When a small player shocked a global industry
Rogelio Douglas - February 2011
The Panama Canal expansion project has reverberated throughout the global multi-trillion dollar maritime transportation industry.
Panama proudly continues to outperform expectations. In 1977 when the US signed the treaty returning control of the canal there were many dooms-day critics. However by 1999, ten years after the Panamanians took full control of the canal operations, they had successfully reduced the transit time 30% below US’ best time, even while they handled an annual increase of over 1,000 more vehicles. The canal’s cargo volume has consistently grown 3% annually and is expected to double its 2005 tonnage by 2025.
The taste of success fueled Panama’s government to move forward with an ambitious major canal modernization program, and again the wave of international doubters rose. Yet with only 20% of the population voting a 3-to-1 in
|
favor, the national referendum passed in 2006. It is unimaginable such a small number (706,434) “Si” voters could send such shock waves through the maritime transportation industry.
The $5.25B modernization project triggered dozens of multi-million dollar investments upgrading ports, docks and terminals throughout the Americas in order to service the anticipated increase in the much larger Post-Panamax ships. The canal expansion project will increase canal operational efficiency over 40% in capacity, allow passage of today’s modern container ships carrying twice the amount of containers, as well as the ability to reduce transit time even further facilitating an increase in the number of vessels they can handle. This one decision by this small country has driven
|
dozens of investments in dredging, terminals, mooring, hub ports, feeder ships, storage facilities, rail services, and general upgrades. (See sample list)
Currently the canal expansion project is on track for completion in 2014 and its anticipated effect is noticeable in all quarters of the industry. While East Coast ports up-and-down the Atlantic prepare for significant growth, West Coast ports and rail services are bracing and planning alternative moves. The Post-Panamax ships, with up to 12,500 containers each, coming from Asia with cargo bound for East coast of the Americas will then have the option of cutting through the canal saving time and cost, called the “all-water-route”. One estimate is of a 30% cost reduction, potentially up to $1,000 savings per
|
container.
The Panama Canal Authority is projecting their annual revenue will jump from $2B in 2009 to over $4B by 2025. Panama’s capital city skyline is beginning to reflect the country’s economic success with rows of Miami-like skyscrapers. One remaining challenge for the Panamanian government might be how best to invest in diversifying the economy while integrating the 40% of the population below the poverty level into the skilled and productive world-class workforce they will need for the country to step onto the first-world stage.
|
| Country | Description | Budget |
|---|
| Brazil | Santos - Triple terminal capacity
RJ, Acu Port - | $1.4B
NA |
| Chile | Costanera Espigon - Terminal expansion | $280M |
| Colombia | Buenaventura Contenedores | NA |
| Costa Rica | Limon - Port expansion & new terminal | $1.7B |
| Ecuador | Bolivar Port - Expansion and dredging | $52M |
| Guatemala | Tech'y Corridor - Ports, rail & pipeline | $5B |
| Mexico | Lazaro Cardenas - Phase II
Manzanillo Tec II - Second terminal
Baja CA, Punta Colonet - Terminal & rail | $220M
$563M
$3.76B |
| Peru | Puerto Callao | $884M |
| USA | Savannah, GA - 20 miles / 6 feet dredging
Miami, FL - Dredging & a tunnel | NA
$1.075B |
| Uruguay | Punta Pereira - Docks, storage and offices | $1.9B |
Source:
http://www.gbdusa.net
Back to
Top
|
.gif)
