The Panamanian Foreign Minister, Roberto Henriquez, ruled out the idea that the possibility of the construction of a canal project in Nicaragua is a threat to Panama, and he acknowledged that his government has not discussed the issue. "I do not consider it to be a threat to the canal (in Panama). In any case it would serve another purpose, but eventually if they do build a canal (in Nicaragua) of this type, it would not be replacing the Panama Canal," Henriquez told reporters.

The government of Nicaragua presented before their Congress a project to build a new canal a week ago, that would be an alternative to the Panama Canal that would unite the Atlantic and the Pacific through six tracks. The project would cost an estimated $30 billion dollars and there are six countries interested in financing the project, said the government of Daniel Ortega. The statements made by Henriquez are added to those of the Administrator of the Panama Canal, Alberto Aleman, who said "the project of building a canal through Nicaragua does not worry us, because competition is always good."

An estimated 5% of world trade passes through the 80 kilometers of the Panama Canal every year. More than a million ships have passed through its waters since it was inaugurated on August 15, 1914. The government of Panama received the Panama Canal from the United States in 1999 and since then the central government fund has received more than $6.5 billion dollars from Panama Canal profits. Prior to that, during the entire 86 years that the Panama Canal was administered by the United States, the government of Panama had only received a grand total of $1.8 billion dollars. The Panama Canal is currently being expanded for an estimated cost of $5.25 billion dollars, so that vessels carrying as much as 12,000 containers can pass through its waters. (Telemetro)

Editor's Comment: Let's see, can you name the six countries that would be interested in helping Nicaragua finance the construction of a new canal? You can start with Venezuela, but Hugo Chavez will probably be dead before the first shovel full of dirt is turned. Next up would be Iran - hey, maybe they can use their nukes to help dig the ditch? Then of course you can add the other two left wing nuts of Latin America - Ecuador and Bolivia. Any guesses on the other two? China's got the money. Hey, didn't France just go Socialist again? You know what happens when those dudes try to dig a canal... The bottom line is that this issue comes around every couple of years. They keep talking about it in Nicaragua, and they've been talking about it for decades. This isn't a new concept.

By Carl Collen - Plans laid out by the Panama Canal Authority (ACP) to increase toll charges for the Panama Canal have been blasted by the International Chamber of Shipping and Commerce (ICS). The ACP is planning to hike charges by up to 15 per cent, and is now considering comments and written submissions left on the subject during a recent 30-day consultation period, Port Strategy reported. However, ICS has slammed the move, calling it 'rushed, excessive and likely to cause further problems', culminating in the group sending a letter to ACP outlining its concerns. ICS has pointed out that the industry was expecting just one small increase in the toll charges ahead of completion of the Panama Canal expansion project, which is expected to conclude in 2014. (www.fruitnet.com)

A row has broken out between The International Chamber of Shipping (ICS) and the Panama Canal Authority (ACP) over the proposed plans to increase the toll charges for the Panama Canal. ICS has attacked the plans – which it says are “rushed, excessive and likely to cause further problems”, given the current climate. ACP released proposals to hike Canal toll charges by up to 15% last month and opened a consultation period of 30 days which culminated in a public hearing on 23 May. It is now considering the comments and written submissions received. Following the consultation, ICS sent a strongly worded letter to ACP outlining concerns from shipowners requesting that ACP concentrate instead on the development of a mutually beneficial toll structure to be introduced in late 2014.

ICS argues that the industry was assured there would only be one small adjustment to tolls before completion of the expansion project in 2014. But, under the new proposals, toll increases could come into effect as early as 1 July 2012.

Meanwhile, ACP has responded to Port Strategy in defence of the toll hike proposal. Rodolfo Sabonge, vice president, market research and analysis, Panama Canal Authority, said to PS: “The ACP is fully aware that transportation, and logistics in general, has become a major differentiator in terms of competitiveness for different commodities and products, therefore, when it implements a tolls change, the Canal does it after a thorough analysis of all the factors that are affecting trade, including the fees charged by the Canal.” He added: “On several occasions, the arguments presented by the participants in the process have been taken into consideration by the Board when making its final decision.”

During the last toll change, the ACP Board of Directors changed the date of implementation of reefers’ tolls from January to April – affected parties had pointed out that the change in tolls would be made in the middle of the fruit season. This process is quite unique as not many service providers in the transportation industry formally allow their customers to express their views regarding price changes. (www.portstrategy.com)

Editor's Comment: The Panama Canal is now being run by the government of Panama, and right now the government of Panama wants more money to spend. It sees the Panama Canal as an additional source of revenue - which of course it is. Shippers have a choice. They can either pay the increased tolls or go around, which is more expensive. So in the end they will have to hike their rates and just as it always has been done, transportation costs will be eventually passed down to consumers. Shippers can bitch and complain, but they can't stop the Panama Canal Authority from raising rates. Hey, somebody's got to pay for that new subway system. And that new hospital. And that new prison. And that new bridge. And that new road. And that new school. And all of the other stuff the Martinelli administration is building fo' da' people.

The Panama Canal Authority today held a public hearing as part of the consultation process to amend (increase) the tolls of the waterway, in order to continue approaching the same value that reflects the real benefits offered by the canal route from Panama to its users. "This is part of an open and transparent process established by the Panama Canal, with the participation of representatives of customers and industry," said ACP Administrator Alberto Aleman Zubieta. As part of the procedure to change the tolls, the ACP opened last month a consultation process during which interested parties could request in writing their participation in this public hearing held in the Ascanio Arosemena Auditorium of the ACP. "Now the Panama Canal will analyze the comments received during the hearing and the considerations that were sent in writing," said Aleman Zubieta.

