U.S. Spruces Up Ports in Anticipation of Panama Canal Expansion Completion

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Researched by Industrial Info Resources (Sugar Land, Texas)--The Panama Canal is expanding for the first time since its construction in 1914, and America's ports are pouring billions of dollars into modernizing and building new facilities in anticipation of its completion.

The $5.25 billion Panama Canal expansion project, scheduled to open April 2016, will lead to an increase in a new line of larger container ships entering U.S. ports. Historically, ports on the West Coast have been the gateway to the rest of the country for shippers carrying supplies. However, when the Panama Canal is widened, it will be possible to take larger ships to the East Coast ports as well, resulting in increased competition.

But the western U.S. ports will still have some advantages, as the Panama Canal will impose many fees. Ports in California and Washington also will mean much shorter sailing times for Asian shippers. Nevertheless, U.S. ports on both coasts are busy deepening their harbors, building bigger terminals and performing major upgrades to draw in the bigger ships.

The U.S. Army Corps of Engineers is working with the Port of Charleston in hopes of deepening the current 45-foot Charleston Harbor channel to 52 feet. The Corps also is deepening the entrance channel to 54 feet and enlarging its turning basins, all to accommodate the larger Post-Panamax vessels. The $509 million project was first announced in 2011, but just recently received its Chief's Report from the U.S. Army Corps of Engineers, the final regulatory obstacle required for the project to begin construction.

After the report is reviewed by the Office of Management and Budget, it will be presented to the U.S. Congress for authorization and allocation of federal funding, which is expected early next year. Next, a design agreement must be signed between the Corps of Engineers and the port authority, and the project will move into the Preconstruction Engineering and Design (PED) phase. The PED phase, which should take about 18 to 24 months, will refine and finalize the design of the recommended modifications to the federal channel. It is the last major step in deepening before dredging begins. The South Carolina Ports Authority estimates that work could begin to deepen the harbor in early 2017.

The Port of Miami celebrated the completion of its "Deep Dredge Project" this month. The $220 million project consisted of deepening the port channel from 42 feet to 50 or 52 feet, and will accommodate the new, larger Post-Panamax vessels that will be traversing the Panama Canal. "PortMiami" will be one of only three U.S. Atlantic ports at 50 feet when the expanded Panama Canal opens next year.

The dredging project was managed by the U.S. Army Corps of Engineers, with Great Lakes Dredge and Dock Company (Oak Brook, Illinois) serving as the project's contractor. The port also acquired Super Post-Panamax gantry cranes to load cargo vessels up to 22 containers wide and nine containers tall.

In response to the anticipated new competition on the East Coast, western U.S. ports are making multi-million dollar upgrades to increase capacity. The Port of Los Angeles is in the midst of a five-year, $510 million project to upgrade one of its major terminals, known as the TraPac Container Terminal. The port is extending its wharves, deepening berths, and erecting a new rail facility. The TraPac Container Terminal Redevelopment program is expected to be completed in 2016.

The Port of Seattle and the Port of Tacoma recently formed an alliance to remain competitive against rival ports. The newly named "Northwest Seaport Alliance" will link the two ports' shipping terminals to form the nation's third-largest container port. The two ports will maintain asset ownership and port commission governance, but the alliance would handle the day-to-day leasing, operating and marketing of those assets.

The Port of Seattle is currently planning a Terminal 5 modernization project. The tentative plans for the project include crane rail strengthening; dock strengthening for larger cranes; structural repairs; fender system replacement; berth deepening; and power upgrades that will be scalable for future use. The terminal modernization project is expected to be completed in 2018.

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