PLANS to build a fourth set of locks at the Panama Canal to cater for ships of 20,000 TEU are said to be at a very early stage.
It was revealed last by Reuters that the Panama Canal Authority (ACP) was considering building a fourth set of even larger locks in order to compete with the Suez Canal.
"Looking at our geology and the experience we gained with this current expansion, we estimate it's a project that could cost between US$16 billion and $17 billion," said ACP head Jorge Quijano.
The ACP is currently underway with the construction of its third set of locks which are expected to enable the route to handle postpanamax ships from April 1 2016, reports Vancouver's Ship and Bunker.
Widely reported congestion at US west coast ports has pushed three to four per cent more traffic through the Panama Canal in recent months, but the boost has been limited by canal size, said Mr Quijano.
"It has had a positive impact for us, but the Suez Canal has been the big winner because they can handle the postpanamax ships."
Mr Quijano said the project could be completed within 15 years if it goes ahead. Financing options include using revenue from the canal's operations as well as issuing bonds, while a state-owned Chinese company China Harbour Engineering Company Ltd, has voiced interest in building and financing a fourth set of locks.
Mr Quijano said he had met company officials last week.
Meanwhile, the building consortium responsible for the current expansion project Grupo Unidos Por el Canal (GUPC) is understood to have said it may not be willing to build a fourth set of locks.
Mr Quijano said disagreements with the group have already led to overruns in the budget and cost $400 million in lost revenue from delays to the timetable.
WORLD SHIPPING
06 April 2015 - 21:19
Panama ponders building fourth set of locks to handle 20,000-TEUers
PLANS to build a fourth set of locks at the Panama Canal to cater for ships of 20,000 TEU are said to be at a very early stage.
WORLD SHIPPING
06 April 2015 - 21:19
Panama ponders building fourth set of locks to handle 20,000-TEUers
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