Panama Canal Authority and The Algeciras Bay Port Authority in Spain Launch Strategic Partnership

Panama City, Panama, October 5, 2010 – Continuing to strengthen its alliances in Europe and the reliable and cost-effective route through the Panama Canal, the Panama Canal Authority (ACP) and the Algeciras Bay Port Authority (APBA) signed a memorandum of understanding (MOU) today to establish a strategic partnership to promote international commerce and logistic activities.

The MOU was signed by ACP Administrator/CEO Alberto Alemán Zubieta and APBA General Director José Luis Hormaechea Escós.

The MOU is renewable after two years and will allow for technological and data exchange between the two parties, as well as opportunities for joint marketing activities and modernization efforts. For example, the two entities will collaborate on joint training programs, promotion of the route from Europe to the West Coast of South America via the Panama Canal and the exchange of data regarding types of commodities, cargo tonnage, and liner services.

“This new partnership will continue to strengthen our alliances in Europe and deepen Panama-Spain relations. Both our nations are committed to providing our business communities with the tools they need to achieve economic growth and sustainable development,” said Mr. Alemán Zubieta.

“We are both leading institutions in two logistics hubs of the world. Without a doubt, the collaboration between our entities, as underscored in this agreement, will increase the value of our relationship and will reinforce the commercial relationship between our two business communities,” said Mr. Hormaechea.

The Port of Algeciras is located on the Spanish border of the Bay of Gibraltar. Algeciras is Spain’s number one port, with annual transits of more than 70 million tons and 3 million TEUs.

Algeciras also has a maritime bridge with Morocco, with hourly departures headed to the Port of Tangier-Mediterranean. This route is used by 200,000 trucks a year carrying goods for import and export into both ports.

Currently, the ACP is undergoing a historic expansion of the Canal. The waterway’s expansion project will build a new lane of traffic through the construction of a new set of locks, which will double Canal capacity and allow the passage of longer and wider ships. Overall, expansion is estimated at $5.25 billion, with completion anticipated in 2014.

About the Panama Canal Authority (ACP)

The ACP is the autonomous agency of the Government of Panama in charge of managing, operating and maintaining the Panama Canal. The operation of the ACP is based on its organic law and the regulations approved by its Board of Directors. For more information, please refer to the ACP's Web site: www.pancanal.com. You can also follow the ACP on Twitter: http://twitter.com/thepanamacanal.

About the Port Authority of Algeciras Bay (APBA)

The Port Authority of Algeciras Bay (APBA) is a public institution, which is part of the Ministry of Development of the Spanish Government. The APBA administers the ports of Algeciras and Tarifa. For more information, visit www.apba.es.