maritime

Farfán port still in limbo

Despite a lack of progress, optimism remains for the project.

Levi Cruz/la prensa

undone: A megaport in Farfán is no closer to reality today than it was four years ago when it was first proposed.1143480

The construction of a container terminal or megaport in Farfán remains a possibility despite the fact that, four years after the idea was first floated by the government, the project is no closer to reality.

The project was put out to bid, with five companies vying for the concession to develop the property. The bidding process was brought to a halt, however, when three of the companies dropped out.

The government then entered into direct negotiations with the two remaining companies, Ports America and Cosco Panama Maritime, but a deal has not been reached.

Cosco Panama Maritime says it has not lost interest in the project.

“So far, Cosco has never said that it will not continue talking about the megaport,” said general manager of Cosco Panama Maritime, Zhang Fucun.

On April 7 of last year, the government cabinet authorized the Minister of Trade and Industry, Carmen Gisela Vergara, to begin negotiations with the two companies interested in developing the terminal.

The negotiations were interrupted on several occasions. However, the administrator of the Panama Maritime Authority, Fernando Solórzano, reported that the subject has not been closed and is still being assessed.

But the decision to negotiate directly with the two companies was seen by some as a way for the government to avoid the bidding process for the concession. On May 19, 2008, attorney Rodolfo Pinzón filed a lawsuit before the Third Division of the Supreme Court to revoke the resolution authorizing the minister to negotiate directly with the two companies.

While Cosco is still upbeat about the project, officials from Ports America do not seem to share their enthusiasm. The directors of the company, which had always been willing to talk about the project in the past, have not responded to interview requests for more than two months.

Ports America, which manages 97 port terminals in the United States, Mexico and Chile, is controlled by a venture capital fund owned by AIG, the world's largest insurer, which has experienced numerous financial troubles recently.

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