The $5.25 billion Panama Canal expansion project has made substantial progress as it is nearing the halfway completion point. The initiative will double the capacity of the canal by building new locks to accommodate post-Panamax ships. These ships span the length of three football fields and are too long, heavy, and wide to fit through the existing locks.
The expansion project was driven by a loss of business to the Suez Canal, which is able to accommodate post-Panamax vessels. Maersk Line rerouted shipments traveling from Asia to the U.S. East Coast through the Suez Canal because the use of post-Panamax ships is more cost-effective. Panama hopes that the new locks will increase business, as the country relies on revenues of nearly $1 billion a year from the canal.
The canal expansion will have a huge impact on shipping patterns. Post-Panamax ships will be able to carry up to 13,000 containers, nearly three times more than ships currently using the canal. In order to maintain efficiencies, post-Panamax ships will call at fewer ports and unload more cargo, putting pressure on transportation and distribution links.
Ports up and down the East Coast are preparing to accommodate these large ships. Norfolk, VA and Baltimore, MD are currently the only East Coast ports deep enough to handle fully loaded post-Panamax vessels. PortMiami is expected to award a $200 million dredging contract this year, while The Port Authority of New York and New Jersey hopes to start work to raise the Bayonne Bridge, which post-Panamax ships cannot fit under.
For more information on the expansion project, please read this article from The Miami Herald.
Image Credit: Mimi Whitefield / For The Miami Herald
