Forging ahead

LAST year saw Panama continue to flex its muscles as a maritime crossroads. This strategically located nation, connecting Central and South America, continues to maintain its position as the world's largest open registry in terms of vessels and tonnage. Notwithstanding some unfortunate circumstances related to the alleged fraudulent issuance of licences and other technical certificates, the authorities charged with administering this fifty- million-dollar annual source of income for the country have announced a policy of strict compliance with all international conventions to which Panama is, or shortly will become, a signatory.

Additionally, assurances were given at the recently concluded Panama Maritime VI conference by the director of the maritime administration, that the consular offices under his jurisdiction will now be required to render efficient and expeditious services to shipowners or financial institutions which seek to register or encumber vessels, and to adhere strictly to the tariffs and assessments established by law.

Shipowners' representatives pulled no punches in expressing their dissatisfaction and criticism of certain practices with which they are confronted on an almost daily basis, and warned that they would not hesitate to move their vessels to other open registries if these situations were not corrected promptly.

Last year also saw the Panama Canal successfully complete its second year under the sole control of the Republic of Panama. The agency created to operate the waterway, known as the Panama Canal Authority, continues to function efficiently, with the emphasis on maintenance and safety. The canal authority also continues to update its equipment with the periodic acquisition of new and more modern tugs, launches and towing locomotives, the latter to assist vessels while in the locks. Contracts have also been awarded to various foreign contractors to conduct feasibility studies in connection with the eventual deepening and widening of the locks and the waterway itself to accommodate vessels in excess of panamax limits.

Tourism is finally reaching Panama's shores and promises to be a substantial contributor to the local economy as the provider of employment, and of services such as hotel accommodation, tour facilities, transportation and activities for tourists while ashore. There are already at least three functioning ports geared to receive and dock cruise vessels from all of the well-known operators such as Carnival, Holland America, Cunard, Royal Caribbean, Celebrity, and the like.

Maritime litigation continues to be an important activity for specialist lawyers. A second maritime court was created during 2001 as part of the reforms and amendments enacted to the judicial code. The supreme court subsequently appointed a judge for the new court who had previously acted briefly as alternate judge during the absence of the sitting First Maritime Judge. This second maritime court has now been organised with appropriate staff and other supporting activities and began receiving cases in March 2002. It is anticipated that, once the new court becomes fully functional, the existing backlog of cases should gradually be reduced.

The first maritime court continues to receive and decide cases such as cargo claims, charter party disputes, repair and bunker claims, collisions, actions against the Panama Canal Authority when claims cannot be administratively resolved, and personal injury claims, including those which continue to be filed on behalf of Filipino crewmen based on causes of action alleging personal injury and death. In that connection, the Supreme Court of Panama handed down several decisions during 2001 in favour of shipowners, directing the maritime court to decline jurisdiction and return the dispute to the Philippines for disposition there, pursuant to the jurisdictional clause contained in the employment contract.

The court also continued to recognise the validity of releases executed in the Philippines by crew members or by their heirs. Finally, the maritime court continues to be recognised as a forum for the resolution of disputes of an international nature in accordance and compliance with the organic law, which dates back to March l982.