The impact of the expansion of Panama Canal
Cassio Martingo Filho.
November, 2013
Research Paper
The impact of the expansion of Panama Canal
In a competitive world, companies are always looking for new opportunities to reduce their operation costs, and transportation cost is responsible for a portion of the total costs it is one of fields that is most studied to get this reduction. Because of that, the expansion of Panama Canal will change world trade, and it will change many aspects of the transportation system. So the focus of this research paper will be to explain about the canal, how the expansion is happening, how it will affect the US Marine Industry and how the ports are planning and preparing themselves for the new big ships.
The first project of Panama Canal has started in the beginning of 20th century, and since this affected the world economy. The canal was opened in the year of 1914, and as it is general knowledge it links the Pacific and Atlantic Ocean by a made-man canal with approximately 50 miles long (Knight 1). The first attempt to build the canal was done by the French, and it has had not a successful end. Thus, the US took the project thinking in the benefits that it would bring to the country. In the US project, the one that lasts until the expansion project, was added the locks and dams, as well as worries with workers' health (Smith 2). These inclusions in the US project
Martingo Filho, 1
have made all the difference to the success of the project, because they realized that the seas were not at the same level and the Gatun Lake would need to enlarge its size, and the locks and dams solved this problem, as well as, that another big difficult in the French project has was that many employers of the construction company died because of diseases such as yellow fever and malaria, and the worries with workers' health help to solve it. The costs of the project in 1914 was estimated in $352m or something around $8bn nowadays (Smith 2). The figure bellow shows the
November, 2013
Research Paper
The impact of the expansion of Panama Canal
In a competitive world, companies are always looking for new opportunities to reduce their operation costs, and transportation cost is responsible for a portion of the total costs it is one of fields that is most studied to get this reduction. Because of that, the expansion of Panama Canal will change world trade, and it will change many aspects of the transportation system. So the focus of this research paper will be to explain about the canal, how the expansion is happening, how it will affect the US Marine Industry and how the ports are planning and preparing themselves for the new big ships.
The first project of Panama Canal has started in the beginning of 20th century, and since this affected the world economy. The canal was opened in the year of 1914, and as it is general knowledge it links the Pacific and Atlantic Ocean by a made-man canal with approximately 50 miles long (Knight 1). The first attempt to build the canal was done by the French, and it has had not a successful end. Thus, the US took the project thinking in the benefits that it would bring to the country. In the US project, the one that lasts until the expansion project, was added the locks and dams, as well as worries with workers' health (Smith 2). These inclusions in the US project
Martingo Filho, 1
have made all the difference to the success of the project, because they realized that the seas were not at the same level and the Gatun Lake would need to enlarge its size, and the locks and dams solved this problem, as well as, that another big difficult in the French project has was that many employers of the construction company died because of diseases such as yellow fever and malaria, and the worries with workers' health help to solve it. The costs of the project in 1914 was estimated in $352m or something around $8bn nowadays (Smith 2). The figure bellow shows the