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Latin America Investment News on Viva Tropical

Panama Funds $1 Million Regional Coastal Unification Study in Guatemala

Article Summary:

Guatemala is in the process of preparing to launch a feasibility study which will determine if a regional coastal project uniting the ports in Panama to those in Mexico, along with others in Central America, is worthy of expansion. The project will cost close to U.S. $1 million with funding from the Inter-American Development Bank, the Central American Maritime Transport Commission (COCATRAM) of the Government of Panama.

Photo Credit: Prensa Libre

Original Article Text From Prensa Libre via Google Translate :

Regional Coastal Project Begins

Medardo Miguel Galindo, operations manager of the Federation of Agricultural Exporters of Honduras and member of the American Federation of Chambers and Associations of Exporters of Central America, Panama and Dominican Republic (FECAEXCA), explained that the idea of ​​the project began six years ago.

During that time there were several studies that demonstrated the possibility of cabotage throughout the Pacific coast of Central America.

“The project is located in a commercial studio stage, analyzing freight flows from north to south, how they move and what kind of goods of each country, among other things,” said Galindo.

The businessman said the idea is that less draft boats carrying cargo between the countries of the region, leading to ports and logistics centers (hub) as Panama or port Lazaro Cardenas in Mexico, where ships dock that could move merchandise interoceanic to other countries.

Fanny D. Estrada, director of the Competitiveness of the Guatemalan Exporters Association, said that reviving the project responds to the need for options to reduce the rise in shipping.

He added that the measure will accelerate intraregional trade, as it will prevent the passage of customs, as with land transport.

For Hector Fajardo, director of the Central Chamber of Transport, a regional coastal system requires forming a culture of trade facilitation to work efficiently.

According to Galindo, one advantage is that for example the Lazaro Cardenas port is connected by means of a dry canal with the population of Laredo, Texas. This corridor enables Mexico to enter U.S.. States., With the particularity that the load does not pass through customs, as custody goes to the American city.

The goal is to serve the market in central-eastern U.S.. States. through that port, while Panama would be served by the Asian market and the Pacific coast of South America. According to Galindo, this system will reduce operating costs for American producers.

Study is expected to conclude later this year and be the first step to “operationalize” the project.

Link to Original Article:

From Prensa Libre

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