• Author / Uploaded
• Chantal Neryett Cordoba Delisser

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SWOT ANALYSIS- MIT Strengths: 

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Strategic geographical situation: Geographical proximity to the Atlantic entrance of the Canal as well as much of the main shipping routes. And its proximity to the Colon Free Zone. Infrastructure storage subsystem of the terminal: It is important to know the land capacity has Manzanillo International Terminal. The most interesting thing is that this port continues to grow: o The total area of the terminal is 520,000 m2. o Its storage capacity is of 37,000 TEU containers. o The container repair yard are there is 15,000 m2, including 1300m2 undercover repairers. o Connections for refrigerated containers. Storage capacity of the yard: Storage capacity exceeds current demand (2.2 million vs. 2 million current demand). Modern superstructure in the dock area and container yard: MIT has teams that develop the processes within the terminal quickly and efficiently, which reflects the characteristics of an emerging country. These teams are: o STS gantry cranes o Six (6) Post-Panamax cranes (17 containers on deck) o Two (2) Panamax cranes (13 containers on deck) o Three (3) Super Post Panamax cranes (18 containers on deck) o Three (3) Super Post Panamax cranes (22 containers on deck) o Cranes RTG's Patio o Twelve (12) brand RTGs KoneEstiba o Twelve (12) brand RTGs ZPM STOWAGE o Top-Pick o Twenty (20) are Mark Taylor o Side-Picks o Twenty-Two (22) which are Brand Taylor o Tractors o Eighty six (86) which are Brand Ottawa and Capacity o 94 trailers Reliable and efficient services: MIT offers shipping lines transiting the Panama Canal and the Caribbean and South America of high profile services. Highly trained appeal: MIT has highly trained technicians under the standards of IILC (The Institute of International Container lessors) for all kinds of work concerning all types of repair work and container chassis. It also has specialized staff to maintain refrigerated containers (REM) whose expertise has designed more than 1,300 ground connections for refrigerated containers, including 24-hour monitoring and trained personnel to perform inspections, preventive maintenance and repairs in refrigerated containers and various types of generators, such as "power-packs", "gen-sets", "clip-ons". Port security: MIT meets all aspects of the agreement SCIA (Super Carrier Initiative Agreement) established by the Customs Service of the United States,

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the BASC (Business Alliance for Secure Commerce) and the ISPS Code (Code for the Protection Ship and port).The port also offers: o Security for the ship and terminal o Access control and IDS (Intrusion Detection System) o More than 150 partners in the security area o Narcotics canine units, anti-explosives and patrol. o CCTV and Monitoring and Control Center. o Stamp Program with the shipping lines. Modern computerized systems tailored to customer needs: o (SI): It has the latest technology to manage port terminals, using systems provided by Tideworks Technology for its operation base and additional providers relying on peripheral systems. The IS department provides users of MIT with quality technical services and information to assist in decision-making processes. o Spinnaker: System Planning stevedoring and ship yard. o EDI (Electronic Data Interchange) standard communication platform for data exchange between clients and terminal. o Traffic Control: real-time system for traffic control devices supported by the Differential Global Positioning System (DGPS) provides real-time inventory, updating databases Mainsail and Spinnaker via computers installed in equipment container handling, using a wireless (Wi-Fi) 2.4GHz for all communications through the container yard. o Mainsail Online: An interactive web-based platform that enables remote access (via Internet) customer transactions and relevant information about their containers. o Edify and Forecast: Community systems that allow access to information carriers and other interested parties. o Grasp: Monitoring system of refrigerated containers that allows remotely extract the temperature reading to ensure continuous monitoring. Garita and modern land access: The main garita consists of 5 input and 5 lanes exit lanes, including two entry lanes equipped with weights directly connected to the terminal system. Weight readings scales are stored together with the transactions of the checkpoint. o Pre-Garita facilities: The pre-checkpoint offices allow easier and faster handling of documentation processes prior to delivery of the cargo. Customs Office, Customs and Quarantine MIT are conveniently located in the gatehouse to provide prompt service. o Garita to Free Zone: The shortcut checkpoint allows import and export transactions between MIT and the Colon Free Zone. The export rail is equipped with weights for weight control• Programs for Cooperation with the Government on transparency: MIT works closely with government agencies involved in the release of containers and cargo. Both Customs and Quarantine have offices inside the terminal and connected to the Mainsail system releases of MIT to register online. Favorable conditions for the transformation of the port terminal into a logistics hub: The Atlantic sector has great potential to become a major logistics center due to its geographical position, the integration of ports,

