Impact of Expanding the Panama Canal
Since its completion in 1914, the Panama Canal has been a critical link in the global transportation network. Currently, 20 percent of all U.S. imports from China are transported through the canal. However, constraints on vessel size and length of transit limit its volume. With as much as 95 percent of U.S. cargo imports arriving by ship, the trend has been to build larger vessels. Canal structural limitations have constricted the volume of shipping passage. Panama’s decision to expand the canal’s capacity has been driven by the fact that more than 73 percent of the world’s cargo ships are too large to pass through the canal. The $5.25 billion expansion will consist of a new third lane. This will enable the canal to accommodate “Post-Panamax” ships of 1,200 feet in length and capable of carrying three times the cargo of the current 965-foot long Panamax ships (USA Today). more....