The Colon Free Zone resides in an area of approximately 600 acres making it the biggest free zone in the Americas and the second largest in the world. The Colon Free Zone began operations in 1948 at the Atlantic entrance of the Panama Canal and is divided into two different sections: one a commercial area separated from the city of Colon by a security barrier and a 130 acre storage area located some 400 yards from the commercial area in the France Field area.
Colon Free Zone History
With the opening of the Panama Canal in 1914, the idea of building a Colon free zone to take advantage of Panama’s geographic location began to take form. It was not until the end of World War II that goal of creating the Colon Free Zone became a reality. Many Panamanians were employed in the construction boom that occurred during the war years building defense facilities and facilities to maintain the flux of American troops station in Panama. However, the end of the war signal the demise of Panama’s economy. The President of Panama at the time, Dr. Enrique A. Jimenez saw the Colon Free Zone as the panacea to cure Panama’s economic doldrums. President Jimenez recommended that the Colon Free Zone project originally prepared by George E. Roberts, Vice President of the First National City Bank of New York the precursor of Citibank in 1929 be reconsidered and put into action.
In 1946, Dr. Thomas E. Lyons, a renowned authority on the creation of free zones, was hired by the government of Panama to conduct a feasibility study on the Colon Free Zone. Based on his discoveries, the government of Panama approved Law No. 18 of June 17, 1948 thus creating an autonomous Colon Free Zone.