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railways, the Colon Free Zone, the once airport integration thereof is improved as well as the complete highway once the same has been improved. Additionally, the increase in trade flows in the region makes it attractive to use a logistics center near a transshipment terminal for cargo consolidation, reducing transportation costs. Also noteworthy is the willingness of the authorities to provide tax incentives for the establishment of assembly plants or manufacture of goods. Constant flow of foreign direct investment in the country for logistics projects: direct investment flow has been constant since 2006 (an average of one billion dollars a year) and reported twice in 2011 (Export.Gov).

Opportunities: 

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Favorable conditions for the transformation of the terminal into a logistics hub: The Atlantic sector has great potential to become a major logistics center due to its geographical position, the integration of ports, railways, the Colon Free Zone, the once airport integration thereof is improved as well as the complete highway once the same has been improved. Additionally, the increase in trade flows in the region makes it attractive to use a logistics center near a transshipment terminal for cargo consolidation, reducing transportation costs. Also noteworthy is the willingness of the authorities to provide tax incentives for the establishment of assembly plants or manufacture of goods. Constant flow of foreign direct investment in the country for logistics projects: Direct investment flow has been constant since 2006 (an average of one billion dollars a year) and reported twice in 2011 (Export.Gov). Opportunity to expand into South America through the FTA between Panama and the United States: MIT in order to expand the port of Barranquilla by the free trade agreement between Colombia and the U.S. Manzanillo International Terminal (MIT), will expand its operations to Colombia because of the free trade agreements between the U.S. and both countries. MIT provides a possible expansion in Colombia. The port company, American Capital, is performing expansion operations in Colombia and in Panama, at the dawn of the FTA with the U.S. in both countries.

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Poor land connections in Colon: The main highway connecting the cities of Panama and Colon, Transistmica road is in poor condition, in many cases, lack of maintenance by the National Government. Possibility of strike: This situation can result in congestion and delay MIT trade flows passing through this route.

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Development of other transshipment terminals: Development of higher capacities at ports in the Caribbean Region (Kingston, Caucedo, Freetown, Cartagena). Transfer to large-scale industrial production destined for the East Coast of the United States, from the enclave China-Japan-KoreaMalaysia-Indonesia Vietnam (Southeast Asia): If this change were to occur, the possibility exists that a significant number of such goods have as a passage, the Suez Canal and the Panama Canal, as it would not come from China or Japan or Korea but in Southeast Asia and India. The existence of other routes with cheaper freight: In terms of cost, freight rates fell by 38% on average if the U.S. general cargo is transported in containers from Cartagena, instead of being transported from Manzanillo, Puerto Limon and Progress despite these ports are geographically closer to the destination port of landing (USA). Social instability in Colon: In recent months, the province of Colón has been impacted by social problems and consequently, this has generated among Colon’s citizens clashes with the government. If this factor constant, it can affect the performance of MIT in capacity, affecting the time for loading and unloading of ships. It also represents a total drop connection, leading to huge losses for shipping lines, ports, rail, transport, Free Zone, exporters and importers.

Table 1: SWOT Analysis- MIT Opportunities Favorable conditions for the - Strategic geographical situation - Infrastructure storage subsystem of transformation of the terminal into a logistics hub. the terminal. - Modern superstructure in the dock - Constant flow of foreign direct investment in the country for logistics area and container yard. projects. - Reliable and efficient services. - Opportunity to expand into South - Highly trained appeal America through the FTA between - Port security Panama and the United States Strengths

- Modern computerized systems tailored to customer needs. - Garita and modern land access. - Favorable conditions for the transformation of the port terminal into a logistics hub. - Constant flow of foreign direct investment in the country for logistics projects. Weaknesses - Poor land connections in Colon. - Possibility of strikes.

Threats - Development of other transshipment terminals. - Transfer to large-scale industrial

production destined for the East Coast of the United States, from the enclave China-Japan-Korea-Malaysia-Indonesia Vietnam (Southeast Asia). - The existence of other routes with cheaper freight. - Social instability in Colon