Panama is examining the possibility of privatizing its regional airports together with its main international gateway, Tocumen International (PTY), as part of a wider strategy to boost large infrastructure initiatives under a new “pro-private enterprise government.”

During an official visit to Paris in October, Panama’s 65-year-old President José Raúl Mulino, a former security minister, confirmed that his administration was examining the possibility of privatizing state-owned PTY, mostly likely in a bundle with other airports in the country.

At a business roundtable with 24 major French companies—including bank Société Générale, Airbus Defence & Space, tire producer Michelin, construction group NGE, and railway developer CIM—Mulino’s main thrust was on projects such as the Panama-David-Frontera train, expansion plans for the Panama Canal, the San Miguelito cable car and a drinking water system.

According to a statement from the Panamanian Presidential Office, Mulino also said that his government “would be evaluating structuring an airport concession that includes the air terminals of Colón, David, and Río Hato.”

While PTY was not mentioned in the Presidential Office statement, a news report from Informe Aéreo, suggested that Mulino also put Tocumen into the mix. The website quoted the president—sworn in this summer—as saying: “This concession [referring to PTY] would be in conjunction with the airports of Colón, Río Hato, and the city of David, in Chiriquí.”

The specific gateways are Scarlett Martínez International Airport (RIX), which serves Río Hato (Coclé Province) and is primarily used by Canadian leisure airlines; Enrique Adolfo Jiménez International Airport (ONX), which serves Colón; and Enrique Malek (DAV), which serves David Sur (Chiriquí Province).

The latter two gateways serve, respectively, the second and third largest cities in Panama with populations of 242,000 and 193,400. This compares with Panama City’s 1.76 million which is principally served by PTY. There are perhaps a dozen further airports in the country, bordered to the west by Costa Rica and Colombia to the east.

Below we look at how adding PTY to a four-airport sell-off might be an attractive opportunity for investors.

Investor Insights