BOYD

STEAMSHIP CORPORATION

AGENTS AT THE PANAMA CANAL

FOUNDED IN 1909

 

Web: www.boydsteamship.com Email: operations@boydsteamship.com

 

PANAMA CANAL NEWS

 

June 15, 2007

 

MONTHLY CANAL OPERATION SUMMARY –  MAY 2007

 

TENTATIVE SCHEDULE OF LOCKS MAINTENANCE WORK FOR FY 2007.

 

GLOBAL SEARCH IS ON FOR TOP-TIER FIRM TO ASSIST PANAMA CANAL WITH MANAGEMENT OF EXPANSION CANAL REQUESTS PROPOSALS FOR THE EXPANSION PROGRAM MANAGER

 

LOCKS LANE OUTAGE AND PANAMA CANAL AUTHORITY  TRANSIT RESERVATION SYSTEM

 

PANAMA CANAL TOLLS INCREASE AND ADMEASUREMENT RULES APROVED

 

TOLLS IMPLEMENTATION DATES

 

 

 

 

 

MONTHLY CANAL OPERATION SUMMARY – MAY 2007

 

 

 

 

 

TENTATIVE SCHEDULE OF LOCKS MAINTENANCE WORK FOR FY 2007.

 

 

 

 

GLOBAL SEARCH IS ON FOR TOP-TIER FIRM TO ASSIST PANAMA CANAL WITH MANAGEMENT OF EXPANSION

CANAL REQUESTS PROPOSALS FOR THE EXPANSION PROGRAM MANAGER

 

The Panama Canal Authority (ACP) announced its search for an Expansion Program Manager for the Canal expansion. The ACP is seeking a top-tier firm with a solid reputation in program management and experience working on various construction projects worldwide. The selected firm will assist the ACP in the management of approximately 10 major contracts, interfacing with both design and construction teams.

 

The ACP Board of Directors approved the use of an integrated program management model, wherein the Authority will designate tasks between ACP personnel and the selected firm.

 

"The selection of a reputable and experienced Program Manager is an important component in the success of the waterway's expansion," said ACP Engineering and Programs Management Director Jorge L. Quijano. "We are looking to attract a firm with global reach and proven experience in providing proactive solutions as we move forward with the program."

 

Expansion will build a new lane of traffic along the Panama Canal through the construction of a new set of locks, thereby doubling its tonnage capacity and allowing the passage of longer, wider and deeper draft vessels.

 

The Program Manager will provide services that will include assisting the ACP in the integrated oversight and effective control of the following projects: the design and construction of the new Atlantic and Pacific Post-Panamax Locks; dredging, to include widening and deepening of the Atlantic entrance channel; dredging of the Pacific entrance channel; the dry excavation of the access channel that connects Gaillard Cut to the new Pacific Locks; dredging of the Gatun Lake channels; and the further deepening of Gaillard Cut, in addition to other improvements to existing Canal structures.

 

LOCKS LANE OUTAGE AND PANAMA CANAL AUTHORITY  TRANSIT RESERVATION SYSTEM

 

Beginning Wednesday, June 13, 2007, at 1200 hours through Friday, June 22, 2007, at 1200 hours (9 days), restricted lockages will be performed in the EAST lane of Miraflores Locks. Relay operations will be conducted on the WEST lane. These restricted lockages are necessary in order to perform tow track repairs on the sidewall close to Miter Gates 112 and 116.

 

In addition, beginning Sunday, June 17, 2007, at 0001 hours through Wednesday, June 20, 2007, at 2359 hours (4 days), the WEST lane of Pedro Miguel Locks will be out of service. Closing the West lane of Pedro Miguel Locks is necessary in order to perform repairs on the seals of Miter Gate 68.

 

As a result of this work and pursuant to the rules governing the Transit Reservation System (MR’s Notice to Shipping No. N-7-2007), a reduction in the number of available booking slots will be in effect during this period, as follows:

 

• From 0001 hours on June 13, 2007, through 2359 hours on June 16, 2007, Condition 1.a will be in effect;

 

• From 0001 hours on June 17, 2007, through 2359 hours on June 20, 2007, Condition 2 will be in effect;

 

• From 0001 hours on June 21, 2007, through 2359 hours on June 22, 2007, Condition 1.a will be in effect.

