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CLICK HERE or on photo above to see Mr. Kuchova discuss the Georgia's preparedness for the canal expansion and possibilities for collaboration between the state and Panama.
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After enduring 18 months of Georgia’s heat and humidity, Nicholas Kuchova jokes that when moving to Panama four months ago, he was fully ready to face the tropical climate, business suit and all.
But as he left Savannah’s U.S. Commercial Service office to take the senior U.S. commercial officer post in the Central American nation, Georgia’s oldest city had prepared him for more than just sweltering heat.
Panama is home to the historic Panama Canal, a maritime shortcut that nearly a century since its completion has become etched into trade routes from Asia to the Caribbean and the U.S. East Coast. Savannah boasts a fast-growing port that is set to handle record container volumes this year.
Both places are largely dependent on logistics for their commercial fabric, and as the global movement of goods intensifies, their destinies - at least in the immediate future - are woven together.
Because of his experience on the Georgia coast and current post at the crossroads of the Americas, Mr. Kuchova has an informed view of developments concerning both locales.
The largest one on the horizon is the $5.25 billion expansion of the canal, slated for completion in 2014.
Deeper harbors and a new set of three-tiered locks on both ends of the canal will allow it to handle the world’s largest ships, known in the logistics world as “post Panamax” vessels. They already make up about 14 percent of the world’s fleet, and that share will only go up as more shippers take advantage of the savings they offer over smaller carriers.
The canal expansion correlates with efforts at the Port of Savannah to deepen its harbor to up to 48 feet, one of its prime initiatives before 2015. The port received a shipment of four $8.3 million super post-Panamax cranes Feb. 12.
Whether the port will be ready for the largest vessels remains an issue of debate, but Mr. Kuchova said it is more than ready in other ways to capitalize on the growth in traffic that could come with a widened canal.
Savannah and Brunswick have leveraged the areas around their ports to provide warehouse space and value-added operations for large-scale retailers like Target Stores Inc. and IKEA, a luxury that land-strapped California and New York ports don’t enjoy.
“In general, Georgia is a big beneficiary of the expanded business out of the Panama Canal,” Mr. Kuchova told GlobalAtlanta in a video interview at U.S. Ambassador William Eaton’s residence in Panama City.
But just as Savannah is more than a port, Panama is more than a canal, and Mr. Kuchova believes myriad business opportunities exist there and throughout the region.
He suggested that Georgia companies looking at Latin America complete exhaustive research before making a decision, considering “where they can do business where it best suits them in more than one sovereign market.”
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Panama, a small but vibrant market of 3.2 million people, could be a good place to start, especially if Congress passes a pending free trade agreement with the country.
The Colon Free Zone, the world’s second-largest free trade zone, provides a tax-free environment that encourages global companies to house regional distribution hubs on Panama’s Atlantic coast, he said.
Educational opportunities also abound. Mr. Kuchova mentioned the idea of Savannah College of Art & Design students partaking in the wide range of restoration projects going on in Panama City’s old section, Casco Viejo.
There, the warm breeze off the bay carries the smell of fresh paint and the clank and whir of construction equipment as workmen preserve historic facades of old buildings while putting up steel frames inside to support new studios, offices and condominiums.
The Georgia Institute of Technology, which has a campus in Savannah, is already considering the possibility of establishing a logistics program in Panama, an idea Mr. Kuchova welcomes as a reminder to explore possible synergies.
Another such reminder is the Americas Competitiveness Forum to be held in Atlanta in August, bringing together leaders from 34 democracies in the Western Hemisphere, he said.
Mr. Kuchova plans to attend the forum, along with other U.S. commercial officers from around the hemisphere.
A veteran of commercial service posts in Spain, Turkey and Savannah, he hopes to continue working with the state of Georgia to provide solutions for companies looking to Panama.
“I love what we do,” he said. “If we work hard and we’re careful in our planning, and also if we’re a little bit lucky, we can change some lives.”
© 2008 The Agio Press, Inc. All rights reserved. This material may not be published, broadcast, rewritten or redistributed without express permission.