The ACP Board of Directors last month approved a proposal amending certain market segments of the Panama Canal and established from 1 July, an increase to the segments of general cargo, containers / breakbulk, bulk dry tankers, chemical tankers, car carriers, ro-ro, and others. The remaining segments will not have adjustments at this time. For smaller vessels, they proposed four price levels on the basis of the length of the boat.

New segments - The proposal increases from eight to eleven segments by type of vessels of the Panama Canal. For the existing (container, refrigerated cargo, dry bulk carriers, passenger, car carriers, tankers, general cargo and other), it eliminates the tanker segment, and adds the oil tankers, chemical tankers and container ships / loose cargo. Also, the vehicle carriers are incorporated hereinafter as ships types roll on / roll off (roro) being called car carriers / roro.

As a next step, the ACP Board of Directors will review the feedback from customers and users before making a decision on the proposed amendment of tolls which will then be sent to the Cabinet Council for final approval. (Critica)

A total of 200 cruise ships with more than 220,000 passengers crossed the Panama Canal in the recently concluded 2011-2012 season, officials said. The cruise season ended last May 17 with the passage of the Celebrity Millennium, a ship of Celebrity Cruises, a subsidiary of Royal Caribbean Cruise Line, detailed the Panama Canal Authority (ACP) in a statement. The Celebrity Millennium, which went through the interoceanic waterway from Miami, on the U.S. East Coast, made a 15-day journey to San Diego (California) in the U.S. West Coast.

According to Jaime Castillo, Office of Research and Market Analysis of the Panama Canal, between October 1, 2011, when the season started, until 17 May, there were 200 transits with a total of 222,203 cruise passengers board. According to Castillo, the routes of these vessels are usually of short duration, covering the Caribbean islands and the east and west coasts of Central America.

This season saw the first transit of the Panama waterway Norwegian Jewel cruise ship operated by Norwegian Cruise Line, on 5 May. This ship, with capacity for 2,376 passengers, sailed from New York in late April bound for Los Angeles, California (USA). (Panama America)

The board of the Panama Canal Authority (ACP) has approved a toll increase of 15% in two years, on seven types of large ships and from 60% to 113% for small vessels passing through the Panama Canal as of 1 July 2012, sources said today of the entity. The proposed change approved last Wednesday, also increases tolls on eight to eleven distinct types of ships passing through the waterway, which "seeks to approximate the amount of toll to the value offered by the interoceanic route to their users," detailed the ACP in a statement. The segments will be defined as: container, general cargo, container / bulk cargo, refrigerated cargo, bulk dry, tankers, gas carriers, car carriers, ro-ro and passenger and others. Those with recorded increases of 15% (7.5% in 2012 and the same percentage in 2013) are general cargo, containers / breakbulk, bulk dry, tankers, chemical tankers and others (those not covered by any of categories). Car carriers and ro-ro (roll-on/roll off, equipped with ramps) will be increase by only 1.6 to 1.7% in the toll from July 1 next, said the statement of the proposal. The rate for each segment is calculated on a table that gives a price for the first 10,000 tons, one for the next 10,000 and a third rate for the rest.

For smaller vessels, which have suffered an increase since 1998, proposed increases in four price levels on the basis of the length (L) of the vessel, ranging between 60% and 113%, so the new tolls would be $500 to $800 dollars for smaller boats (15.24 meters) and $1,500 to $3,200 to the largest (30.48 meters).

Furthermore, the rate per ton of displacement, now $3.02, also will increase 15.5% to $3.25 as of 1 July, and to $3.49 in the the same month next year.

About the increases, the ACP administrator Alberto Aleman, said the proposal brings the tolls closer to the value and quality advantages offered by the route through the Panama Canal, while maintaining the competitiveness of the route. "The ACP reaffirms its interest in maintaining a dialogue with the industry to enable us to structure a system of tolls according to the needs of our users which results in benefits for themselves and for Panama," Aleman said.

Until now, the ships were classified as: container, refrigerated cargo, dry bulk carriers, passenger, car carriers, tankers, general cargo and others. Now they removed the tanker segment, and added the tankers, chemical tankers, gas carriers and container ships / loose cargo. Furthermore, the vehicle carriers will be incorporated with the ro-ro vessels, car carriers being called in / ro ro.

According to the statement, the ACP opened from now until next May 21 a consultation process in which interested parties may apply for participation at the public hearing to be held on May 23 at the ACP, to receive feedback from users about the announcement of the increase, which then must be approved by the Cabinet of the Government of Panama to take effect. (Panama America)

The engineer Jorge Quijano was selected by the Board of Directors of the Panama Canal Authority (ACP) as the new administrator of the entity. The announcement was made by the Minister of Canal Affairs Romulo Roux. Roux said they have been analyzing this designation since August 2011, when they began to study the needs of the company, the country, and users of the Panama Canal, so the ACP board of directors agreed to the appointment of the engineer, who has been working for the entity for more than 30 years. "The board of directors made ​​this selection process by developing a specific timeframe within which thy decided the challenges of the Canal and its expansion, to develop the profile of the new administrator on this basis," said Roux.

