Panama canal expansion
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Transcript of Panama canal expansion
IMPACT ON TRADE ON EXPANSION OF PANAMA
CANAL
OBJECTIVE AND NEED OF THE STUDY
• To know the trading pattern of countries directly linked by Panama Canal.
• To know the major changes in traffic flow from Panama Canal.
• To know how the expansion of Panama Canal will directly or indirectly affect the container, dry bulk and tanker trade.
Contd…
• To study the expansion program of US of its Panama Canal.
• To find out the answer of the question “Is it true that expansion of existing Panama Canal would prove to be a game changer for the container, dry bulk and Tanker trade?”
• How the Panama Canal can be used strategically by the USA?
RESEARCH METHODOLOGY
• The data collected is secondary data:- internet Library books Trade Journals Trade news from economic times
• The urls are as follows:-The Panama Canal Expansion: Potential impact on logistics and
supply chains, By Onesimo V. Sanchez, Office of market research and analysis, June 2012.
http://caribgrowth.competecaribbean.org/content/OnesimoSanchezKingstonpanamacanaljune2012_.pdf
Contd…
• Expansion of the Panama Canal Potential impact on Asia – East Coast/Golf trade, By Rodolfo Sabonge, Vice President, Marketing research and Analysis office, Panama Canal Authority
http://www.fhwa.dot.gov/planning/freight_planning/talking_freight/talkingfreight10_21_09rs.pdf
• The Panama Canal Expansion: Business as usual or Game changer?, By Dr. Jean-Paul Rodrigue, Hofstra University, New York, USA, & Dr. Theo Notteboom, President of ITMMA, University of Antwerp, Antwerp, Belgium
http://people.hofstra.edu/jean-paul_rodrigue/downloads/PT51-10_3.pdf
• Effects of the Panama Canal Expansion on Distribution Networks, By Fortna, www.fortna.com
http://www.fortna.com/whitepapers/Article_Viewpoint_PanamaCanalExpansion_FINAL_EN.pdf
RESEARCH DESIGN
• The design of the research is mentioned below:-
Conclusive research Descriptive research Explanatory research Quantitative research
Panama Canal Expansion Program Objectives
•Maintain Canal competitiveness as well as the value of the route
•Increase capacity and allow the transit of larger ships
•Reduce water consumption
•Improve safety and efficiency
•Sustain tonnage and profitability growth
Canal Expansion Program Components
•Deepening of Pacific and Atlantic entrance channels
•Deepening and widening of the Gatun Lake navigation channel
•Construction of new access channel for Pacific Locks
•Construction of new Post Panamax Locks and water saving basins in the Atlantic and the Pacific
•Increase the maximum operating level of Gatun Lake
Pacific Locks Site
Atlantic Locks Site
Benefits of the Panama CanalExpansion
• Largely decrease the instances of bottlenecks• Lower the average transit times by rendering
raised capacity• Allow for transit of Post Panamax vessels• Increase capacity to 42 vessel per day & by
2020 to 51 vessel perday• Average canal water time could be significantly
redused by using more robust tugs.
Main competitors of the Panama Canal route
Impact of the Panama Canal Expansion
The Panama Canal Authority Classifies its market into eight Segments
• Containers• Dry bulk vessels – grains, ore, coal• Vehicle Carriers• Liguid Bulk Vessels• Reefers or Refrigirated Transport• Cruise Ships• General Cargo Vessels• Micellaneous vessels – Navy, Barges, Dreges
General Cargo
CN
CSX
CSX Main Line & Yard
AGR/BNSF
Canadian National/KCS
Norfolk Southern
TASD Switch Yard
TASD Terminal Yard
Mobile Container Terminal
SteelHeavy Lift/Oversized
I-165 / I-65
I-10
Future ICTF
Mobile Ship Channel3.5 Hrs. to Sea Buoy
McDuffie Coal Terminal
Pinto Steel Terminal
CG RailwayService to Mexico
Pier 2 – Open Yard
NAFTA Gulf Bridgeto Mexico
Access to15,000 Mi.
Inland WaterwaysVia Tenn-Tom
50 5
0
Mobile Container Terminal
Intermodal Container Transfer Facility
50
2 Post-Panamax Cranes (4 More Planned)
2,000 Feet of Berth at 45 Foot DraftWeekly Carrier Service on Major Trade
Lanes (Maersk, CMA CGM, ZIM, HMM, APL)
Intermodal Container Transfer Facility
Future Rail Intermodal
Rail Intermodal Extends Port’s Reach into Midwest and Southeast U.S. Markets
Serves Domestic Shipments
Adjacent Land for Logistics
3-Year Development Plan
200,00 TEUs Throughput
Heavy Lift Crane
900T Crawler Crane
Secured to a 210’ x 68’ Barge Capable of Lifting 400 Tons
to the Center of a Panamax Vessel
Alabama Cruise Terminal
66,000 Sq. Ft. State-of-the-Art Terminal
Six Covered Drop Off/Pick Up Lanes
On-Site, 500 Space Parking Deck
Immediate Access to Interstate 10 and Interstate 65 (4 Miles via I-10)
Proven Drive Market
Entertainment, Museums, City Center Within Walking Distanced
New Marriott Rensaissance, Hilton and Holiday Inn Hotel Investments Within Walking Distance
Panama Canal Expansion
• $5.25 billion dollar project• Schedule for Completion in 2014• Panamax Vessels with up to 12,500 TEU• Will double the amount of goods• Impact on the gulf ports:
• Increase in incremental cargo• An additional Asian Service• Increase in feeder services from Transshipment
Hubs in the Caribbean
Shippers control supply-chain decisions that will influence the use
of the canal
• routing strategies will continue to be assessed based on:
• Fuel prices• Sourcing dessisions• Delivery times• Added value distribution centers• Intermodalism capabilities