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

The Associated Press reports another United States port upgrade to accommodate the much larger container ships what will pass through the Panama Canal after completion of the Panama Canal Expansion. Mobile, Alabama has completed a $300 million USD expansion of their port facilities.

The new port facilities at Mobile include a new wharf 2,000 long and a 135 acre container yard. According to AP what remains to be done is to dredge the shipping channel to allow much larger ships to navigate in and out of the port facilities. Mobile is awaiting $27 million USD in federal funding to complete dredging to a depth of 45 feet throughout the navigation channel for the expected giant ships. The facility is already in use but needs the extra dredging for larger ships.

According to AP, “American Association of Port Authorities spokesman Aaron Ellis describes the Panama Canal expansion as one of the leading industry events of our lifetime. Mr. Ellis says that the third set of locks [after the Panama Canal Expansion] will allow the largest ships in the world to get through them. He says Mobile isn't the only port to plan for [completion of the Panama Canal Expansion] by expanding container operations."

Panama Canal Expansion

The Panama Canal Expansion is on track with completion of bidding for the new locks due in March of 2009. The Panama Canal Authority has received loan guarantees amounting to $2.3 Billion USD for the ongoing expansion. The recent drop in commodity prices is welcome news for the Panama Canal Expansion because lower prices of cement and structural steels will substantially reduce costs. The Panama Canal Authority has budgeted 30% of the expected $5.2 Billion USD costs for inflation.

There are port facility expansions throughout the Americas in anticipation of the Panama Canal Expansion. Historically many of the ports in Central America were for tourists, agricultural exports, and stopovers for ships coming through or going from the Panama Canal. Now, as Latin American prosperity is on the rise, markets in Central and South America warrant port improvements for imports and exports on a much larger scale. Panama and the rest of Latin America is trading more with each other and, for Panama, this is seen in another rise in gross domestic product of close to 10% again in 2008.

In a world in economic crisis Panama is a island of prosperity and growth. Panama is a place to invest in business and real estate while real estate values steadily decline in the USA and Europe.

With the steady increase in Panama’s small business community targeted commercial real estate investments in retail space, warehouses, office space and more are likely to do well for years. There are not rent controls on commercial real estate in Panama. Contact us at ABPanama. We can help you find a real estate investment with excellent lease payments and we can help you decide when to sell and take your capital gains.

Real estate has done well in Panama for a dozen years and will likely do well into the future as the Panama Canal Expansion, Panama’s own port expansion, and other Panama infrastructure projects drive Panama’s growth.