Panama canal expansion

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Panama canal expansion

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Panama canal expansion

  1. 1. IMPACT ON TRADE ON EXPANSION OF PANAMA CANAL
  2. 2. OBJECTIVE AND NEED OF THE STUDY • To know the trading pattern of countries directly linked by Panama Canal. • To know the major changes in traffic flow from Panama Canal. • To know how the expansion of Panama Canal will directly or indirectly affect the container, dry bulk and tanker trade.
  3. 3. Contd… • To study the expansion program of US of its Panama Canal. • To find out the answer of the question “Is it true that expansion of existing Panama Canal would prove to be a game changer for the container, dry bulk and Tanker trade?” • How the Panama Canal can be used strategically by the USA?
  4. 4. RESEARCH METHODOLOGY • The data collected is secondary data:-  internet  Library books  Trade Journals  Trade news from economic times • The urls are as follows:- The Panama Canal Expansion: Potential impact on logistics and supply chains, By Onesimo V. Sanchez, Office of market research and analysis, June 2012. http://caribgrowth.competecaribbean.org/content/OnesimoSanchezKin gstonpanamacanaljune2012_.pdf
  5. 5. Contd… • Expansion of the Panama Canal Potential impact on Asia – East Coast/Golf trade, By Rodolfo Sabonge, Vice President, Marketing research and Analysis office, Panama Canal Authority http://www.fhwa.dot.gov/planning/freight_planning/talking_freight/talkin gfreight10_21_09rs.pdf • The Panama Canal Expansion: Business as usual or Game changer?, By Dr. Jean-Paul Rodrigue, Hofstra University, New York, USA, & Dr. Theo Notteboom, President of ITMMA, University of Antwerp, Antwerp, Belgium http://people.hofstra.edu/jean-paul_rodrigue/downloads/PT51- 10_3.pdf • Effects of the Panama Canal Expansion on Distribution Networks, By Fortna, www.fortna.com http://www.fortna.com/whitepapers/Article_Viewpoint_PanamaCanalE xpansion_FINAL_EN.pdf
  6. 6. RESEARCH DESIGN • The design of the research is mentioned below:-  Conclusive research  Descriptive research  Explanatory research  Quantitative research
  7. 7. Panama Canal Expansion Program Objectives • Maintain Canal competitiveness as well as the value of the route • Increase capacity and allow the transit of larger ships • Reduce water consumption • Improve safety and efficiency • Sustain tonnage and profitability growth
  8. 8. Canal Expansion Program Components • Deepening of Pacific and Atlantic entrance channels • Deepening and widening of the Gatun Lake navigation channel • Construction of new access channel for Pacific Locks • Construction of new Post Panamax Locks and water saving basins in the Atlantic and the Pacific • Increase the maximum operating level of Gatun Lake
  9. 9. Pacific Locks Site
  10. 10. Atlantic Locks Site
  11. 11. Benefits of the Panama Canal Expansion • Largely decrease the instances of bottlenecks • Lower the average transit times by rendering raised capacity • Allow for transit of Post Panamax vessels • Increase capacity to 42 vessel per day & by 2020 to 51 vessel perday • Average canal water time could be significantly redused by using more robust tugs.
  12. 12. Main competitors of the Panama Canal route
  13. 13. Impact of the Panama Canal Expansion
  14. 14. The Panama Canal Authority Classifies its market into eight Segments • Containers • Dry bulk vessels – grains, ore, coal • Vehicle Carriers • Liguid Bulk Vessels • Reefers or Refrigirated Transport • Cruise Ships • General Cargo Vessels • Micellaneous vessels – Navy, Barges, Dreges
  15. 15. General Cargo CN CSX CSX Main Line & Yard AGR/BNSF Canadian National/KCS Norfolk Southern TASD Switch Yard TASD Terminal Yard Mobile Container Terminal Steel Heavy Lift/Oversized I-165 / I-65 I-10 Future ICTF Mobile Ship Channel 3.5 Hrs. to Sea Buoy McDuffie Coal Terminal Pinto Steel Terminal CG Railway Service to Mexico Pier 2 – Open Yard NAFTA Gulf Bridge to Mexico Access to 15,000 Mi. Inland Waterways Via Tenn-Tom
  16. 16. 5 0 5 0 Mobile Container Terminal Intermodal Container Transfer Facility 5 0  2 Post-Panamax Cranes (4 More Planned)  2,000 Feet of Berth at 45 Foot Draft  Weekly Carrier Service on Major Trade Lanes (Maersk, CMA CGM, ZIM, HMM, APL) Intermodal Container Transfer Facility
  17. 17. Future Rail Intermodal  Rail Intermodal Extends Port’s Reach into Midwest and Southeast U.S. Markets  Serves Domestic Shipments  Adjacent Land for Logistics  3-Year Development Plan  200,00 TEUs Throughput
  18. 18. Heavy Lift Crane  900T Crawler Crane Secured to a 210’ x 68’ Barge  Capable of Lifting 400 Tons to the Center of a Panamax Vessel
  19. 19. Alabama Cruise Terminal  66,000 Sq. Ft. State- of-the-Art Terminal  Six Covered Drop Off/Pick Up Lanes  On-Site, 500 Space Parking Deck  Immediate Access to Interstate 10 and Interstate 65 (4 Miles via I-10)  Proven Drive Market  Entertainment, Museums, City Center Within Walking Distanced  New Marriott Rensaissance, Hilton and Holiday Inn Hotel Investments Within Walking Distance
  20. 20. Panama Canal Expansion • $5.25 billion dollar project • Schedule for Completion in 2014 • Panamax Vessels with up to 12,500 TEU • Will double the amount of goods • Impact on the gulf ports: • Increase in incremental cargo • An additional Asian Service • Increase in feeder services from Transshipment Hubs in the Caribbean
  21. 21. Shippers control supply-chain decisions that will influence the use of the canal • routing strategies will continue to be assessed based on: • Fuel prices • Sourcing dessisions • Delivery times • Added value distribution centers • Intermodalism capabilities

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