Panama Canal Expansion

Panama Canal Expansion

The $5.25 billion expansion of the Panama Canal will either dramatically boost East and Gulf Coast container trade or disappoint their expectations of gaining more cargo. But the opening of much larger locks in early 2016 is already boosting prospects for more exports to Asia from U.S. Gulf ports of LNG, coal and grain cargos.

What is certain is that the doubling of capacity on the connector of the Atlantic and Pacific oceans will change the way the world¹s shipping lines ply their global routes when the project is completed. The doubling of the canal’s capacity will allow shippers to bring their Asian goods to the Eastern and Gulf coasts for less money. That’s largely because the new locks will be able to handle larger vessels that can carry nearly three times as many containers. The project is also expected to bolster Panama’s strategic positions as a transshipment hub and business center for much of Central and South America.

For general developments at the Panama Canal, see also JOC’s Panama Canal News page.

News & Analysis

16 Nov 2014
The Panamanian government is keen to convince global terminal operator DP World to expand its footprint and help the country become an even larger transhipment hub when the expanded Panama Canal opens in early 2016.
Work on the Panama Canal expansion. Courtesy Panama Canal Authority.
16 Jan 2014
The Panama Canal, following a widely reported payments dispute with contractors that threatens to delay its expansion, went on the counteroffensive this week with a new website designed to provide “Clarification of the most common doubts about the Expansion.”
Panama Canal expansion work
08 Jan 2014
The Panama Canal Authority said Wednesday it could not negotiate over a new proposal by the consortium that is building its new locks to keep construction work going in the face of its threat to stop work in a dispute over the contractor’s claims for cost overruns.
07 Jan 2014
The Panama Canal Authority on Tuesday has made an offer to resolve its dispute with the contracting consortium that is threatening to suspend construction work on its new locks.
05 Jan 2014
The Panama Canal Authority said Sunday that its analysis of the claims for $1.6 billion in cost overruns by the consortiu
Construction on the Panama Canal expansion. Photo courtesy Panama Canal Authority.
03 Jan 2014
Spain’s public works minister and the chairman of Spanish builder Sacyr will visit Panama this weekend to help resolve a $1.6 billion dispute that is threatening to...

Commentary

Canals used to be a sleepy topic. Suddenly, times have changed.

More Commentary

Video

James Hertwig, president and CEO of the Florida East Coast Railway, discusses the railroad’s preparations for the opening of the expansion of the Panama Canal, through projects at the Port of Miami, Port Everglades and the South Florida Logistics Center.
On the second day of a two-day tour of Panama, JOC Editor Mark Szakonyi rides the Panama Canal Railway to the Port of Colon, a growing transshipment hub.
On the first day of a two-day Panama Canal tour, JOC Editor Mark Szakonyi checks out a Hamburg Sud container ship pass through the canal.