{"id":9867,"date":"2014-03-18T12:53:36","date_gmt":"2014-03-18T17:53:36","guid":{"rendered":"http:\/\/panamaadvisoryinternationalgroup.com\/blog\/?p=9867"},"modified":"2014-03-18T12:53:36","modified_gmt":"2014-03-18T17:53:36","slug":"panama-canal-expansion-to-have-major-impact-on-boston","status":"publish","type":"post","link":"https:\/\/panamaadvisoryinternationalgroup.com\/blog\/panama-canal-expansion-to-have-major-impact-on-boston\/","title":{"rendered":"Panama Canal expansion to have major impact on Boston"},"content":{"rendered":"<p><a href=\"http:\/\/panamaadvisoryinternationalgroup.com\/blog\/wp-content\/uploads\/2014\/03\/canal-expansion-photo.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-9868\" title=\"canal expansion photo\" src=\"http:\/\/panamaadvisoryinternationalgroup.com\/blog\/wp-content\/uploads\/2014\/03\/canal-expansion-photo.jpg\" alt=\"\" width=\"705\" height=\"468\" srcset=\"https:\/\/panamaadvisoryinternationalgroup.com\/blog\/wp-content\/uploads\/2014\/03\/canal-expansion-photo.jpg 960w, https:\/\/panamaadvisoryinternationalgroup.com\/blog\/wp-content\/uploads\/2014\/03\/canal-expansion-photo-300x199.jpg 300w\" sizes=\"auto, (max-width: 705px) 100vw, 705px\" \/><\/a><\/p>\n<p>The Boston Globe reports on the impact the expansion of the Panama Canal will have on the City of Boston.\u00a0 This story will be repeated hundreds of times around the world.\u00a0 While we have heard a lot about the stops and starts, over budget, delayed construction and more, when it is all done that will fade into history and the glory of this wonder in Panama will triumph!!<\/p>\n<p>COLON, Panama \u2014 Deep inside the massive hole at the Atlantic Ocean  entrance to the Panama Canal, thousands of workers who appear to be the  size of ants build the equivalent of a shopping mall every day.<\/p>\n<p>Construction crews up and down the canal have worked around the clock  for much of the past six years, racing against obsolescence as they  expand the 100-year-old passageway to accommodate today\u2019s megaships.  When the project is completed over the next two years, the canal will be  able to handle hulking ships capable of carrying 14,000 20-foot  containers, nearly triple the size it can now accommodate.<\/p>\n<p>The stakes are high for both the Panama Canal, which is rapidly  losing shipping traffic to the larger Suez Canal in Egypt, and the  eastern ports of the United States, which, along with Asia, have the  most ships using the passage connecting the Atlantic and Pacific through  the Isthmus of Panama. In Boston, the canal expansion, combined with a  plan to dredge Boston Harbor to accommodate larger ships, could generate  thousands of new jobs and more than $4 billion in new business at  Conley Terminal, according to the Massachusetts Port Authority.<\/p>\n<div class=\"aside promo\">\n<div class=\"box\">\n<h2 class=\"hed-section\">Related<\/h2>\n<ul class=\"related-links\">\n<li class=\"media\"><a class=\"icon ico-graphic\" href=\"http:\/\/www.bostonglobe.com\/business\/2014\/03\/15\/panama-canal-expansion-have-major-impact-boston-worldwide-shipping\/lqz3iihcfpHWdTMS9ePDKO\/igraphic.html\">Graphic: The Panama Canal expansion project<\/a><\/li>\n<\/ul>\n<\/div>\n<\/div>\n<p>In a sign of how significant the Panama Canal expansion could be to  the state economy, Governor Deval Patrick plans to tour the canal  Tuesday with Transportation Secretary Richard Davey and several Massport  officials.<\/p>\n<div class=\"figure\"><img decoding=\"async\" src=\"http:\/\/c.o0bg.com\/rf\/image_460w\/Boston\/2011-2020\/2014\/03\/11\/BostonGlobe.com\/Business\/Images\/168424691.jpg\" alt=\"A ship passed through the canal\u2019s locks.\" \/><\/p>\n<div class=\"figcaption\">\n<p class=\"credit\">RODRIGO ARANGUA\/AFP\/Getty Images<\/p>\n<p>A ship passed through the canal\u2019s locks.<\/p>\n<\/div>\n<\/div>\n<p>Local exporters such as International Forest Products LLC could  particularly benefit from the canal expansion. A unit of the Kraft  Group, which also owns the New England Patriots, International Forest  Products ships most of its US-sourced goods such as recycled paper and  wood pulp through the canal, and using larger ships would make  operations more efficient, said Dan Moore, the chief operating officer.