11. De Lesseps had previously constructed the Suez Canal.
12. American started showing interest in building the Canal; the main reason for that was the discovery of gold in California in 1848. * 1879- De Lesseps came up with the proposal for the Canal.
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16. The newly independent Panama accepted his offer and was compensated by an initial payment of $10 million and an annuity of $250,000.
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18. The workers had to put up with the heat and mosquitoes that carried malaria.
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23. Gatun- two parallel sets of locks and each one consists of three flights.
41. 2007 Fiscal Year Stats 14,721 vessels transited. 3.7% increase from 2006. Canal Water Time decreased from 30.5 to 27.8 hours. 25 Panamax vessels transited in 09/2007 breaking previous record of 24 in 07/2003. 300 million gross tons transited in 2007.
42. Investments Acquire 18 locomotive Tow Track rehab Replace miter gates w/ hydraulic system Acquire and replace tugboats Expand Canal Deepen Gatun lake and acquire more dredging technology
43. The Expansion project construction of lock complexes at each end of the Canal. One lock complex will be located on the Pacific east of the existing Gatun Locks Each lock complexe will have three consecutive chambers Each chamber will have three lateral water-saving basins
44. Numbers 427 meters (1,400 ft) long 55 meters (180 ft) wide 18.3 meters (60 ft) deep
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46. Estimated Costs $5.25 billion to construct Atlantic side Lock: USD $1.110 billion Pacific Side Lock: USD $1.03 billion New Locks Access channels USD $ 820 million cost includes contingencies to cover risks and unforeseen events
47. Estimated Profit 12% internal rate of return Tolls increasing at an annual average rate of 3.5% for 20 years USD $2.3 billion temporary external financing financing could be repaid in approximately eight years. investment costs will be recovered in less than 10 years
48. Stopford’s 10 Variables in the Shipping Market Demand The World Economy-W Seaborne Commodity Trade-S Average Haul-S Political Events-S Transport Costs-S Supply World Fleet-S Fleet Productivity-S Shipbuilding Production-S Scrapping and Losses-S/W Freight Rates-W/S
49. Current Situation Current backlog is high due to Peak Season congestion Both arrivals and transits relatively steady (Giraud)
50. Current System Ranking is based 40% on # of transits, 60% toll revenue Updated monthly, based on last 12 months Rankings determine scheduling preference, competitions to bump/bid (Giraud)
51. Opportunities Panama Canal Authority Increase in Toll Freight. Current Tariff fixed Rate + $63/TEU, $3.37/ton. Annual 3% increase. Terminal operations, FTZ, tourism
52. Opportunities Oil- BP/ Petroterminal de Panama Rail- KCS/ Panama Railroad US East Coast Ports www.google.com
53. Savannah Savannah Harbor Expansion Program-$1.3 billion for 48’ depth Infrastructure- 7,500 truck moves/day Lease Incentive for customers Terminal Capacity: 2.7- 6.5 m/TEU Savannah River
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