“We are full-speed ahead right now – finally,” said Ilya Espino de Marotta. As the head of the expansion at the Panama Canal Authority, Marotta is glad to see the project finally kick in to high gear after a work stoppage earlier this year. Most of the concrete has been poured, and a majority of the gates required to build the massive locks have arrived from Italy. The expansion should allow heavier, wider megaships through the canal by 2016. These larger ships will bring additional economic stimulus to cities where there are ports that can accommodate the behemoth ships in the form of job creation. With this in mind, ports around the United States are betting big on the completion of the project.
Not even 1,200 miles away at PortMiami, massive expansion is under way. In order to potentially accommodate megaships the port has begun deepening the harbor to 52 feet from 44, and widening its shipping canal. Additionally, to improve efficiency and boost cargo, a new port tunnel and rail link have been constructed by the harbor. Logistically, it makes sense that Miami would bet big on the completion of the project – to the tune of $1.3 billion. One of the nearest ports to the canal, PortMiami has additional advantages over other prospective ports like Norfolk or Baltimore which already have the capacity to handle the megaships.
The megaships are preferable to standard transit ships because of the economies of scale they offer. The new megaships can carry almost three times as much cargo as the current ships that travel the canal. These ships are the future, and if your port isn’t ready the opportunity to cash in may pass you by.
With a port in two oceans Panama will likely be one of the most important logistical hubs in this hemisphere, making the upgrades at PortMiami all the more important. Having spent $1.3 billion on the project collectively, lets hope that the massive expansion pays long-term dividends to the people of south Florida.