maritime

Company drops out of port project

PSA Corporation has delivered a letter to the Panamanian government stating it will not bid on the Farfán project.

It was one of three companies that pre-qualified for the project, which will entail building a mega-port.

LA PRENSA

Looking to the FUTURE:What is now a deserted beach in Farfán may soon become a bustling mega-port. The government is searching for a comapny to invest $600 million in the project. 976288

Singapore company PSA Corporation has apparently decided that one is enough when it comes to port projects in Panama.

The company has sent a letter to the Autoridad Marítima de Panamá (AMP) stating that it is dropping out of the bidding process being held to determine which entity will build a mega-port in the Farfán area.

PSA is presently involved in developing port facilities at the former Rodman Naval Base near the entrance to the Pacific side of the Panama Canal.

PSA was one of the three companies that pre-qualified for the project. The remaining bidders are Chinese company Cosco and Marine Terminals Corporation.

The Farfán project will entail building docks for container ships. It is expected to be a $600 million project.

Cosco and Marine Terminals are still interested in the project, a source from the Presidencia de la República said. The two companies may also submit a joint proposal.

Originally a dozen companies were interested in the project. that list was narrowed down to the three finalists in October.

President Martín Torrijos´s cabinet is expected to discuss the situation in the coming weeks to decide how the project should now proceed.

The Farfán area is located near the former Howard Air Force Base. The government is hoping that the development of the base and the construction of the port will help to strengthen the economy of that area, which has been plagued by problems related the unemployment and crime.