The official inauguration ceremony for the expanded Panama Canal took place on June 26, amongst thousands of waving Panamanian flags and fireworks galore.
It was a China COSCO Shipping container vessel that was the star of the show, making its way through the new Cocoli locks at Agua Clara with several tug boats assisting, claiming the title of the first ever transit of a vessel through the expanded canal.
The link between the Atlantic and Pacific Oceans, the canal underwent an extensive renovation to allow larger cargo ships through its locks, due to the fact that larger modern shipping vessels have literally “out-grown” the vital trade passageway. Post-Panamax vessels transport represent approximately 45 percent of the world’s cargo and so this project was crucial for not only Panama’s economy but also for the industry as it currently handles 6% of world trade.
It is the canal’s third locks that have been the centrepiece of the canal’s expansion program, which was launched in 2007 with an initial budget of $5.25 billion. These third locks are those that will enable the canal to accommodate New Panamax ships, known as Neopanamax.
Now that these locks are in operation, vessels carrying 3 time the current capacity are able to transit through the canal. These vessels that are members of what are commonly referred to as “megaships”, can carry up to 13,200 TEUs.
Leaders from over 50 countries attended the inauguration. The United States being the biggest user of the Panama Canal, followed by China and Chile.
Panama’s president, Juan Carlos Varela stated: “This is the route that unites the world.”
The Panama Canal administrator, Jorge Luis Quijano, said: “This new transit route is the tip of the iceberg in making Panama once again the logistic center of the Americas. And it represents a significant opportunity for the countries of the region to improve their infrastructure, increase their exports.”
Completion of the expansion project was originally scheduled for 2014, however it was plagued by delays and push backs on several occasions due to repairs, strikes and contractual disputes. With all that in the past the industry can now exploit the wider canal with its mega ships. Better late than never.
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