Meanwhile the engineer Jorge Quijano said he was grateful for the opportunity he has been given, and for the trust that has been placed in him, and he said he would continue the work that has been started, and he would give the required attention to the work of expanding the Panama Canal. "My commitment is to meet this challenge, and also I believe that the future of the Canal has opportunities, and with the support of this work force I can do it," said Quijano

Quijano has a Masters in Industrial Engineering and Management at Lamar University, in Texas in the United States. He began working for the Panama Canal in 1975 as an engineer in the Division of Locks. In 1999 he became the Director of Marine Operations, a position he held for more than seven years. In 2007 he was appointed Executive Vice President of Engineering and Program Management, where he managed the development of the expansion program of the waterway. (Panama America)

By DON WINNER for Panama-Guide.com - Received today via email: "Does the PC Authority keep records of cargoes passing the Canal? If so, could I find out how many tons of coal passed each direction in FY 2011? Thank you."

Editor's Comment: Coal is shipped around the world in "bulk" carriers. These ships have large holds designed to allow for the cargo to be just dumped in, and doors that open so cranes can unload from above. I was able to find this link on the Panama Canal website - Principal Commodities Shipped through the Panama Canal Fiscal Years 2009, 2010, 2011 (Thousands of Long Tons*). It seems that in FY 2011 a total of 14,209 (thousands of long tons) of coal and related products passed through the Panama Canal. Of that, 10,463 went Southbound (Atlantic to Pacific) and another 3,746 went Northbound (Pacific to Atlantic). One "long ton" is equal to 1,016.04691 kilograms. And the cargo is being expressed in "thousands of long tons" so add three zeros = so that's more than 14.2 million long tons. Hope this answers your question. Surf through the data on the Panama Canal website for more...

Copyright 2012 by Don Winner for Panama-Guide.com. Go ahead and use whatever you like as long as you credit the source. Salud.

Although it is the exclusive authority of the board of the Panama Canal Authority (ACP) to choose the new ACP administrator, political sectors and civil society do not rule out the influence held by president Ricardo Martinelli in that election. The ACP Board of Directors will appoint a new manager before 4 September 2012 when the term in office of the current ACP administrator Alberto Alemán Zubieta expires. Martinelli has named three of the eleven directors (José Sosa, Nicolás Corcione and Marco Ameglio), while the National Assembly selected Rafael Bárcenas, and the Minister for Canal Affairs, who is by law is also the President of the Board of Directors (Rómulo Roux), also has the right to vote. The selection of a new new administrator requires a majority of eight votes. Thus, the final counterweight is with the remaining directors, named during the administrations of Mireya Moscoso (Norberto Delgado, Eduardo Quirós and Alfredo Ramírez) and Martin Torrijos (Adolfo Ahumada, Guillermo Chapman and Ricardo De La Espriella). Francisco Sanchez Cardenas, the president of the opposition PRD political party, and Guillermo Marquez Amado, former president of the Electoral Tribunal, both warn of the risk of Executive interference in the appointment. (Prensa)

Editor's Comment: The Administrator of the Panama Canal is a position which comes with tremendous responsibility. The Panama Canal Authority sees gross income of more than $3 billion dollars per year, and about two thirds of that is spend on manpower, maintenance, and the logistics required to keep the canal operating. Add on top of that the ongoing project to expand the Panama Canal (with a budget of $5.25 billion dollars). So yeah, of course president Martinelli is going to get involved in the selection of Alberto Alemán Zubieta's successor. And of course, his political opponents will squeak about it. This might turn into a fight because one of Martinelli's appointments - Marco Ameglio - is a Panameñista. And there are still three other Panameñistas who were appointed by Mireya Moscoso. But consider this - Alberto Alemán Zubieta has basically been running the Panama Canal since 1996 - for the past 15 years. He's been doing a good job. It might be wise to just change his name to "Hoover" and leave him right where he is. But I have no idea what the relationship is like between Martinelli and Alberto Alemán Zubieta. If they've knocked heads behind closed doors, he's gone.

#Panama - Following the break of an old pipe, an undetermined amount of bunker fuel spilled near the Vasco Núñez de Balboa naval base (formerly Rodman). The damaged pipe was no longer being used. According to the Panama Canal Authority (ACP), the pipe broke at about 9:00 pm yesterday, Wednesday, but did not affect ship transit of the Panama Canal. It is still unknown the exact amount of spilled bunker. The Spill Control staff of the ACP is in the area picking up the spilled bunker, which, according to the ACP, did not affect a "large perimeter" of the shores of the Panama Canal on the west side near the naval base. At 9:30 am on Thursday, the Spill Control staff had already finished collecting the fuel that had spilled into the sea. In this area there are pipes and fuel storage tanks. (Prensa)

The Panama Canal ended fiscal year 2011 on 30 September, recording a total transit of 322.1 million tons of cargo or a 7.1% growth compared to 2010. "This is an unprecedented achievement in the 97 years of Canal operations," said the administrator of the Panama Canal Authority (ACP), Alberto Aleman Zubieta. This reflects the ability of Panama to operate and manage this important maritime trade route, he added. The results for FY2011 surpassed the previous record of 312.9 million tons, set in 2007, by 2.9%. For fiscal year 2012, which just started October 1, the ACP projects in its budget over 332.5 million tons, or a growth of 3.7%, or 10.4 million tons more than this year. (Prensa)

From 2000 to 2012 the Panama Canal Authority (ACP) has provided to the State $7.323 billion dollars in fees paid, excesses, and public services, according to projections by the entity. This amount includes $950 million in contributions to the State budget for the fiscal year running from 1 Oct 2011 through 30 Sept 2012. In 13 years of Panamanian administration, the Canal will have delivered $3.312 billion in "rights per ton," $3.828 billion in surpluses, and $182.4 million for public services (trash collection payments and others). ACP's budget for 2012 amounts $2.398 billion dollars, more than $200 million more when compared to the previous year, when it as $2.106 billion.

