. During the period in review, Panamax-size vessel transits represented 32% of total transits and 35.7% of total oceangoing commercial transits. This increasing trend started in the early 1970's, but at that time Panamax vessels accounted for only 2.0 percent of total transits. T ransits by containership vessels increased by an impressive 10.3% maintaining their upward trend, and surpassing the average growth rate of 8.9 percent depicted during the last 4 years. Accordingly, total transits depicted a decline of 2.5 percent during the period January through November 2000 when 323 less transits were reported, representing a loss of almost a vessel per day, as compared to the same period during the previous year. T h e increasing proportion of transits by Panamax-size vessels impacts negatively on Canal capacity as a consequence of the one-way traffic restriction for large vessels in the Gaillard Cut. The accelerated Gaillard Cut Widening Program, scheduled for completion in December 2001, will allow for flexible two-way traffic of wide-beam vessels in the Cut 10 0' Be am an d O ve r Tot al 19 99 20 00 19 99 20 00 Ja n 34 0 35 0 1,2 62 1,1 55 Fe b 33 4 35 2 1,2 45 1,1 88 Ma r 32 9 37 6 1,3 59 1,3 46 Ap r 33 0 38 3 1,3 86 1,3 32 Ma y 33 9 34 9 1,2 84 1,1 68 Ju n 34 0 37 9 1,0 62 1,1 24 Ju l 37 9 33 4 1,1 20 1,0 40 Au g 36 4 37 2 1,1 21 1,0 45 Se p 32 0 35 5 96 5 1,0 13 Oc t 38 2 41 9 1,0 92 1,1 25 No v 34 4 37 9 1,0 26 1,0 63 Tot al 3,8 01 4,0 48 12 ,92 2 12 ,59 9 Tot al Tra ns its Mo nt h Sustained Growth of Panamax-Size V essel Transits During the period January to November of calendar year 2000, shipments of grain, the leading Canal commodity group, decreased by 4.5 percent to 36.1 million long tons from the 37.8 millions registered during the same period in calendar year 1999. This drop in grain shipments reflects six consecutive monthly declines from May to October, only reverted by a 1 percent increase posted in November. A steady supply of corn from China to the Asian market, as well as the increasing use of corn substitutes for animal feeding in South Korea and Japan, have negatively affected U.S. corn exports to Asian countries through the Panama Canal. T ransits by full-containerships remained strong. Containerized cargo flow grew by 13.3% registering 31.5 million long tons from the 27.8 millions reported in 1999. The second leading commodity group drove an increase of 13.5% in tolls collection and accounted for 22.6% of the total tolls generated by transit operations. Petroleum and its products, the third leading commodity group, registered 26.6 million of long tons representing an increase of almost 4.8 percent as compared to the 25.4 millions registered during the same period in 1999. The above chart shows the major Canal commodity flows for the first eleven months period of FY 1999-2000. Canal Transits and Cargo Information without compromising safety, thus increasing Canal capacity. 6 ,6 2 4 ,2 5 1 6 ,9 7 6 ,1 0 1 5 .3 1 3 7 ,8 4 0 ,3 3 3 3 6 ,1 2 1 ,8 1 3 (4 .5 4 ) 2 7 ,8 2 3 ,2 8 2 3 1 ,5 2 6 ,0 7 7 1 3 .3 1 P e tr o le u m a n d P ro d u c ts 2 5 ,4 1 9 ,6 5 3 2 6 ,6 3 2 ,5 2 4 4 .7 7 M a n u fa c tu re s o f Ir o n a n d S te e l 1 0 ,2 2 0 ,6 0 7 1 0 ,6 2 8 ,7 4 9 3 .9 9 C o a l a n d C o k e ( e x c lu d e s p e tr o le u m c o k e ) 8 ,3 0 2 ,7 5 2 8 ,7 9 4 ,9 4 0 5 .9 3 L u m b e r a n d P ro d u c ts 8 ,6 7 3 ,7 4 4 8 ,5 6 1 ,0 0 8 (1 .3 0 ) C o m m o d it y J a n u a ry t o N o v e m b e r C o m p a ra ti v e D a ta f o r S e le c te d C o m m o d it ie s ( in l o n g t o n s ) % c h a n g e M a jo r C a n a l C a rg o F lo w s P ri n c ip a l C o m m o d it ie s J a n u a ry N o v e m b e r 0 5 ,0 0 0 1 0 ,0 0 0 1 5 ,0 0 0 2 0 ,0 0 0 2 5 ,0 0 0 3 0 ,0 0 0 3 5 ,0 0 0 4 0 ,0 0 0 4 5 ,0 0 0 G r a i n s C o n t a i n e r i z e d c a r g o P e t r o l e u m a n d P r o d u c t s M a n u f a c t u r e s o f I r o n a n d S t e e l C o a l a n d L u m b e r a n d P r o d u c t s L o n g T o n s i n T h o u s a n d s 1 9 9 9 2 0 0 0

PAGE 3

