ACE NOMINATION - MANZANILLO INTERNATIONAL TERMINAL

UNCLAS PANAMA 001007

SIPDIS

SIPDIS

FOR STATE WHA/CEN TELLO
FOR STATE EEB/EPPD NSMITH-NISSLEY

E.O. 12958: N/A
TAGS: ECON AID BEXP ECON ELAB ETRD PM SENV
SUBJECT: ACE NOMINATION - MANZANILLO INTERNATIONAL TERMINAL
PANAMA

REF: STATE 47222


1. (U) SUMMARY: I am pleased to nominate Manzanillo
International Terminal Panama-S.A. (MIT) as Embassy Panama's
multinational enterprise candidate for the Secretary of
State's 2007 Award for Corporate Excellence (ACE). MIT is a
joint venture between Carrix, Inc., headquartered in Seattle,
Washington, and Panamanian investors. MIT is operated by SSA
Marine, a Carrix wholly-owned subsidiary. MIT's nomination is
based on its contribution to the overall growth and
development of the local economy, responsible environmental
stewardship and practices, and provision of a safe and
healthy workplace. MIT has spent $1.5 million to construct a
new hospital in Colon City which has treated 37% more
patients during the first quarter of 2007 versus the same
period in 2006. MIT has spent $13,372 to build three new
classrooms at Colon City's Rio Gatun School which has allowed
enrollment to increase by 39%. In addition, MIT maintains an
excellent record in each of the remaining ACE criteria
categories. END SUMMARY.

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Background
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2. (U) MIT, through U.S.-based operator and 50% owner Carrix
and its wholly-owned subsidiary SSA Marine, has been
operating in Colon City since 1993. Carrix is the largest
privately held marine and terminal operator in the United
States. MIT employs over 800 people in Colon City. Colon
City suffers from high unemployment, lack of adequate medical
facilities, educational opportunities and value-added
employment opportunities. When MIT began operations, Colon
City had an unemployment rate of 50%. Some 10,000 people
applied for MIT's 600 available jobs. Most applicants were
unskilled. MIT was committed to hiring local residents and
providing them with the requisite training. MIT has a
history of merit-based promotions whereby many people who
began their careers as secretaries, janitors, and general
stevedores are now vice presidents, vessel operations
managers, and gate managers. MIT's merit-based promotion
system offers an opportunity for Panamanians of modest means
to ascend the corporate ladder.

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Contribution to the Overall Growth and Development of the
Local Economy
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3. (U) During 2005-2006, MIT invested $2 million in health,
education, landmark restoration and sports programs in Colon
(approximately $10 per provincial resident). In MIT's 12
years of operation, it has invested a total of $4 million in
such programs.


4. (U) MIT's principal project was the construction of a new
$1.5 million hospital in Colon City. MIT led efforts to
collect donations of medical equipment from local businesses
and government agencies. Previously, patients had to travel
to numerous facilities to receive adequate medical care. This
new hospital, which provides centralized medical services,
treated 37% more patients during the first quarter of 2007
versus the same period in 2006. In particular, people
receiving pediatric care increased by almost 117% and
nutritional care by over 72%.


5. (U) MIT also provides financial support to nine
educational centers in Colon City. In 2005, MIT spent
$13,752 to build three new classrooms at Rio Gatun School.
As a result, the school was able to increase enrollment by
39% in 2007 and provide education to a greater number of
primary school children.

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Responsible Environmental Stewardship and Practices
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6. (U) MIT engages in voluntary efforts to protect the
environment and lessen the environmental impacts of its
operations. In 2005, MIT began a $2.3 million project to
switch eight diesel-powered gantry cranes to electrical
power. The result was the elimination of over 3,000 tons of
CO2 emissions and a net 23% reduction in noise pollution per
crane.

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Provision of a Safe and Healthy Workplace
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7. (U) MIT has voluntarily implemented numerous safety and
healthy workplace programs. MIT's Safety Department is
certified ISO 9001:2000. MIT provided over 60 safety
training session in 2006, covering 1,197 employees and
contractors. MIT provided training in general safety,
general safety for contractors, safety measures for heavy
equipment, defensive driving, accident investigation,
evacuation and emergency planning, and basic chemistry for
hazardous material response personnel. MIT also provides
daily safety inspections, pre-employment and random drug and
alcohol testing. As a result of MIT's efforts, between 2005
and 2006, injuries declined by 39%, days lost per injury
declined by 74% and accidents declined by 35%.


8. (U) MIT offers an employee credit union and medical clinic
for more than 1,000 employees and staff. These are
particularly important services since many residents have
little access to medical care and no access to banking
services.
EATON