The Colón Free Zone functions just like any other marketplace - its success is due in large measure to price and variety. Prices are bound to be competitive because of volume. The basic premise of the Free Zone is that goods arrive in large quantities from factory or supplier in the Orient, Europe, North or Latin America. Variety is constantly improved as the Free Zone grows and ever more companies introduce new lines.

Delivery time is the other vital factor which boosts the commercial movement statistics each year. Weeks and even months can be cut off delivery times for Latin American clients who order from the Colón Free Zone because firstly, the goods are already here on the continent and not subject to manufacturing quotas and freight schedules from half way round the world. Secondly, Free Zone companies, anxious to turn over their inventories as fast as possible, assisted by the almost total lack of red tape and supremely knowledgeable in the paperwork involved in all the countries of the marketplace, despatch the goods in record time.

Thirdly, the transport network from Panama to all parts of the Latin America and the Caribbean is unbeatable. This rapidity of service allows customers to operate on inventory margins which otherwise would be impossible and therefore saves them interest charges.

Responsibility for the efficient running and continued development of the Colón Free Zone is in the hands of the Free Zone Administration. The Zone is an autonomous institution of the Panamanian Government and functions under clearly defined laws and precedents. The Administration controls rents, public warehousing, promotion, development and construction. It keeps statistics and administers the flow of imports and exports.

The User's Association of the Colón Free Zone is an active and prestigious body with its own offices, conference and exhibition rooms, whose principal function is to look after the rights and interests of its members and increase the prosperity of the Free Zone. It publishes an annual directory and catalogue, "FOB Zona Libre de Colon". Its website, www.colonfreezone.com, which includes company, product and trademark information, features individual home pages for most of the companies operating in the zone. The Users Association also organizes commercial missions abroad with the aim of introducing its products to foreign companies.

An ambitious project, which unites existing infrastructure and transport entities (maritime installations, airports, railway) into one permanent network to facilitate the movement of cargo from coast to coast across the Isthmus of Panama, will be developed in Colón within the next five years, which entails the expansion of the Colon Free Zone to a further 1200 hectares (approximately 3000 acres). The planning of the project involves coordination of the Civil Aviation Authority (DAC).