The document summarizes key information about the expansion of the Panama Canal, which is expected to be completed in April 2016. It discusses the history and importance of the canal in facilitating global shipping. The $5.25 billion expansion project involves the construction of a new set of locks, channels, and other infrastructure to allow the canal to accommodate larger "Neo-Panamax" ships carrying up to 13,000 containers. The expansion is expected to generate over 30,000 jobs and significantly increase the canal's shipping capacity and impact on global trade routes.

1. NEW PANAMAX
a Global Shipping Transformation
LEGISLATION UPDATE
Enrique Sibauste, London Office
29 September 2015

2. PANAMA
LOCATION, LOCATION, LOCATION
1519 Colonial Route – “Royal Road” – Camino Real o Camino de Cruces
Gold from Peru was carried by muleback to Spanish galleons waiting on the Atlantic coast
1855 Panama Railroad Company – “California Gold Fever”
The isthmus became the fastest and most comfortable means of travelling to California
1869 First Transcontinental Railroad (USA)
The railway continued to carry a great deal of commercial freight destined for Europe or Asia until
the Panama Canal was completed in 1914
1914 Panama Canal is completed
shortcut for ships - trim nearly 8,000 miles from its voyage
A vessel sailing between New York and California was able to bypass the long journey around
the tip of South America (Cape Horn) and trim nearly 8,000 miles from its voyage.
2016 Panama Canal EXPANSION is completed (expected April 2016!)

3. The Expansion Project
“The new locks contain as much steel as 22 Eiffel towers; the concrete used would build
2.5 pyramids of Giza and engineers have to shift 50m cubic metres of rock.” – Financial Times
What’s new?
• New Locks (Third Set of Locks)
• Pacific Access Channel
• Improvement of Navigational Channels (Dredging)
• Improvements to Water Supply
How much is the Expansion Programme?
USD$5.25 billion
Multilateral and Development Agencies
Japan Bank for International Cooperation USD$800 million
European Investment Bank (EIB) USD$500 million
Inter-American Development Bank (IDB) USD$400 million
International Finance Corporation (IFC) USD$300 million
Corporacion Andina de Comercio (CAF) USD$300 million

6. When did construction work begin?
25 August 2009
To whom was the contract was awarded to?
Grupo Unidos por el Canal
Consortium Members:
Sacyr Vallehermoso, S.A. (Spain);
Impregilo S.p.A.(Italy);
Jan de Nul n.v. (Belgium);
Constructora Urbana, S.A. (Panama);
Designers:
Montgomery Watson Harsa(MWH) (USA);
IV-Groep (Holland);
Tetra Tech (USA);
Gate Manufacturers:
Cimolai (Italy)

7. How many job opportunities?
30,000 +
What is the capacity of the expanded Panama Canal?
Existing locks allow passage of vessels that can carry up to 5,000 TEUs
The new Panamax vessels will be able to transit with up to 13,000 TEUs

9. Panama Canal Trade Routes
In 2012, the Panama Canal handled 218.1 million tons of cargo.
The most significant trade route serviced by the Panama Canal involve connecting the US East Coast to Asia (84.3
million tons; 39%), followed by the West Coast South America / US East Coast route (27.6 million tons; 13%).
The trade routes are therefore mostly involving partners outside Latin America, particularly the Asia / East Coast
route which is the trade route that mostly justified the Panama Canal expansion project.

10. Ripple -Effect
Ports

11. Port of Liverpool
“Subsequent to the opening of Liverpool2 in the final quarter of 2015, the Port of Liverpool will be able to
accommodate 95% of container vessels, including neo-Panamax, opening up the possibility of many new shipping
routes direct to Superport Liverpool from the Americas.” – Superport Liverpool

13. COPA Airlines
Network

14. Legislation Update
• Law No. 55 of 2008 regulates Maritime Commerce
• Law No. 56 of 2008 – General Law of Panamanian Ports
• Law No. 57 of 2008 regulates the General Merchant Marine
• Law No. 26 of 2015 which ratifies Nairobi International Convention on the
Removal of Wrecks

15. • The US-Panama Trade Promotion Agreement was approved by Congress and
signed into law in October 2011, and entered into force in October 2012.
• Panama also achieved removal from the Organization of Economic Development’s
(OECD) gray-list of tax havens by signing various double taxation treaties with other nation
however, the country is still classified in Phase 2 of peer review
• Panama remains an active player in the incorporation of companies, foundations
and trusts for local and international clients.
Investment Grade 2010 2015
Fitch Ratings BBB Positive BBB Stable
Standard Poors BBB Positive BBB Stable
Moody’s Baa Stable Baa2 Stable

16. DOUBLE TAX TREATIES
Effective
1. Mexico Law No.24 of 2010 01/01/2011
2. Barbados Law No.5 of 2011 01/01/2012
3. Portugal Law No. 7 of 2011 01/01/2013
4. Qatar Law No. 20 of 2011 01/01/2012
5. Luxembourg Law No. 21 of 2011 01/01/2012
6. Spain Law No. 22 of 2011 25/07/2011
7. The Netherlands Law No. 23 of 2011 01/01/2013
8. Singapore Law No. 24 of 2011 01/01/2012
9. Korea Law No.25 of 2011 01/01/2013
10. Italy Law No.50 of 2011 not yet effective
11. France Law No.78 of 2011 01/01/2013
12. Ireland Law No.59 of 2012 01/01/2013
13. Czech Republic Law No.5 of 2013 01/01/2014
14. United Arab Emirates Law No.13 of2013 01/01/2014
15. Israel Law No.14 of 2013 01/01/2015
16. United Kingdom Law No.83 of 2013 01/01/2014
17. Austria Negotiated
18. Bahrein Negotiated
19. Belgium Negotiated
20. Vietnam Negotiated
As of 12 September 2014

17. TAX INFORMATION EXCHANGE AGREEMENTS (“TIEAs”) Effective
1. United States of America Law No.40 of 2011 18/04/2011
2. Faroe Islands Law No.65 of 2013 15/03/2014
3. Finland Law No.66 of 2013 20/12/2013
4. Iceland Law No.67 of 2013 30/11/2013
5. Greenland Law No.68 of 2013 09/03/2014
6. Denmark Law No.71 of 2013 ---------------
7. Norway Law No.72 of 2013 20/12/2013
8. Sweden Law No.73 of 2013 28/12/2013
9. Canada Law No.84 of 2013 06/12/2013
10. Germany Negotiated