Colón Free Zone Announces $250 Million Expansion to Strengthen Trade and Investment

Panama's Colón Free Zone (CFZ) is moving forward with a $250 million investment plan aimed at expanding its infrastructure, modernizing its facilities, and creating new opportunities for international businesses seeking to establish operations in one of the Americas' leading free trade zones.

The expansion will cover 280 hectares, with the first 36-hectare phase scheduled to enter the bidding process before the end of the year. The initiative is designed to accommodate growing demand from companies looking to benefit from Panama's strategic geographic location and world-class logistics network.

Diversifying into High-Growth Industries

Following legal reforms approved in 2023, the Colón Free Zone is expanding beyond its traditional commercial activities by encouraging investment in sectors such as:

• Nearshoring and business relocation.
• Data center development.
• Telecommunications.
• Energy infrastructure.
• Light manufacturing.

These industries are expected to attract new foreign direct investment (FDI), support job creation, and reinforce Panama's position as a strategic gateway for regional and global trade.

Commercial Activity Continues to Rise

The Colón Free Zone reported more than $25 billion in commercial transactions during 2025, marking an increase of nearly $2 billion compared to the previous year.

The continued growth reflects strong international demand and highlights the CFZ's importance as a logistics and distribution hub serving markets across Latin America and the Caribbean.

A Long-Term Vision for Economic Development

According to General Manager Luisa Napolitano, the expansion project is intended to ensure the long-term competitiveness of the free zone by embracing innovation, industrial development, and emerging business sectors.

Through this investment, the Colón Free Zone aims to strengthen Panama's role as a global trade, logistics, technology, and investment hub, creating new opportunities for businesses operating throughout the region.