Trading Route Implications of Widening Panama Canal

ABSRACT The Panama canalize endorsement is responding to the necessity to accommodate larger ships through the canalize a 5. 2 gazillion dollars investment to intensify and widening the canal is in personate and contri howevere judgment to end on August 2014. The refreshing stem depart affect like a shot shipping dynamics and tho a some miens on the East sailplaning of the joined States give be agile to draw the post-Panamax vessels in this document we volition discuss what the Miami (FL), Jacksonville (FL) and Free look TX) atomic number 18 doing to digest ready. Trade passageway Implications of Widening the Panama television channelThe Panama render is about to celebrate its 100 days operations with a 5. 2 jillion expanding upon that will allow a more efficient theodolite from the Pacific and Atlantic Ocean the magnification includes modifying and widening the entrances & antiophthalmic factor navigation carry to allow 12,000 TEUs ships to pass p lus and an special set of locks. Global changes be anticipate including higher gaudiness of goods from Asia to US and Canada cleanfangled markets opportunity for raw materials sourcing woo-effective routes options and shorter propagation to mention some of them. Accenture, 2011,page 3 & 4). The US East Coast will be definitely impacted antithetical ports be already working on its working outs but we cannot tell by definite how, where and what symbol of impact will set down for sure the fact that larger ships will pass through the canal does not mean that they will stop on all ports or that the cunning volume will increase and maintain. During a Seminar form by the U. S.Department of menu Federal main road Administration Rodolfo Sabonge, Vice President of marketplace Research and Analysis of the Panama furnish authorization explained that the principle east border ports to be foreshadow for this larger ships ar untried-sprung(prenominal) York, New Jerse y, or Norfolk. New York, New Jersey but they would imbibe to work on the bridges issues in the southeast ports of Charleston, Savannah and Houston where distribution places atomic number 18 located the West Coast of Florida is expected to be touch too to deal South Florida.All this port will prospect general challenges much(prenominal) as distributions center unifyivity al-Qaida to concentrate, load and move the shipment inland logistics where truck companies will be highly involved, equipment squeezes, inspection and security processes (Sabonge, October, cc9) In the same conference, Richard Wainio, port acquitor and chief executive officer of the Tampa carriage Authority menti mavend that Florida, have 14 ports four of them share the states treat Tampa, Everglades, Miami and Jacksonville.The port of Tampa manages nearly 40% of the trade by tonnage in Florida and shell outs local markets the bearing is already be after to build and compound a logistic center. Eve rglades & Miami are the largest container ports while Jacksonville is a key and major(ip) player for the canalize Expansion. (Winio, October, 2009) The port of Miami is already in process of working out and the pastime study is print in their website regulator Rick Scott asked the Department of Transportation to deal $77 million to the carriage of Miami to deepen the channel to minus 50 feet so larger ships can gain recover to the port.The carriages Deep scuff project is timed to coincide with the hatchway of an expanded Panama Canal in 2014, which will allow a new generation of larger cargo vessels to pass through the Canal The dredge in the Port of Miami is expected to generate 30,000 new jobs and become the first port of call for post-Panamax vessels. The deep dredge is critical to our futurity growth, Port of Miami Director Bill Johnson said. Port of Miami will be one of single three U. S. Atlantic ports to be at minus 50 feet when the expanded Panama Canal opens . (Dredging Today, 2012). Additionally, the construction of a tunnel to connect the Port and the I-395 is already in place to support trucks direct access and ikon port capacity. The US Department of Transportation granted 22. 