The Colon Free Zone (CFZ) has been operating by traditional methods – paper transactions and face-to-face communication – since its inception. Marcelio Smith, the information technology manager of the CFZ Administration, has been dreaming about a technology solution for 25 years. Change is now in progress.

The CFZ has begun work on a $7M web-based solution to improve the efficiency of the communication systems of the administration. “At the moment,” Smith said, “for a company to process or document transactions with us, it takes approximately two to three hours. Our goal is for the companies to be able to do that between five to 10 minutes from the comfort of their company. They do not have to physically come to the admin offices. If we can do that, I think we have met the greatest challenge that we have put forward for ourselves.”

IT manager’s dream become a reality.

Smith explained that a web-based system is the solution. The current general manager, Nilda Quijano, not only listened to his ideas but also provided the means for him to make this dream a reality. “The Colon Free Zone administration, led by our general manager, has decided to build a system where the companies can process all their transactions through a web-based environment. It is the hope that this will be up and running by our 60th anniversary in June of this year,” Smith said.

“The companies would not have to come to our offices to process their transactions; they can easily do so from any part of the country or in the world. They can go to our website and they can process their transactions online. We will do all the charging and the billing.” According to Smith, the total cost of setting up the system, which includes contractor fees, will be approximately $7 to $8 eight million.

“What we have required from the company we have hired, which is Crimson Logic of Singapore, is to have 99.9% availability. In this way, we are hoping to transform the way that things are done in the Colon Free Zone,” Smith said.

Singapore’s Crimson Logic is contracted to build the IT system Smith indicated that the Singapore-based company Crimson Logic meets all the levels of security and standardization of data that is needed for the trade zone and has been contracted to design and construct the IT solution.

According to Crimson Logic, the electronic documentation system being built by them will give the Colon Free Zone Administration a 360° view of the movement of goods within the free zone. In a press release issued on the acquisition of the contract in 2007, Crimson Logic stated, “Freight forwarders, customs brokers, importers, and exporters will be able to file all their documentation to the Colon Free Zone Administration and the Panama Customs electronically through the system, hence eliminating the use of paper documents. In addition, the system will interface with other stakeholders, such as the Chamber of Commerce and banks for data sharing and/or approvals.”

Peng Kiong, Crimson Logic’s CEO, noted that “with the automated workflow and streamlined processes, the 24/7 online system is expected to bring about considerable efficiency and productivity gains, as well as cost savings, to companies in the Colon Free Zone. When fully operational, the electronic documentation system for the Colon Free Zone will give a further boost to Panama’s position as an international trade and logistics hub in Latin America.”

Present in Panama since 2004, Crimson Logic is working in partnership with dChain, a Panamanian company of the City of Knowledge, the technology park in Panama City. In partnership with the local company dChain, this Singapore-based company has worked on software development, project management, and implementation skills to meet the needs and requirements of the Republic of Panama.

In 2006, Singapore ratified a free trade agreement with Panama, and this has served to provide an impetus for companies such as Crimson Logic and dChain to establish mutual relationships. In a press release, Kiong noted that the existence of the free trade agreement was one of the reasons for their presence in Panama. He further stated that working with the Panama Canal Authority has served to establish their presence in Panama since 2004.

Kiong added that Panama’s ideal location, political stability, infrastructure and the government’s commitment to technology have made Panama an excellent launching pad for Crimson Logic to explore business opportunities in Central and Latin America. ≤