Proposed cost increase to transit Panama Canal

[belizesailor]

Another unintential "gift" of the Canal was to preserve big swaths of jungle. As a result there are some great hiking/widlife watching opportinities in the Canal Zone. If you decide to swallow the new fees and transit then I suggest taking a little time to do some exploring too. From Shelter Bay, where most await transit on the Atlantic side there are some very interesting day hikes.

Kennedy Loop. This was an area of officiers housing when Ft. Sherman was active. Its an easy short hike which makes for nice morning walk. Even this close to the marina you can still see plenty of birdlife and wildlife. Also several interesting Ft Sherman related ruins to visit including a large gun battery.

Ft Lorenzo. At about 10km round trip from Shelter Bay this is a longer, but easy, day hike to the ruins of Ft Lorenzo...an old Spanish fortification at the mouth of the Chagres river. Its a road hike, but passes thru mostly undisturbed jungle w lots of wildlife. Very little traffic on the road as it only goes to Ft. Lorenzo.

Coastal Flats. Walk out toward the breakwater and hang a left onto the extensive flats behind the reef. You can walk/wade for miles along this scenic coast. Most of it is no more than knee deep, but watch your step because there are also some deep cuts. Good fishing off the reef edge and in these cuts too by spear or pole.

Further afield there are areas like Gamboa which are extensive with rich bird/animal life.

The Panamanians also made good use of some of the USA base areas too. La Ciudad de Saber (City of Knowledge) is a shining example. This area was converted into a mixed university/business zone. Several USA companies/universities have a prescence here. There are resturants and frequent events hosted here...like concerts and a brew-fest (yum!).

Note that you can transit the Canal without fees by being a volunteer line handler. Ive been thru 3 times now on friend's boats.

[Joe Abbott]

While the discussions on the history, politics, and issues of the Panama Canal are interesting, the original post was about the new proposed canal transit fees and the option for public comment.

As a reminder, the Panama Canal Authority is still accepting public comment on the proposed fee increase. If you want to possibly influence the decision, formulate your constructive comments and rationale and email them to: customerelations@pancanal.com – there is a time limit to submit of 4:15 p.m. (local time) on July 15, 2019.

[markpierce]

So, how much is it worth to transit one of the Wonders of the World? Worthwhile going in both directions.

[Joe Abbott]

Originally Posted by markpierce

So, how much is it worth to transit one of the Wonders of the World? Worthwhile going in both directions.

How much is it “worth”? Each alone decides the “worth” of the accomplishment of a canal transit from a personal perspective.

How much it “costs” now and in the future is detailed in the proposal at: https://tolls.panama-canal.com/pdf/T...sal-FY2020.pdf

If you want to possibly influence the decision, formulate your constructive comments and rationale and email them to: customerelations@pancanal.com – there is a time limit to submit of 4:15 p.m. (local time) on July 15, 2019.

[belizesailor]

Originally Posted by Joe Abbott

While the discussions on the history, politics, and issues of the Panama Canal are interesting, the original post was about the new proposed canal transit fees and the option for public comment.

As a reminder, the Panama Canal Authority is still accepting public comment on the proposed fee increase. If you want to possibly influence the decision, formulate your constructive comments and rationale and email them to: customerelations@pancanal.com – there is a time limit to submit of 4:15 p.m. (local time) on July 15, 2019.

So what would be a constructive public comment?

To me, just bitching about the rate increase is useless noise unless its backed up by a strong logical argument. What fact based argument could one present against the rate increase?

[Joe Abbott]

Originally Posted by belizesailor

So what would be a constructive public comment?

To me, just bitching about the rate increase is useless noise unless its backed up by a strong logical argument. What fact based argument could one present against the rate increase?

Agree "bitching" about it will gain nothing, just as not putting your own 2-cents into the pot.


This is what we submitted in a constructive and respectful tone. They in-turn responded back respectfully confirming they received it - see picture attached.



I'm sure there are others that can formulate a rationale much better than ours - but we put our 2-cents in the pot and it really required very little effort.



