A study on the impact of Panama Canal expansion on major stakeholders

• Main Author: Lee, Jin Yan
• Other Authors: Lum Kit Meng
• Format: Final Year Project
• Language: English
• Published: 2015
• Subjects: DRNTU::Engineering::Maritime studies
• Online Access: http://hdl.handle.net/10356/64097
• Institution: Nanyang Technological University

The expansion program of the Panama Canal aims to be completed by the end of 2015. Once the expanded canal is in operation, it would allow vessels up to the Post-Panamax range to pass through, as well as more number of vessels to transit through the canal each day. Though it is still uncertain how shipping patterns may be affected, there is a need to analyse the possible impacts on the different stakeholders to appreciate the likely changes that may affect the whole shipping industry. For the purpose of this study, 3 stakeholders are identified, namely, the ports, port users and Republic of Panama. The research is conducted using both primary and secondary sources. Secondary research involved the collating of data and information from previous studies. Surveys and interviews will then act as supplements to the secondary research, substantiating the findings and adding on to the current body of knowledge. In this paper, it focuses on the impacts of the Panama Canal expansion on the affected ports. The outcome of this research revealed that the competition level between US West Coast (USWC) ports and US East Coast (USEC) ports will get more intense. USWC ports have to counter its associated problems, as well as increase their productivity and efficiency in order to stay competitive. Meanwhile, USEC ports should first expand and improve the port infrastructure to accommodate and handle the mega vessels before considering further benefits that they can tap on from the canal expansion. On the other hand, Caribbean ports which envisioned establishing as transhipment hubs need to find ways to address its weak cargo base, as well as further expand and upgrade the port facilities in order to achieve the status. The impact on Port of Singapore is minimal since it is already competent in handling the mega vessels and traffic volume. As for environmental implications on ports and Panama Canal, the impact may worsen following the expansion of trade in the long run.