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‘Milestone’: Port Panama City breaks tonnage record; service to Veracruz added
TIN news: Port Panama City handled a record 2.03 million tons of cargo during the 2015 fiscal year, trumping its previous high set before the Great Recession.
“We did, for the first time in the history of this port, exceed 2 million tons of cargo,” Port Director Wayne Stubbs reported during a board meeting Thursday. “It’s been a goal, a milestone.”
The record haul, which exceeded 1.8 million tons set back in 2006, was driven by increases in almost all of the port’s imports and exports year over year, with the exception of container cargo, which declined by about 20 percent.
However, port officials are optimistic container cargo will see a strong boost this fall as Panama City shipping company Linea Peninsular announced a new weekly service to Veracruz, Mexico, beginning Nov. 1. The service will complement Linea’s existing service between Panama City and Progreso, Mexico, and accommodate various types of container cargo, also opening up access to larger cities in Mexico.
“Veracruz serves the Mexico City market, which is 20 million people as well as an industrial and an agricultural area,” Stubbs said.
One of the largest tonnage increases in 2015 came from steel plate imports, which surged from about 84,000 tons last year to 348,000 tons in 2015, a reflection of record-breaking orders for one of the port’s major tenants, Berg Steel Pipe Corp. Berg received its largest order in company history last year and is now close to completing the project, which called for the production of 600 miles, or 480,000 net tons, of large-diameter pipe.
To complete the project, along with other major orders secured last year, Berg hired about 140 new employees and increased operations in Panama City from one shift to two. The company imports steel plates to its plant primarily by ship from shareholders in Germany and ships its finished product to customers via the Bay Line Railroad.
Berg sales director Jonathan Kirkland attributed the company’s recent success to continued support from the port, the company’s local vendors and its dedicated employees.
“The activity at both Berg and the port will remain strong as we are booked well into 2016 on a two-shift operation,” Kirkland said. “We have a positive outlook on the large-diameter pipe market and continue to see interest in natural gas pipeline projects as far out as 2017 and 2018.”
Berg is one of three major tenants at the port, along with Oceaneering, which manufactures steel umbilicals used in oil and gas drilling, and Enviva, formerly Green Circle, which exports wood pellets produced at its plant near Cottondale. The port’s bulk cargo exports of wood pellets also increased last year, rising from 720,000 tons to 783,000 tons.
Additionally, Port Panama City saw a revival in copper shipments this year, one of its largest imports, after a slow year in 2014. Copper imports grew from 252,000 tons last year to 348,000 tons in 2015, rebounding to trump 2013 copper imports, which came in at 335,000 tons.
“We did, for the first time in the history of this port, exceed 2 million tons of cargo,” Port Director Wayne Stubbs reported during a board meeting Thursday. “It’s been a goal, a milestone.”
The record haul, which exceeded 1.8 million tons set back in 2006, was driven by increases in almost all of the port’s imports and exports year over year, with the exception of container cargo, which declined by about 20 percent.
However, port officials are optimistic container cargo will see a strong boost this fall as Panama City shipping company Linea Peninsular announced a new weekly service to Veracruz, Mexico, beginning Nov. 1. The service will complement Linea’s existing service between Panama City and Progreso, Mexico, and accommodate various types of container cargo, also opening up access to larger cities in Mexico.
“Veracruz serves the Mexico City market, which is 20 million people as well as an industrial and an agricultural area,” Stubbs said.
One of the largest tonnage increases in 2015 came from steel plate imports, which surged from about 84,000 tons last year to 348,000 tons in 2015, a reflection of record-breaking orders for one of the port’s major tenants, Berg Steel Pipe Corp. Berg received its largest order in company history last year and is now close to completing the project, which called for the production of 600 miles, or 480,000 net tons, of large-diameter pipe.
To complete the project, along with other major orders secured last year, Berg hired about 140 new employees and increased operations in Panama City from one shift to two. The company imports steel plates to its plant primarily by ship from shareholders in Germany and ships its finished product to customers via the Bay Line Railroad.
Berg sales director Jonathan Kirkland attributed the company’s recent success to continued support from the port, the company’s local vendors and its dedicated employees.
“The activity at both Berg and the port will remain strong as we are booked well into 2016 on a two-shift operation,” Kirkland said. “We have a positive outlook on the large-diameter pipe market and continue to see interest in natural gas pipeline projects as far out as 2017 and 2018.”
Berg is one of three major tenants at the port, along with Oceaneering, which manufactures steel umbilicals used in oil and gas drilling, and Enviva, formerly Green Circle, which exports wood pellets produced at its plant near Cottondale. The port’s bulk cargo exports of wood pellets also increased last year, rising from 720,000 tons to 783,000 tons.
Additionally, Port Panama City saw a revival in copper shipments this year, one of its largest imports, after a slow year in 2014. Copper imports grew from 252,000 tons last year to 348,000 tons in 2015, rebounding to trump 2013 copper imports, which came in at 335,000 tons.