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06-2007 ( PDF )

I d





SJune 2007


Kuzniecky appointed
new Panama Canal
Board Chair
New Deputy
Administrator
Panama Canal toll
increase and
admeasurement rules
approved
New, powerful tugs join
the Canal fleet
Liquid bulk traffic
through the
Canal increases
Scheduled locks
maintenance work
Panama Canal CEO
briefs maritime leaders
on expansion and
global maritime
transportation trends
Panama Canal
expansion advisory
contracts awarded
Interested in
information on the
Expansion?
Visit our web site!




WORLD LEADER in
services to the
maritime industry and
in sustainable
development for the
conservation of the
Panama Canal
watershed.

CORNERSTONE of
the global
transportation system
and driving force for
the progress,
development and
growth of Panama.

MODEL of excellence,
integrity and
transparency in our
conduct; committed to
the integral
development of our
human resource team.


Kuzniecky appointed new Panama
Canal Board Chair

On April 12, 2007, President Torrijos appointed former
General Comptroller Dani Kuzniecky as Chairman of
the ACP Board of Directors. While making the
announcement, President Torrijos highlighted that Mr.
Kuzniecky's appointment is significant since"the Canal
expansion is the most important project for the
Panamanian government and the country."

Mr. Kuzniecky, who will concurrently hold the rank of
Minister for Canal Affairs, officially assumed his new
position on April 23. At the inauguration, he stated
that "one of my commitments will be to preserve the
pride and international prestige that Panama has
gained as a result of the ACP's management of the
waterway."

Mr. Kuzniecky served as the country's General
Comptroller since 2005, when he was elected by the
National Assembly. During his tenure, he earned the
praise and respect of his fellow countrymen for his




New Deputy Administrator
On March 12, 2007, the ACP
Board of Directors appointed Mr.
JosM Barrios Ng as its new
Deputy Administrator. Since
2002, Mr. Barrios has been
serving as the ACP's Chief
Financial Officer (CFO) and will
hold both positions until a new
CFO is designated.

Mr. Jos6 Barrios Ng Mr. Barrios holds a Bachelor of
Science degree in Electrical
Engineering from Louisiana State University, a Master
of Science in Electrical Engineering from Georgia
Institute of Technology and a Master of Science in
Economic Engineering from University of California,
Los Angeles (UCLA). He completed graduate studies in
corporate finance at the Massachusetts Institute of
Technology and post-graduate work toward a Ph.D. in
Operations Research at UCLA.


honest and responsible
management of public funds.
As Comptroller General of the
Republic of Panama, Mr.
Kuzniecky leaded the
Organization for the Superior
Audit Institutions of Central
America and the Caribbean
(OCCEFS) and was Secretary
General of the Organization of
Latin American and Caribbean
Supreme Audit Institutions (OLACEFS).

A partner at Kuzniecky & Levy Co., Mr. Kuzniecky
received his Master of Science in comparative
jurisprudence from New York University. He also
conducted post-graduate work at Harvard Law School
and earned a degree in law and political science from
Universidad Santa Maria La Antigua Panama.


Vessels transiting the locks












New, powerful tugs join the Canal fleet

With the introduction of three new "Z-Tech" tugboats, the ACP
introduces the most powerful tugs in its history.The new tugs will
replace aging boats in the Canal's current fleet, featuring
cutting-edge technology that will provide greater maneuverability
and 82 percent more towing power than the existing tugs.

The "Z-Tech" tugs,as they are called, will assist vessels in the process
of going in and out of the existing locks and are equipped to handle
first responder duties in emergency marine fire-fighting situations.
"We are very excited to incorporate these new high-performance
tugboats into our fleet," said ACP Director of Operations Manuel E.
Benftez."The increase in power and maneuverability will particularly
be a great asset in reducing the current time used to approach the
locks. By utilizing the new "Z-Tech" tugs, we are demonstrating our
commitment to continue investing in state-of-the-art technology
that provides the reliable, efficient, and safe transit services our
customers have come to expect."


New "Z-Tech"tug


The new "Z-Tech" tugs Darien, Veraguas I and Bocas del Toro -
represent the first three of eight tugs that will replace older boats
within the Canal's current fleet of 24 units.The remaining five tugs
are scheduled to arrive between November 2007 and February
2008.


Liquid bulk traffic through the
Canal increases


Chemical vessel at the locks


During the first half of fiscal year 2007 (October March), the
Panama Canal experienced significant growth in tanker traffic due
to an increase in seaborne trade of petroleum products, such as
gasoline, diesel and Liquefied Petroleum Gas (LPG).
Gasoline cargo volume grew 57.4 percent, which represented an
increase of 925.3 thousand metric tons compared to the first half of
fiscal year 2006,as a result of the rise in imports from Europe and the
West Indies to California and Mexico.This increase is a consequence
of both the growth in demand and the decline in refining capacity
due to outages in California, Texas and Mexico refineries. Moreover,
there was also a decrease in gasoline production in the United
States because of scheduled maintenance in refineries performed at
the beginning of every year.
Similarly, diesel cargo volume totaled 692.4 thousand metric tons
which represents an increase of 75.1 percent in comparison to the
same period of fiscal year 2006,as a result of growth in Chilean diesel
imports which are used as raw material for power generation.Chile
uses diesel fuel to compensate the reduction of natural gas supplies
imported from Argentina.
In reference to LPG, this product has increased 41.3 percent,
compared to the first half of fiscal year 2006, due to an upsurge in
demand in Ecuador and Mexico, which have increased its imports
from Venezuela, the United States and Nigeria.


