Panama's Cabinet Council Approves New Panama Canal Pricing Structure
- ACP LISTENS TO INDUSTRY
PANAMA CITY, Panama, June 16, 2010 - The Cabinet Council of the Republic of Panama approved a proposal to modify the Panama Canal pricing structure yesterday, following a recommendation from the Panama Canal Authority (ACP) Board of Directors.
The proposal modifies the pricing structure for all Canal segments: container, dry bulk, liquid bulk, vehicle carriers, reefers, passenger, general cargo and others. Specifically, the ACP will calculate container segment tolls with a slight price adjustment to the capacity charge, and an additional new charge that would apply to the number of loaded containers aboard the vessel at the time of transit.
The newly approved pricing structure includes one amendment to the original proposal, which delays the implementation of the reefer segment increase on the portion applicable to the PC/UMS tons, from January 2011 to April 2011. All other segment pricing modifications will go into effect in January.
"During the past few months we have talked with industry representatives, shipping lines, including government representatives from countries that benefit from the Panama Canal. We have listened to their feedback and have made adjustments to our pricing structure accordingly. For instance, we selected the tolls implementation date of January 2011 to respond to industry requests of a moratorium on increases in 2010. Also, in response to requests made during the consultation, we have postponed the implementation of the PC/UMS tolls for reefers to April 1, 2011," said ACP Administrator/CEO Alberto Alemán Zubieta.
"Since the beginning, we have been committed to an open and transparent process with regard to the Canal's pricing structure. We are focused on providing the safest, most reliable and efficient service for our customers, and the new pricing structure approved by the Cabinet Council reflects this commitment," Mr. Aleman further added.
The ACP officially announced its plans to restructure the Canal's pricing April 27. After a 30-day public consultation period, the ACP conducted a public hearing in Panama City, Panama on June 1, allowing interested parties an opportunity to express their views on the proposal.
On the basis of discussions with industry representatives, shipping lines, and government
representatives, as well as the Canal's own internal analysis, and in view of the world economic situation, the ACP decided not to proceed with a tolls adjustment in 2010 and set January 1, 2011 as the new date for implementing the tolls for all segments except reefers.
About the Panama Canal Authority
The Panama Canal Authority (ACP) is the autonomous agency of the Government of Panama in charge of managing, operating and maintaining the Panama Canal. The operation of the ACP is based on its organic law and the regulations approved by its Board of Directors. For more information, please refer to the Panama Canal Authority's Web site: http://www.pancanal.com/. You can also follow us on Twitter: http://twitter.com/thepanamacanal.