<\/p>\n<p>\u201cTo keep US manufacturers competitive with European and Latin  American competitors, I think the Panama Canal expansion is going to be  important,\u201d he said. \u201cWithout it, our competitiveness against the rest  of the world will slowly erode. Every little bit counts.\u201d<\/p>\n<p>When the Panama Canal opened in 1914, allowing ships to avoid sailing  around the tip of South America, it considerably shortened the time to  transport goods between Asia and the East Coast of the United States.  Today, about 3 percent of global maritime trade passes through the canal  each year.<\/p>\n<p>Some 40 ships a day make the 50-mile journey between oceans, taking  up to 10 hours and costing each ship roughly between $200,000 and  $400,000. One day last summer, locals and tourists crowded the  fourth-floor viewing deck at the Miraflores Locks, on the Pacific side,  watching a refrigerated Seatrade vessel called the Mexican Bay enter the  canal.<\/p>\n<p>Water poured into one chamber of the locks, slowly raising the ship  to the level in the channel leading to the canal. In less than 10  minutes, the water levels on both sides were even; the 700-ton gate  opened, and locomotives on tracks on both sides of the ship guided it  through.<\/p>\n<div class=\"figure\"><img decoding=\"async\" src=\"http:\/\/c.o0bg.com\/rf\/image_371w\/Boston\/2011-2020\/2014\/03\/15\/BostonGlobe.com\/Business\/Images\/11182007_18history2-6290245[1].jpg\" alt=\"The Panama Canal is a man-made link between the Atlantic and Pacific oceans. It vastly shortened the time required to transport goods between Asia and the US East Coast.\" \/><\/p>\n<div class=\"figcaption\">\n<p class=\"credit\">\n<p>The Panama Canal is a man-made link between the Atlantic and Pacific  oceans. It vastly shortened the time required to transport goods between  Asia and the US East Coast.<\/p>\n<\/div>\n<\/div>\n<p>Ships are being built much bigger than they were a century ago, as  carriers strive to save money by loading more goods on each vessel.  Nearly a quarter of the world\u2019s container ships, accounting for more  than half of total container capacity, can\u2019t squeeze through the Panama  Canal today, according to Clarksons, a British shipping services  provider.<\/p>\n<p>As a result, the Panama Canal has lost market share to the Suez.  Companies sailing between Asia and the Eastern United States  increasingly favor the Egyptian canal, which connects the Red Sea and  the Mediterranean Sea, because it can comfortably handle the largest  ships out there. Denmark-based Maersk Line, the biggest  container shipping company in the world, announced last year that it  would stop using the Panama Canal in favor of the Suez.<\/p>\n<p>To accommodate bigger vessels, which are wider and longer, and ride  lower in the water, the Panama Canal Authority embarked on a $5.2  billion expansion in 2007 that will double the capacity of the canal.  The makeover involves constructing a new set of locks, dredging the  entrance and navigation channels, digging a new access channel on the  Pacific side, and raising the water level.<\/p>\n<p>The new locks will use the equivalent of 19 Eiffel Towers\u2019 worth of  rebar and enough concrete to construct a major city\u2019s worth of 20-story  buildings. When the expansion is completed, now scheduled for early  2016, the canal would be able to handle about 97 percent of container  ships in service or on order.<\/p>\n<p>The expansion would open up the canal to different types of ships,  namely liquefied natural gas tankers, and improve access to Asian  markets for booming US energy production.<\/p>\n<p>It would also give companies shipping to the United States a cheaper  alternative. Carriers transporting jewelry and electrical parts from  Hong Kong to New York, for instance, may opt to send ships through the  new and improved Panama Canal instead of landing at West Coast ports,  unloading containers, putting them on trucks or trains, and carrying  them 3,000 miles.