From Panama to Africa
Posted on: August 8, 2011 by Adam Alexander
2011 has been a wild ride so far. Global Partners (formerly Cowan Alexander) has expanded its global reach and transacted business in new regions and markets. For the past 90 days CAGP has been working on a project to sell a significant amount of surplus equipment that was being used as part of the Panama Canal Expansion Project
The contractor working in the canal purchased 14 CAT 777H 100 Ton Trucks and 2 TEREX RH-120 Excavators last year for approximately $30 Million US. Once they took delivery of the machines and put them to work they quickly discovered that the soil was softer than anticipated and the summer rainy season in Panama would make these trucks and excavators unusable for 60-90 days of the year. Caterpillar agreed to provide them with smaller 40T trucks and excavators on a quick turnaround but it would be the contractors responsibility to sell this “almost new” equipment as possible.
The scarcity of used late model/low hour equipment of this type in the secondary marketplace coupled with long wait times for new equipment made this package incredibly desirable for the right buyer. CA Global Partners was able to procure an end-user customer with rapidly expanding mining operations in Africa that had an immediate need for this equipment. We were able to sell this equipment while still being operated in the canal and were able to recover the contractor close to his original acquisition cost; while allowing him to seamlessly replace his fleet without any lost work days.
Today the ship loaded with this equipment docked in Durban South Africa. The new owners are making final arrangements to transport their purchases to the Democratic Republic of the Congo where it will go to work immediately and allow them to move up their timeline by about 9 months.
It is rare to work on a project as unique as this one, and after over 20 years auction business I continue to appreciate the experience and exposure that this industry has given me. There are not many people (apart from the CAGP team) that can say “I have walked on the bottom of the Panama Canal”