HISTORICAL RECORD - According to the ACP administrator Alberto Alemán Zubieta, all projections indicate that in this fiscal year (2010-2011) the Panama Canal "broke a historic record" in both revenue and contributions to the National Treasury. "We estimated contributions of $840 million dollars, which we will overcome and we will be closer to $1 billion dollars," he said. Although the Panama Canal Expansion Program is running, this has not affected the passage of ships using the canal, said Alberto Alemán Zubieta, who highlighted the work carried out by the ACP to achieve these historical records. (La Prensa)

Editor's Comment: How to look at these numbers: The Panama Canal's operating budget for 2012 will be $2.398 billion dollars - money paid to the ACP in the form of tolls collected from passing ships. This is the best kind of money there is for a national economy, fresh, new, and coming from somewhere else. Practically all of that money gets spent right here in Panama and it quickly cycles back through the Panamanian national economy. It includes every employee's paycheck, for example, and they trot right down to the Rey supermarket and spend it on corn flakes or what have you, just like the rest of us. It also includes supplies and expendables, stuff like fuel and tires and what have you. They buy all of those things from local suppliers. So, most of the ACP's annual budget get's spent locally. This year the Panama Canal will be giving about $1 billion dollars to the state treasury. Again, this is a wonderful thing for the Panamanian economy, and that's enough money to pay the annual operating budgets of several of the government's Ministries, all by itself. And once the expansion program is complete the annual operating budget will be more than $3 billion per year and the canal will be generating more than $2 billion per year for the treasury. Most importantly, the economy of Panama is relatively tiny so this numbers have a big impact. And, the population of Panama is also relatively small, so improvements to the overall economy are felt. And before you tell me that "this money does not trickle down" spend some time to understand the GDP per capita (PPP) and see how it's been steadily improving since Panama took over management of the Panama Canal. The bottom line is the Panama Canal is one of the most significant economic engines behind the impressive growth of the Panamanian economy in the past decade.

PANAMA CITY (AFP) - The administrator of the Panama Canal dismissed the notion the key waterway could be under threat from a Chinese-backed project to build a new rail link across northern Colombia. ''I don't see that as a competition issue,'' Alberto Aleman Zubieta, the head of the Panama Canal Authority, told AFP. ''We are a very important freight shipment hub, and shipping by sea is the most efficient (method).'' The Financial Times reported on Sunday that China was looking to construct a new 220-kilometre (136-mile) railway from the Pacific to a new city near Cartagena in northern Colombia. Chinese goods would be assembled for re-export throughout the Americas and raw materials would make the return journey to China, the report said. ''It's a real proposal... and it is quite advanced,'' Colombian President Juan Manuel Santos was quoted as saying in Monday's Financial Times. ''The studies (the Chinese) have made on the costs of transporting per tonne, the cost of investment, they all work out.'' China has ramped up investment and lending to the developing world, including Latin America, a strategy widely viewed as aimed partly at securing access to the raw materials needed to fuel its fast-growing economy.

Trade between China and Colombia in the first eight months of 2010 reached $4.8 billion, an increase of more than 73 percent over the same period in 2009, according to the Chinese commerce ministry. The Panama Canal -- long considered an engineering marvel -- was built between 1904 and 1914 by the United States after an initial French attempt failed. It was returned to Panama's control 11 years ago. Each year, around five percent of all international trade passes through the 80-kilometer (50-mile) man-made artery linking the Atlantic to the Pacific, with around 40 ships passing through the canal each day. Last year, work began on a 5.2-billion-dollar project to enlarge the canal by constructing a third set of locks to ensure that today's super-size container ships, cruise liners and oil tankers -- many of which are too wide for the canal -- will be able to navigate the waterway in the future.

Editor's Comment: When the project to expand the Panama Canal is completed in 2014, a single ship carrying 15,000 cargo containers will be able to make the transit from the Pacific to the Atlantic in about twelve hours at a very cost efficient price. It would be physically impossible to match that feat with any kind of overland rail network at any price, much less one that could compete with the Panama Canal. The business model the Chinese are proposing might work for them - meaning, they could build it and make a profit. However the ACP administrator is absolutely correct. This project does not compete with, or in any way threaten, the fundamental business model of the Panama Canal. Every now and again someone pops up with some kind of an alternative - like going through the Northern route for instance. We haven't heard much about that one, in the middle of one of the coldest winters in a long time, have we. Hugo Chavez likes to say they're going to build a new canal through Nicaragua. Of course the really sane people who own the billions of dollars it would take to build such a thing don't jump on board, precisely because it makes for a great headline, but really bad math when you do the numbers. Nope, the Panama Canal will continue to have a monopoly for a long time, and the various multi-modal overland routes won't even take a nick at the bottom line. Case in point - just look how the entire internal overland shipping model is going to be abandoned in the United States, in large part because with an expanded Panama Canal, now the cargo container ships can go straight to Baltimore, Houston, or Tampa for example - instead of having to drop the cargo from Asia into Los Angeles and then ship it overland on trains or trucks. Why? Overland is more expensive and less efficient, that's why.