June 13-22 Lane with restrictions (10 days) Lane Outage June 20-22 (3d) jz-jo during restricuions Tentative
26-28 during outages
July 11-20 Lane with restrictions (10 days) Lane Outage July 18-20 (3d) 32-36 during restrictions* Tentative
26-28 during outages
Aug. 8-10 Lane Outage (2 d) 26-28 Tentative

Aug. 14-23 Lane with restrictions (10 days) Lane Outage Aug. 21-23 (3d) 32-36 during restrictions* Tentative
26-28 during outages
Sept. 5-15 Lane Outage Sept. 5-10 (6d) Lane with restrictions 32-36 during restrictions* Tentative
_______ __ Sept. 5-15 (10 d) 26-28 during outages
Sept. 26-28 Lane Outage (2 d) 26-28 Tentative














Panama Canal toll increase and admeasurement rules approved


On April 25, 2007, following a recommendation from the Board of
Directors of the Panama Canal Authority (ACP), the Cabinet Council
of the Republic of Panama approved the proposal to restructure the
Panama Canal's pricing system and certain regulations.
On February 2, the ACP announced its desire to move toward a
charge that aligns closer to the commercial value of the service and
route. After a more than 30-day public consultation period, in
which a total of 21 written submissions were received, the ACP
conducted a hearing on March 14 where a total of 14
representatives from the government and shipping industry
expressed their views.
On April 5, in response to industry requests, the proposal was
slightly modified: implementation of the new charges, for certain
segments, was postponed from May 2007 to July 1, 2007. These
segments include: general cargo, dry bulk, tankers and vehicle
carriers.
Due to this modification, the issue was reopened for public
comment for a 15-day period. A total of 10 written submissions
were received by the ACP from various individuals and groups.
The toll of $54 per TEU for container ships and other vessels with
on-deck container carrying capacity, approved in 2005, became
effective on May 1,2007.
Other significant elements of the approved proposal include:


Fully Loaded Displacement vs. Displacement at Arrival Draft:
The displacement charge will now be based on the maximum
displacement of the vessel instead of the arrival displacement. The
use of the parameter that is more readily available makes the
assessment of tolls more equitable and transparent.
Administrative Changes: Some administrative changes have been
made, but these changes will have no economic impact whatsoever.
These revisions provide necessary linguistic and grammatical
clarifications to the document or reinsert missing words to
processes and procedures.
Passenger Vessels: Tolls will be based on maximum passenger
capacity. Large vessels will be charged tolls on a per berth basis,
and smaller ships will continue under the Canal tonnage tolls
system.
"With the new pricing system, the Canal is charging its customers a
price closer to the value of services provided. We reached this
decision through an open and transparent process, providing the
industry with multiple opportunities to comment.The new system,
approved by the Cabinet Council, reflects this open dialogue,
incorporating several of the requests we received from the industry
over the past few months," said ACP Administrator/CEO Alberto
AlemAn Zubieta following the Cabinet Council's decision.

The following table shows the toll implementation dates:


Panama Canal Tolls
(in U.S. dollars)


I -M-e .... Pe n 2007


I Effective 1st of I


I Effective 1st of


Effective 1st of 2009


11 if i I '


T.olls per F Li:u IS T:.r.n
1 -,F' 11,1 1I ,.,i 1 ,i:,EtItc l.h' li 1q'


,-,_ ,q.. IL,, "- ; ',.1 :r I I r l, i ,, r, ~ .' ^.1 I .,,., I "_

Disiice en. J l ..4 . 28 I .I.I
T I '*1" -1. . It: I. 'l h i I. " ,: : '
sapaii n ebr bai ti 33 tol b o t f PC ____ ls b I Q to
..T sha "l I" bsi of P C/ M, r In- ..a.
LE.,, ll :_ 2:' .1 -4 (.1.3 ___ 7__ 4 1.17-
a. a..- _.I 1 I :
I ,,,1:-,-. -,,,, Li' 2,-:i-ii',-- '*'6 ~ "' "- '_ i" r, la, *. i' '3_" -1t ,-^ . . .

