February 12, 2019
As I've mentioned in previous posts, it has been a long and complex process to find a company to rejuvenate bananas as an economic force in the area.
At one time, under Chiquita Banana, bananas were called "green gold" in Puerto. But then Chiquita left in early 2000s, and a cooperative called Coosemupar took over. However, for many reasons, Coosemupar did not thrive and finally collapsed in 2010.
Starting in March 2018, Banapiña (a subsidiary of Del Monte) started planting bananas on the former Chiriqui Banana plantations. Now their first crop is being shipped to the US. Very exciting.
This first shipment will not use the old Chiquita pier in Puerto. This is because Puerto's pier is in terrible shape.
Or in political speak:
"The company decided to do a little economy of scale, because the port of Puerto Armuelles has to be adapted to use it," as the head of the Ministry of Agricultural Development (MIDA), Eduardo Enrique Carles, said yesterday.
Therefore, the bananas were trucked to the port of Caldera in Costa Rica, where Banapiña manages other production lines.
There have been many rumors that the pier will be renovated. Maybe that political speak was suggesting that as well? It is hard to tell.
Job Creation
So far, the new banana production has created 300 direct jobs and 200 indirect jobs. Over the next 6 -7 years, at least 3,000 new people will be hired.
And more jobs are only part of the banana industry's boost to Puerto's economy. The economic ripple effect of this new workforce plus all the other people needed to support the growing and shipping of bananas will spillover into Puerto and the whole province of Chiriqui.
Production of Green Gold
This year alone, Banapiña plans to export 1.4 million boxes of bananas at a rate of 15,000 boxes per week. It will be exporting these bananas not only to the US, but to the Netherlands, the United Kingdom, Germany, and other markets.
Of course, that is nowhere near the high of banana production in the 1990s when Panama exported around 42 million boxes of bananas per year, with a total export value of $ 200 million.
Panama's bananas produced for export are grown in the provinces of Bocas del Toro and Chiriqui. Over the last 2 years, bananas accounted for 15% of Panamanian exports.
Currently, Bocas del Toro's banana production has a profit of $120 million.
A major investment is underway to fully rejuvenate Chiriqui's banana production over the next 7 years.
Most likely, Baru's banana profits will at least equal Bocas del Toro's.
So it looks like our area can look forward to getting a $120 million dollar shot in the arm in the near future.
What type of bananas? So far, Banapiña has planted the Grand Nain variety of bananas. According to Wikipedia, that type is also called the Chiquita Banana because it is the banana they mostly cultivate.
As government officials are always pointing out, its investment in Baru's economy targets more than bananas.
Note: Baru is a district within the Chiriqui province of Panama. Puerto Armuelles is the principal city of Baru. Puerto is also the 2nd largest city in Chiriqui.
The government has invested in 15 projects in Baru, including the following in Puerto Armuelles.
That list doesn't even include 3 other renovation projects in Puerto.
Maybe we will get a revived pier too? Fingers crossed.
It seems clear that the economic outlook of Puerto Armuelless is looking ever brighter. From our point of view, we are experiencing a steady increase in emails, calls, and visits from people interested in moving to Puerto Armuelles.
It looks like the President's proclamation that, "Puerto Armuelles is reborn", is happening.
Back To Bananas. My daughters made a video exploring the bananas in our yard. You may want to check it out.
Below is a partial list of some recent positive developments in Puerto
(Please note: We are investors and builders here. Plus we really love our town. So our views are bound to be biased. We encourage you to ask others familiar with Puerto Armuelles for their views).
Obviously, the biggest news is that Del Monte is actively preparing to use the old Chiquita Banana plantation lands.
We are told that work has already begun to restore the plantations to an arable state.
All signs seem to point to Del Monte successfully setting up shop here in Puerto Armuelles.
However, I tend to agree with my Panamanian neighbor, who says he won't truly believe that Del Monte is coming to Puerto Armuelles, “until I have tasted my first locally grown Del Monte banana”.
The issue is that there is too little access to reliable news about this deal. For the most part, you need to rely on what you read in the political party-controlled national news.
Please read our other posts on Del Monte in Puerto Armuelles.
Regardless, I believe that there is much more than “just a banana deal” underway in Puerto Armuelles.
It has recently become more difficult to find a good mason in Puerto Armuelles. This is good news.
The reason for this is because the construction of a modern new hospital has required the hiring of numerous skilled masons, electricians, plumbers, welders, etc…
This project is predicted to take two years to complete. Read more about Puerto Armuelles new hospital here.
I am looking forward to rehiring one of my favorite masonry workers when the masonry phase of construction at the hospital is complete.