The Panama Canal Authority (ACP) says it expects vessel traffic to rise at the Canal in 2011, according to media reports. ACP estimates that 305 million tonnes of cargo will transit the Canal during the 2011 fiscal year, an estimated four million tonne increase from last year. The Panama Canal expansion project will be completed in 2014 and is expected to contribute significant economic growth to the country. Currently, the canal is able to carry vessels of up to 5,000 twenty-foot equivalent units (TEUs). According to reports, once new locks are fitted, the canal will be able to carry vessles with a capacity of 12,600 TEUs. Panama Canal's port system moved approximately 4.4 million TEUs per year on average and is expected to handle eight million containers annually by the year 2015. (portworld.com)

The Panama Canal Authority (ACP) transferred to the government of Panama $814.67 million dollars, or about $60 million dollars more than what was budgeted for 2010, according to an official source. The Minister for Canal Affairs and Chairman of the Board of the ACP, Rómulo Roux, said in a press release that the financial statements of the entity that manages the inter-oceanic route were approved for fiscal year 2010 (October 2009 to September 2010.) The Board of Directors of the Panama Canal Authority approved the transfer to the National Treasury a surplus of $470.60 million dollars, $342.21 million dollars for net ton rights, and $1.86 million for payments for services rendered by the State. This annual payment is governed by the Constitution of Panama and the Organic Law of the Panama Canal Authority. The Panama Canal Authority contributed more than $60.7 to the National Treasury over what was budgeted ($753,977,000) for fiscal year 2010.

The Panama Canal, built and administered by the United States between 1903 and 1999, came under full sovereignty of Panama from December 31, 1999, in accordance with the Torrijos-Carter treaty also ended the U.S. military presence in the Central American country on that date. From 2007 to 2014 the project to expand the waterway is being developed, at an estimated cost of $5.25 billion dollars, which will double the annual capacity from 300 million to 600 million tons per year with the construction of a third larger set of locks. (Telemetro)

PANAMA CITY (Dow Jones)--The Panama Canal will likely to see traffic rise moderately for a second straight year in 2011 as international trade continues to recover along with the world economy. The Panama Canal Authority, or ACP, expects the net tonnage of ships passing between the Pacific and Atlantic oceans to reach 305 million tons in fiscal 2011, up from 300.1 million tons the previous year, ACP Administrator Alberto Aleman said in an interview. Panama's fiscal year started Oct. 1. "I do believe that still this is going to be a slow recovery in world economics," Aleman said.

A bus from the Colón - Costa Abajo route broke down on the vehicular bridge of the Gatun Locks at the Atlantic entrance of the Panama Canal. Apparently, the bus broke down and got stuck on the bridge. In order to be able to open the way, another bus had to push the broken down bus off of the vehicular bridge, the only land connection to the Costa Abajo of Colon. (Telemetro)

Editor's Comment:If you've ever driven over to Ft. Sherman on the Atlantic side of Panama then you've been across this vehicular bridge at the Gatun Locks of the Panama Canal. Supposedly there are plans to build a new vehicular bridge over that area of the Canal, as well as to expand a highway to connect Colon to Changuinola in Bocas del Toro. Pushing a road up that coast would dramatically increase property values in the region.

Panama's Director General of the National Customs Authority, Gloria Moreno de Lopez, is leading a raid on the Panama Canal area to check the movement of two ships - one going from Iran to Colombia and another from Israel to the United States - that are carrying the toxic diethylene glycol without the property security measures. The official was blunt and said if they do not comply with the security measures then they will not pass through Panama, the substance will be destroyed, and the embassies of the United States and Colombia will be warned. "Considering that diethylene glycol is a volatile substance that has to be transferred under certain conditions, in a refrigerated container, which it is not, we come to see something that endangers the Panama Canal, and if this is so we are not going to let it pass," she said. (La Estrella)

Editor's Comment: Political grandstanding. Back in 2006 hundreds (if not thousands) of Panamanians were killed due to diethylene glycol (DEG) poisoning - because they drank it. DEG is sweet to the taste and it's a whole lot cheaper to produce. Unscrupulous bastards in China switched the materials and sold the DEG as "glycerin" - a food product used to make things sweet. This was a national tragedy, and now the Director General of the National Customs Authority, Gloria Moreno de Lopez, is exploiting the fact that a couple of boats carrying DEG through the Panama Canal to attempt to score political points for the government of Ricardo Martinelli. It's probably going to backfire, and here's why.

If It's Fire, Safety or Chemistry, Ask Dad: My father is a friggin' genius when it comes to things related to fire, safety, chemistry, or any combination therein. I mean, he's a walking encyclopedia of knowledge. When I ran into this article I called him up and we had a conversation about the "volatility" of DEG. He said it is "amazingly non-volatile" and then went on to quote a whole string of numbers, math, and temperatures. If you're into the chemistry check out this document but for us normal people, here's the bottom line. You can have a bottle of DEG in a room, and there's no danger whatsoever. You can have an open container of DEG in a room, and it's not giving off any fumes. In order to get the stuff hot enough to be dangerous, the heat will kill you before the fumes do. In other words, you have to "ingest" the material in order for it to be dangerous - drink, inhale, or absorb through the skin. And it does NOT have to be transported in a refrigerated container. DEG passes through the Panama Canal practically every day. As the Director of Customs, Moreno probably doesn't have any authority over the shipments because they are just passing through the Panama Canal and are not being imported into Panama. She's not responsible for the handling of Hazardous Materials (Hazmat) on the Panama Canal. And what's more, the next ship will probably contain some other industrial materials that are much more "volatile" than DEG - but that's no where as politically sensitive to Panamanians. The bottom line is that if Moreno overreacts and plays some kind of a trump card for political expediency, then the international community who uses the Panama Canal on a daily basis are going to kick her in the proverbial nuts. Mark my words...