7M to restore and put in function the Coast Rail curtilage in Hialeah which will provide direct access to the national rail system. This is the type of base project that will brook permanent, long-term dividends, and provide a solidity return on investment for Floridas taxpayers, said Mayor Alvarez. (Miami Port, 2012).On the otherwise pile Freeport, Texas that has served the disjunction Coast for 100 age and its tanked 16th in the U. S for inappropriate tonnage as describe in their website a well-built infrastructure for transportation via highway, railroad and intercostal will support the transit for post-Panamax vessels. (Port Freeport, 2012). The Marine Link online magazine published on September 13, 2011 that the Panama Canal Authority (ACP) and Port Freeport in Texas naturalized a strategic alliance today with the signing of a Memorandum of ground (MOU) that will promote and increase the trade between Asia and Gulf of Mexico of the U.S. the MOU has been signed for one year but renewable upon request. The MOU will play a key tag on by allowing both parties to share information to promote market research, modernization and technical improvements in general. This partnership was perfect for to for for each one one one of us because we are both raise in investing in infrastructure and growth. We each are building new facilities at a time when others are standing on the sidelines so it is only natural that we assist each other in the promotion of international trade in this hemisphere. This partnership is a win, win, for each of us. said Pete Reixach CEO of Port Freeport (para. 4). The Port of Jacksonville employs 23,000 people and impacts an additional 43,000 employees related to the ports activity. The cargo activity generates 19 billion USD and as mentioned in their website its sensible facilities include docks docks and wharfs, cranes, a passenger canvas terminal, warehouses, paved open storage areas and road connections to the public highway system (Jacksonville Port Authority, 2012).On September 27, 2011 Paul Anderson, Jacksonville Port Authority CEO addressed his concerns in a communication I have no doubt that US East Coast ports will soon be called upon to parcel out increased volumes but I maintain great doubt as to whether we whatsoever of us will be ready (para. 2). Anderson mentions that Congress must act tumultuous and focus on critical investment, prioritization and infrastructure for ports to continue its contribution. The TraPac Container Terminal has been affected in doubling its capacity due to the nations behind down authorizations and processes.Also, Korean shipping caller-up Hanjin has put in hold 200 million investments until they extrapolate what the authoritie s is planning to do and invest to be prepared for the post-Panamax ships. As Anderson said these are our choices get ready or lose (para 10). some(prenominal) considerations must be raised to understand the impact that the Panama Canal expansion will produce, how many deep weewee ports will be needed to serve post-Panamax ships? Which of those ports will be touched by the ships? How the trade patterns will change?How a lot are the investments require to serve the post-Panamax ships and what is the specific infrastructure require at each port and in land? How frequently is the Government willing to invest in infrastructure? Yes, we should accommodate to globalization the cost and outcome are unknown yet. On the other hand infrastructure such ports capacity, extra labor to improve productivity, facilities, equipment engineering science and a good connectivity network for in land transportation and railroad are key to the success of these investments.To conclude, it looks that c ompetition among the Florida bound ports will be hard Tampa and Miami are getting ready and making its expansion Jacksonville understand the needs of expansion but is raising very fair questions not only on the projects but to the Government capacity to respond and maintain infrastructure. ar taxpayers dollars worth the effort? I believe yes if we take quick military action to the new requirements and get a nominate understanding that we can afford the expansions. I believe the main question is which port(s) in South Florida will have the terminal benefits? It will be interesting to follow out in some years.References Accenture. (2011). A global operation game changer. The 2014 expansion of the Panama Canal. Retrieved from http//www. accenture. com/us-en/Pages/insight-2014-expansion-panama-canal. asp viperx Dredging Today (2012). USA Miami Port dredging plan gets final environmental ok. Retrieved from http//www. dredgingtoday. com/2012/05/25/usa-miami-port-dredging-plan-gets-f inal-environmental-ok/ Jacksonville Port Authority. (2011). Anderson addresses Panama Canal expansion concerns. http//www. jaxport. com/about-jaxport/newsroom/news/anderson-addresses-panama-canal-expansion-concerns Marine Link. 2011). Panama Canal and Port Freeport (TX) sign MOU. Retrieved from http//www. marinelink. com/news/freeport-panama-canal340393. aspx Port Freeport (2012) Retrieved from http//www. portfreeport. com/about. htm Port of Miami. (2012). Deep Dredge Project. Retrieved from http//www. miamidade. gov/portofmiami/deep_dredge. asp Sabonge, R. , Wainio, R. , (2009) Proceedings from Talking Freight Seminar serial publication The Panama Canal widening and implications for Gulf and Atlantic Coast ports. Retrieved from http//www. fhwa. dot. gov/planning/freight_planning/talking_freight/oct2109transcript. cfm