"It is a strategic decision to move into Panama. Many of our customers use Panama's free zones to distribute goods to the Central American and Caribbean markets," says Torge Koehnke, Executive Vice President LATAM Region, DSV Air & Sea, and he continues: "In addition, Panama is an attractive place to store products and establish distribution to the countries in the region due to the tax benefits available."
"With an office in Panama City, we are expanding our Air & Sea network and look forward to supporting current and new customers alike with their logistics requirements," says Jonas Thoroe, Managing Director, DSV Air & Sea Panama, who will be heading the new entity.
DSV Panama contact details
DSV Air & Sea PA, Inc.
Ave. Centenario, Costa del Este
Edificio PH Torre Centenario (Towerbank) Oficina A – Piso 17
Ciudad de Panama
Tel. +507 377 1400
Picture (from left to right): Joseline Ulloa, Operations Supervisor, Jonas Thoroe, Managing Director and Annette Harris, Finance Manager.
The Republic of Panama
Panama with the Panama Canal is strategically important in several respects. It is politically stable with a growing economy and offers a healthy and professional business environment. In addition to direct access to the domestic market, the country is an important hub for distribution of goods to other Central American and Caribbean countries.
Panama's free zones
The Panamanian government operates several free zones that account for the majority of the country's imports and exports. The two most prominent ones are:
- The Panama Pacifico Special Economic Area (PPSEA), which was established in 2004 and is located on the former US air force base Howard near Panama City on the Pacific side of the Isthmus.
The Colon Free Zone (C.F.Z.), which is located in the city of Colon at the Atlantic entrance to the Panama Canal.
The Panama Canal
The Panama Canal is an artificial 77 kilometres (48 miles) waterway that cuts across the Isthmus of Panama and connects the Atlantic and Pacific oceans. It takes approx. 12 hours for a vessel to pass through the canal. The Panama Canal has been extended several times and the most recent expansion was opened for commercial operation on 26 June 2016.
Annual traffic has risen from about 1,000 ships in 1914, when the canal opened, to a total of 13,548 vessels carrying a total of 403.8 million PC/UMS *) tons in 2017.
France began work on the canal in 1881 but in 1904 the United States took over and opened the canal on 15 August 1914 and thus considerably reducing the time it took vessels to travel between the Pacific and Atlantic oceans via the hazardous Cape Horn in South America.
The U.S. continued to control the canal and the surrounding Panama Canal Zone until the 1977 and after a period of joint American–Panamanian control the Panama Canal Authority took over in 1999.
*) PC/UMS (Panama Canal/Universal Measurement System): Net tonnage modified for Panama Canal purposes (one PC/UMS net ton is equivalent to 100 cubic feet of capacity).
Read more about DSV in Panama