{"id":15602,"date":"2016-01-26T14:11:47","date_gmt":"2016-01-26T19:11:47","guid":{"rendered":"http:\/\/panamaadvisoryinternationalgroup.com\/blog\/?p=15602"},"modified":"2016-01-26T14:11:47","modified_gmt":"2016-01-26T19:11:47","slug":"port-tampa-bay-hopes-to-benefit-from-expanded-panama-canal","status":"publish","type":"post","link":"https:\/\/panamaadvisoryinternationalgroup.com\/blog\/port-tampa-bay-hopes-to-benefit-from-expanded-panama-canal\/","title":{"rendered":"Port Tampa Bay hopes to benefit from expanded Panama Canal"},"content":{"rendered":"

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

\n

When behemoth container ships start sailing through the widened Panama Canal later this year, they will not come to Port Tampa Bay.<\/p>\n

But with more cargo expected to come to the eastern United States by sea, the port is betting that it can stake a claim to some of the new cargo traffic flowing through the canal. Bigger ships might come to Tampa even if the biggest ones don\u2019t.<\/p>\n

The port is spending $21.5 million on a pair of new cranes that will be able to unload bigger container ships, and it is investing millions more to make it easier for trucks and trains to get out of the port and on their way. The new cranes will pass beneath the Sunshine Skyway bridge in March and be up-and-running by May, just before the canal expansion is scheduled to open.<\/p>\n

\u201cOur timing couldn\u2019t be better,\u201d Port Tampa Bay CEO Paul Anderson said Thursday.<\/p>\n

The port figures that the equivalent of 500,000 shipping containers make their way into central Florida each year, mostly by truck and train, and it wants to handle more of them.<\/p>\n

Port officials say the mega-ships that ports like Miami and Charleston, S.C., are hoping to lure will never sail here. The port handles relatively few shipping containers as it is. And it\u2019s on the Gulf Coast, where the gently sloping continental shelf makes it far more difficult and expensive to carve a deeper shipping channel.<\/p>\n

\u201cWe don\u2019t have any illusions that we\u2019re going to be Singapore or Shanghai,\u201d said Wade Elliott, the port\u2019s vice president of marketing and business development. \u201cBut you know what? There\u2019s half a million containers out there with our name on it.\u201d<\/p>\n

Port Tampa Bay, long a destination for bulk cargo like fuel and phosphates, has been trying to get a foothold in the growing market for shipping containers. And as shippers start to shift the way they move goods across the world, the port thinks it has a shot at bringing more boxes to its berths.<\/p>\n

Two changes in particular could benefit Tampa.<\/p>\n

If shipping lines start offering more routes that connect Asia with the East Coast and the Gulf, the port hopes it can talk them into making an intermediate stop here \u2014 becoming something like a local stop on a global bus line.<\/p>\n

And years from now, trade analysts say a hub-and-spoke shipping system could gain steam, where mega-ships stacked with thousands of shipping containers stop at Caribbean ports and send containers on to smaller ports aboard smaller ships. That\u2019s why when the U.S. Maritime Administration analyzed the effects of the canal in 2013, it identified Tampa as a potential beneficiary.<\/p>\n

In theory, sending cargo to a port near its final destination would be cheaper than the current standard of sending it from the West Coast aboard trains and trucks.<\/p>\n

But that\u2019s an open question, said Jim Kruse, director of Texas A&M University\u2019s Center for Ports and Waterways: The canal could charge too much for ships to pass through, or railroads could cut their rates to stay competitive.<\/p>\n

The long-delayed and much-hyped expansion is set to open by early summer, Panama Canal chief Jorge Quijano said Thursday in Tampa. Officials haven\u2019t set a date yet because work and tests are still underway.<\/p>\n

\u201cOnce you set a date, you become hostage to it,\u201d Quijano told the Tampa Bay Times.<\/p>\n

It has been nine years since industry officials first gathered in Tampa for the American Association of Port Authorities\u2019 canal-inspired Shifting International Trade Routes conference, which was in town again this week.<\/p>\n

Analysts caution that the industry\u2019s long waiting game isn\u2019t over just yet. No one is quite sure how the Panama Canal will impact shipping in America, and it will take years for the effects of the expanded canal to be fully felt.<\/p>\n

\u201cThere\u2019s not going to be a great, giant sucking sound away from Southern California,\u201d where most (container) goods in the U.S. come ashore, said Tim Feemster, managing principal at Foremost Quality Logistics, a consulting firm. \u201cNobody\u2019s going to turn a switch.\u201d<\/p>\n

At first, analysts say, the effects of the bigger Panama Canal will be subtle: Big ships that pass through the Suez Canal in Egypt to get from Asia to North America might start coming through Panama instead. Shipping lines might consolidate cargo onto fewer, larger vessels, but along similar routes.<\/p>\n

But it will probably be at least a few years before the very largest ships \u2014 the behemoths that have inspired expensive infrastructure projects along the East Coast \u2014 traverse the Eastern seaboard. That\u2019s because the risk-averse shipping industry isn\u2019t likely to move quickly, Kruse said.<\/p>\n

And with many ports still working to make way for mega-ships with deeper channels, bigger cranes and taller bridges, the shipping lines might not make their moves until the landscape comes into clearer focus, said Asaf Ashar, associate director of the University of New Orleans\u2019s National Ports and Waterways Institute.<\/p>\n

\u201cThe shipping lines, like everybody else in the world, are watching to see,\u201d Ashar said. \u201cI\u2019m sure many of them say, \u2018Let\u2019s let the Panama Canal expand first and then we will see.’\u201d<\/p>\n

Despite the uncertainty, the allure of snagging a bigger piece of millions of shipping containers that pass through the U.S. each year has led to something of a spending spree on the East Coast as ports hope redrawn trade routes funnel more traffic their way.<\/p>\n

Florida has been no stranger to the building boom. Gov. Rick Scott has pledged to spend $1 billion in state money on port infrastructure during his term, and the Port of Miami has undertaken one of the nation\u2019s most ambitious efforts to lure mega-ships from the Panama Canal.<\/p>\n

And while the canal isn\u2019t the only factor driving investment in Florida\u2019s ports, it\u2019s a big part of the state\u2019s effort to beef up its container shipping business, said Doug Wheeler, president of the Florida Ports Council. Fewer than half of the shipping containers that wind up in the state come through Florida ports, Wheeler said.<\/p>\n

\u201cWe\u2019re not doing, \u2018If you build it, they will come\u2019 kind of stuff,\u201d Wheeler said. \u201cWhat we do know is that if they\u2019re not prepared to capture the opportunity, it will literally \u2014 no pun intended \u2014 sail by us, and it\u2019ll go to another port.\u201d
\nSource: Tampa Bay Times<\/p>\n<\/div>\n

<\/div>\n
\n
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When behemoth container ships start sailing through the widened Panama Canal later this year, they will not come<\/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-15602","post","type-post","status-publish","format-standard","hentry","category-news-articles-panama-perpsective"],"yoast_head":"\nPort Tampa Bay hopes to benefit from expanded Panama Canal - 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\/port-tampa-bay-hopes-to-benefit-from-expanded-panama-canal\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Port Tampa Bay hopes to benefit 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