You are here :: Panama Real Estate » About-panama » Panama-canal-expansion

Panama Canal Expansion; Doubling the Capacity of Shipping across the Isthmus of Panama

In 2007 the Panama Canal Authority (ACP, Autoridad del Canal de Panamá) started a ten year long, five billion US dollar project to more than double the capacity of the Panama Canal. This is the Panama Canal Expansion project.

What is the Panama Canal and Why does it Need Expansion?

The Panama Canal is the system of man made channels, locks, dams, and artificial lakes that connect the Pacific Ocean to the Atlantic Ocean across the Isthmus of Panama. Since its completion in 1914 the Panama Canal has allowed shipping to cross the fifty mile wide isthmus at the narrowest part of the Americas. The Panama Canal locks allow ships to enter the system from either ocean and to be raised to the level of artificial Lake Gatun, 26 meters above sea level, to transit central Panama before being lowered to sea level on the other side.

Construction of the Panama Canal included damming the Chagras River (Gatun Dam) so that a central valley filled with runoff from Panama's tropical rains thus forming Lake Gatun. In addition a 7.8 mile long, manmade valley was blasted and dug through a ridge in the mountains of central Panama to connect Lake Gatun with the Pacific side of the canal system. This valley is known as the Gaillard Cut or Culebra Cut.

The Panama Canal allows ships to avoid the Drake Passage around Cape Horn at the tip of South America saving up to 8000 miles for shipping that originates north of the canal.

Current passage time is about 9 hours. In 2007, 312 million tons of commercial shipping passed through the Panama Canal in 13,223 ships or about 36 container ships a day.

The hydroelectric power to run the canal system comes from the Gatun Dam. The canal does not use all power generated and sells the unused portion.

The Modern World and the Need for Expansion of the Panama Canal

The Panama Canal locks are nearly 100 years old. Although they will last for many more years they were built for early 20th century shipping. The largest boat that can pass through the locks of the Panama Canal is referred to as a "Panamax" and is no more than 32.3 meters across (beam), and 294.1 meters long with a draft (depth in the water) of 12 meters.

Many container ships are much larger. Thus the Panama Canal Expansion plans are to add much larger locks.

The Panama Canal Expansion and the Cost of Maritime Transportation

The toll for a large container ship to pass through the Panama Canal can run over $200,000. Thus many shippers still choose to round the tip of South America, the Drake Passage around Cape Horn. However, with the continuing rise in the cost of fuel more and more boats are passing through the Panama Canal to save on fuel cost as well as time.

The Panama Canal Authority projects that shipping will double through the Panama Canal with the addition of the new set of locks. Also, there are many larger container ships that cannot pass through the Panama Canal. These are known as "post Panamax" ships. The much larger set of locks will allow for most if not all of these to use the Panama Canal.

The Panama Canal Expansion Project

Earth Moving and the Panama Canal Expansion

The Panama Canal Expansion began with excavation of dry earth for the new locks. By March 31 of 2008 1.9 million cubic meters approximately 1.9 million cubic meters of earth had been removed as part of the creation of the new Pacific Locks access channel. This phase is expected to last three years.

Bids are currently out for construction of the locks with a final submission date in October of 2008.

To catch a glimpse of the dry excavations visit the web site for the Panama Canal Authority and look at the web cam for the Panama Canal Expansion.

This project will take another 9 years so you can revisit the web cam from time to time to check on the progress of the Panama Canal Expansion.

The Panama Canal Authority