Notarc Management Group, a Latin America-focused investment firm, is partnering with a unit of Mediterranean Shipping Company to take over construction of the $1.4 billion Panama Canal Container Port.
The facility, which is expected to handle 5 million 20-foot equivalent units, or TEUs, is 40% complete with construction expected to resume in the fourth quarter, according to a statement, without disclosing additional details. A consortium led by China’s Landbridge began work on the project in mid 2017, but the concession was revoked last year over non-compliance.
“This acquisition is a strategic opportunity for us to further develop and integrate a regional logistics platform,” said Dion Bowe, managing partner at Notarc Latin America and the newly appointed chief executive officer of PCCP.
The Panama Canal is gaining more importance than ever as a strategic shipping corridor given the supply-chain disruptions triggered by the pandemic and exacerbated by Russia’s invasion of Ukraine and strict lockdowns in China. While the planet’s supply-chain issues have roiled industries and hit consumers with higher costs, shippers are raking in record profits.
In addition to the container facility, Notarc also signed a memorandum of understanding to build a bioenergy facility in Colon, Panama, with US-based SGP BioEnergy.
The announcements came on the sidelines of the Bloomberg New Economy Gateway Latin America event being held in Panama through May 19.