The Panama Canal Authority (ACP) has entered into a Memorandum of Understanding with major U.K. ports operator, Peel Ports, who own the Port of Liverpool, as the latter gears up for the formal opening of its Liverpool2 container terminal in early November.

The formal agreement creates a strategic alliance aimed at facilitating international trade and generating new business by promoting trade routes between Liverpool and the west coast of South America via the Panama Canal.

The agreement was signed on October 24 by Jorge L. Quijano, Administrator of the ACP and Mark Whitworth, Chief Executive of Peel Ports Group, during a formal visit to the Port of Liverpool by a senior delegation from Panama.

“Liverpool and Panama have both responded to the growth of the global container ship fleet with major investment programs in recent years to accommodate newer generations of container ships,” says Whitworth. “The opening of the expanded canal has the potential to open up new markets for trade and has the potential to shift international trade patterns.

“We see exciting times ahead for Liverpool with improved trade connectivity and business opportunities between the U.K. and South America, which will not only generate economic growth but also create jobs and increase revenues.”

The U.K.’s Panama Ambassador, Dr Ian Collard said “We have hit an exciting moment in the engagement between Panama and Liverpool. The Panama Canal Authority has made considerable investments in recent years to expand its lock gates and thereby unlock the potential for a new generation of Neo-Panamax vessels to cross quickly between the Pacific and Atlantic Oceans. At the same time, the development of Liverpool2 provides an opportunity for the Port of Liverpool to develop its role as a destination for these larger vessels and create a new stream of traffic across the Atlantic.”