 

The number of slots per direction and restriction during Condition 1.a will be limited as follows:

 

• No more than eight (8) supers may be booked for transit in the southbound direction, and of these, no more than six (6) with “full daylight-hour” restriction. Similarly, no more than seven (7) supers may be booked for transit in the northbound direction, and of these, no more than five (5) with “full daylight-hour” restriction.

 

• The total number of “full daylight-hour” restricted supers shall not exceed eight (8) vessels per day.

 

• No more than four (4) regular vessels may be booked for transit in the same direction.

 

• Of the six slots available for regular vessels, no more than two (2) may be allocated to regular vessels transiting under restrictions.

 

Applications for reserved transits under these conditions will be received commencing 0900 hours June 10, 2007. The booking slot available through the Auction Process will continue to be offered during this nine day period.

 

 

PANAMA CANAL TOLLS INCREASE AND ADMEASUREMENT RULES APROVED

On February 2, 2007, the ACP announced its proposal to restructure the Panama Canal’s pricing system and certain regulations in an effort to move toward a charge that accurately reflects the commercial value of the route and the service it provides. This proposal was made available to all interested parties during a consultation period from February 2 to March 12, 2007, during which the ACP received a total of 21 written submissions from individuals and groups. Subsequent to this 30-day consultation period, the ACP conducted a public hearing on March 14 where 14 representatives from shipping and government agencies expressed their views.

 

On April 5, 2007, in response to industry requests, the proposal was slightly modified and the implementation of the new charges, for certain segments, was postponed until July 1, 2007. These segments include: general cargo, dry bulk, tankers and vehicle carriers. As a result, the ACP reopened the consultation period to provide the interested parties with an additional 15 days to present, in writing, additional data, opinions, information, or arguments. A total of 10 written submissions were received by the ACP from various individuals and groups.

 

On April 25, 2007, following a recommendation from the Board of Directors of the Panama Canal Authority, the Cabinet Council of the Republic of Panama approved the proposal to restructure the Panama Canal’s pricing system and certain regulations.

 

Other significant elements of the approved proposal include:

 

            • Fully Loaded Displacement vs. Displacement at Arrival Draft: The displacement charge will now be based on the maximum displacement of the vessel instead of the arrival displacement. The use of a parameter that is more readily available makes the assessment of tolls more equitable and transparent.

             

            • Administrative Changes: Some administrative changes have been made, but these changes will have no economic impact whatsoever. These revisions provide necessary linguistic and grammatical clarifications to the document or reinsert missing words to processes and procedures.

 

            • Passenger Vessels: Vessels whose gross tonnage (GRT) is above 30,000 and whose PC/UMS tonnage divided by the maximum passenger capacity (PAX-ITC) ratio is less  than or equal to 33, shall pay tolls on a per berth basis. If such ratio is greater than 33, then tolls shall be paid on the basis of the vessel’s PC/UMS tonnage. Vessels with a gross tonnage (GRT) below or equal to 30,000 gross tons (GRT) will continue under the Canal tonnage tolls systems paying on the basis of their PC/UMS tonnage.

 

“With the new pricing system, the Canal is charging its customers a price closer to the value of services provided. We reached this decision through an open and transparent process, providing the industry with multiple opportunities to comment. The new system, approved by the Cabinet Council, reflects this open dialogue, incorporating several of the requests we received from the industry over the past few months,” said ACP Administrator/CEO Alberto Alemán Zubieta following the Cabinet Council’s decision.

 

TOLLS IMPLEMENTATION DATES

              PANAMA CANAL TOLLS IN US DOLLAR

Market Segment

Present Tolls

2007

2008

2009

TEU Toll

Full Containers

Laden

49.00

May 1/

54.00

May

63.00

May

72.00

Ballast

39.20

43.20

50.40

57.60

On-Deck Container 2/

Laden

49.00

May 1/

54.00

May

63.00

May

72.00

Toll per berth

Passenger Vessels 3/

Laden

N/A

October

100.00

October

115.00

October

120.00

Ballast

80.00

92.00

96.00

Tolls per PC/UMS Ton

 

1st

2nd

Rest

Effective 1st of

1st

2nd

Rest

Effective 1st of

1st

2nd

Rest

Effective 1st of

1st

2nd

Rest

10K

10K

 

10K

10K

10K

10K

10K

10K

General Cargo

Laden

2.96

2.90

2.85

Jul

3.3

3.2

3.14

May

3.63

3.56