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 Dec 2014
The installation of new gates at a Panama Canal expansion site will bring the project to 84 percent of completion ahead of an estimated early 2016 opening date, the canal authority says.
25 Nov 2014
The International Transport Workers' Federation is battling with the Panama Canal Authority, accusing the PCA of trying to shut down a tugboat captains' union in advance of the canal's expansion.
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.
Final shipment of gates for the new locks of the expanded Panama Canal
12 Nov 2014
The final shipment of gates for the new locks of the expanded Panama Canal arrived today, bringing the project that will allow for the passage of bigger vessels into its final stages.
28 Oct 2014
The first gate for the new locks on the Pacific side of the expanded Panama Canal arrived this week, as the exp
14 Oct 2014
The Panama Canal Pilots Union will not try to renegotiate its contract with the Panama Canal Authority this year as both parties are allowed under the existing contract.

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.