Panama Canal Expansion Could Help US Cargo Flow

Latin Business Chronicle ^ | September 26, 2006 | staff

[kellynla]

This view is expressed in a new study that has forecast North American container port demand nearly double in 10 years with most pressure falling on Pacific Coast ports.

UK-based Ocean Shipping Consultants predicts demand to increase by up to 85 per cent to 85.7m TEU over 2005-15, and by a further 31 percent to 112.3m TEU over 2015-20. Even an increased-risk/protectionist scenario, incorporating a significant downturn in GDP expansion over 2011-15, would yield a container port demand increase of 55 percent to 71.8m TEU over 2005-15, with 25 percent growth over 2015-20, to 89.7m TEU

In its report Containerport Markets in the Americas to 2020 OSC notes: "Growth in American containerport demand has accelerated in recent years. This has been driven by the globalisation of the world economy and the rise of China as the world's manufacturing centre. Booming imports from Asia and the above-average economic growth of western US states have put particular pressure on ports on North America's Pacific seaboard."

But OSC says that there are concerns about the capacity of these ports and associated intermodal systems to handle continued long-term growth in demand although the expansion of Panama Canal capacity and increases in all-water services to the east coast will alleviate some of the pressure. The development of ports on Mexico's Pacific seaboard and new intermodal connections into the US heartland could offer a further option OSC observes.

[Jaysun]

The Panama Canal must be widened, without question. The question is who should be made to pay for it. Perhaps they could finance it with a toll of some sort.

[stylin19a]

use jimmy carter's pension

[webheart]

The Panama Canal must be widened, without question.

It isn't our problem anymore, it is Panama's and China's problem, thanks to Jimmy Carter and Bill Clinton. The best solution to the Panama canal problem is to construct a sea-level canal at Lake Nicaragua. Look at a map of Central America to see how little actual digging would need to be done.

[RightWhale]

The roads to the west coast in the early 1800s were seen as the direct route to Asia. The Lewis and Clark expedition was one of the scouting missions to find a route to the west coast, that one being a hoped for water route. The railroads were supposed to be capable of handling the trade with China. At the time New Orleans was not US territory and the Mississippi was not possible as a trade route. The west coast ports should be sufficient for China trade now.

[kellynla]

"The west coast ports should be sufficient for China trade now?"

Geraldine Knatz, executive director of the Port of Los Angeles, "I can look out ahead to a time when the West Coast is not going to be able to handle all of the volume," Knatz said, noting that the Port of Los Angeles, the nation's busiest container facility, would reach capacity between 2020 and 2025.

[Jaysun]

It isn't our problem anymore, it is Panama's and China's problem, thanks to Jimmy Carter and Bill Clinton. The best solution to the Panama canal problem is to construct a sea-level canal at Lake Nicaragua. Look at a map of Central America to see how little actual digging would need to be done.

And I've heard that Nicaragua has made such a proposal. Very well with me. Let them start digging.

[RightWhale]

LA is not the only port. As far as reaching capacity at LA, what is the bottleneck?

[Paleo Conservative]

The best solution to the Panama canal problem is to construct a sea-level canal at Lake Nicaragua. Look at a map of Central America to see how little actual digging would need to be done.

I bet if the Nicaraguans build a sea-level canal, the Panamaninans won't just sit around only taking Panamax size and smaller ships. Competitive routes between the oceans would be good for the whole world.

[Tribune7]

Busting the unions so we can modernize our West Coast ports would probably be a more effective and cheaper solution.

[kingu]

As far as reaching capacity at LA, what is the bottleneck?

The unions.

[kellynla]

Hey, Whale, I'm not the authority, Knatz is. LOL


And according to her, "I can look out ahead to a time when the West Coast is not going to be able to handle all of the volume."

[RightWhale]

Oh. That would be a problem. Maybe if their pay were doubled to $280 an hour they could handle more ships.

[RightWhale]

MagLev is the answer. What was the question?

[No Truce With Kings]

"The best solution to the Panama canal problem is to construct a sea-level canal at Lake Nicaragua."

In the 1950s there were proposals to do just that -- using H-Bombs to do the digging. Really.

[kellynla]

have you been to our ports recently?

[Tribune7]

Nope.

So if you are telling me that you've gotten the unions under control and the clipboards replaced with scanners, I'd count that as very good news.

[kellynla]

"Nope."

thought so

[kingu]

Oh. That would be a problem. Maybe if their pay were doubled to $280 an hour they could handle more ships.

Perhaps; basically the union wants a) expansion and modernization while keeping everyone in their existing jobs, even actual pencil pushers who I guess would be doodling all day, and b) expansion of employment while assuring that every union benefit continues for the life of every union employee and that new hires are paid the same as present union employees while existing union employees get a raise.

Once the union bottleneck is destroyed, the infrastructure needs to be examined. Cargo transport out of the urban sprawl of Los Angeles is highly limited, easily disabled by accidents or other acts, with limited connections outside of the sprawl. Redundancy is almost nil, so if significant problems occur, cargo sits and waits.

Poor design and execution has always been the hallmark of cargo transport in California. How the system continues to operate at any level remains a mystery to me.

[Sacajaweau]

Why do I think this Canal bit is just a desire for an American presence along with the bucks that go with it??