June 22, 2019
TO:
Jorge L. Quijano
CEO of the Panama Canal Authority
customerelations@pancanal.com

Gustavo Him
General Manager, Panama Tourism Authority (ATP)
gerencia@atp.gob.pa

SUBJECT: Proposal to Modify the Panama Canal Tolls System and the Regulations for the Admeasurement of Vessels

It was with dismay and disappointment we read the proposed increase in canal transit toll fees for small vessels, as we are in that category at 35 feet (length on deck) for a sailboat. A doubling of the canal transit toll fee from $800 to $1,600 for our small vessel gave us pause, as we reconsider the milestone accomplishment of a canal transit at some point in our future.


Unlike your commercial customers that will pass any canal transit cost increase unto their users and eventually to their end-customers, the small vessels bare the full brunt of any proposed increase. Understandably, an increase of this size – double, anyone would rationally reevaluate the worth or values of the service provided and consider alternatives. In our case, a viable alternative would mean considering bypassing a canal transit in favor of a longer voyage around Cape Horn or the routes through the channels to the north of the Cape Horn – an equally, but challenging accomplishment.


Keep in mind, the seafaring/sailing community at one time favored a Suez Canal transit over the longer more challenging route of the Horn of Africa. However, due to the unstable security (piracy) in the region, a voyage around the Horn of Africa is now preferred and commonplace. This same adaptation could be an unexpected outcome of your proposed Panama Canal toll increases.


Currently, a Panama Canal transit is an expensive consideration for many in the seafaring/sailing community. Many of the seafaring/sailing community are finically constrained, frugal in expenditures, minimalist in attitudes, young at heart but elderly on fixed incomes; but somehow manage to live the life of adventure as they value experiences over possessions. Most can’t afford a doubling of costs in any area of their expenditures – we surely can’t.


While it is unavoidable that you must recoup your direct costs for the services you provide, consideration of fees charged to the non-commercial customers, the small sailing vessels, is warranted from another perspective.
• In a large number of small sailing vessels canal transits, they are positioned either forward or aft of a much larger commercial vessel. This maximizes the number of vessels through the locks at one time and increases revenue per lock cycle. If your proposed toll increase results in less small sailing vessels transits, you will still cycle the locks for the larger commercial vessel without small sailing vessels – a net loss in revenue, even though probably small.
• Small sailing vessels do not just pay a transit toll fee. They rent equipment and hire locals to assist in line handling on a transit, plus many other transit expenses. They usually use marina facilities at both sides of the canal to refit, repair, and dock prior to and after a transit – sometimes they stay months at a time. They resupply their yachts will fuel and provisions as they depart Panama to their next destination. The impact on local business is a net positive for Panama.
• A Panama Canal transit for many small sailing vessels is a milestone event. The history of the Panama Canal and local sites often results in friends and additional family members of small sailing vessels visiting Panama to see the numerous tourist sites and assist or partake in the canal transit. A win-win for the goal of increased tourism to Panama.
• Another trait of many small sailing vessels is they like to inform the “world” about where they are and the experiences they have. Many broadcast their Panama Canal transit on personal websites, Facebook accounts, Youtube videos, and other forms of social media. Word of mouth advertising, especially through social media, of the amazing Panama Canal and tourist sites is more effective than any governmental tourist campaign can ever wish to achieve. This is a good economic reason to consider carefully the impacts of transit tolls on small sailing vessels. They provide an intangible benefit to the overall Panamanian economy and spread a positive message of the wonders of Panama.

Recommendations:
• Converse with your marina owners/operators on both sides of the canal. They stand to be impacted significantly if the numbers of small sailing vessels decrease.
• Consider restoring the less than 50 feet classification of small vessels at a low, but fair rate.
• Consider a lesser increase of toll fees from the proposed doubling of fees for the smallest vessels. This inadvertently sends an adverse and unwelcoming message.

Respectfully,
Joseph and Marilyn Abbott
SV Indra – located in the Philippines

[1affiah]

Why is there no mention of the Chinese influence? When we last visited the Canal Museum, it was hard to tell that the US was ever involved, with the expansion being built by the Chinese. The Panamanians are just puppets of a different master, and the results likely to be even less favorable to them next time around.

[Virginia y Kelo]

I wrote to the Panama Canal Authorities and this was rhe reply

Please note that in accordance with the rules of the consultation process stated in Annex A, paragraph 6.3, the information sent via email shall be submitted in "pdf", "jpeg" or "png" format. Letters in the body of the email will not be considered.

We recommend that you send your comments in the format stated in the tolls proposal.