All of that digging up of our local roadways appears to be bearing fruit, as the improved fresh water supply and waste water removal systems are starting to come online.
Granted, the final waste water disposal plant, a couple of miles south of town, is not yet up and running. But, there is noticeable improvement to our fresh water supply, and pressure. It seems almost inevitable that both systems will soon be complete.
At the entrance into town, there is now a big new Terpel brand gas & service station.
This might not seem too significant; after all it’s just a gas station.
However, when the main national fuel brand decides to build a large new gas station, with a mini mart and an automotive repair shop, right at the main entrance to a town, it's a good sign for future development.
I imaging that the executives at Terpel are privy to more development information than the rest of us. The fact that the big players are purchasing strategic pieces of Puerto Armuelles, can only be considered a positive growth indicator.
The gas station was completed late last year. Now, almost suddenly, a large traffic circle, right in front of the gas station, is nearly complete (see photo).
The traffic circle (or roundabout) is a good choice for this busy 3-way intersection.
Unlike past traffic improvements, the traffic circle looks like the kind of quality forward-thinking decision that is made when it is known that car traffic will definitely be increasing. The last time that this sort of planning took place in Puerto Armuelles was when Chiquita Banana Co. was here.
As I have mentioned in previous posts, in 2006, when our family arrived in Puerto Armuelles, literally a third of the downtown retail shops were closed and their store fronts covered with plywood (the look was like New Orleans, post Hurricane Katrina).
Fast forward 11 years:
In all cases, it is crystal clear that local business owners are now willing to invest in their town again. In my conversations with local business owners, they have told me that they now feel confident about expanding their business and even opening new ones.
So it is not just Del Monte and the Government investing in Puerto Armuelles. It is local and outside of Puerto business people too. Private investment of this scale builds its own momentum.
It seems clear that Puerto Armuelles is on an up escalator.
Another sign of the increased activity in Puerto is the very noticeable increase in the number of the 'For Rent' signs you now see. As well as a few more 'For Sale' signs.
In the past, people who were looking for a rental, just asked around. News of rentals was mostly word of mouth. There weren't many rentals, but there weren't many people looking for rentals anyway.
Now that has changed.
A new influx of Del Monte employees are coming in, and more are expected. But it is more than Del Monte workers. More people, both expats and Panamanians, are coming to Puerto Armuelles looking for rentals. As well as property to purchase.
So now people who had not considered being landlords, are preparing vacant houses for rent. Landlords who have rented out houses, are now turning those houses into duplexes to capture the increased demand.
Also, since there are now there are more buyers, more sellers want it to be known that they are willing to sell. That is why you see more for sale signs as well.
Of course, many people here do not want to sell. People here generally love Puerto Armuelles. As a general rule, Portenos only leave Puerto if they cannot find work here.
Along with the increased demand for services comes, obviously, an increased demand for places to dine out. There have been new restaurants sprouting up all over town.
Of course, not all are of a quality that is of interest to most expats. However, there are a few good, but not great,places to eat out.
Most recently, we have a new chain restaurant, Rosti Pollo. I have not eaten there yet.
I could add many more development details. But I will close with a couple that appeal to me personally.
First, there is an expat woman, Joan, who is opening a yoga retreat center here in Puerto Armuelles. She is opening it in partnership with the Tsunami Inn, which is located in the San Vicente neighborhood.
Joan is a yoga practitioner who was looking for a retirement business, as well as a retirement location that really attracted her. She chose Puerto Armuelles.
Betsy and I have both taken yoga classes in the past, so we are especially interested in the arrival of such an opportunity. Please see Betsy’s video interview of Joan here.
I recently learned about another great development. Milton Hutto, owner of Heavenly’s Hotel, is purchasing a 30' boat for use by visitors. I did not ask him for details when he mentioned this, because we were having a planning meeting for the upcoming Flea market/artisan market on September 2 at Heavenly’s Hotel.
Which is anther sign of the times. On the 1st Saturday of every month, Puerto Armuelles will now have a artisan & flea market. The first one is in just a few days, Sept. 2nd, 2017. You can learn more about The Puerto Armuelles Saturday Market here.
I am thrilled that Milton is getting a boat as a first step to kick off a marine tourism business here in Puerto Armuelles. In addition, he will be creating a floating dining area, on the sea, just outside his hotel/restaurant. His hotel is located in the San Vicente neighborhood.
We have plans to open a small boat launch at the Corazon De Oro development. However, we are waiting to see how many people are interested. We have already heard from 5 or 6 that say they are.
Currently, we are focussed on building our first Living In Panama House. We have had nothing but positive feedback from the people who have visited the site. Click to see the 1st phase of construction of the Living in Panama House.
