Rioting continues in Panama's Caribbean city of Colon over land sale
RIOTING is "out of police control, and it is not safe to circulate in the city's streets" of Colon on the Caribbean side of the Panama Canal Zone, reports GAC Port News.
"Therefore, GAC-Wilford & McKay staff are continuing to work from home, with a skeleton staff attending the office. Contact should be made by mobile phone," the shipping agent advised customers.
So far, this has not affected port operations or Panama Canal traffic as pilots and personnel are being mobilised by the water during the road closures. However, the threat exists that there could be a collateral impact on port operations and/or Panama Canal traffic," said GAC Port News.
American Shipper reports "protests" continuing, over a law that allows for the sale of land in the Colon Free Trade Zone.
The Associated Press reported that a 10-year-old boy was killed during violent clashes in the city. The AP said rioting came a few hours after the National Assembly approved legislation permitting the sale of land to private companies already leasing land there to handle the import and export of goods. President Ricardo Martinelli signed the law hours later.
The BBC said the law provides for 35 per cent of the proceeds generated by the sale of land will go to a trust for "social investments" in the area, while 65 per cent will go the central government.
Costa Rica's Tico Times said reported demonstrations, roadblocks and clashes between residents opposed to the project and police have occurred in Colon since last week.
Demonstrators, most of them young, closed streets with barricades and threw rocks and sticks at police, who responded with tear gas, according to local TV news broadcasts, said the Tico Times.
Colon Mayor Damaso Garcia said economic losses generated by the strike are "incalculable," as most stores, supermarkets and other businesses have not been able to open.
The controversial law allows the sale of land in the Colon Free Zone, which would generate some US$2 billion in government revenue in the next 20 years.
With more than 3,000 companies in operation, the Panamanian free zone generated more than $29 billion in 2011.
Little news of the riots appears in the local daily, the Panama Bulletin, which offered a comment: "There is an old saying that the government and its deputies should keep in mind in their rush to sell the Colon Free Zone lands - "if it ain't broke, don't fix it. The free zone has been working very well for many years as a great source of employment and income for the city of Colon."