Panama growth attracts renters

Many international renters are showing a renewed interest in Panama with the proposed expansion of Panama Canal taking shape. Both, domestic and foreign rental companies are looking forward to the infrastructural outlay that Panama would pump in for the project.
The project comes with a total estimated cost of USD 5 billion and is slated to end in 2014. This project provides a welcome opportunity for rental companies and contractors that rent out huge machines because of the lucrative market.
Augusto Boyd (managing director, Commercial de Motores (CDM)), told the press that "The economy is very good. There are many things happening, including the Panama Canal project...I see a strong demand for heavy machines, above 50 t." Mr. Boyd owns a Volvo dealership and a rental company in Panama.
Clarisa Chen (executive director, CDM) says that the construction market is undergoing a boom and is growing fast in various other sectors – earthmoving, sky scrapers and roads; "so while there will be some fall in demand when the canal is finished in 2014, there will still be other projects too, especially in tourist infrastructure."
Gary Bernardez (president, Ameco (USA)) says that "Panama is a high priority [for us] and we have moved quickly into that market given the infrastructure and canal work going on there." , Ameco is a very big equipment rental business and is  a sister concern of Fluor.
Mr Bernardez said that the opportunities in other countries of Latin and South America that include Peru, Mexico and Chile are plenty. He also said; "We do see long term rental of large equipment in Mexico and Panama given the infrastructure focus in these countries."
A concise report on the Latin American rental market is available with the October issue of the IRN.

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