{"id":14970,"date":"2015-11-09T10:33:16","date_gmt":"2015-11-09T15:33:16","guid":{"rendered":"http:\/\/panamaadvisoryinternationalgroup.com\/blog\/?p=14970"},"modified":"2015-11-11T10:29:21","modified_gmt":"2015-11-11T15:29:21","slug":"panama-canal-expansion-93-complete","status":"publish","type":"post","link":"https:\/\/panamaadvisoryinternationalgroup.com\/blog\/panama-canal-expansion-93-complete\/","title":{"rendered":"Panama Canal expansion 93% complete"},"content":{"rendered":"

\"oct<\/a><\/p>\n

I remember first coming to Panama, getting my Cedula and voting for the first time here when the canal expansion was put to a vote.\u00a0 It was one of the proudest days of my life as I returned to the land of my birth and I knew that I\u00a0 was going to witness this incredible event.\u00a0 Well, here we are at the end of 2015 and everyone is ready to see the new canal in action.<\/p>\n

Expansion of the Panama Canal is now 93% complete, Manuelo Eduardo Benitez, deputy administrator of the Panama Canal Authority, told an audience at the South Carolina International Trade Conference, sponsored by the South Carolina Ports Authority.<\/p>\n

\u201cWe are in the last stretch,\u201d he said. \u201cMany of the components of this programme have been completed.\u201d Benitez said the Pacific and Atlantic entrances have both been completed, and many other components are nearly so, including the deepening and widening of the navigation channel, and increasing the elevation of the lake, which will be filled by Panama\u2019s rainy season, which typically runs until mid-December.<\/p>\n

\u201cThe main element we are finishing up is the locks project itself,\u201d he said.<\/p>\n

Benitez acknowledged that the finished canal will not be able to accommodate a small number of vessels, which is one reason often cited for the proposed US$50 billion construction of a canal across nearby Nicaragua by the private Hong Kong Nicaragua Canal Development Group (HKND). Nicaragua\u2019s National Assembly approved a bill to grant a 50-year concession to HKND, which has said construction of the ports and locks would begin before the end of 2015, and that the project would be completed by 2020.<\/p>\n

For a variety of reasons, including environmental and social concerns raised by the prospect of digging the 286-kilometre canal, many are skeptical that the Nicaragua Canal will ever be built. Perhaps most common, analysts say, is that there is insufficient traffic for a canal which would be built so close to Panama. (The Panama Canal, by comparison, is just 80 kilometres from coast to coast.)<\/p>\n

\u201cMany people in Nicaragua say the expanded Panama Canal cannot cater to these large ships, so we\u2019re going to build a canal to compete with the Panama Canal,\u201d Benitez says. \u201cOf the entire world fleet of ships, in 2014, there\u2019s only 1.5% that are above the future Panama Canal capacity. That\u2019s a small number. In 2018, there will only be 3.2% of the world fleet that will not be able to transit the Panama Canal. In terms of numbers, it doesn\u2019t make sense to build a canal with the capacity to handle the entire world fleet.\u201d<\/p>\n

If the Nicaragua canal is built, Benitez acknowledges that it would provide stiff competition to Panama. \u201cI wouldn\u2019t say it is impossible, but it doesn\u2019t make economic sense. We are keeping a close [watch] on that programme, because if it ever gets built, it will be competition for Panama.\u201d<\/p>\n

Benitez said the Canal Authority expects the expansion of the canal to bring about a redeploying and reassessing of network operations.<\/p>\n

\u201cOne of the main attractions of Panama is its location,\u201d he said, noting that he expects shipping lines will want to send larger ships to Panama and use its ports for transhipment hub. \u201cShips can come mainly from northeast Asia with cargo bound for the United States East Coast and for South America to fill the ship, and then unload in Panama cargo that is going for the rest of Latin America, [such as] the west coast of South America, and then pick up cargo from these locations that is bound for the US East Coast, effectively double-dipping.\u201d<\/p>\n

Benitez says that the authority is initially expecting to see ships in the 9,000 to 10,000 TEU size bound for the US East Coast, noting that US West Coast ports already see that size of ships.<\/p>\n

Philip Damas, director \u2013 supply chain advisors at Drewry Shipping Consultants, said at a later presentation that current Asia-US East Coast and US Gulf Coast lines see 16 weekly sailings averaging 4,600 TEUs per ship. He expects that upon completion of the canal\u2019s expansion the number of sailings between Asia and the US will likely decrease slightly \u2013 \u201cthere\u2019s lots of duplication [of routes] now,\u201d he said, citing Shanghai-New York as a route which would benefit from route rationalization \u2013 but that the average ship size would increase by some 40%.<\/p>\n

Two ocean carrier representatives, speaking at a later session, reacted to the canal expansion, saying it will likely change their company\u2019s sailings, though not immediately. \u201cThere will be new opportunities, [but] it will not be a big bang with an armada of 15,000 TEU ships arriving at United States ports,\u201d said Wolfgang Freese, president of Hapag-Lloyd Americas. \u201cI see a lot of opportunities for all carriers, but decisions will not be made immediately.\u201d<\/p>\n

Jurgen Pump, senior vice president, Hamburg Sud North America, also expects to see a gradual upgrade of service through the canal. He predicted that his company would use the expansion to first upgrade its Europe to South America West Coast sailings. \u201cIt will be a process rather than a wholesale change of our networks. It\u2019s very expensive, and we have to see a demand [for larger ships],\u201d he said.<\/p>\n

Like ports on the US East Coast, other ports near the canal are also preparing for larger ships. Benitez told his audience that Colombia has been expanding its ports, including the purchase of five post-Panamax cranes for its Cartagena port. \u201cThere are no post-Panamax ships going to Cartagena, but they are preparing for the future when these large ships can cross the Panama Canal,\u201d he said.<\/p>\n","protected":false},"excerpt":{"rendered":"

I remember first coming to Panama, getting my Cedula and voting for the first time here when the<\/p>\n","protected":false},"author":5,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-14970","post","type-post","status-publish","format-standard","hentry","category-news-articles-panama-perpsective"],"yoast_head":"\nPanama Canal expansion 93% complete - Blog and Newsletter<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/panamaadvisoryinternationalgroup.com\/blog\/panama-canal-expansion-93-complete\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Panama Canal expansion 93% complete\" \/>\n<meta property=\"og:description\" content=\"I 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