The Panama Canal Administrator, Mr. Alberto Alemán Zubieta, has been invited to participate in the Annual Meeting 2001 of the World Economic Forum in Davos, Switzerland from January 25 to 30. The annual meeting of the World Economic Forum has emerged as the top international event bringing together business and political leaders from around the world, along with top academic experts, media leaders and representatives from civil society as key partners sharing analysis, insights and experiences to assess the implications of rapid changes in the global economic, political and social environment. This year's meeting will integrate views and leaders from different regions around key themes, such as: Addressing the Globalization Backlash, Shaping the Global Corporation, The Second Phase of the Digital Revolution, and Global Business: Values-Free or Values-Driven? Mr. Alemán Zubieta will participate in the Governors Meeting for the T ransport Services Industry where chief executives of the industry, including couriers, logistics providers, posts, ocean shipping and ports, rail, air freight and trucking, will discuss the important developments and trends in the industry and explore strategic, non-competitive issues that affect the industry and society at large. For more information regarding the World Economic Forum visit its website at: http://www.weforum.org Administrat or to A ttend the W orld Econo mic F orum The Panama Canal Authority Advisory Board will meet in Panama from February 14 to 16, 2001. The meeting will be presided by the Chairman of the Board, Mr. W illiam O'Neil, Secretary General of the International Maritime Organization (IMO). Ms. Lillian Borrone of the Port Authority of New York/New Jersey; Gerhard Kurz of Hvide Marine Inc.; Y .F . Chang of Evergreen Marine Corp.; Phillip Embiricos of Embiricos Shipbrokers; Joe Reeder of Greenberg Canal's Advisory Board will Meet in Panama Outreach Efforts The Panama Canal Authority (ACP) attended the International T ransportation Symposium held in October in Washington, D. C. Mr. Henry Stec, manager of the Canal's electronics and telecommunications division, made a presentation regard-ing the CTAN system, which is utilized by the ACP to monitor transiting vessels and Canal floating equipment. The CTAN is part of the Enhanced V essel T raffic Management System, a state-ofthe-art system designed to achieve maximum safety and efficiency during Canal transits, which provides a method for the integrated management of traffic and transit resources, incorporating the latest technological advancements in the areas of global positioning systems and telecommunications. During the International T ransportation Symposium, approximately 1,000 representatives from 95 countries met to discuss tendencies in transportation in the new millennium. Transportation Symposium T echnological changes in telecommunications, brought about by the widespread use of fax machines and electronic mail, have prompted the Panama Canal Authority (ACP) to eliminate the use of the telex for purposes of communicating with shipping lines and others in the transportation sector. The announcement was made by the Canal's Director of Maritime Operations, Mr. Jorge Quijano, at a meeting in early December with representatives from the Panama Chamber of Shipping. Mr. Quijano noted that telex equipment was only maintained by the ACP at the request of a few in the shipping industry. He added that the Canal has not received any telex communications in several months. T elex is History As part of its intensified outreach program, the Panama Canal Authority (ACP) participated in the Latin Ports and Shipping 2000 Conference and Exhibition held in Miami Beach, Florida, from November 14 through 16. Mr. Anthony Garcia, Canal's Customer Relations Manager, along with representatives of the Manzanillo International T erminal Panama, the Panama Canal Railway Company, and the Interoceanic Region Authority participated as guest speaker and panelist in the module Modal Integration in Freight T ransport: A Demonstration Of How A Good Intermodal Network Can Help Leverage Business Opportunities For Ports And T erminal Operators. From January 7-11, Mr . Rodolfo R. Sabonge, the