PANAMA CITY - A Chinese bulk carrier has become the millionth vessel to cross the Panama Canal since it was built almost 96 years ago. Panama Canal authorities are marking the milestone by presenting the Hong Kong-flagged Fortune Plum's captain a plaque and a photo of the vessel as it crossed the waterway on Sept. 4. Panama Canal vice president of operations Manuel Benitez presented the award to ship captain Ji Jian on Wednesday as the ship headed back to Asia. The canal was built by the United States in 1914 and handed over to Panama in 1999. Last year, authorities began the waterway's biggest expansion project to add two wider sets of locks that can accommodate wider vessels. About 4 percent of the world's maritime trade passes through the canal's locks. (Bloomberg Business Week)

Editor's Comment: When the ship passed through the Canal on 4 September 2010, the officials at the Panama Canal Authority didn't even know or realize at that point that the Fortune Plum was the one millionth ship to pass through the Panama Canal - their bean counters figured it out later. By the time they woke up the ship was already halfway to Asia. Anyway, now there's a plaque hanging on the bridge. Now ask yourself this - if one million ships have gone through the Panama Canal, why is there still so much poverty in Panama? Answer - because the government of the United States of America managed the Panama Canal for them, not for the benefit of Panama or Panamanians, for almost a century. Contrary to years of Panama Canal Authority rhetoric and press releases claiming otherwise. That situation has since changed, and the economy of Panama has been growing like crazy ever since, and it's only going to get better. You do the math. The average vessel passing through the Panama Canal pays about $200,000 in tolls. Multiply that times one million, and the answer is $200 BILLION DOLLARS (in today's money). So, why is there still poverty in tiny Panama? Great question... History students, don't forget to do the math. And that's why many Panamanians (deep down) think Americans are greedy, selfish pricks.

PANAMA CITY—A Chinese freighter has become the millionth vessel to cross the Panama Canal three years ahead of the waterway's 100th anniversary, the canal authority said Monday. "The ship 'Fortune Plum,' whose name foreshadowed its good luck, became the one millionth vessel to cross the inter-oceanic canal since it was opened," the Panama Canal Authority said in a statement. The vessel actually crossed the canal September 4 with a load of steel products from the Pacific to the Atlantic but the authority announced the news only Monday. Work began a year ago to enlarge the canal by constructing a third set of locks to ensure that today's supersize container ships, cruise liners, and oil tankers—many of which are too wide for the canal—will be able to navigate the waterway in the future. The cost of the work has been put at some $5.2 billion, and should be complete by August 2014, a century after the canal's inauguration. Since then a million ships have crossed the 80-kilometer (50-mile) canal, through which five percent of the world's trade crosses every year. The third set of locks, parallel to the existing two, would accommodate massive vessels 366 meters (1,200 feet) in length, 49 meters (160 feet) wide, and with a 15-meter (50-foot) draft.

During the third quarter of Fiscal Year 2010 (Apr - Jun), the total number of transits and tonnage passing through the Panama Canal registered a marginal decline, however some key segments reported growth compared with the same period last year. The total number of Canal transit fell slightly by 2.8%, down to 3,476 compared to 3,576 last year. The number of transits of the "super" category of ships, which require more time and resources to cross the Canal, dropped 3.1%, down to 1,758 from 1,.815. With regard to key segments, general cargo ships and vehicle carriers showed increases, while dry bulk transits, container ships, refrigerated cargo, tankers and cruise ships showed decreases.

"In this quarter we saw minor fluctuations in transits and tonnage in general, an indicator that we are experiencing some signs of stability," said Executive Vice President of Operations for the ACP, Manuel Benítez. "We also see growth in some key segments, specifically, in the general cargo and vehicle carriers. We anticipate this trend will continue in the fourth quarter of this fiscal year, therefore we continue to monitor markets and their impact on the canal, The use of the Canal's reservation system decreased by 18.8%," said Benitez. (Panama America)

Editor's Comment: Panama is going to become an economic powerhouse of Latin America (on a per capital basis) thanks to the money earned by the Panama Canal. Right now the Canal brings in about $3 billion dollars in total revenues every year. Of that, more than $2 billion is spent on operations and maintenance, and about $800 million dollars goes straight to the coffers of the National Government. However, every dime - all $3 billion plus - goes into the Panamanian economy in one way or the other. All of those Panama Canal employees get paid, and then they immediately turn around and spend those paychecks in the greater economy. And the really great part about this money is that it's like an endless river of the best kind of "new money" similar to Foreign Direct Investment - the ships pay the tolls to pass through the Panama Canal and most of that money stays right here in the local Panamanian economy. Once the expansion of the Panama Canal is completed in 2014, total annual revenues are expected to jump to more than $5 billion dollars per year. This will have a tremendous economic impact on this relatively small country of just 3.2 million inhabitants. Keep an eye on one economic indicator - GDP per capital (PPP). By this measure eventually Panamanian citizens will be the richest in all of Latin America. It's going to happen in our lifetimes, without a doubt.

