Less Financial Income from Panama Canal Predicted
The financial income from the Panama Canal to the public treasury for the period 2017-2021 will be 45.3 percent less than the initial evaluation with the expansion of the project, according to official figures analyzed today by the local media.
The most recent projections of the Ministry of Economy and Finance (MEF) for the mentioned years were of 15 billion 303 million dollars for Canal income, but in a last adjustment that figure went down to eight billion 533 million, affirmed daily La Estrella in its Tuesday edition.
The mentioned causes by the paper are the new macroeconomic global scenario, the salary increase demanded by workers and the comnpetition of the Suez Canal (managed by Egypt), together with the potential competitions which would represent the climate change with the opening of the North route and the Nicaragua Canal.
Such facts coincide with appreciations made recently by economist Juan Jované, who asserted that the expansion of the canal, considered the key to ensure the growth of national economy, occurs in a situation that is not optimum because there exists a clear deceleration of the world trade of goods.
The low oil prices incentivate sea routes without crossing the Panama Canal and together with other factors they will reduce by 50 million dollars the income of the route this year, reported last March the Panama Canal Authority (ACP in Spanish).
That has an impact on competitiveness of the waterway, because we charge for passing and some shipping lines tell their clients they can take their cargo through the
Cape Horn (southern point of the continent), at a lower price although it takes 15 more days in arriving to its destination, explained the manager of the ACP, Jorge Quijano.
Another element to contribute to less income for Panama will be the reduction by 15 centimeters in the draft (distance from the floating line to the bottom of the hull) of the ships making the transisthmic trip, obliged bu the consequences of the intense drought and high evaporation due to high temperatures.
The exhaustion of the Panama economic model and the need for deep changes in the mediate future, are hypothesis presented by Jované in his last article The decline of a perverse experiment, published this week.
He resumes this policy, applied after the invasion by the United States in 1989, in an indiscriminate external opening, unprotection of national production, attempt to grow guided exclusively to the export of commercial, financial and transportation services, together with growth of the external debt.
Source: Prensa Latina