Logistics Parks H. Donald Ratliff Executive Director
Logistics “Clusters” A group of firms with logistics operations – Logistics service providers (e.g., transportation providers, storage providers and freight forwarders) – Companies whose primary business is logistics operations (e.g., distributors and light manufacturers) – Logistics operations of large firms (e.g., retailers and spare parts providers) – Logistics management, training, research and development (e.g., regional headquarters, training facilities, research and development centers)
Evolution of logistics clusters – Unstructured groups located to take competitive advantages of being near transportation hubs (e.g., seaports, airports, rail terminals, customers or other logistics assets) – Managed logistics parks (e.g., developed by real estate developers or government agencies often with special tax structures)
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Panama’s Current Logistics Parks
Colon Free Zone
MIT Industrial Park
MIT Industrial Park – seaport Colon Free Zone – seaport Panama Pacifico – ?? Parque Sur – airport Las Americas Industrial Park – airport Parque Panama Logistics Park – airport Costa Del Este Sur Costa Del Este – city Industrial Park Panama Pacifico
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Panama’s Logistics Clusters Sea Port Cluster
Air Port Cluster
Sea Port Cluster 4
Port-centric Logistics Parks Leverage seaports and/or airports Types of port-centric parks – Export-oriented (China) – Import-oriented (Los Angeles) – Transshipment-oriented (Singapore and Panama)
Keys to success of transshipment-oriented parks – – – – – – –
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Frequent services between port many other ports Fast and dependable transshipments (no disruptions) Competitive transshipment cost Efficient connectivity between logistics park and port Good and cost effective transportation between park and port Limited bureaucracy to move products between park and port Limited taxes and fees on product movements
Current Panama Connectivity Increasing opportunity – – – – – – –
Shipments from/to Asia Big main line ships Transshipments via mega hub Feeders to US east coast Feeders to Central America Feeders to South America Feeders to Caribbean
Increasing challenge – Dependability of Panama logistics network – Integration of ports and rail – Quality and cost of transshipment
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Transshipment Port-Centric Logistics Parks Activities Storing and full and empty containers for export Storage, distribution, and inventory management for domestic or international manufacturers, distributors and retailers (decrease inventory and improve response times) Trans loading between sea or air containers and land transport units Packaging and packing products for export Freight forwarding and consulting services Quality control (inspection) and testing of products before being sent to customers Light manufacturing tasks such as assembly and customizing to countryspecific adding parts and manuals Reverse logistics activities such returning empty packaging and the recycling of used goods back into the commodity chain. Providing specialized storage facilities (e.g., to support cold chains) Provide research, education and training 7
Advantages of Logistics Parks Investment in public infrastructure (e.g., roads and internet) Investment in private infrastructure (e.g., warehouses and office buildings) Ease of tenants getting started Role models (e.g., anchor tenants) Taxation Access to technology and services Research and education Ease of collaboration and knowledge exchange Asset sharing Land use Marketing
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Challenges for Atlantic Logistics Parks New Terminal
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Land use Road connectivity Congestion Cost of local container moves
Challenges for Pacific Logistics Parks Land availability near Balboa Port at Corozal PSA port – Road connectivity to Balboa – Rail connectivity to Colon
Bridge for truck and rail Rail capacity
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Challenges for all Panama Logistics Parks Capacity limitations on Pacific Disruptions in port/rail/port connectivity Cost to transship Rail connection fees and delays Canal connection fees Necessity for collaboration Nobody is in charge
Atlantic Cluster
Pacific Cluster 11
Logistics Parks in Panama Benefits – – – – – –
Employment creation Attract capital investment Increased distribution efficiency and lower costs to consumers Encourage innovation Increased trade Reduced congestion and emissions
Challenges – Sustainable transshipment – Land availability – Planning and collaboration
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