Logistical hub in Panama strengthened by Damco and EBL partnership

Shippers looking to develop transformational hub and distribution solutions will be able to move decision-making much closer to the final markets and react more quickly to changes in supply and demand

By ·

A partnership to promote imports and re-exports of apparel and fashion between Asia, the Colon Free Zone (CFZ) and Latin American destinations was signed by the Panamanian company Exclusive Brands Logistics Corp (EBL) and Damco Panama.

According to spokesmen, the logistics deal is the first of its nature for the fashion industry in Panama. The hub will handle approximately 35,000 cubic metres of goods per year.

EBL is a leading provider of value-added services, including packing and labeling, to the fashion and apparel industry in the CFZ, the commercial distribution center located at the Atlantic gateway of the Panama Canal.

Under the agreement, EBL will provide specialized services for luxury fashion brands while Damco, the logistics arm of A.P. Moller–Maersk Group and one of the world’s leading 3PLs, will provide supply chain, transportation and freight forwarding services from source to final destination. Together, EBL and Damco will promote Panama as the logistics service center to regional and global businesses looking for strategic, cost–competitive solutions to bring products to the Americas.

“In this partnership there are three key points: the origin of the purchase, the CFZ and the final destination of the goods.  EBL does the value added logistics service in our Panama facilities and Damco does the transportation and international supply chain, allowing customers to focus on their purchasing and sales,” said EBL Managing Director Alfredo Maduro.

As noted in SCMR, the current evolution in Panama’s logistics infrastructure may be transformational for inbound supply chains from Asia to the Americas.

Edgar Blanco, research director at the MIT Center for Transportation & Logistics, told Supply Chain Management Review—LM’s sister publication— that Panama aspires to be a “logistical hub.”

“The entire Caribbean Basin will be transformed once the Canal is expanded,” he said.

Shippers looking to develop transformational hub and distribution solutions will be able to move decision-making much closer to the final markets and react more quickly to changes in supply and demand, ultimately providing better service to their end customers, according to Alison Clafin, Chief Commercial Officer in Latin America for Damco.

“There are vast opportunities in Latin America as the region renovates infrastructure and rising income levels result in unprecedented consumer spending,” said Clafin. “With EBL, our combined strengths in the retail, fashion and lifestyle sector will allow us to bring solutions to global customers wanting to expand strong brand presence with tangible savings from decreased inventories as well as lower warehousing and transportation costs,” Clafin concluded.

In Panama, Damco has warehousing facilities on both the Atlantic and Pacific side, with operations in Panama Pacifico Special Area, in the Corozal processing zone and the industrial area of Parque Sur.


About the Author

Patrick Burnson, Executive Editor
Patrick Burnson is executive editor for Logistics Management and Supply Chain Management Review magazines and web sites. Patrick is a widely-published writer and editor who has spent most of his career covering international trade, global logistics, and supply chain management. He lives and works in San Francisco, providing readers with a Pacific Rim perspective on industry trends and forecasts. You can reach him directly at [email protected]

Subscribe to Logistics Management Magazine!

Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your entire logistics operation.
Start your FREE subscription today!

Latest Whitepaper
Outsourcing the Indirect Supply Chain
This in-depth whitepaper takes you through the journey that Smith & Nephew - a global research, development and manufacturing company of medical devices and products - underwent when initially looking for a provider to manage their tool cribs and eventually decided on an end-to-end supply chain management firm. Outsourcing white papers, SDI medical device manufacturing
Download Today!
From the July 2016 Issue
While it’s currently a shippers market, the authors of this year’s report contend that we’ve entered a “period of transition” that will usher in a realignment of capacity, lower inventories, economic growth and “moderately higher” rates. It’s time to tighten the ties that bind.
2016 State of Logistics: Third-party logistics
2016 State of Logistics: Ocean freight
View More From this Issue
Subscribe to Our Email Newsletter
Sign up today to receive our FREE, weekly email newsletter!
Latest Webcast
Getting the most out of your 3PL relationship
Join Evan Armstrong, president of Armstrong & Associates, as he explains how creating a balanced portfolio of "Top 50" global and domestic partners can maximize efficiency and mitigate risk.
Register Today!
EDITORS' PICKS
Regional ports concentrate on growth and connectivity
With the Panama Canal expansion complete, ocean cargo gateways in the Caribbean are investing to...
Digital Reality Check
Just how close are we to the ideal digital supply network? Not as close as we might like to think....

Top 25 ports: West Coast continues to dominate
The Panama Canal expansion is set for late June and may soon be attracting more inbound vessel calls...
Port of Oakland launches smart phone apps for harbor truckers
Innovation uses Bluetooth, GPS to measure how long drivers wait for cargo