The efficiency of the Colon Free Zone administration has greatly improved over the last four years. This was the consensus of the most of the businesspersons and the port managers of the Colon Free Zone. The zone has not only expanded rapidly, but has also increased in terms of revenues paid to the administration in rents and other charges. This increase in performance is credited to the administration’s general manager, Nilda Iris Quijano.

“We thought that the zone was not making as much an economic impact on the economy as it should,” she said, “so we did an analysis comparing revenues earned here with other markets in competition with us.” According to Quijano, out of the $6 billion in annual transactions, only $4 million went into the national treasury. It was discovered that there had not been a rent increase in 20 years. There were companies operating in the zone that were paying $200 per year.

“There were cases where only 20 cents were paid per square meter,” Quijano said. “So we made an increase of 40 cents per square meter. In commercial areas, we raised the costs from $2.20 per square meter to $4.20 per square meter. After analyzing the situation, we formulated a strategic plan to make the zone a more efficient logistics center, making more realistic contributions to the treasury.”

From 1995 to 2004, the contribution to the national treasury from the Colon Free Zone was a total of $54.5 million. “We were able to increase that tremendously. From 2005 to 2007, the contribution was $77.9 million,” said Quijano. She further indicated that the commercial movement in the zone increased from $12.877 billion in 2005 to $14.357 billion in 2006, and further to $16.16 billion by the end of 2007.

Increased earnings brought improvements in infrastructure

“Taking international security standards into consideration and the fact that our activities are connected to international trade, security became a priority,” Quijano declared. “We developed a new security system to meet the anticipated challenges of the 21st century. We trained a highly specialized workforce to operate and monitor the system. The system of Manzanillo Port was our model and this is one development we are very proud of.”

The trade documentation system is another major challenge now being met. “We are building an electronic documentation system so that our users would not have to come down to our offices for physically processing paper documents. It will all be done online. This system will be available 24 hours a day, every day of the year, and will increase the efficiency of the entire zone. This is a major project for us and should be up and ready by June of this year, in time for our 60th anniversary.”

Quijano pointed out that in addition to the two highly effective logistics ports and an additional cargo port ten minutes outside the zone, the cruise ports are significant income earners to both the province and the economy of Panama. “We also are completing a new commercial free zone area,” she said. “We have many new commercial plazas, the highway is in its final stages, and we are also rebuilding and modernizing our airport.” The rebuilding of the airport in Colon is awaiting an appropriate bidder.

Quijano also indicated, “We are currently developing a high-tech industrial area close to the airport which has the modern logistics capacity to enable the cargo ports to handle logistics with the U.S. in an efficient and timely manner.”
At the end of Quijano’s term as general manager, she will leave a legacy of infrastructural improvements in communications and security, effective income generating systems, a major expansion in logistics and commercial centers, and sound policy decisions that will benefit both the government and the private sector. Her legacy will also include the major social projects that she, along with her staff and the major free zone players, conceived and executed. Most importantly, she will leave an empowered, well-trained human resources base in the administration, and good interpersonal relationships with the private sector and the people of Colon.

Nilda Quijano’s solid performance and strong ties with both business and community leaders, along with her commitment to help the citizens of Colon City, will be a priceless asset in her next position. Her supporters indicate that the mayor’s office would allow her to continue her efforts and this will be their pursuit for the next term.