Colón Free Zone to Invest $250 Million in Expansion and Modernization

Posted on 2026-07-31

The Colón Free Zone (CFZ), the largest free trade zone in the Americas, has announced a $250 million investment to support a major expansion and modernization project aimed at strengthening Panama's position as a leading logistics, trade, and technology hub in the region.

During a meeting with the board of the Panama Chamber of Commerce, Industries and Agriculture (CCIAP), CFZ General Manager Luisa Napolitano revealed that the expansion project will cover 280 hectares, with the first phase consisting of 36 hectares expected to be put out for tender before November.

Expanding into New Business Opportunities

The project will capitalize on legal reforms approved in 2023, allowing the Colón Free Zone to diversify into several high-growth industries, including:

• Nearshoring and business relocation.
• Data Centers.
• Telecommunications.
• Energy projects.
• Light manufacturing.

These strategic sectors are expected to attract foreign direct investment (FDI), create new employment opportunities, and further position Panama as a preferred destination for companies relocating operations closer to key markets.

Strong Commercial Growth

The Colón Free Zone continued its positive performance in 2025, recording more than $25 billion in commercial activity, approximately $2 billion higher than the previous year.

This sustained growth reflects increasing international trade activity and reinforces the CFZ's role as one of Latin America's most important commercial and logistics platforms.

Building the Next 75 Years

According to Luisa Napolitano, the expansion project is designed to secure the long-term future of the Colón Free Zone.

"Our goal with this new expansion project is to provide another 75 years of growth and development for the Colón Free Zone," she stated.

The investment underscores Panama's commitment to strengthening its free trade infrastructure, supporting international commerce, promoting industrial development, and attracting companies seeking strategic access to markets throughout the Americas.