PANAMA'S CABINET COUNCIL APPROVES NEW PANAMA CANAL PRICING STRUCTURE

News Release Panama Canal Authority June 19, 2010

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ACP LISTENS TO
INDUSTRY
 
 
PANAMA CITY, Panama,
June 16, 2010 – The Cabinet
Council of the Republic of Panama approved a proposal to modify the Panama Canal
pricing structure yesterday, following a recommendation from the Panama Canal
Authority (ACP) Board of Directors.  
 
The proposal modifies
the pricing structure for all Canal segments: container, dry bulk, liquid bulk,
vehicle carriers, reefers, passenger, general cargo and others. Specifically,
the ACP will calculate container segment tolls with a slight price adjustment to
the capacity charge, and an additional new charge that would apply to the number
of loaded containers aboard the vessel at the time of transit.  
 
The newly approved
pricing structure includes one amendment to the
original proposal, which delays the implementation of the reefer segment
increase on the portion applicable to the PC/UMS tons, from January 2011 to
April 2011. All other segment pricing modifications will go into effect in
January. 
 
“During
the past few months we have talked with industry representatives, shipping
lines, including government representatives from countries that benefit from the
Panama Canal. We have listened to their feedback and have made adjustments to
our pricing structure accordingly. For instance, we selected the tolls
implementation date of January 2011 to respond to industry requests of a
moratorium on increases in 2010. Also, in response to requests made during the
consultation, we have postponed the implementation of the PC/UMS tolls for
reefers to April 1, 2011,” said ACP Administrator/CEO Alberto Alemán
Zubieta.
 
“Since the
beginning, we have been committed to an open and transparent process with regard
to the Canal’s pricing structure. We are focused on providing the safest, most
reliable and efficient service for our customers, and the new pricing structure
approved by the Cabinet Council reflects this commitment,” Mr. Aleman further
added. 
 
The ACP officially
announced its plans to restructure the Canal’s pricing April 27. After a 30-day
public consultation period, the ACP conducted a public hearing in Panama City,
Panama on June 1, allowing interested parties an opportunity to express their
views on the proposal.
 
On the
basis of discussions with industry representatives, shipping lines, and
government 
representatives, as well as the Canal’s own internal analysis,
and in
view of the world economic situation, the ACP decided not to proceed with a
tolls adjustment in 2010 and set January 1, 2011 as the new date for
implementing the tolls for all segments except reefers.  
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