EoW May 2012

Transatlantic Cable

The programme also entails the widening and deepening of existing navigational channels in Gatun Lake. It is at this point that concerns about the negative environ- mental impact of the expansion arise which, because of the size and scope of the project, could have considerable impact. Writing in the Christian Science Monitor (27 th March), Panama correspondent David Francis reported that the primary worry is the possible contamination of Gatun Lake, Panama’s primary supply of fresh water, with salt water. Mr Francis explained: In passages through the canal, salt and fresh water become mixed as the ships are raised or lowered through the series of locks. For the expansion to succeed, more water will be used in the lock system, with much of this water to come from Gatun Lake. “Fresh and salt water will be required to run through the channel, and this has a direct impact on Gatun Lake,” the Monitor was told by Charlie Andrews, a partner at the New York-based global intelligence and advisory rm Ergo. “There are concerns about the ability to control the amount of seawater that ows through the lake.” The largest of the post-Panamax mega-vessels have the ability to carry up to 13,000 cargo containers. When the ships come up, water has to be pumped in from the sea. “How do you get enough water to raise these massive ships?” queried Mr Andrews. “Both sides of the environmental fence are trying to determine how much impact this expansion will have.” † The Panama Canal Authority would appear to have made up its mind in the matter. According to its statement on water safety, “The water quality of Gatun Lake is typical of tropical freshwater lakes, and will maintain its freshwater condition with the existing three-level locks system. According to the studies and simulations performed [for the expansion feasibility study], the addition of the new set of locks will not a ect the water quality of the lake.” Perhaps. But the potential for environmental problems was cited as well by Eric Jones, editor of the English-language Panama News . This source also suggested that the public may not have been made aware of all the potential long-term impacts of the expansion project, and that its economic bene t might have been overstated. “We didn’t really have any kind of discussion and so much of the discussion we did have was patently fraudulent,” Mr Jones said, in reference to the debate that preceded the start of the project. “There are major concerns, but we’re not going to know how it works out until it’s done.” † Appropriately, the Monitor article by Mr Francis was titled “Panama Canal Expansion to Ease International Trade, With a Grain of Salt.”

The Panama Canal expansion

Nearing completion, a project with potential to boost trade between Asia and the United States is raising belated concerns In October 2006 the citizens of Panama, in a national referendum, approved by 76.8% of the vote a plan to expand the Panama Canal to allow for more transits and bigger ships. In September 2007 the Panama Canal Authority began to execute the project, expected to take eight years and cost $5.25 billion. The expansion – which Panamanian o cials have said will make Panama the strongest economy in Central America – is on schedule for completion by 2014, the 100-year anniversary of the canal. Its aim is to double the capacity of the structure by adding a third lane connecting the Atlantic, via the Caribbean Sea, to the Paci c. Post-Panamax (super-size) container ships 1,200 feet in length will carry three times the cargo of 965-ft Panamax ships and have readier access to ports on the East Coast of the United States. The American Society of Civil Engineers considers the Panama Canal to be one of the seven wonders of the modern world. While its expansion is of tremendous importance to the Republic of Panama and its people, it is even more signi cant to the international maritime industry, which stands to bene t directly through lower shipping costs. Global consumers will eventually bene t from the greater capacity and e ciency of the canal. The US – for which the canal keeps the cost of imported goods down, helping to dampen in ation – will de nitely gain from the expansion. Five ports carry 70% of US ship imports: Los Angeles/ Long Beach (California); New York/New Jersey; Seattle/Tacoma (Washington); Savannah (Georgia); and Oakland (California). All of these, together with the port of Charleston, South Carolina, either already can receive post-Panamax ships, or will be able to by 2014. The expansion also has the potential to increase trade between Asia and the United States. Post-Panamax ships are currently able to unload only at West Coast ports, their cargo shipped by rail to markets in the eastern US. After the expansion these ships will be able to unload on the East Coast, lowering the cost of Asian goods in the American market. The expansion programme The Panama Canal Authority is constructing two new sets of locks – one each on the Paci c and Atlantic sides of the canal. Each lock will have three chambers; each chamber will have three “water reutilisation” basins.

Image: www.bigstockphoto.com Photographer Zsolt Ercsel

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EuroWire – May 2012