Tuesday, 20 October 2020

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.

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.

- paying the bills -

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.

Source: Newsroompanama.com

- paying the bills -

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

Q24N
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

Panama reopens air borders for tourists after closed for seven months

QCOSTARICA - Panama, on Monday, October 12, reopened its air borders...

#Debunked: Costa Rica President Alvarado DID NOT request asylum in Panama

QCOSTARICA - A doctor and anonymous were behind the reports on...

MOST READ

COVID-19 in Costa Rica: 1,166 new cases for Oct 17

QCOSTARICA - As of October 17, Costa Rica registers 1,166 new cases of COVID-19, of which 299 are by epidemiological link and 867 by...

Poverty in Costa Rica soared to 26%, the highest figure in the last decade

QCOSTARICA - While last year poverty affected around 20% of the population, this year, unemployment problems, lower income, and the general situation of the...

First two minors die with COVID-19 in Costa Rica

QCOSTARICA - Seven months after the first case of COVID-19 in Costa Rica, we have the death of the first two minors. In the epidemiological...

Blockade promoter says they are going to face riot police ‘armed’

QCOSTARICA - Former legislator Oscar Campos Chavarría, leader of the self-styled National Rescue Movement, assured this Friday that they are going to organize in...

KISS concert in Costa Rica definitively canceled

QENTERTIANMENT - Move Concerts announced this Tuesday, October 13, that the concert in Costa Rica of the legendary band KISS, as part of their...

Human rights “observer” of National Rescue Movement was imprisoned for drug trafficking

QCOSTARICA - Hermez González Álvarez, the human rights “observer” presented Monday by the Movimiento Rescate Nacional (National Rescue movement), the group behind the two...

Let's Keep This Going!

To be updated with all the latest news and information about Costa Rica and Latin America.

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.