We use cookies to provide you with a better experience. By continuing to browse the site you are agreeing to our use of cookies in accordance with our Cookie Policy.
  • INDUSTRY PRESS ROOM
  • ABOUT
  • CONTACT
  • MEDIA FILE
  • Create Account
  • Sign In
  • Sign Out
  • My Account
Free Newsletters
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
    • Mobile Apps
  • TRANSPORTATION
  • MATERIAL HANDLING
  • TECHNOLOGY
  • LIFT TRUCKS
  • PODCAST ETC
    • Podcast
    • Webcasts
    • Blogs
      • One-Off Sound Off
      • Global Logistics and Risk
      • Empowering Your Performance Edge
      • Analytics & Big Data
      • Submit your blog post
    • Events
    • White Papers
    • Industry Press Room
      • Upload Your News
    • New Products
      • Upload Your Product News
    • Conference Guides
    • Conference Reports
    • Newsletters
    • Mobile Apps
  • DCV-TV
    • DCV-TV 1: News
    • DCV-TV 2: Case Studies
    • DCV-TV 3: Webcasts
    • DCV-TV 4: Viewer Contributed
    • DCV-TV 5: Solution Profiles
    • ProMat 2023
    • Upload Your Video
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
    • Mobile Apps
  • TRANSPORTATION
  • MATERIAL HANDLING
  • TECHNOLOGY
  • LIFT TRUCKS
  • PODCAST ETC
    • Podcast
    • Webcasts
    • Blogs
      • One-Off Sound Off
      • Global Logistics and Risk
      • Empowering Your Performance Edge
      • Analytics & Big Data
      • Submit your blog post
    • Events
    • White Papers
    • Industry Press Room
      • Upload Your News
    • New Products
      • Upload Your Product News
    • Conference Guides
    • Conference Reports
    • Newsletters
    • Mobile Apps
  • DCV-TV
    • DCV-TV 1: News
    • DCV-TV 2: Case Studies
    • DCV-TV 3: Webcasts
    • DCV-TV 4: Viewer Contributed
    • DCV-TV 5: Solution Profiles
    • ProMat 2023
    • Upload Your Video
Home » Panama Canal chief says expansion shouldn't harm West Coast ports

Panama Canal chief says expansion shouldn't harm West Coast ports

February 7, 2012
DC Velocity Staff
No Comments

The CEO of the Panama Canal Authority said today that he doesn't expect the expanded canal to lead to a diversion of Asian-originating cargo from West Coast to East Coast ports, contending that global trade will grow sufficiently in coming years to expand the import pie for both West Coast ports and the expanded canal.

Keynoting the second day of MODEX 2012 in Atlanta, Alberto Alemán Zubieta said the canal is "not in competition" with West Coast ports. Instead, he said, "we will open up alternatives that were not there before."

Alemán Zubieta oversees the seven-year, $5.25 billion project that will add a third set of locks on the canal's Atlantic and Pacific sides, and deepen its waters. When completed by the summer of 2014, the canal expansion project is expected to triple the container-carrying capacity of the vessels transiting the isthmus to 12,600 twenty-foot equivalent units (TEUs) from 4,400 TEUs. The canal is projected to handle 8.4 million TEUs a year by 2015, according to the authority.

The expansion is expected to double the canal's total tonnage capacity to 700,000 tons from the current 350,000 tons. In 2011, the canal handled a record 322.4 million tons.

Some experts have predicted that the West Coast ports, notably the giant ports of Los Angeles and Long Beach, will lose market share to East Coast ports as more companies choose to move their Asian seagoing imports bound for the East Coast and Midwest on an all-water route rather than a more expensive option of offloading the cargo on the West Coast and trans-shipping inland by rail or truck.

Others, however, believe that any modal cost savings will be more than offset by the longer voyage times involved in an all-water sailing to the East Coast.

Alemán Zubieta said the price of a sea-rail move off the West Coast can't match the low rates of an all-water route. "The railroads will not price their cargo low enough to compete with the canal," he said.

Ultimately, the decision will come down to whether a shipment's value is high enough to tolerate the longer transit and delivery times inherent in an all-water route, according to Alemán Zubieta.

Alemán Zubieta said Panama is positioning the canal as one of the world's great trans-shipment centers linking all points in North, Central, and South America. It will be common, for example, for cargo originating in Peru or Venezuela to be fed into the canal for loading on a vessel that has stopped to offload at the isthmus before heading to the U.S. East Coast, he said.

As the only nation with terminals on two oceans, Panama will become a "platform to connect all of the Americas," Alemán Zubieta said.

The canal's expansion has triggered a race among the major East Coast ports to deepen their harbors to accommodate the megaships expected to transit its locks. The Southeast U.S. ports of Charleston, S.C., and Savannah, Ga., are in a no-holds-barred battle to be positioned as the first port of call in the region.

It is widely believed that ships will choose one or the other, but not both. However, Alemán Zubieta believes both ports are needed to handle post-expansion traffic. Charleston and Savannah, he said, offer "complementary" strengths.

    • Related Articles

      Panama project threatens West Coast ports' lock on Asia trade

      Panama Canal expansion boosts trade at inland ports

      GPA's rail expansion project to take aim at West Coast port share, Lynch says

    Recent Articles by DC Velocity Staff

    Union Pacific will support paid sick leave for its 5,600 locomotive engineers

    Lift truck industry celebrates National Forklift Safety Day 2023 with special offers, events, and recommendations

    Machine learning makes its mark

    You must login or register in order to post a comment.

    Report Abusive Comment

    Most Popular Articles

    • Union Pacific agrees to provide more predictable schedules for union rail workers

    • Schneider National opens innovation center at Wisconsin headquarters

    • DHL Supply Chain will expand Locus Robotics fleet to 5,000 AMRs

    • Trucking companies face “modestly unfavorable” outlook heading into 2024

    • E-commerce 3PL gains $100 million funding for its network of Mexican warehouses

    Now Playing on DCV-TV

    B0d646ac 1d71 44f7 9c47 80a0858638b7

    Improve Overhead Access with Custom VRCs

    DCV-TV 4: Viewer Contributed
    Tackling high-reach storage challenges is easy with Autoquip Lifts. We offer a wide variety of design features for Vertical Reciprocating Conveyors, or VRCs, to safely transfer materials from multiple levels based on the client’s specific needs. Don’t know where to start? We can create the perfect hydraulic or...

    FEATURED WHITE PAPERS

    • How to Use Economic Uncertainty to Gain Competitive Ground with Automation

    • Exploring Customized Forklift Solutions

    • Exploring the Future of Labor Management With Capacity Planning

    • Three layers of forklift safety: Promoting operating best practices

    View More

    Subscribe to DC Velocity Magazine

    GET YOUR FREE SUBSCRIPTION
    • SUBSCRIBE
    • NEWSLETTERS
    • ADVERTISING
    • CUSTOMER CARE
    • CONTACT
    • ABOUT
    • STAFF
    • PRIVACY POLICY

    Copyright ©2023. All Rights ReservedDesign, CMS, Hosting & Web Development :: ePublishing