This month, Juan Carlos Varela, the president of Panama, projects that the widening of Panama Canal should be completed. For a long time, the overall size of the Panama Canal has restricted ships due to the size of its locks. The Panama Canal, once expanded, will become a major shipping lane once again, opening the trade route from the Pacific to the Atlantic without forcing ships through the Strait of Magellan.

Panama Canal History

The Panama Canal crosses the Isthmus of Panama and is about 48 miles long. Originally, the Panama Canal was a project of the French in 1881, but the French lost many workers due to accidents and disease and faced numerous setbacks in engineering the canal. In 1904, the United States took over the Panama Canal project. Originally, the United States ratified a treaty with Colombia to finish the canal, but the Senate of Colombia refused to ratify it. Then, President Theodore Roosevelt backed Panamanian rebels looking to secede from Colombia, and in November 1903, Panama declared its independence from Colombia. It took ten years to build the Panama Canal as it was opened August 15, 1914.

How the Panama Canal Works Now

The Panama Canal was built with three locks, several reservoirs, and several channels, both improved and manmade. Once a ship enters the canal from the Atlantic side through Limón Bay, the Gatun Locks raise the ships 26 meters from sea level to the level of Gatun Lake. Ship then traverses Gatun Lake and enter the Pedro Miguel Lock, which lowers the ships to Miraflores Lake. After traveling across Miraflores Lake, the ship enters Miraflores Locks. The locks lower the ship into Balboa Bay on the Pacific Ocean side. In 2008 alone, the Panama Canal facilitated the crossing of 14,702 vessels. The restriction of the size of vessels, called thePanamax, is 1,050 ft long, 110 ft wide, and 41.2 ft deep.

Third Set of Locks Project

The Third Set of Locks Project, or the Panama Canal Expansion Project, started in 2006. It had three goals: to raise Gatun Lake's operating level, deepen and widen channels, and add two new locks that will accommodate larger ships. According to the International Business Times, the new locks will almost triple the size of ships that can travel through the Panama Canal. It had been predicted that the Panama Canal would reach its maximum sustainable capacity sometime between 2009 and 2012 and that a full 37 percent of ships would not be able to use it due to size issues.

The opening of the new lock is highly anticipated. Many East Coast and Caribbean ports have upgraded their ports and infrastructure in anticipation of the expansion. The first ship will travel through the Third Set of Locks on Sunday, June 26, 2016. The ship that won the draw for being the first ship is a China COSCO Shipping vessel.

Benefits from the Panama Canal Expansion Project

The United States receives the bulk of Pacific Rim and Asian imports into the West Coast, which are then moved across land. With the issues of slowdowns and congestion on the West Coast, being able to receive goods at other ports on the East Coast makes sense. By reducing the distance needed to travel to the East Coast, more goods can arrive direct from the ships on either coast, reducing the need for cross country trips to stock goods.

If you're wondering why Louisville Switching is so interested in the expansion of the Panama Canal, it's because we too are a part of the logistics industry. In fact, we ship parts all around the United States and the world. By land, plane, and sea, Ottawa Yard Truck parts are shipped from our headquarters in Louisville to many distant countries from the US, including Asia and South America. We find the logistics industry to be fascinating! In fact, we'll be starting a logistics industry series on the blog soon, looking at various ways the economy is impacted by goods and services shipped by plane, train, and sea. Be sure to stay tuned for that. Our trucks are also one of the last steps in the distribution chain to deliver all the goods that have been imported from overseas, so speeding up the delivery process is a win for both us and our customers!

We're interested in knowing your thoughts on the widening of the Panama Canal. Leave a comment in the box below and let us know if you've been following along with this project.