As the Canal expansion continues, around the world, companies and
governments are beginning to wake up to the likely impacts that the
larger canal will have on world trade. When the construction is
completed in 2014 as planned, it will forever alter the world’s
shipping patterns. The wider canal and larger locks will almost double
the amount of freight able to pass through.
According to a recent Science column in the New York Times, the
expansion will allow much bigger container ships and other cargo
vessels to easily reach the Eastern United States, altering patterns
of trade and putting pressure on East and Gulf Coast ports like
Savannah, in Georgia, and New Orleans, Louisiana to deepen harbors
and expand cargo-handling facilities. It may also take cargo away from
Western US ports. According to a December 2011 article in the Los
Angeles Times, “A major expansion of the Panama Canal is raising
alarms in Southern California, where business, labor and public
officials are warning that the project threatens to dent the region’s
role in international trade.
The ports of Los Angeles and Long Beach, which at the moment handle
about 40% of the USA’s imported Asian goods, could lose as much as 25%
of their freight business after the Panama Canal expansion is
completed. In preparation, the ports, neighboring towns and railroads
have launched improvement projects aimed at keeping themselves
competitive. One proposed project, for instance, would speed the
loading of cargo onto trains; others eliminate bottlenecks or increase
capacity so that the ports remain attractive to importers.
While West-coast ports strive to make themselves more competitive and
minimize the impact of the canal expansion, the East-coast ports are
dying to take advantage of the larger vessels that will start
transiting the canal. Last year, Governor Rick Scott of Florida
redirected $77 million in Florida Department of Transportation funds
to help dredge the Port of Miami to a depth of 50 feet. The deeper
channel will help allow the port to handle the larger cargo ships
expected to use the expanded Panama Canal.
There will obviously be a lot of fall-out when the widened canal
opens, and it is going to be interesting to see what changes result
from it and who the winners and losers are.
Related posts:
