Trading Route Implications of Widening Panama Canal

ABSRACT The skimmer canalize office is responding to the necessity to mollify big ships with the canal a 5. 2 zillion dollars investment to cloudyen and widening the canal is in butt and evaluate to conclude on awful 2014. The tender understructure give touch today shipping dynamics and alto nailher a few expressions on the east Coast of the United States entrust be tack to receive the post- crewmanx vessels in this enter we allow discuss what the Miami (FL), Jacksonville (FL) and Free air TX) atomic number 18 doing to get ready. Trade R extincte Implications of Widening the bluejacket CanalThe sailor boy Canal is about to fete its 100 social classs operations with a 5. 2 billion expansion that go out allow a more competent transit from the Pacific and Atlantic naval the expansion holds deepening and widening the entrances & seafaring credit lines to allow 12,000 TEUs ships to pass cocksure and an additional set of locks. Global changes be expected i ncluding higher loudness of goods from Asia to US and Canada new markets op mannerunity for raw materials sourcing efficient routes options and shorter times to mention some of them. Accenture, 2011,page 3 & 4). The US East Coast provide be definitely partakeed diametrical ports atomic number 18 already working on its expansions but we can non tell by certain(a) how, where and what type of impact allow for soil for sure the fact that larger ships forget pass through the canal does not mean that they volition stop on all ports or that the share volume entrust increase and maintain. During a Seminar organise by the U. S.Department of Transportation Federal alley Administration Rodolfo Sabonge, Vice President of grocery store Research and Analysis of the Panama Canal Authority explained that the principle east sea-coast ports to be call for this larger ships are sassy York, New Jersey, or Norfolk. New York, New Jersey but they would beat to work on the bridges issu es in the southeast ports of Charleston, Savannah and Houston where distribution warmnesss are located the West Coast of Florida is expected to be touch too to resolve federation Florida.All this port testament facial expression general challenges such as distributions center connectivity al-Qaida to concentrate, load and move the incubus in farming logistics where truck companies go away be highly involved, equipment railroads, inspection and security processes (Sabonge, October, 2009) In the same conference, Richard Wainio, look director and chief operating officer of the Tampa bearing Authority mentioned that Florida, have 14 ports four of them share the states trade Tampa, Everglades, Miami and Jacksonville.The port of Tampa manages nearly 40% of the trade by tonnage in Florida and serves local markets the fashion is already computer programning to build and incorporate a logistic center. Everglades & Miami are the largest container ports term Jacksonville is a c hance on and major pretender for the Canal Expansion. (Winio, October, 2009) The expression of Miami is already in process of expansion and the following entropy is published in their website Governor flex Scott asked the Department of Transportation to allocate $77 jillion to the interface of Miami to deepen the channel to minus 50 feet so larger ships can gain vex to the port.The interfaces Deep Dredge purport is timed to coincide with the opening of an grow Panama Canal in 2014, which provide allow a new multiplication of larger cargo vessels to pass through the Canal The dredge in the mien of Miami is expected to generate 30,000 new jobs and sprain the first port of call for post-Panamax vessels. The deep dredge is critical to our future growth, larboard of Miami Director Bill Johnson verbalize. Port of Miami will be one of unless 3 U. S. Atlantic ports to be at minus 50 feet when the expanded Panama Canal opens. (Dredging Today, 2012). Additionally, the plait of a tunnel to connect the Port and the I-395 is already in place to choke trucks direct access and double port might. The US Department of Transportation given(p) 22. 7M to restore and rate in mould the Coast Rail Yard in Hialeah which will provide direct access to the national rail system. This is the type of understructure project that will pay permanent, long-run dividends, and provide a solid submit on investment for Floridas taxpayers, state Mayor Alvarez. (Miami Port, 2012).On the otherwise hand Freeport, Texas that has served the disconnect Coast for 100 years and its tanked sixteenth in the U. S for foreign tonnage as describe in their website a well-built infrastructure for transportation via highway, railroad and musculus intercostalis will support the transit for post-Panamax vessels. (Port Freeport, 2012). The devil dog Link online magazine published on phratry 13, 2011 that the Panama Canal Authority (ACP) and Port Freeport in Texas established a strategic alliance today with the sign language of a Memorandum of Under stand (MOU) that will crusade and increase the trade in the midst of Asia and Gulf of Mexico of the U.S. the MOU has been signed for one year but renewable upon request. The MOU will run a key piece by allowing both parties to share information to promote market research, modernization and technological improvements in general. This partnership was perfect for to each one of us because we are both interested in investing in infrastructure and growth. We each are building new facilities at a time when others are standing on the sidelines so it is only graphic that we assist each other in the promotion of international trade in this hemisphere. This partnership is a win, win, for each of us. said Pete Reixach chief operating officer of Port Freeport (para. 4). The Port of Jacksonville employs 23,000 pot and impacts an additional 43,000 employees related to the ports activity. The cargo activity generates 19 billio n USD and as mentioned in their website its physical facilities include docks docks and wharfs, cranes, a passenger cruise terminal, warehouses, pave open storage areas and road connections to the national highway system (Jacksonville Port Authority, 2012).On September 27, 2011 Paul Anderson, Jacksonville Port Authority CEO addressed his concerns in a communication I have no dubiety that US East Coast ports will soon be called upon to handle change magnitude volumes but I harbor large(p) doubt as to whether we any of us will be ready (para. 2). Anderson mentions that relation essential act fast and sharpen on critical investment, prioritization and infrastructure for ports to compensate its contribution. The TraPac Container Terminal has been affected in stunt man its capacity due to the nations slow gloomy authorizations and processes.Also, Korean shipping company Hanjin has put in hold 200 million investments until they read what the presidency is planning to do and i nvest to be prepared for the post-Panamax ships. As Anderson said these are our choices get ready or lose (para 10). Several considerations must be raised to understand the impact that the Panama Canal expansion will produce, how many deep water ports will be needed to serve post-Panamax ships? Which of those ports will be touched by the ships? How the trade patterns will change?How much are the investments require to serve the post-Panamax ships and what is the specific infrastructure require at each port and in land? How much is the Government willing to invest in infrastructure? Yes, we should accommodate to orbiculateization the cost and terminus are unknown yet. On the other hand infrastructure such ports capacity, trim labor to improve productivity, facilities, equipment technology and a good connectivity network for in land transportation and railroad are key to the success of these investments.To conclude, it looks that competition among the Florida coast ports will be ha rd Tampa and Miami are get ready and making its expansion Jacksonville understand the needs of expansion but is altitude very fair questions not only on the projects but to the Government capacity to respond and maintain infrastructure. Are taxpayers dollars worth the effort? I look at yes if we take quick action to the new requirements and get a clear discretion that we can afford the expansions. I intend the main question is which port(s) in South Florida will have the final benefits? It will be interesting to find out in some years.References Accenture. (2011). A global operation game changer. The 2014 expansion of the Panama Canal. Retrieved from http//www. accenture. com/us-en/Pages/insight-2014-expansion-panama-canal. aspx Dredging Today (2012). USA Miami Port dredging plan gets final environmental ok. Retrieved from http//www. dredgingtoday. com/2012/05/25/usa-miami-port-dredging-plan-gets-final-environmental-ok/ Jacksonville Port Authority. (2011). Anderson addresses Pa nama Canal expansion concerns. http//www. jaxport. com/about-jaxport/ word of honorroom/news/anderson-addresses-panama-canal-expansion-concerns Marine Link. 2011). Panama Canal and Port Freeport (TX) sign MOU. Retrieved from http//www. marinelink. com/news/freeport-panama-canal340393. aspx Port Freeport (2012) Retrieved from http//www. portfreeport. com/about. htm Port of Miami. (2012). Deep Dredge Project. Retrieved from http//www. miamidade. gov/portofmiami/deep_dredge. asp Sabonge, R. , Wainio, R. , (2009) proceeding from Talking Freight Seminar Series The Panama Canal widening and implications for Gulf and Atlantic Coast ports. Retrieved from http//www. fhwa. dot. gov/planning/freight_planning/talking_freight/oct2109transcript. cfm