Investment And The Panama Canal Expansion

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Investment And The Panama Canal Expansion


Seldom has a major construction project had such as wide ranging effect on investment opportunity as the Panama Canal expansion. Panama investment and the Panama Canal expansion are easy to understand. But there are wider ranging connections to investment and the Panama Canal expansion up and down the Atlantic coast of the Americas. Shipping experts expect to see substantial and permanent changes in shipping patterns and trade once the “third lane” addition of substantially larger locks and widened shipping channels is completed in 2015. Whether your interest is to invest in middle class growth in Latin America or a resurging North American economy a close look at the Panama Canal expansion will be useful.
The Panama Canal
At the beginning of the 20 th century the United States built a canal across the fifty mile wide Isthmus of Panama. It was considered the greatest construction project of its day if not of all time. The impetus behind the project was the desire of the United States to project naval power into both the Atlantic and Pacific Oceans. Thus a canal was built that would allow passage of the largest US warship as of 1914 on the eve of the First World War. The Panama Canal served its military purpose during two world wars and was run using a public utility model in between. When Panama took over the operation of the canal at the very end of 1999 it ran the canal for a profit. Today the canal pays a billion dollars a year directly into the Panama treasury and is the lynch pin of ports, container terminals, and the second largest free trade zone in the world. At the beginning of the 21 st century Panama decided to expand the canal which is where our brief fundamental analysis of investment and the Panama Canal expansion starts.
Bigger Locks, Bigger Boats, Double the Tonnage
The new locks will be 55 meters wide by 407 meters long. So called “cape size” vessels will soon be able to pass through the Isthmus of Panama and avoid the long and costly transit around Cape Horn, the southernmost point of South America. Investment and the Panama Canal expansion probably starts with considering which shippers (think Maersk Sea Land, etc.) will benefit from sending big boats through the new canal locks. Then think of East coast port investment and the Panama Canal expansion. From Newark to Buenos Aires, ports are building bigger cranes for off loading bigger ships. Channels are being dredged, roads improved, and rail connections upgraded. All of this activity falls into the general category of investment and the Panama Canal expansion.

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Investment And The Panama Canal Expansion