____________l'.__1 _a all:I -i. ____1_ I____I __._ __ _. __' i.1 .,. -i.r r _______ 'i II -1.1",i
I,, ,L ,: _'I 2 iw a r1. ri, ii 4i4


Displacement 1.64 Jul 1.84 2.28
Notes:
1 / The TEU tolls which went into effect on May 1, 2007 were approved on February 15, 2005.
2/Vessels above 30,000 gross tons (GRT) and whose PC/UMS tonnage divided by maximum passenger capacity (PAX-ITC) ratio is less than or equal to 33,
shall pay tolls on a per berth basis. If such ratio is greater than 33, tolls shall be paid on the basis of PC/UMS tonnage. Vessels below or equal to
30,000 GRT shall also pay on the basis of PC/UMS tonnage.


E rn:. t, E
ICl1










-


Panama Canal CEO briefs maritime leaders
on expansion and global maritime
transportation trends

Maritime leaders from port authorities across the United States
and Canada converged in Washington, D.C. for the American
Association of Port Authorities (AAPA) annual spring conference,
held March 19-20,2007 at the Willard InterContinental Hotel.
ACP Administrator/CEO Alberto Aleman Zubieta briefed
conference attendees on the expansion and shared a synopsis of
the ACP's history, important milestones, key operational metrics,
capacity issues and trends that are affecting the global supply
chain, such as containerization. Mr. Aleman noted that the industry
is moving toward larger (longer and wider) ships (approximately
34 percent of the containers shipped around the world are moved
on Post-Panamax vessels), which evidences the important and
critical need for a Panama Canal expansion.
During his visit to Washington, D.C., Mr. Aleman also met with
leaders from the National Corn Growers Association, the Illinois
Corn Growers Association and the Illinois Corn Marketing Board.
The United States is the largest corn producer in the world and
corn is the largest export out of Illinois. Moreover, approximately
80 percent of the corn that is exported out of Illinois goes through
the Panama Canal. Mr. Aleman briefed leaders from this delegation
on how the Panama Canal expansion will benefit their industry,
including: increased cargo carrying and draft capacity, increased
availability of transit slots, opportunity for more flexibility to take
advantage of demand surges and improved transit times.
"Corn is an important commodity shipped through the Panama
Canal. It represents nearly 50 percent of the waterway's grain trade,
and around nine percent of total Canal cargo,"said Mr. Alemin."We
are confident that the expansion will provide many opportunities
and benefits for increased trade of this good."


Pictured lett to right: John Kuhtuss, Former President, Illinois Corn Growers Association;
Jim Rapp, District 4 Director, Illinois Corn Marketing Board; Alberto Alemdn Zubieta,
Administrator/CEO, Panama Canal Authority; Garry Niemeyer, Director, National Corn
Growers Association; and Rodolfo Sabonge, Corporate Planning and Marketing, Panama
Canal Authority.


Panama Canal expansion advisory
contracts awarded

The ACP has selected firms to provide advisory services for the
Panama Canal expansion. The financial advisor contract was
awarded to the Japanese Mizuho Corporate Bank, Ltd., one of the
largest global banks with more than 30 years of experience
offering financial advisory services and financing for numerous
infrastructure and energy projects in regions around the world.
Services within the contract include: reviewing the financial
aspects of the ACP's Master Plan and expansion proposal,
providing strategic counsel on financing structures and strategies,
and creating and implementing an integrated financial model,
among other items.
Shearman & Sterling LLP, market leader in infrastructure financing,
has been selected as the international legal advisor for the
expansion's financing needs. The top-tier global firm will work
closely with the ACP and Mizuho Corporate Bank to determine the
most advantageous financing options for the ACP.
The ACP awarded the legal counsel contract for the Panama Canal
expansion to Mayer, Brown, Rowe & Maw LLP. The firm which
enjoys a solid international reputation will assist in procurement
processes and contracting for the expansion.

Interested in information on the expansion?
Visit our web site!
The business of the expansion is drawing the attention of
international and local business communities. From March 8-10,
more than 800 representatives from 324 companies and 29
countries arrived at Panama City's ATLAPA Convention Center for
the Panama Canal Expansion Infoconference 2007. In the
standing-room-only hall and overflow room, attendees awaited
presentations by the ACP for information on all of the elements of
the expansion.
The informational session included presentations from ACP officials
regarding design and construction of the new locks, dredging,
excavations and contracting processes. ACP Director of
Engineering and Project Administration, Jorge L. Quijano,
announced that the tender for the new set of locks design and
construction contract will likely be let during the third quarter of
fiscal year 2007 and fall under a single contract.
If you were not able to make it to Panama on those dates,and if you
are interested in obtaining information on the scope of the
expansion project, including the bidding and contracting
procedures for the project, you can access the presentations on our
Web site, www.pancanal.com, by clicking the Infoconference 2007
link.


We wan you comet fo mor infomaton


Your comments and suggestions are very important to us. If you need additional
copies mailed to other officials within your corporation, please contact us at the
address indicated in the next box.


Panama Canal Authority
Corporate Planning and Marketing (PM)
P.O. BOX 526725 Miami FL. 33152-6725


Tel. (507) 272-7961
Fax. (507) 272-1416
e-mail: customerelations@pancanal.com


SEE THIS NEWSLETTER ON THE ACP WEB SITE AT: www.pancanal.com
(then click on Virtual Newsrooms)