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Colombia - Panama Brasilia, May 14, 2002 Transport Integration Project Ministry of Transport

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1. Objectives 2. Geographic & Economic Context 3. Integration Corridors 4. Project Alternatives 5. Steps to Take Colombia - Panama Ministry of Transport

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Objectives Transport Integration Project Develop and modernize transport infrastructure in the region. Continue the Pan-American Highway between Colombia and Panama. Improve international competitiveness and integration of economies in the region. Promote economic and social development of countries in Central and South America.

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Ministerio de Transporte 1. Objectives 2. Geographic & Economic Context 3. Integration Corridors 4. Project Alternatives 5. Steps to Take Colombia - Panama Ministry of Transport

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Geographic Location Context Transport Integration Project

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Geographic Location Context Transport Integration Project Hemispheric Level Essential to efficient operation and development of Free Trade Area of the Americas (FTAA) Integrates road network of North, Central and South America, from Alaska to Tierra del Fuego Consolidates the Greater Caribbean ethnic, cultural, geographic and economic area, including 12 U.S. states that were originally Spanish Facilitates including Panama in the Andean Community of Nations (CAN) and the Group of Three (G-3)

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Geographic Location Context Transport Integration Project Regional Level Promotes trade and integration of Panama and Central America with Colombia and other Andean countries. Promotes development of a large tourist ring around the Greater Caribbean (Gulf of Mexico, Caribbean Sea and West Indies)

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Economic Context Context Transport Integration Project 3,161,985 t 682,179 t 1,692,001 t 693,225 t Panama City 1,086,000 t Source: DANE 1,413,600 t International Trade Flow from Colombia to Central American Common Market (MCCA) t = 1 tonne = 1000 kg

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1. Objectives 2. Geographic & Economic Context 3. Integration Corridors 4. Project Alternatives 5. Steps to Take Colombia - Panama Ministerio de Transporte Ministry of Transport

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Integration Corridors Corridors Transport Integration Project Bogotá Lima Asunción BELEN Quito Caracas La Paz Santiago Panamá Buenos Aires Montevideo Río de Janeiro Brasilia

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Integration Corridors Corridors Transport Integration Project Acandí Metetí Unguía Bajira Villarteaga Palo de letras Yaviza El Tigre Mutata Riosucio Paya Pocuro ALTERNATIVE CROSSINGS FOR DARIEN BOTTLENECK Alternative No. 1 Alternative No. 2 Alternative No. 3

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Integration Corridors Corridors Transport Integration Project EVALUATION OF ALTERNATIVES * All these alternatives were rejected for their high costs and environmental drawbacks.

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1. Objectives 2. Geographic & Economic Context 3. Integration Corridors 4. Project Alternatives 5. Steps to Take Colombia - Panama Ministerio de Transporte Ministry of Transport

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Project Alternatives Transport Integration Project Necoclí Carti Acandí FERRY CONNECTION Alternative No. 1 Alternative No. 2 Alternative No. 3

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Transport Integration Project Necoclí ALTERNATIVE No. 1: NECOCLI - COLÓN Project Alternatives

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Transport Integration Project ALTERNATIVE No. 1: NECOCLI - COLON Distance/Cycle: 200 nautical miles / 12 hours at 20 knots average cruising speed and 2 hours to load and unload. Advantages: The operation can begin in the short term. Disadvantages: Very long trip and cycle (6 times as long as Calais-Dover). Slow traffic or more ferries Big investment in terminals, marine equipment and logistics High operating costs Vulnerable economic return Complex management and requirements Very temporary solution Project Alternatives

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Transport Integration Project Necoclí Carti ALTERNATIVE No. 2: NECOCLI - CARTI Project Alternatives

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Transport Integration Project ALTERNATIVE No. 2: NECOCLI - CARTI Distance/Cycle: 166 nautical miles / 10 hours at 20 knots average cruising speed and 2 hours to load and unload. Advantages: The operation can begin in the short term. It would not be so vulnerable to start-up effects. Disadvantages: Very long trip and cycle (5.5 times as long as Calais-Dover). Road to Carti must be upgraded. Same disadvantages as previous alternative. Project Alternatives

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Transport Integration Project ALTERNATIVE No. 3: NECOCLI - ACANDI Project Alternatives

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Transport Integration Project ALTERNATIVE No. 3: NECOCLI - ACANDI Distance/Cycle: 32 nautical miles / 3.6 hours at 20 knots average cruising speed and 2 hours to load and unload Advantages: Short trip and cycle (same as Calais-Dover). Smooth traffic flow with fewer ferries. Moderate investment in terminals and marine equipment. Minimal investment in logistical facilities. Significant and sustained growth of traffic. Lower operating costs. Highly profitable and stable operation. Project Alternatives

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Transport Integration Project ALTERNATIVE No. 3: NECOCLI - ACANDI Disadvantages: Requires upgrading Pan-American Highway to Metetí. Requires building road from Metetí to Acandí (approx. 70 km to 80 km and investment of US$100 million) by way of Hito de Gandi to enter Colombia without going through San Blas territory Note: Would develop region around Gulf of San Miguel on Pacific Coast of Panama Would connect Urabá in Chocó and Antioquia departments. Project Alternatives

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1. Objectives 2. Geographic & Economic Context 3. Integration Corridors 4. Project Alternatives 5. Steps to Take Colombia - Panama Ministerio de Transporte Ministry of Transport

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Steps to Take Pending Activities Transport Integration Project Sign agreement between two countries. Form technical committee Develop a more specific project vision. Harmonize regulatory and institutional aspects. Explore innovative public and/or private funding mechanisms.

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Pending Activities Transport Integration Project Form technical committee Harmonize policies, plans and programs. Border crossing procedures. Technical and demand study. Assess social and environmental dimension of project. Steps to Take

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Colombia - Panama Ministry of Transport Thank you Ministry of Transport