Title, Font size: 30pt max. 2 Lines

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Trade Logistics in the Greater Caribbean Panama
as area HUB
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A look at Panalpina

• 3 worldwide in air freight
• 4 worldwide in sea freight
• 500 offices in 80 countries
• 13,000 employees
• Net income of CHF 6.1 million in 2004
• EBITDA earnings of CHF 212 million in 2004
• Net profit of CHF 111.4 million in 2004
• Listed on the SWX Swiss Exchange since 22
  September 2005

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Global Network
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Main Activities
A P A S S I O N F O R S O L U T I O N S
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Hubs, the backbone of the air freight system
London
Amsterdam
Luxembourg
Frankfurt
Paris
Los Angeles
Linz
Zurich
Chicago
Milan
New York
Huntsville
Miami
Seoul
Shanghai
Dubai
Hongkong
Taipei
Panama
Bangkok
Singapore
Sao Paulo
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Controlled Hub network
MOW
LUX
ALA
HSV
FRU
PVG
GDL
KRT
DXB
MEX
ABJ
PTY
LOS/PHC
EBB
NBO
JNB
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Solutions
Global Organization and multi-hub network
Exceptional charter and emergency services
Advanced IT implementation
Innovative freight solutions for key industries
Strong and long-term relationship with associated
carriers
Global administration of supply and capacity
Varied capabilities geared towards the customer
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What is a hub?
In commercial aviation, hub means a large airport
that caters for long-distance flights using
large-capacity planes. These large airports
also have links to smaller cities, which use
smaller aircraft. With this system, airlines can
fill their large planes that fly long-distance
routes. Ideally, short flight schedules are
coordinated with long-distance flights so that
passengers only have to wait the exact length of
time to take the next flight. Also translated
as distribution center. Wikipedia
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The Importance of Panama in LA Freight Management
Panama offers regular service to destinations
within the U.S., Mexico, Central America and the
Caribbean. We also fly to South America, with
daily direct flights or with the best and fastest
connections in the market. Tocumen offers
alternatives and several connections with
established companies such as Copa, DHL (area
HUB), Girag, Arrow, Panavia Panalpina operates
an exclusive, direct flight on a weekly basis
from Luxembourg in B747-400 freighters with the
best cargo airlines in Europe, Cargolux. This
service guarantees travel time and capacity from
Central Europe to the center of Latin America.
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Panama - Strengths

• Unique geographical location in the middle of
  the continent
• Technological Park for education, research and
  innovation, organized to promote synergy among
  universities, scientific research centers,
  companies in the new economy and international
  agencies
• Inter-oceanic railway with the capacity to move
  500,000 containers
• Updated port infrastructure in both oceans
• A must for the worlds main shipping routes
• One of the most efficient ports in the world
• Second largest customs-free area in the world
• Multimodal center par excellence
• 2-runway airport open all day, year-round
• Extensive insurance options against all risks
• Fiber optic networks
• Reorganization and improvement of public
  finances
• Modern international banking sector
• Establishment of corporative regional offices

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Panama - Strengths
Panama among the best in trade and development
03 November 2005
Uruguay, Costa Rica, Panama and Chile are listed
among the best 40 countries in the world with the
highest Trade and Development index (ICD in
Spanish), according to new information released
by the United Nations Conference on Trade and
Development (Unctad). The best-rated countries in
Latin America were Uruguay, ranked 33, Costa Rica
ranked 35, Panama, 37 and Chile, 40. This
indicator measures the degree of integration of
trade and development policies in the 110
countries involved.
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Panama - Strengths
According to a UN report, Panama is the Latin
American nation that offers the highest level of
connectivity
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Air Connections
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Sea Connections
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Land Connections
C. Hidalgo
San José
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Panama Opportunities

• Development of Panama Canal expansion plan
• Effective plan to remodel the cargo area in
  Tocumen
• Development of the Panama-Pacific Special
  Economic Area (Howard)
• Mega port in the Pacific
• Trans-systemic expressway
• Regional refinery project
• Development of the international cargo airport
  for the FTZ

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Panama Weaknesses

• Limited air freight for intra-regional imports
• Few airlines in the region specializing in
  freight
• Restrictions in freight management by customs
• High cost of handling/internal transfer both in
  Panama and in the FTZ
• Integrated land distribution to Central America
• No land connectivity to South America
• Communication
• Security

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PANAMA AIR IMPORTS IN KGTocúmen Airport
Source Comptroller General of the Republic
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PANAMA AIR EXPORTS IN KGTocúmen Airport
Source Comptroller General of the Republic
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IMPORTS TO PANAMA BY COUNTRY IN KG
Source Comptroller General of the Republic
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PANAMA EXPORTS BY COUNTRY IN KG
Source Comptroller General of the Republic
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Panama Threats

• Adaptation of restrictions in U.S. airports
• Improvement of multimodal transportation supply
  between the East and West coasts of the U.S.
• New developments in area airports such as San
  José, Salvador, Bogotá or in ports such as
  Caucedo, Cartagena, Kingston
• Greater customs restrictions on neighboring
  markets (Colombia)
• Freight loss due to traffic restrictions in
  non-member countries through free trade
  agreements with markets in the region

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Estimated Annual Growth per region (2003-2023)
World average 6.2
Source Boeing
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Freighter capacity could be doubled!
Composition of freighter fleet
World freighter fleet
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20
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101
20
2003
56
56
31
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30
2023
40
Standard
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A good example. (video)
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Luxembourg Hub

• Investment USD 130
  million
• Annual capacity 750,000 tons
• Total loading/unloading time (B-747F) 120 minutes
• Number of loading bays 90
• Average freight travel time 8 hours
• Luxair airline staff (national airline) 1,000 on
  staff
• Truck movement 2,000/weekly
• B-747 movement 190/weekly
• Movement of other aircraft 20/weekly

• Source Luxair

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Food service in Europe (on land)
Europe NORTH
Europe EAST
Europe SOUTH/WEST
LUX
FRA
More than 1 connection daily
LYS
AGH
Daily connection
LNZ
MIL
Regular connection
LHR
BCN
CDG
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Various Panalpina Clients
LATAM
Video
Corporate Panalpina
Home
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Thank you for your attention!!