The freight forwarder and logistics company Damco has set up a partnership with Panamanian logistics company Exclusive Brands Logistics Corp. (EBL) to develop a hub in Panama’s Colon Free Zone (CFZ).
The deal is aimed at promoting imports and re-exports of apparel and fashion between Asia, the free zone, and Latin American destinations. The hub, on the Atlantic side of Panama, is expected handle roughly 35,000 cubic meters of goods per year.
EBL provides value-added services to the fashion and apparel industry in the free zone, managing luxury brands such as Ralph Lauren, Calvin Klein, Michael Kors, Anne Klein and Izod, among others
Under the agreement, EBL will provide specialized services for luxury fashion brands while Damco, a subsidiary of the A.P. Moller–Maersk Group, will provide supply chain, transportation and freight forwarding services from source to final destination.
"In this partnership there are three key points: the origin of the purchase, the CFZ and the final destination of the goods,” said EBL Managing Director Alfredo Maduro. “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.”
The ultimate goal of the hub is to allow supply chain managers to make decisions closer to the final markets for their goods and react more quickly to changes in supply and demand, said 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,” Clafin said.
Damco has warehousing facilities in Panama on both the Atlantic and Pacific coasts, with operations in Panama Pacifico Special Area, in the Corozal processing zone and the industrial area of Parque Sur. - Eric Johnson