Best Regards,

Jonathan González Solís
Customer Relations Section
Panama Canal Authority
Phone: 507-272-1747
Fax: 507-272-1416

[belizesailor]

So, why not send your comments in the requested format?

[mikedefieslife]

Originally Posted by CaptFigmo

If you can't afford the fee, sail around Cape Horn.
The wind is free the trip of a lifetime!

Except you have hundreds or perhaps even a 1000 miles of boring east Argentina coastline.

I suppose once you get to the other side you have Chilean Patagonia to look forward to though.

[belizesailor]

Originally Posted by 1affiah

Why is there no mention of the Chinese influence? When we last visited the Canal Museum, it was hard to tell that the US was ever involved, with the expansion being built by the Chinese. The Panamanians are just puppets of a different master, and the results likely to be even less favorable to them next time around.

China has certainly expanded its influence in Panama in recent years. However, the Chinese did not build the expansion. The expansion project was completed by a consortium of international companies, none of which were Chinese. Grupo Unidos Por el Canal (GUPC) was composed of companies from Belgium, Italy, Spain, and Panama.

https://www.gupc.com.pa/en/who-we-are/the-group

The Panama Canal Authority (ACP), a Panamanian entity, is responsible for Canal operations. Everyone you see and interact with during a canal transit is a employee of ACP and typically Panamanian or at least on a work visa.

A Chinese company, Hutchison Whampoa, has held contracts for operation of port facilities on both Atlantic & Pacific sides since 1997, but not the canal itself.

[belizesailor]

Originally Posted by Joe Abbott

Agree "bitching" about it will gain nothing, just as not putting your own 2-cents into the pot.


This is what we submitted in a constructive and respectful tone. They in-turn responded back respectfully confirming they received it - see picture attached.



I'm sure there are others that can formulate a rationale much better than ours - but we put our 2-cents in the pot and it really required very little effort.



June 22, 2019
TO:
Jorge L. Quijano
CEO of the Panama Canal Authority
customerelations@pancanal.com

Gustavo Him
General Manager, Panama Tourism Authority (ATP)
gerencia@atp.gob.pa

SUBJECT: Proposal to Modify the Panama Canal Tolls System and the Regulations for the Admeasurement of Vessels

It was with dismay and disappointment we read the proposed increase in canal transit toll fees for small vessels, as we are in that category at 35 feet (length on deck) for a sailboat. A doubling of the canal transit toll fee from $800 to $1,600 for our small vessel gave us pause, as we reconsider the milestone accomplishment of a canal transit at some point in our future.


Unlike your commercial customers that will pass any canal transit cost increase unto their users and eventually to their end-customers, the small vessels bare the full brunt of any proposed increase. Understandably, an increase of this size – double, anyone would rationally reevaluate the worth or values of the service provided and consider alternatives. In our case, a viable alternative would mean considering bypassing a canal transit in favor of a longer voyage around Cape Horn or the routes through the channels to the north of the Cape Horn – an equally, but challenging accomplishment.


Keep in mind, the seafaring/sailing community at one time favored a Suez Canal transit over the longer more challenging route of the Horn of Africa. However, due to the unstable security (piracy) in the region, a voyage around the Horn of Africa is now preferred and commonplace. This same adaptation could be an unexpected outcome of your proposed Panama Canal toll increases.


Currently, a Panama Canal transit is an expensive consideration for many in the seafaring/sailing community. Many of the seafaring/sailing community are finically constrained, frugal in expenditures, minimalist in attitudes, young at heart but elderly on fixed incomes; but somehow manage to live the life of adventure as they value experiences over possessions. Most can’t afford a doubling of costs in any area of their expenditures – we surely can’t.


