Logistics company DSV has opened a new office in Panama City, an important hub for Central America and the Caribbean, to cater to customers utilising Panama’s free zones and favourable tax regime.
“It is a strategic decision to move into Panama. Many of our customers use Panama’s free zones to distribute goods to the Central American and Caribbean markets,” says Torge Koehnke, executive vice president LATAM Region, DSV Air & Sea.
Koehnke added that Panama is also an attractive place to store products and establish distribution to countries in the region due to the tax benefits available.
“With an office in Panama City, we are expanding our Air & Sea network and look forward to supporting current and new customers alike with their logistics requirements,” says Jonas Thoroe, managing director, DSV Air & Sea Panama, who will be heading the new entity.
Well known for the Panama Canal, the country is strategically important in several respects, DSV said, including: Political stability with a growing economy and a healthy and professional business environment. In addition to direct access to the domestic market, the country is an important hub for distribution of goods to other Central American and Caribbean countries.
The Panamanian government operates several free zones that account for the majority of the country’s imports and exports. The two most prominent ones are: The Panama Pacifico Special Economic Area (PPSEA), which was established in 2004 and is located on the former US air force base Howard near Panama City on the Pacific side of the Isthmus.
And the Colon Free Zone (CFZ), which is located in the city of Colon at the Atlantic entrance to the Panama Canal.