The annual operating budget for the Panama Canal Authority (ACP) for fiscal year 2011 will increase to $2.106 billion dollars, and the budget anticipates the ACP will contribute $839 million dollars to the National Treasury next year. This number represents an increase in the contribution of $85 million dollars compared to the current fiscal year which ends on 30 September 2010. For fiscal year 2011 (October 1, 2010 to September 30, 2011), the ACP has budgeted income from tolls of $1.610 billion dollars; income from services related to canal transits of $333 million dollars; and other income derived primarily from the production of drinking water and electricity of $140 million dollars; as well as an additional $22.4 million dollars in interest earnings.

The Chairman of the Board of Directors of the ACP and Minister for Canal Affairs Romulo Roux, presented the budget before the Cabinet Council, accompanied by Panama Canal Administrator Alberto Aleman Zubieta and the Executive Vice President of Administration and Finance, Francisco Miguez. The 2011 ACP draft budget includes new investments of $136.3 million dollars for the Panama Canal expansion project, destined to continue with the work of the contract for design and construction of locks, dredging and excavation of the new channel. Also included is $234.9 million dollars for investments in modernization and improvement of the current Panama Canal, for the acquisition, mainly, of tugs and a mechanical type backhoe dredger, among others.

Operating expenses, applied to Canal maintenance and operations, will be $650.8 million dollars, which includes mainly staff costs, materials and supplies, fuel for operation and for power generation, and service contracts. Due to the effects of the economic crisis, which has dealt a hard blow to shipping, the ACP budget has been held to a slight growth in recent years. In 2008, the approved budget was $2.7 billion dollars, and in 2009 the budget was $2.105 billion, and in 2010 the annual budget was $2.17 billion dollars. (La Prensa)

By DON WINNER for Panama-Guide.com - Yesterday afternoon at approximately 5:50 pm the Bahamas flagged bulk carrier "Atlantic Hero", fully loaded with coal, was finishing a Southbound transit of the Panama Canal. A pilot of the Panama Canal was in control of the vessel as she cleared the Miraflores Locks and headed for the open waters of the Pacific Ocean. Ships traveling Southbound have to make a slight turn to port, just as they pass the port facilities in Balboa, and just before they pass under the Bridge of the Americas in an area the pilots call Dock Six. As the pilot began to turn the vessel to make the gentle turn to port, there was an explosion in the engine room. Suddenly the ship lost all power and the ship's engines went off line. At this point the vessel would have been traveling through the water at approximately six to eight knots. These large vessels depend on the prop wash going over the rudder to improve their maneuverability, and once the engines shut down the pilot only had the water that was going past the rudder as a result of the ship's forward movement to maneuver. Eventually the ship plowed into the pilings under the Bridge of the Americas and came to a stop.

About The Explosion: Ships operate around the clock, 24/7 and "things break." On every ship there are literally tons of equipment, all kinds of generators, pumps, engines, you name it. I don't know exactly what exploded or why, but it was catastrophic enough to take the main engines off line. In addition, many times ships such as these have safety features built in, so that if there is some kind of a fire or explosion in an ancillary piece of equipment, the engines are automatically dropped off line in order to prevent any further damage. If this explosion had occurred just an hour later when the ship was in open water, then the crew would have simply repaired the damage, bring everything back on line, and they go about their merry way. However, in tight and confined spaces, with the ship maneuvering and even making a turn at the time, there was nothing they could do to avoid the collision with the pilings under the Bridge of the Americas. In the annotated image below you can appreciate the slight turn to the left that ships have to maneuver as they pass through this area, and you can see that if you lose engine power at exactly that point, the ship would continue to plow ahead straight, right into the pilings for the Bridge of the Americas. That's exactly what happened.

The Ship Was Just Freed: I was just informed that the Panama Canal Authority was able to free the ship, get it floating again, and now it will be taken out to the Pacific Anchorage, just last the entrance to the Panama Canal. Later today or tomorrow the ACP will hold an official and formal investigation to determine the causes of the incident. Thus far everything indicates this was nothing more than a routine failure of a piece of equipment that just happened to occur at a very bad time. Simply unfortunate, nothing more.

Copyright 2010 by Don Winner for Panama-Guide.com. Go ahead and use whatever you like as long as you credit the source. Salud.

The Bahamas-flagged bulk carrier Atlantic Hero, fully loaded with coal, remains stuck and ran aground near the Pacific entrance of the Panama Canal, after it collided with the structure protecting the pillar holding up the Bridge of the Americas. Teams from the Panama Canal Authority are on the scene and doing what needs to be done in order to free the vessel and to allow it to continue on its way. The accident with this ship occurred yesterday afternoon just before 6:00 pm, after it had finished it's Southbound passage through the Panama Canal. Despite this situation, the transit of ships through the waterway was not affected, according to the ACP. (La Prensa)

Editor's Comment: Bulk carriers tend to be fully loaded when transiting the canal Southbound, and empty when transiting Northbound. This ship was fully loaded and transiting Southbound. Apparently after the ship cleared the Miraflores Locks and was heading out towards the Pacific, she lost all engine power and began to drift, out of control. Initial reports of this incident said the ship "hit one of the pillars" holding up the Bridge of the Americas, but in reality there are now huge deposits of rocks protecting those pillars. The ship did run aground against one of those protection structures, but there was no damage done to the bridge. Low tide yesterday afternoon in the Balboa area occurred at 12:54 pm, and by the time of the accident the tide was rising above 14'. Even so, as soon as the ship drifted out of the dredged channel for the Panama Canal, she would have run aground relatively quickly. In the photo below she's empty, but you can see how low she would be riding when fully loaded.