While it is unavoidable that you must recoup your direct costs for the services you provide, consideration of fees charged to the non-commercial customers, the small sailing vessels, is warranted from another perspective.
• In a large number of small sailing vessels canal transits, they are positioned either forward or aft of a much larger commercial vessel. This maximizes the number of vessels through the locks at one time and increases revenue per lock cycle. If your proposed toll increase results in less small sailing vessels transits, you will still cycle the locks for the larger commercial vessel without small sailing vessels – a net loss in revenue, even though probably small.
• Small sailing vessels do not just pay a transit toll fee. They rent equipment and hire locals to assist in line handling on a transit, plus many other transit expenses. They usually use marina facilities at both sides of the canal to refit, repair, and dock prior to and after a transit – sometimes they stay months at a time. They resupply their yachts will fuel and provisions as they depart Panama to their next destination. The impact on local business is a net positive for Panama.
• A Panama Canal transit for many small sailing vessels is a milestone event. The history of the Panama Canal and local sites often results in friends and additional family members of small sailing vessels visiting Panama to see the numerous tourist sites and assist or partake in the canal transit. A win-win for the goal of increased tourism to Panama.
• Another trait of many small sailing vessels is they like to inform the “world” about where they are and the experiences they have. Many broadcast their Panama Canal transit on personal websites, Facebook accounts, Youtube videos, and other forms of social media. Word of mouth advertising, especially through social media, of the amazing Panama Canal and tourist sites is more effective than any governmental tourist campaign can ever wish to achieve. This is a good economic reason to consider carefully the impacts of transit tolls on small sailing vessels. They provide an intangible benefit to the overall Panamanian economy and spread a positive message of the wonders of Panama.

Recommendations:
• Converse with your marina owners/operators on both sides of the canal. They stand to be impacted significantly if the numbers of small sailing vessels decrease.
• Consider restoring the less than 50 feet classification of small vessels at a low, but fair rate.
• Consider a lesser increase of toll fees from the proposed doubling of fees for the smallest vessels. This inadvertently sends an adverse and unwelcoming message.

Respectfully,
Joseph and Marilyn Abbott
SV Indra – located in the Philippines

Good job! Well presented input. [emoji106]

[redneckrob]

Originally Posted by Joe Abbott

Agree "bitching" about it will gain nothing, just as not putting your own 2-cents into the pot.


This is what we submitted in a constructive and respectful tone. They in-turn responded back respectfully confirming they received it - see picture attached.



I'm sure there are others that can formulate a rationale much better than ours - but we put our 2-cents in the pot and it really required very little effort.



June 22, 2019
TO:
Jorge L. Quijano
CEO of the Panama Canal Authority
customerelations@pancanal.com

Gustavo Him
General Manager, Panama Tourism Authority (ATP)
gerencia@atp.gob.pa

SUBJECT: Proposal to Modify the Panama Canal Tolls System and the Regulations for the Admeasurement of Vessels

It was with dismay and disappointment we read the proposed increase in canal transit toll fees for small vessels, as we are in that category at 35 feet (length on deck) for a sailboat. A doubling of the canal transit toll fee from $800 to $1,600 for our small vessel gave us pause, as we reconsider the milestone accomplishment of a canal transit at some point in our future.


Unlike your commercial customers that will pass any canal transit cost increase unto their users and eventually to their end-customers, the small vessels bare the full brunt of any proposed increase. Understandably, an increase of this size – double, anyone would rationally reevaluate the worth or values of the service provided and consider alternatives. In our case, a viable alternative would mean considering bypassing a canal transit in favor of a longer voyage around Cape Horn or the routes through the channels to the north of the Cape Horn – an equally, but challenging accomplishment.


Keep in mind, the seafaring/sailing community at one time favored a Suez Canal transit over the longer more challenging route of the Horn of Africa. However, due to the unstable security (piracy) in the region, a voyage around the Horn of Africa is now preferred and commonplace. This same adaptation could be an unexpected outcome of your proposed Panama Canal toll increases.


Currently, a Panama Canal transit is an expensive consideration for many in the seafaring/sailing community. Many of the seafaring/sailing community are finically constrained, frugal in expenditures, minimalist in attitudes, young at heart but elderly on fixed incomes; but somehow manage to live the life of adventure as they value experiences over possessions. Most can’t afford a doubling of costs in any area of their expenditures – we surely can’t.


