Publish in Special Reports - Thursday, June 29, 2017
The Valparaiso Express transiting the expanded Panama Canal. It is a 13,000+ TEU capacity Neopanamax containership, owned by Hapag Lloyd. (Photo: ACP)
Panama Canal experts Paul Bingham, Robert McMillan and Richard Wainio.
After delays and cost overruns, Panama Canal expansion sees success.
BY JOACHIM BAMRUD
The Panama Canal this week marks its first anniversary after undergoing a multi-billion billion expansion that enabled passage of larger vessels.
“The performance of the new set of locks after one year has exceeded most expectations,” says Richard Wainio, a former planning director of the Panama Canal Commission who recently served as Port of Tampa CEO and follows canal development closely.
While the expansion was marred by cost overruns and delays, the waterway is now benefiting from higher revenues.
“The expansion has quickly seen utilization of the new locks through deployment of vessels larger than the original locks, generating revenues for the Canal Authority and providing vessel owners and shippers with promised economies of scale,” says Paul Bingham, Vice President of EDR Group and leader of the firm’s trade economics practice.
From the perspective of Canal management, it has been a business success, generating record levels of revenue, Wainio points out.
Panama Canal tonnage has increased by ...
Keywords: ACP, EDR Group, LNG, Neopanamax, PCC, Protectionism, Sacyr, Trump