Canal Corporate Planning and Marketing Director, will be participating in the 80th Annual Meeting of the T ransportation Research Board to be held in Washington, D.C.. TRB's annual meeting attracts more than 8,000 transportation professionals from all over the world as it offers an unparalleled opportunity to share knowledge and perspectives with colleagues in the transportation industry and gain a better understanding of the latest developments in the transportation research, policy and practice. Mr. Sabonge has been appointed as a member of the Task For ce on Agricultural T ransportation representing the Panama Canal Authority. T raurig; T ommy Thomsen of Maersk Sealand; Andronico Luksic of Luksic Companies and Michael Barnes of the Panama-US Business Council have confirmed their participation. This will be the third meeting of the Advisory Board since its inauguration in December 1999, and will give the Board members the opportunity to observe firsthand the advancements in the Panama Canal modernization and capacity enhancement program.

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A meeting was held with Richardson Lawrie & Associates, after they were awarded a contract to develop a forecast of Canal traffic to be used for the Canal expansion studies. This forecast will be independent to those performed infor more information Corporate Planning and Marketing Panama Canal Authority ACP-CP P .O. BOX 025513 Miami FL 33102-5513 Tel.: (507) 272-7961 Fax: (507) 272-5916 e-mail: cpxc-lbl@pancanal.com web site: www.pancanal.com SEE THIS NEWSLETTER ON THE ACP WEB SITE AT : www.pancanal.com (then click on “Canal News”) We welcome your comments and suggestions regarding this newsletter . We want to convey important news for you and your business. Please let us know your views about this media (format, content, topics) and what you would like to see in our next edition. If you rather receive it electronically, please send us a note with the correct email address to: cpxc@pancanal.com If you need additional copies or copies mailed to other officials within your corporation, please contact us (see box at right for address, fax, and telephone numbers). We want your comments “Norwegian Wind” a Norwegian Cruise Line at Cristobal Cruise Terminal Pier 6. This 1,750 passengers and 650 crew members Panamax vessel called at Pier 6 for the first time on December 12, 2000. Panama Ports Company (PPC), a member of Hutchison Port Holdings, operates the Port of Cristobal. A New Cruise Destination Government officials and business leaders hope cruise ships will soon begin making Panama a port of call. As a lure for the cruise industry, during the month of October two important cruise terminals were inaugurated at the Atlantic entrance of the Panama Canal, the Cristobal Cruise T erminal Pier 6, and the Port of Colon. For a long time Panama has wanted to develop tourism as a major source of revenue. Panama has comparative advantages over other ports in the Caribbean, mainly because it is located outside the hurricane belt; and because it provides the unique experience of two oceans on one port of call. Most cruise lines serving the Alaskan and Caribbean routes already provide transits through the Panama Canal. In 1998 the Panama Canal Authority inaugurated the Gatun Yatch Club on the banks of Gatun Lake near the locks at the Atlantic entrance to the Canal. The Gatun Yatch Club offers tourist embarking/disembarking dock facilities and a complex for limited recreational activities. Both Ports of Colon and Cristobal were developed for vessels larger than those berthing at the Gatun Yatch Club. The new ports on the Atlantic offer tourists the opportunity to visit the Canal plus full-day excursions, shopping, entertainment, cultural events and, access to Panama City on the Pacific and Colon on the Atlantic, with their many historical sites and attractions. The cruise industry is growing steadily. There are several investments underway in the country to take advantage of this fast growing industry and to position Panama as one of the most attractive tourist destinations in the Caribbean.