In Panama, the coasts and aquatic areas are well-used, both for leisure and business. Due to its geographical location, between the Caribbean Sea and the Pacific Ocean, the country receives a large share of international trade and tourism. This directly influences the maritime industry, where individuals and companies make use of the ports and coastal areas for various activities. In order for all of this to be carried out legally and safely, it is necessary to obtain a dock permit or maritime concession that allows these areas to be built and utilized.
Although commercial use remains one of the primary purposes of maritime wharves — as reflected in Panama’s Strategic Plan for Maritime and Port Development Vision 2040, which projects an investment of USD 2.805 million in commercial infrastructure — private piers are increasingly being used for recreational boating and fishing. This shift has led to a growing number of dock permit applications. In this article, we’ll cover what a concession means, how to apply for one, pier construction standards, and the related legal considerations involved.
What Concession Means in the Panama Maritime Context
In simple terms, concession means a license granted by the government to a company or individual to build and manage infrastructure such as harbor or terminals on the coast. The Ports Law defines a concession as a temporary authorization and sets the rules for how wharf areas must be managed. This includes not only large-scale infrastructure but also smaller structures like private piers, which require a boat dock permit issued by the Panama Maritime Authority.
Additionally, under the Ports Law, concession means an administrative act that is formalized through a contract and remains valid for up to twenty years, with the possibility of an extension for an equal period. This extension must be requested during the final fifth of the original term, and no later than one year before its expiration.
Can anyone apply for a concession?
Yes, both natural and legal persons in Panama can apply for a concession. However, not everyone qualifies to receive a dock permit. In order to obtain a maritime concession, it is necessary to comply with a certain number of specific formalities stipulated by the General Directorate of Ports and the Panama Maritime Authority (AMP). Interested parties must demonstrate economic solvency, an environmental management plan, and the technical feasibility of the project. In addition, the applicant must state that the proposed use serves the national interest.
A natural person may solicit a boat dock permit for a house pier, while companies must meet more stringent requirements. Since 2019, the maritime regulation also demands that authorizations guarantee auxiliary spaces such as access ramps and safety areas.
Pier Construction Rules
Pier construction in Panama involves more than just the concession means—these are the legal steps required to obtain permission to build on coastal areas that are public or subject to state regulation. This process involves factors related to engineering, where the safe and functional design of a structure is evaluated, the sea and terrain conditions, and that it complies with all the technical standards. There are also legal obligations, such as safety regulations and coastal zone use. Additionally, it is important to evaluate the impact that the structure may have on marine ecosystems and to take appropriate measures to protect them.
Engineering considerations
The pier construction implies the work of civil and marine engineers, who must evaluate storm resistance, environmental impact, water currents and the type of vessels that will use the port. Moreover, in order to obtain dock permits or concessions, technical documentation must be submitted, including an investment and project development schedule, area survey plans, and environmental management tools approved by the Ministry of the Environment.
Likewise, the design must guarantee safety, access (embarkation and disembarkation), quality and efficiency in the auxiliary port services. Aspects such as dredging, waste management, pollution prevention and compliance with the ISPS Code are also considered for dock permits.
Legal obligations
Legal obligations in pier construction cover compliance with the terms of the concession contract, which include deadlines for the start and completion of the project, as well as adherence to the technical and safety standards established by the AMP and the General Directorate of Ports.
It is important to note that starting construction without the proper permits or an authorized concession can result in penalties and an obligation to restore the site to its original condition. Furthermore, certain financial requirements must be met in order to obtain dock permits or maritime concessions, such as the payment of inspection fees and the posting of performance bonds.
Environmental protection
It is fundamental to not only submit the environmental impact assessment needed for dock permit applications, but also to develop and implement prevention and contingency plans. Moreover, port facilities must be equipped with the necessary means, systems and procedures for the proper management and disposal of waste and pollutants, ensuring environmental protection as a prerequisite for the authorization of their operation.
The Dock Permit Process in Panama
Individuals interested in constructing a wharf must apply for a dock permit and submit a proposal to the Panama Maritime Authority (AMP). This proposal must include, among other things:
- Description of the area.
- Initial investment.
- Schedule of the work.
- Type of port activity.
- Environmental impact study.
After an initial evaluation, complete documentation must be submitted, as follows
- Applicant information.
- Details of the areas and the project.
- Benefits to the community.
- Location.
- Land tenure.
- Detailed schedule.
An inspection fee must be paid based on the investment of the work. Furthermore, for large port projects, the Panama Maritime Authority (AMP) may expect feasibility studies, risk assessment, environmental management tools and detailed plans, such as preliminary plans and bathymetry.
Applying for a yacht and boat dock permit
The yacht and boat dock permit is regulated within the Concessions Guidelines, which includes a special category for “house pier”, which have personal or domestic use, and are abstained from commercial use. The application for these authorizations has a simplified process:
- Information about the applicant
- Purpose of the dock (domestic or private)
- Certified note from the Ministry of Environment
- Plan of the land
- Amount and schedule of investment
- Plan signed by professional and owner
- Certified note from the Ministry of Environment, in replacement of the Environmental Management Tool
Special provisions for foreign-owned entities
In Panama, foreign entities wanting a dock permit must comply with the same legal requirements as nationals. If the applicant is a legal entity, it must submit detailed information about the company and its legal representative, including a copy of the identity document. In the case of foreign individuals, a copy of the passport is required. It must also provide the Certificate of Public Registry of Panama, not older than three months, as well as the data of its legal representative, directors, dignitaries and attorneys-in-fact, if any.
Foreign entities that do not yet have a registered company in Panama must register one locally or establish a branch in order to apply for a dock permit. This process includes compliance with local regulations and may involve additional steps under foreign investment or concession laws, depending on the location and nature of the project.
Legal Counsel to Obtain a House Pier Permits
The management of boat dock permits or maritime concessions in Panama is an indispensable requirement for those who want to develop legal and sustainable projects, taking advantage of the potential of the country’s coastal environment. The procedure, which includes technical studies, environmental assessments and compliance with registration formalities, allows both natural and legal persons to access these authorizations.
If you plan to manage and/or construct a pier, you must follow legal ordinances to avoid possible sanctions. At Kramer & Kraemer, we provide legal advice to obtain boat dock permits and marine bottom concessions for a house pier in Panama. If you have doubts or want to start the process, contact us and one of our maritime law experts will assist you.
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