The giant Panama Canal expansion opens June 26

[SZonian]

The giant Panama Canal expansion opens June 26 amid much fanfare and one of the worst shipping industry slumps ever. While it won’t do anything to help the dire state of the industry near-term, the changes are critical to Western trade in the long run.

The canal, which handles about a third of Asia-to-Americas trade, had no choice but to expand. As the industry copes with its downturn, major shipping companies are pooling their resources and using fewer but much bigger ships—ones that are too large to fit through the pre-expansion Panama Canal

The Panama Canal can now accommodate vessels that are longer, wider and heavier than before, thanks to an expansion that was nine years in the making. The face-lift was crucial to compete in a world where ships are getting bigger and bigger.

The nine-year, $5.4 billion expansion more than doubles the canal’s cargo capacity. A third lane has been added to the canal that accommodates ships large enough to carry up to 14,000 containers, compared with around 5,000 currently. This alleviates a cargo bottleneck caused by the smaller ships that was due to get worse over time.

The expansion makes the Panama Canal more competitive with the Suez Canal in Egypt, shortening the one-way journey by sea from Asia to the U.S. East Coast by roughly five days and eliminating the need for a trip around Cape Horn to get to the Atlantic.

[excerpted]

http://www.wsj.com/articles/the-panama-canal-expands-1466378348

[SZonian]

Amid construction delays, cost overruns, shoddy concrete work, and the geography of Panama, it's done, but only a couple of years behind schedule.

[WAC]

Amid construction delays, cost overruns, shoddy concrete work, and the geography of Panama, it's done, but only a couple of years behind schedule.

Interesting......there's a lot of focus about clearing and adapting trade routes today.........Siani will soon be Competing with the new Northern Route over Russia which the Asians and China are assisting with.....as well as the new train expansion.....

[bilo]

Amid construction delays, cost overruns, shoddy concrete work, and the geography of Panama, it's done, but only a couple of years behind schedule.

I have a little familiarity with Panama. They have been very smart in how they've managed the canal since gaining control over it. In addition to expanding it so bigger ships can use the canal, they've also been using part of the profits to upgrade their infrastructure, expand Tocumen Airport into a Central American hub, and they've built the first subway system in Central America. Panama has the fastest growing economy through out the Americas over the last ten years.

[SZonian]

I have a little familiarity with Panama. They have been very smart in how they've managed the canal since gaining control over it. In addition to expanding it so bigger ships can use the canal, they've also been using part of the profits to upgrade their infrastructure, expand Tocumen Airport into a Central American hub, and they've built the first subway system in Central America. Panama has the fastest growing economy through out the Americas over the last ten years.

"...a little familiarity..."?  I'd be curious to know...

I grew up there...and agree they've done a good job from all outwards appearances of managing the canal and making improvements.  But the government still has corruption problems among others. 

Very little appears to have trickled down to the lower classes, the pollution and garbage problems are starting to have an impact on Panama's reputation as well. 

I have quite a few contacts who live there and do a pretty good job of keeping me apprised of how things are going.