The Port of Singapore Authority (PSA) is to expand the terminal operated by its subsidiary, PSA Panama International Terminal, in the former Rodman Naval Base, to increase its current capacity of 450,000 containers (TEUs) per year to a minimum of 1,850,000 TEUs annually.
The terminal will also have the capacity to handle bulk cargo and vehicles (ro-ro). The work will cost $350 million.
According to Drewry Maritime Research, PSA International ranks first among major port operators in the world.
Bill A-2005-2014 is a contract to be signed between the State and PSA Panama International Terminal, SA, which was approved by the Cabinet and submitted to the National Assembly on January 12, 2015 by the Minister of the Presidency, Alvaro Aleman, for final approval.
As part of the legislative process, the Commerce Commission of the Assembly made a familiarization visit to the terminal, where they were attended to by executives of PSA.
Currently, the terminal has a pier of 330 meters and three cranes, ensuring a depth of 14.5 meters, and occupies an area of 22.5 hectares. If the grant is approved, PSA will receive two former weapons ranges under a concession granted by the State, subject to authorization by the Administrative Unit of Reverted Properties, and other areas of land, water surface and underwater areas under control of the Panama Canal Authority.
During the visit of the Commerce Committee, executives said the implementation of this project will enable them to become more efficient and competitive and that it will go hand in hand with the expanded Canal. They noted that once the Assembly approves the contract, work will begin and last from 18 to 24 months. The President of the Commission, Quibian Panay, said that, for his part, the visit has allowed them to get answers to questions about the project.
The terminal currently has no connectivity with the trans-isthmian railway and road connectivity is limited. However, among the government’s plans are the expansion of the road between the Bridge of the Americas and Arraiján, and the construction of a road between Cocolí and the Centennial Bridge that will service the PSA terminal.
As conceived, an 800-meter pier is to be built at a cost of $182 million that will include design and construction supervision, subject to the concession agreement with the ACP, and the provision of equipment to meet super-post-Panamax ships.
Dredging, excavation and soil treatment, including design and supervision, will cost another $70 million and will be completed in the first 18 months.
The construction of the container yard, including buildings, utilities, equipment, design and supervision of the concession areas, will cost another $98 million and will be completed in the first 21 months of the grant. The state does not give tax credits to the company for dredging performed or for the use and exploitation of concession areas or areas of the ACP.
The company agrees to pay $12 per movement of container, and the rate that corresponds to income tax of $3 on the movements that take place in the management of the local cargo, until December 31, 2016. From this date, the fee for movement and the tax rate on income will be reviewed and adjusted by the State every five years, based on the consumer price index (CPI).
The company also agrees to pay to the State, through the Panama Maritime Authority, the sum of $6 per vehicle landed, not containerized, and this rate will be adjusted every five years based on the CPI. Also, the company will pay the state a monthly fee for the first year in the amount of $44,400.73 for the use of the areas under concession.