Panama looks to Chennai for a direct maritime link with India

CHENNAI: Panama is looking to Chennai's maritime industry to help establish a direct shipping connection with India, a move that could give TamilNadu exporters another route to Latin American markets.

"Chennai has a great opportunity, and Tamil Nadu in general has a great opportunity to start developing these routes. You can be the first port to have a direct connection between India and Panama." Panama's Ambassador to India Alonso Correa Miguel told DT Next on the sidelines of a business roundtable in Chennai on Friday. He also stressed that the proposal remains short of a concrete commitment with the absence of a direct connection that is central to the challenge.

The Ambassador said Indian businesses had continued to overlook Panama despite its established maritime and logistics infrastructure, relying instead on conventional routes through the Red Sea, the Suez Canal, the Cape of Good Hope and the Strait of Hormuz.

"Why was Panama often perceived as too far away when Indian businesses already traded with destinations such as the United States, Brazil and Atlantic Europe?" he questioned while pointing to the Panama Canal, its ports and the Colón Free Zone, a major centre for trade and distribution.

The proposed maritime link was discussed at The Panama Advantage – Maritime - Pharma Gateway to Latin America, a business roundtable organised by Anaika Global in Chennai on Friday. The meeting brought together shipping agencies, maritime service providers, pharmaceutical manufacturers and professional advisory firms. The discussions centred on Panama's potential as a logistics and distribution base for Indian businesses seeking to expand into Latin America.

"Discussions may have been going on, but unfortunately, everything falls short, " he said, arguing that Indian companies were not making use of the opportunities available in Panama. He said a company willing to establish the first connection could benefit from working with a Panamanian partner, while acknowledging that it would involve a "huge gamble" and a "leap of faith".

Panama is also seeking to position itself as a distribution base for Indian pharmaceutical companies looking to enter Latin American markets. Its pitch rests on its logistics infrastructure, free-trade zones and the presence of multinational pharmaceutical businesses.