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Panama wants to revive failed Corozal port project

Bnamericas
Panama wants to revive failed Corozal port project

The board of directors of the Panama Canal Authority (ACP) has authorized canal administrators to carry out the relevant evaluations to present new terms and conditions for the development of a container port in Corozal on the banks of the Panama Canal, the ACP announced in a statement.

The decision was made as the previous tender process for the construction of the port terminal, which saw no bidders, was officially declared closed.

"The ACP will continue evaluating the west Corozal port project, because it forms part of the canal's commercial development strategy and has significant potential," the statement reads.

Plans for the construction of the Corazal port date back a few years, but it was only in late 2015 when the qualification process to participate in the project tender was started.

Although four companies had been prequalified by the time the tender was officially launched in October last year, none of them submitted bids before the March 3 deadline and the tender was declared void.

Construction of the container port at Corozal was estimated to require a US$1.35bn investment. It was supposed to be carried out in two phases, the first entailing a 1,350m-long quay with capacity to handle 3.2mn TEUs/y and expected to be completed in three years.

The second phase of construction was expected to last an additional eight years.

Construction of the port project has always been controversial. In addition to opposition from local residents, the project was met with criticism from opposition politicians and also faced legal action.

As a result of the failed tender, ACP authorities have been exploring options for the project's future. Amidst suggestions from local legislators to undertake the works instead of awarding a concession to a private company, the ACP responded that it was not feasible to do so due to the project's high cost.

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