The Panama Maritime Authority (AMP) has granted a concession extension to the Panama Canal Railway Company (PCRC) for the operation and management of the railway and its infrastructure. This extension will last for 25 years.
The decision was approved on February 9, 2023, under the administration of former President Laurentino Cortizo. It was recently published in the Digital Official Gazette No. 30121 on September 18, 2024.
The original contract with PCRC dates back to 1998 and allowed for a 25-year extension, subject to compliance with the terms established in Contract Law No. 70 of January 1998. The resolution authorizing the extension includes five articles, enabling the AMP administrator to certify compliance with PCRC’s contractual obligations.
In addition, the administrator was authorized to sign a supplementary agreement in which PCRC undertakes to contribute financially to social and community development projects of the National Government.
From 1998 to 2018, PCRC has invested $163,400,000, exceeding the contract and ensuring the operation of the railway. In 25 years, the company has paid the State $55,121,113.93, equivalent to 10% of its gross income.
The trans-isthmic railway, which connects Panama and Colon, is essential for the movement of cargo in the country’s ports. AMP stated that in 2023, the Comptroller General’s Office certified that PCRC complied with the terms of the contract, which supported the decision to extend the concession.
The AMP statement highlights the importance of honouring previously made commitments, ensuring legal stability in the sector.
