2013-08-09

The current Panamanian administration is known for throwing ideas out there, maybe just half-baked ideas, or ideas they want to run up the flag pole and see if anyone salutes.  Expanding the Canal, building subways in Panama, replacing the “Red Diablo” buses with standard city buses, the Costa Cintera and the elevated sea road around Casco Viejo are all ideas which at first may have sounded half-baked which are becoming reality . One of the things about living in a country with a dynamic positive outlook and a continuing record of growth (which is becoming more and more characteristic of Latin America vs., for example, the US). Recent ideas have included a high-speed train connecting David/Boquete and Panama City and using the Euro as a second currency in Panama.  Apparently Japan has already expressed some interest in the train idea, and several banks are already trading in Euros.

Of course Panama has a long history with Spain and a more-or-less common language (something like Australia, the US and Great Britain having a more-or-less common language).  There has always been a lot of Spanish private investment in Panama.  Economic challenges in Europe are encouraging more investment.  And the government of Panama has been actively recruiting Spanish citizens to flee to Panama and take on many jobs for which there aren’t enough qualified Panamanians.  They are “fast tracking” (of course “fast” doesn’t have the same meaning in Panama as in the rest of the world!) Spanish visas.

So t here are all these ideas . . . and here’s the latest!  We kid you not . . .

A Panamanian Cruise Line!

To avoid dependence on North American cruise ship operators Panama needs is own cruise line and the government would help fund it.

The statement comes from Panama’s the Manager of the Tourism Authority  (ATP), Salomon Shamah.

He says the cruise industry is very important for Panama, as it has facilities in both oceans, but the most important thing is the fact that the country is located in a privileged position in Central America and has an air hub which provides the opportunity of being a “home port”.

Now the challenge for the country is that it is “still not recognized as a Caribbean destination, so authorities are working on positioning this brand image by creating their own cruise line, with the participation of Panamanian companies and companies in the region”, reported Anpanama.com.

“If private investors take the first step I would go to the highest level in the government to help them so that they could generate their own product and we will assume part of the risk. This would be the only way to achieve this goal, since a 500-room cruise ship costs tens of millions of dollars,” he said.

On the surface a pretty far-fetched idea!



One of the “R Class” ships, the former ROYAL PRINCESS

First, “500-room cruise ships” are on their way out. Yes, there are lots of them for sale. Carnival might be willing to unload one of its smaller brands that uses mostly small ships and Royal Caribbean might be happy to unload Azamara. Richard Fain, CEO of RCCL, has recently confirmed that the future of cruising is in big ships which because they are newer have the most efficient technology and have the economies of scale to drive revenue. So if you’ve always loved the small “R ships” like Azamara sails and Princess is gradually getting rid of, you’re out of luck. But maybe therein also lies opportunity for Panama, if not the government, then private investment.

I believe there are still folks out there who want to cruise because of the destinations . . . folks who could care less about climbing walls, ice skating rinks, bowling alleys, and amusement park features, ships where ports are viewed as an inconvenience and at best chosen for their shopping mall ambience . . .

Second, A Panamanian cruise line? Who is going to crew a true Panamanian ship? Existing, well-managed lines benefiting from enormous economies of scale are struggling, and they are using underpaid largely Third-World crews willing to serve, skilled in service and coming from areas where service is considered an honor. These folks work 16 hour days! They don’t get government-determined salaries and benefits. Imagine a ship crewed by folks who got 21 paid holidays a year, 16 paid sick days, a 30 day paid vacation each year, a 13th month gratuitous payment, Social Security AND severance pay! Unless the government throws out the labor law, this just ain’t going to happen.

Third, one of the keys to cruising profitability is ports. Ironically although the cruise lines are primarily interested in generating on board revenue they understand that customers are sold in large part by the ports. The challenge is for cruise lines to find new and interesting ports. And therein lies opportunity for Panama! And because of the high cost of fuel, the closer these ports are to one another the better. Again, opportunity for Panama.

Imagine a small ship, 600 or so people, like one of the “R” ships [These are 8 ships that were built for Renaissance Cruises before it went under] that had the following itinerary:

Day 1 – Sail from Punta Arenas, Costa Rica [Airport San Jose]

Day 2 – Golfito, Costa Rica – Tender Port

Day 3 – Puerto Armuelles, Panama – Tender Port

Day 4 – Boca Chica/Isla Coiba, Panama – Tender Port

Day 5 – Amador/Panama City, Panama

Day 6 – Amador/Panama City, Panama

Day 7 – Panama Canal Transit, Colon, Panama [Tocumen Airport]

Then the ship would sail a reverse itinerary Colon to Punta Arenas.



Barcelona Cruise Terminal

Without its own cruise line, Panama could encourage far more ships to visit and home port in Panama.  Tocumen has the air lift from Europe [Amsterdam, Paris, Madrid, soon to be London], the US [16 direct flights], the Caribbean and South America [66 direct flights].  What Panama needs are new cruise terminals in Colon and Amador.  Frankly both existing terminals in Colon have no future.  What Panama needs on both ends of the Canal are cruise terminals on the order of the Barcelona Cruise Terminal.

To get cruise lines to Panama the country needs to provide exceptional facilities and financial concessions.  Panama has proximity to much of the Southern Caribbean, Cartegena and Venezuela on the Atlantic side.  Panama has the Panama Canal convenient for navigation as well as a hudge attraction in and of itself.  Puerto Armuelles and Boca Chica/Isla Coiba need to be developed as tender ports.  Both have access to tremendous ecological attractions, beaches, adventure tours, and the highlands of Volcan and Boquete.

Putting Down The “Love Boat”

In her glory days . . . PACIFIC PRINCESS

It’s kind of like taking your pet to the vet to be “put down” because she is old, in pain, has had a good life but “it’s time.”  So the original “Love Boat”, the PACIFIC PRINCESS which is the ship on which the popular TV series was based, and sometimes shot, has made it’s final journey to a scrap yard in Turkey, unable to remain upright or proceed under its own power.

Aside from just being old, the PACIFIC PRINCESS size would prevent it from every being an option in today’s cruise world.  The ship sailed for Princess 1975-2002 and at 19,903 tons held only 626 passengers and 350 crew.  It was built in 1970 at a cost of $25M.  A cruise ship has a life expectancy of 30 years, so PACIFIC PRINCESS [a/k/a SEA VENTURE, PACIFIC] lived well beyond her life expectancy.

I suspect this promo shot was taken on the deck of the QUEEN MARY in Long Beach and not on the PACIFIC PRINCESS

The success of “The Love Boat” is believed to have largely been responsible for the creation of the modern cruise industry.

Aaron Spelling’s “The Love Boat,” starring Gavin MacLeod as the ship’s captain, ran on the U.S. television network ABC from 1977 to 1986. The show was set on board the Pacific Princess, which mainly sailed from California to the Mexican Riveria.

Each week passengers and crew members, caught under the Pacific Princess’ romantic spell, engaged in love affairs or humorous encounters during the one-hour show.

“This ship has undergone several modifications over its lifespan. It had been decommissioned for five years, and renovation now would have been too costly,” Ceviker said.

Turkey’s Izmir Ship Recycling Co. acquired the 42-year-old Pacific for 2.5 million euros ($3.3 million).

The vintage cruiseliner arrived from Genoa, Italy, at the breakers in the seaside town of Aliaga in Turkey late on Tuesday after a difficult trip in a violent storm, Ceviker said.

The Pacific began taking on water and required the help of additional tugboats to make it to Aliaga. It was now listing on its starboard side at Aliaga.

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