PANAMA Trends and Developments Contributed by: Belisario Porras, Patton Moreno & Asvat
project will not only provide a push in the labour mar - ket but will also include comprehensive provisions for affected communities, allocating funds for com - pensation and resettlement to such property owners impacted by the Rio Indio project. The long-term investment of the Rio Indio project will secure the Panama Canal’s competitive position in global maritime commerce while also addressing potential future climate concerns. Trans-shipment hubs In 2025, the ACP declared its intention to develop two new trans-shipment hubs, marking the official start of the development timetable. This follows prior intentions to develop a terminal on the Pacific side, called Corozal, back in 2013. The project did not attract enough bids in 2017 and was suspended. The present initiative resurrects the origi - nal Corozal project, and adds a second proposed trans-shipment hub on a property owned by the ACP on the Caribbean coast. The terms and conditions for pre-qualification bidders are expected to be finalised by February or March 2026, and award concessions will proceed as of the fourth quarter of 2026. The terminals would each have a projected capacity of moving 2.5 million to 3.5 mil - lion TEUs per year. LPG pipeline The Republic of Panama has also announced the development of an interoceanic LPG pipeline system that will move gas from the United States to Asia. The corridor will ease the transportation of butane, propane, ethane and other oil products between the Gulf of Mexico and North-East Asia, without requiring ship passage through the canal, thus saving water usage. This project will also aid the Panama Canal by reducing vessel waiting periods. The project will connect the Atlantic and Pacific sides with terminals and a 76 km pipeline, aiming at a move - ment of approximately 2.5 million barrels/day, with construction potentially starting in 2027, and offering an additional revenue source for the Panama Canal. The project will involve private sector investment and
concessions, aiming to consolidate Panama’s role as a global trade hub by creating additional logistics infrastructure. Regulatory Initiatives The Beijing Convention On 4 March 2025, the Republic of Panama signed the Beijing Convention on the Judicial Sale of Ships, for - mally known as the United Nations Convention on the International Effects of Judicial Sales of Ships. Pan - ama finalised its ratification during the week ending 18 October 2025 and its global entry into force was scheduled for 17 February 2026. Panama therefore becomes the 32nd state to accede to this agreement, alongside Liberia, Spain, Italy and Singapore. The Beijing Convention, which was adopted in 2022 by the United Nations Commission on International Trade Law (UNCITRAL), establishes a harmonised framework for the international recognition of judicial sales of ships. It is mainly designed to ensure clean title and minimise legal risks as well as to provide legal certainty, thus benefiting buyers, investors and creditors by extinguishing prior mortgages, charges or interests upon a judicial sale of a vessel. The Convention provided a harmonised legal frame - work, and its application maximises the potential sale price of vessels while at the same time protecting creditors’ rights through a more transparent process. The issuance of a Judicial Sale Certificate and the maintenance of a repository by the IMO is required by the Convention in order to ensure the desired trans- parency. Ex officio cancellation of ships from the registry One of the PMA’s main objectives is to purify its mer - chant fleet and send a message of solidity and trans - parency to the global maritime community. The Pana - manian registry’s vision is to have a renewed fleet, with younger ships that use cleaner energy. In order to achieve this objective, the Panamanian Ship Registry has established a zero-tolerance policy on the misuse of the Panamanian flag, implementing key measures such as Executive Decree No 512 of 2024 and Resolution No 106-003-DGMM of 3 January 2025. These legal instruments apply rules that estab -
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