<\/p>\n<p>\u201cIt\u2019s a game changer,\u201d said Oscar Bazan, manager of marketing and forecasting for the Panama Canal Authority.<\/p>\n<p>But many US ports, including Boston, are not yet ready to play. Only  about 10 of 150 commercial US ports can handle the largest, fully loaded  ships that will be able to pass through the Panama Canal when the  expansion is complete, according to the American Association of Port  Authorities.<\/p>\n<p>On the East Coast, Baltimore and Norfolk, Va., are ready for the  bigger \u201cpost-Panamax\u201d ships; Miami and New York\/New Jersey are making  billions of dollars worth of improvements.<\/p>\n<p>In Boston, the 16th-largest container port on the East Coast,  according to Clarksons, the Massachusetts Port Authority is pushing a  $300 millionproject to dredge the channels to  accommodate ships that can carry the equivalent of 10,000 20-foot  containers, or TEUs (for 20-foot-equivalent units). Currently, the  largest ship that can call at the Port of Boston carries 7,000 TEUs.<\/p>\n<div class=\"figure\"><img decoding=\"async\" src=\"http:\/\/c.o0bg.com\/rf\/image_371w\/Boston\/2011-2020\/2014\/03\/15\/BostonGlobe.com\/Business\/Images\/2642149[1].jpg\" alt=\"Ships passed through the Panama Canal\u2019s Gatun Locks in Jan. 1, 1915. The canal opened in 1914 and was designed for ships much smaller than many of those built today.\" \/><\/p>\n<div class=\"figcaption\">\n<p class=\"credit\">Getty Images<\/p>\n<p>Ships passed through the Panama Canal\u2019s Gatun Locks in Jan. 1, 1915.  The canal opened in 1914 and was designed for ships much smaller than  many of those built today.<\/p>\n<\/div>\n<\/div>\n<p>The Massachusetts Environmental Policy Act approved the dredging in  July, and Massport is waiting for Congress to appropriate $170 million,  which could happen this spring. Massport and the state will split the  rest of the cost. Design and construction would take about five years,  putting the earliest date the port could be ready for post-Panamax ships  at 2019.<\/p>\n<p>There\u2019s a lot riding on the expansion. Increased cargo volumes could  make the Port of Boston profitable for the first time, said Thomas  Glynn, chief executive of Massport, as well as add to the 7,000 jobs at  the port, including longshoremen, ship-line workers, and Massport staff.<\/p>\n<p>The dredging and related projects, including bigger cranes and longer  berths at Conley Terminal, would allow the port to handle more than  twice as many hides, furs, and lumber exports; beer, wine, and furniture  imports; and frozen seafood traveling both ways.<\/p>\n<p>An expanded Boston port also could capture New England-bound cargo  that comes into the country through New York, which makes up about a  third of all New England imports, according to the US Army Corps of  Engineers, which would oversee the dredging. That could mean lower  prices for local consumers.<\/p>\n<p>\u201cThe more difficult it is to get here, the more expensive it is,\u201d  said William Eldridge, president of the Boston Shipping Association.<\/p>\n<p>The expansion also is crucial to retaining the two major shipping  lines that call on Boston, COSCO and the Mediterranean Shipping Co. The  dredging project might not necessarily mean these companies will do more  business out of Boston, said Allen Clifford, executive vice president  of Geneva-based Mediterranean Shipping Co., but having the option to use  larger ships makes it a more attractive port.<\/p>\n<p>\u201cThe container operation is often the linchpin of a port,\u201d said  Deborah Hadden, port director at Massport. \u201cIt helps us compete in the  global marketplace.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Boston Globe reports on the impact the expansion of the Panama Canal will have on the City<\/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-9867","post","type-post","status-publish","format-standard","hentry","category-news-articles-panama-perpsective"],"yoast_head":"<!-- This site is optimized with the Yoast 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