Panama Ports flip flops on Canal navigation safety

PANAMA PORTS Company (PPC), has done a flip-flop on safety issues  linked to using Corozal for port and logistics development and has applied to the Panama Canal Authority (ACP) for the concession to for the land.

PPC  has operated the ports of Balboa and Cristobal since 1997 and  has previously said that Corozal should not be developed as a container port since it would hinder the safety of navigation and the efficiency of the channel.

The request of the company, a subsidiary of the Chinese firm Hutchison Whampoa Limited, comes prior to the planned public bidding process to grant the concession to design, build, and operate the port reports La Prensa.

According to a letter from PPC, the company based its request on the rules of the use of the assets of the ACP, which allows it to award concessions directly.

ACP official Oscar Bazán said the granting of the concession “will depend on the result of the tender process that will be held under equal conditions for all participants.” So far, 11 companies have shown interest in the project.

The state has a 10 percent stake in PPC, but the company has only paid one dividend in the last 20 years. That was last year when it paid a dividend of $1 million.