  1. 1. Investment and the Panama Canal Expansion By www.ProfitableInvestingTips.com
  2. 2. Investment and the Panama Canal Expansion • Seldom has a major construction project had such as wide ranging effect on investment opportunity as the Panama Canal expansion.http://www.profitableinvestingtips.com/investing-trading/investment-and-the-panama-canal-expansion
  3. 3. • Panama investment and the Panama Canal expansion are easy to understand.http://www.profitableinvestingtips.com/investing-trading/investment-and-the-panama-canal-expansion
  4. 4. • But there are wider ranging connections to investment and the Panama Canal expansion up and down the Atlantic coast of the Americas.http://www.profitableinvestingtips.com/investing-trading/investment-and-the-panama-canal-expansion
  5. 5. • Shipping experts expect to see substantial and permanent changes in shipping patterns and trade once the “third lane” addition of substantially larger locks and widened shipping channels is completed in 2015.http://www.profitableinvestingtips.com/investing-trading/investment-and-the-panama-canal-expansion
  6. 6. • Whether your interest is to invest in middle class growth in Latin America or a resurging North American economy a close look at the Panama Canal expansion will be useful.http://www.profitableinvestingtips.com/investing-trading/investment-and-the-panama-canal-expansion
  7. 7. The Panama Canal • At the beginning of the 20th century the United States built a canal across the fifty mile wide Isthmus of Panama.http://www.profitableinvestingtips.com/investing-trading/investment-and-the-panama-canal-expansion
  8. 8. • It was considered the greatest construction project of its day if not of all time.http://www.profitableinvestingtips.com/investing-trading/investment-and-the-panama-canal-expansion
  9. 9. • The impetus behind the project was the desire of the United States to project naval power into both the Atlantic and Pacific Oceans.http://www.profitableinvestingtips.com/investing-trading/investment-and-the-panama-canal-expansion
  10. 10. • Thus a canal was built that would allow passage of the largest US warship as of 1914 on the eve of the First World War.http://www.profitableinvestingtips.com/investing-trading/investment-and-the-panama-canal-expansion
  11. 11. • The Panama Canal served its military purpose during two world wars and was run using a public utility model in between.http://www.profitableinvestingtips.com/investing-trading/investment-and-the-panama-canal-expansion
  12. 12. • When Panama took over the operation of the canal at the very end of 1999 it ran the canal for a profit.http://www.profitableinvestingtips.com/investing-trading/investment-and-the-panama-canal-expansion
  13. 13. • Today the canal pays a billion dollars a year directly into the Panama treasury and is the lynch pin of ports, container terminals, and the second largest free trade zone in the world.http://www.profitableinvestingtips.com/investing-trading/investment-and-the-panama-canal-expansion
  14. 14. • At the beginning of the 21st century Panama decided to expand the canal which is where our brief fundamental analysis of investment and the Panama Canal expansion starts.http://www.profitableinvestingtips.com/investing-trading/investment-and-the-panama-canal-expansion
  15. 15. Bigger Locks, Bigger Boats, Double the Tonnage • The new locks will be 55 meters wide by 407 meters long.http://www.profitableinvestingtips.com/investing-trading/investment-and-the-panama-canal-expansion
  16. 16. • So called “cape size” vessels will soon be able to pass through the Isthmus of Panama and avoid the long and costly transit around Cape Horn, the southernmost point of South America.http://www.profitableinvestingtips.com/investing-trading/investment-and-the-panama-canal-expansion
  17. 17. • Investment and the Panama Canal expansion probably starts with considering which shippers (think Maersk Sea Land, etc.) will benefit from sending big boats through the new canal locks.http://www.profitableinvestingtips.com/investing-trading/investment-and-the-panama-canal-expansion
  18. 18. • Then think of East coast port investment and the Panama Canal expansion.http://www.profitableinvestingtips.com/investing-trading/investment-and-the-panama-canal-expansion
  19. 19. • From Newark to Buenos Aires, ports are building bigger cranes for off loading bigger ships.http://www.profitableinvestingtips.com/investing-trading/investment-and-the-panama-canal-expansion
  20. 20. • Channels are being dredged, roads improved, and rail connections upgraded.http://www.profitableinvestingtips.com/investing-trading/investment-and-the-panama-canal-expansion
  21. 21. • All of this activity falls into the general category of investment and the Panama Canal expansion.http://www.profitableinvestingtips.com/investing-trading/investment-and-the-panama-canal-expansion
  22. 22. Rerouting Shipments • The Colon Free Zone on the Atlantic/Caribbean end of the Panama Canal handles forty percent of shipments heading to South America.http://www.profitableinvestingtips.com/investing-trading/investment-and-the-panama-canal-expansion
  23. 23. • Shipping containers are offloaded, cargo redirected, and containers are reloaded to pass on to their final destinations.http://www.profitableinvestingtips.com/investing-trading/investment-and-the-panama-canal-expansion
  24. 24. • Investment and the Panama Canal expansion finds its home at the ports, container terminals, and business of Panama.http://www.profitableinvestingtips.com/investing-trading/investment-and-the-panama-canal-expansion
  25. 25. • In our article, Three Good Offshore Investment Ideas, we note that Panama and its local economy will be a direct beneficiary of the expansion.http://www.profitableinvestingtips.com/investing-trading/investment-and-the-panama-canal-expansion
  26. 26. • In fact, for someone interested in doing business offshore Panama is business friendly, speaks English as its second language (by law), and allows foreigners to own and operate businesses.http://www.profitableinvestingtips.com/investing-trading/investment-and-the-panama-canal-expansion
  27. 27. • For more insights and useful information about investments and investing, visit www.ProfitableInvestingTips.com.http://www.profitableinvestingtips.com/investing-trading/investment-and-the-panama-canal-expansion

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