Monday 21 June 2021

Moody’s gives Canal expansion thumbs up

Eighteen months after the expansion of the Panama Canal began to operate, its performance exceeded expectations. According to a new Moody’s Investors Service report, the total tonnage of the channel increased 22% in fiscal year 2017 (from October 2016 to September 2017), as its capacity more than doubled, with a clear positive credit impact.

The performance of the Panama Canal Authority (ACP, A2 stable) exceeded the projections, with an increase of 15% of revenues in fiscal year 2017, which resulted in financial indicators stronger than expected. “Solid performance will have a domino effect on US ports and cargo ships, and international trade will further benefit the channel,” says Adrián Garza, Vice President and Senior Analyst at Moody’s.

- Advertisement -

The ACP expects revenues to exceed $ 3 billion for fiscal year 2018. Thanks to its strong performance, the ACP registers better-than-expected financial indicators, which supports its high credit quality.

The tonnage of cargo that crossed the channel reached a record of 402.8 million CP / SUAB (volume measurement of the Universal System of Ship Arcing of the Panama Canal) in fiscal year 2017, the largest annual tonnage in history and 22% higher than the previous year. This increase is also significant given that the tonnage of the ACP was relatively stable over the last 10 years, with a compound annual growth rate of 1%.

The channel also benefits from growth in certain business segments thanks to the new locks. Liquefied petroleum gas (LPG) grew 147% and represented 7% of the total tonnage in fiscal year 2017 compared to 4% in 2016. LPG accounted for 4% of total tonnage, compared to 0.5% the previous year.

Challenges

For Moody’s, although there are still challenges, including the legal dispute related to the expansion, the ACP’s solid financial position partially compensates for these challenges.

- Advertisement -

Source: Newsroompanama.com

Article first appeared at Today Panama, click here to go there

- Advertisement -

FACT CHECK:
We strive for accuracy in its reports. But if you see something that doesn’t look right, send us an email. The Q reviews and updates its content regularly to ensure it’s accuracy.

Q24N
Q24N is an aggregator of news for Latin America. Reports from Mexico to the tip of Chile and Caribbean are sourced for our readers to find all their Latin America news in one place.

Related Articles

OIJ investigation into road works corruption leads to inquiries in Panama

QCOSTARICA - The prestige of the company of some of the...

Which countries could follow El Salvador by making it legal tender?

Q24N - El Salvador may be the first country to adopt...

MOST READ

Today’s Vehicle Restriction June 15: 3 & 4 CANNOT circulate

Today, Tuesday, June 15, vehicles with plates ending 3 & 4 CANNOT circulate The measure is countrywide and applied between 5:00 am and 9:00 pm,...

Lack of space on Racsa’s hard drive paralyzed immigration consultation at the airport this Monday

RICO's DIGEST - We've all had this happen, your computer's hard drive is full and your computer crashes. But we are not the Radiográfica...

Rainy afternoons and nights this week in most of the country

QCOSTARICA - Characteristic of the rainy season, we will see rain in the afternoons and nights in the Central Valley, the entire Pacific coast,...

Fifth tropical wave precipitation will be heavier in the north of the country

QCOSTARICA - For this Wednesday, the arrival of the fifth tropical wave of the season is expected, thus reinforcing the rainy activity mainly to...

Diseases, weather and low prices hit the orange sector in Costa Rica

HQ - The appearance of pests and diseases, in particular the 'dragón amarillo' (yellow dragon), the impact of the weather and a sharp drop...

Construction companies that paid alleged bribes would be disqualified for ten years

QCOSTARICA - If it is proven in a final judgment that they did pay bribes to Conavi officials, several companies could be disqualified from...

Today’s Vehicle Restriction June 18: 9 & 0 CANNOT circulate

Today, Friday, June 18, vehicles with plates ending 9 & 0 CANNOT circulate The measure is countrywide and applied between 5:00 am and 9:00 pm,...

13 Powerful Home Remedies for Acne

Acne is considered to be one of the most common skin ailments on the planet, with a record 60 million people being afflicted by...

Nathalie Álvarez Mesén’s feature debut, Clara Sola, ready for the Cannes Directors’ Fortnight

Q ENTERTAINMENT (CINEUROPA) Nathalie Álvarez Mesén’s debut feature, Clara Sola, is ready to take part in this year’s Directors’ Fortnight at the Cannes Film...

WANT TO STAY UP TO DATE WITH THE LATEST!

Get our daily newsletter with the latest posts directly in your mailbox. Click on the subscribe and fill out the form. It's that simple!

Article first appeared at Today Panama, click here to go there

Log In

Forgot password?

Forgot password?

Enter your account data and we will send you a link to reset your password.

Your password reset link appears to be invalid or expired.

Log in

Privacy Policy

Add to Collection

No Collections

Here you'll find all collections you've created before.