The JAPANESE SHIPOWNERS’ ASSOCIATIONPRESS RELEASE
6 July 2012

The Japanese Shipowners’ Association Submitted Comments on the Revised
Panama Canal Tolls Proposal to the Panama Canal Authority

In response to the revised tolls proposal announced by the Panama Canal Authority (ACP) on 27
July 2012, the Japanese Shipowners’ Association (JSA), which is addressing the issues in close
communication with the Japanese government, officially submitted further comments to the ACP
today.
JSA was very concerned about the proposal regarding the toll increases which was originally
announced at the end of April 2012, considering them to be disproportionate even when the cost ofcanal expansion is brought into the equation. JSA understands that many comments by otherparties expressed similar concerns to the ACP, which has revised its proposal for the theclassification of ship types, and delayed the introduction of the new toll regime by 3 months.
Although JSA appreciates this action, it is very marginal and does very little to obviate the cost
penalties to the shipping industry which will apply if the ACP plans are implemented in their presentform, especially under the current circumstance where;shipping companies were beset by operating losses during the adverse economic
environment of 2011, that exceeded $6Bn.
ACP’s toll increases for 5 years from 2006 to 2011 it already took sizable increase; forcontainer vessel by 63.6%(10.4% per year), similarly, tanker tolls up by 51 %(8.6% p.a.),where both dry bulk and car carriers tolls increased by 46.5 & 46.3%(7.9% p.a) withproposed increases in 2012 & 2013 to apply on top of those ealier increases.
(note; container vessels are not included in proposal this time)

JSA is deeply disappointed with this outcome, because it does not respond in any shape or form to
our previous requests which were that the ACP should:
Withdraw its proposal for toll increases in 2012 and 2013.
Review the current consultation process in favour of a sufficient consultative dialogue that
establishes toll adjustment guidelines that are stable, reasonable and transparent over anagreed longer and mutually-agreed upon period of time.
Place the pricing policy under “Proposals for the Expansion of the Panama Canal”, issued by
the ACP in 2006, back on the table for further consideration.
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As it was stated in “Proposals for the Expansion of the Panama Canal”, the canal expansion costs
could be recovered within several years after the expansion work is complete, and our study
indicates that it can be possible without such extensive and frequent toll increases. It could
therefore be said that the ACP’s current pricing policy of constantly increasing tolls imposes anunduly excessive burden on canal users. JSA therefore urges the ACP to rescind the revised
proposal, and to hold a substantial consultative dialogue with maritime representatives on long-term
pricing guidelines, with the aim of making them stable, reasonable and transparent.
Although there is a substantial distance between JSA’s position and that of ACP regarding the toll
issue, JSA sincerely believes, on the other hand, that such mutual and constructive consultations
could establish a win-win relationship between both the ACP and Canal users, whereby such
constructive dialogue could also address an issue of increasing the efficiency of the Canal’soperation. JSA is ready to contribute with pleasure to actions for enhancing a more efficient
operation of the Canal through closer dialogue, which could lead to increasing the long-term value of
the Canal and the number of transiting vessels with stable Canal tolls.
Our request to hold closer dialogue would also present a positive answer to concerns of theJapanese government, which filed its comments in May 2012 urging the ACP to take into accountthe Canal users’ opinions and also took up the issues at several inter-government meetings in Apriland June, where the same concerns were shared among the maritime administrations of therelevant countries.
The JSA’s comments are available at its web site http://www.jsanet.or.jp/e/index.html
For further information, please contact Daijiro Mizushima at int@jsanet.or.jp.

= End =The Japanese Shipowners' Association (JSA) is a nationwide maritime organization of Japanesenationals who are owners, charterers and operators of ships with a capacity of 100 gross tons
and over. JSA consists of 100 Japanese shipping companies. The purpose of JSA is to promote
fair and free business activities in the shipping industry and to contribute to the healthy
development of the Japanese shipping. To accomplish this purpose, JSA provides a forum toexchange views among members, undertakes various activities such as research, public relations,and production of statistics and data, as well as to express its opinion to related parties
concerned.

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