This afternoon a ship that was transiting the Panama Canal ran into one of the bases of the Bridge of the Americas, witnesses said through TVN Noticias. Staff of the Panama Canal Authority (ACP) went to the scene, but no official information has been provided about the accident. The ship named the Atlantic Hero is stranded under the bridge. There are no confirmed reports of serious damage. (La Prensa)

A ship named the Atlantic Hero ran aground this afternoon against one of the pillars that sustains the Bridge of the Americas, activating an alert in the Panama Canal Authority (ACP) who went to the scene. Reports indicate there was a problem in the ship's engine when it left the Miraflores locks of the Panama Canal, causing it to lose control. The ship remains stuck under the Bridge of the Americas, while a crane from the ACP is being moved to the scene. So far there have been no reports of injuries, although there are several ambulances standing by in the area. It was reported that for the moment ships are not being allowed to navigate through this area, however vehicles are being allowed to pass over the Bridge of the Americas. (TVN Noticias)

Editor's Comment: According to one of my sources in the ACP, it would be "impossible" for a ship to actually crash into one of the supporting pillars that holds up the Bridge of the Americas. After an accident occurred in the United States, the ACP piled huge boulders around the support pillars to protect them. So if the ship ran into them, even at full speed, the ship would be screwed but the bridge would be protected. Apparently this guy just lost power and drifted until he ran aground. Additional details forthcoming.

By DON WINNER for Panama-Guide.com - Heads up - you can see one of the tall ships transiting the Miraflores Locks of the Panama Canal right now on their live video stream: http://www.pancanal.com/eng/photo/camera-java.html?cam=MirafloresHi.

Copyright 2009 by Don Winner for Panama-Guide.com. Go ahead and use whatever you like as long as you credit the source. Salud.

(Xinhua) PANAMA CITY - The South Korean ship Hanjing Monaco spilt fuel after colliding with a floodgate in the Panama Canal, the Panama Canal Authority (ACP) said Tuesday. The ACP said the fuel spill which occurred on Monday night had been controlled after professional technicians and staff of the Union of Control and Response to Pollution cleaned the fuel spill zone. The accident occurred when the ship collided with the Pedro Miguel floodgate when passing through it, resulting in the damage of the ship's fuel tank. It is estimated that 35 barrels (5,561 liters) of fuel were collected. The ACP also towed the ship to a safe zone where it is going to be repaired. The Panamanian authorities said they are carrying out an investigation into the cause of the accident.

PANAMA CITY, April 27 (Reuters) - The Panama Canal, which handles about 4 percent of global trade, will leave tolls unchanged this year, the government-run company that administers the canal said on Tuesday. The shipping link between the Pacific and Atlantic oceans is undergoing a $5.25 billion expansion but the Panama Canal Authority said the global economy was still too weak for it to raise prices. "In view of the current world economic situation, the (Panama Canal Authority) has decided not to proceed with a tolls adjustment in 2010," it said in a statement. The company said it would modify prices in 2011. The canal is an important source of government revenue. (Reporting by Sean Mattson; editing by Carol Bishopric)

The Panama Canal's total revenue for the first three months of this year rose 3.1% from the same period in 2009, though the number of ships crossing fell. The canal's total revenue rose to $360 million during the January through March period, the canal's authority, a government agency, said in a statement over the weekend. "The income was due to a better ships' use of space as they shipped more load with less boats," the statement said. The number of ships crossing the canal fell 4% in the first quarter compared with the same period in 2009. Alberto Aleman, the Chief Executive of the Panama canal's authority, said in a recent interview he expects the revenues of the canal to pick up slowly this year as the world shipping industry will lag the world recovery. He expects the canal's revenues will rise to $2.02 billion in the year through September from $1.96 billion in the year through September 2009. The Panama Canal Authority is currently in the process of doubling the canal's capacity. The project is expected to cost a total $5.25 billion and be ready in 2014. -By Inti Landauro, Dow Jones Newswires

The Titan, one of the largest floating cranes in the world, was ordered to be built by Germany's Adolf Hitler and which was later seized by the US during WWII, is now being used by the Panama Canal Authority to lift back-up gates numbers 62 and 63 as part of the work being carried out at the Pedro Miguel locks. Each gate weighs approximately 700 tons and will be transported by barge to the industrial area of Colon where they will receive routine maintenance. (La Prensa)

Editor's Comment: The Titan floating crane was built in Germany in 1941 and after the war was moved to Long Beach, California where it served until 1996. The Titan was sold to the Panama Canal Authority and transported by a heavy lift ship to Panama. Among the largest floating cranes in the world, "Titan" was built by Hitler's Germany and claimed by the United States as war booty. Titan entered service in Panama in 1996 after having served for 50 years in Long Beach, California. The crane can be floated into the locks of the Panama Canal and is used for the heavy lifting required to maintain the doors of the locks of the canal. It can lift 350 metric tons and is one of the "strongest" cranes in the world. Note - this reported lift capability conflicts with the 700 tons the crane is supposedly lifting as reported in this article. The "Titan" was actually one of three built by the Germans. Of the other two, the British got one but lost it in a storm while towing it across the English channel, and the Russians got the other, but no one seems to know what ever became of it. While in Long Beach, the Titan was known as either "Herman the German", or simply the "German Crane."