While it is unavoidable that you must recoup your direct costs for the services you provide, consideration of fees charged to the non-commercial customers, the small sailing vessels, is warranted from another perspective.
• In a large number of small sailing vessels canal transits, they are positioned either forward or aft of a much larger commercial vessel. This maximizes the number of vessels through the locks at one time and increases revenue per lock cycle. If your proposed toll increase results in less small sailing vessels transits, you will still cycle the locks for the larger commercial vessel without small sailing vessels – a net loss in revenue, even though probably small.
• Small sailing vessels do not just pay a transit toll fee. They rent equipment and hire locals to assist in line handling on a transit, plus many other transit expenses. They usually use marina facilities at both sides of the canal to refit, repair, and dock prior to and after a transit – sometimes they stay months at a time. They resupply their yachts will fuel and provisions as they depart Panama to their next destination. The impact on local business is a net positive for Panama.
• A Panama Canal transit for many small sailing vessels is a milestone event. The history of the Panama Canal and local sites often results in friends and additional family members of small sailing vessels visiting Panama to see the numerous tourist sites and assist or partake in the canal transit. A win-win for the goal of increased tourism to Panama.
• Another trait of many small sailing vessels is they like to inform the “world” about where they are and the experiences they have. Many broadcast their Panama Canal transit on personal websites, Facebook accounts, Youtube videos, and other forms of social media. Word of mouth advertising, especially through social media, of the amazing Panama Canal and tourist sites is more effective than any governmental tourist campaign can ever wish to achieve. This is a good economic reason to consider carefully the impacts of transit tolls on small sailing vessels. They provide an intangible benefit to the overall Panamanian economy and spread a positive message of the wonders of Panama.

Recommendations:
• Converse with your marina owners/operators on both sides of the canal. They stand to be impacted significantly if the numbers of small sailing vessels decrease.
• Consider restoring the less than 50 feet classification of small vessels at a low, but fair rate.
• Consider a lesser increase of toll fees from the proposed doubling of fees for the smallest vessels. This inadvertently sends an adverse and unwelcoming message.

Respectfully,
Joseph and Marilyn Abbott
SV Indra – located in the Philippines

As someone who has spent a decent amount of time on the opposite side of the stakeholder table reading and incorporating public comments....these are very well written comments. You clearly iterate very specific benefits to them that flow from your proposal, and I especially like your reference to the specific groups like marina's impacted because if they submit comments that are in line with yours it makes both your comments more compelling. And you specifically listed alternatives and detriments to their plan, again focused on how it impacted them and their goals. And you put enough color in to make it human without appearing to whine. Overall probably one of the best out of literally hundreds if not thousands of these I've read!

[Joe Abbott]

Originally Posted by Virginia y Kelo

I wrote to the Panama Canal Authorities and this was rhe reply

Please note that in accordance with the rules of the consultation process stated in Annex A, paragraph 6.3, the information sent via email shall be submitted in "pdf", "jpeg" or "png" format. Letters in the body of the email will not be considered.

We recommend that you send your comments in the format stated in the tolls proposal.

Best Regards,

Jonathan González Solís
Customer Relations Section
Panama Canal Authority
Phone: 507-272-1747
Fax: 507-272-1416

What you reference for submission requirements is true.



On our submission we included the letter to PCA identified above, in both the body of the email and as an attached pdf file - we did read the submission requirements and followed them.


Also, as the focus of our letter indicated the benefit of Panama tourism we included Gustavo Him, General Manager, Panama Tourism Authority (ATP) in the addressees and sent it to him by email at the same time. It was hope it would spur an interest on their part to also advocate for the small vessel segment.

[endlesspursuit]

Originally Posted by belizesailor

Yes, I have many friends who were "Zonies" (lived in the Canal Zone). The Zone was the exclusive territory of the USA and was from their accounts like a little slice of the USA with a Southern flavor. While Panamanians were excluded from much of the Zone, there were many employed as result of USA activities there and other US Military activies in Panama.

An interesting side effect which pertains to cruising is that many Kuna indians were also employeed by the Canal/US Military. This helped spread English in Guna Yala. I once met an elderly Kuna Sila (chief) who spoke perfect English. I asked him where he learned English...he used to work for the US military. It is now common to meet Kuna who speak English.

By contrast, the Zonies typically did not learn Spanish. I have several friends who grew up in the Zone and never learned a word of Spanish. Now that they have returned to Panama to retire they are fumbling thru learning Spanish just like the rest of us expats.

So yes, the Canal benefited some Panamanians financially during the USA era...and of course now benefits not only scores of individuals (Canal employees are almost exclusively Panamanian), but the entire nation tremendously.

Funny your friends never learned Spanish. My sister in law in a Zonian. And I have meet many of her friends form the zone. They all speak Spanish just like a local. Maybe better. Great translators since my Spanglish is weak at best. We are all pushing 60 for a generation comparison.