Panama canal extension

On October 22, the people of Panama voted overwhelming to accept a plan to expand the Panama canal. The expansion entails building a third lane of traffic along the waterway through the construction of a new set of locks. The project will double the canal's capacity and allow more traffic, including the passage of wider ships that are becoming increasingly prevalent in the shipping industry. The expansion will be financed almost entirely through private capital and revenues from the existing canal. But how might this affect the yachting industry?

The existing canal is essential for most round the world yachtsmen, as Cape Horn is still only attempted by a handful of cruising yachts every year. At best, small yachts are "tolerated" by the canal authorites.  The transit fee may seem steep to small yacht owners, and the yachts are rafted together in the locks to maximise use of the locks, but nevertheless the revenue does not compensate for the hassle of small yachts (many are damaged in the raft, causing lost time while it is sorted out) nor for the opportunity cost of losing a lock that could have been filled by a ship. These inconveniences have been tolerated while the numbers of small yachts has been relatively low, and whilst the Panama Canal authority has been self-financing. But with the greater financial controls that are likely to be implemented once the canal expansion begins, how much longer will the ever increasing fleet of small yachts be tolerated at subsidised prices?

At the other end of the scale, large yachts are likely to be relatively unaffected, as their fees and lock handling are similar to that applied to small ships, which are commercial rates. Unfortunately it won't remove a common design constraint of large sailing yachts, namely that the yacht must have a mast height of less than 62m in order to pass under the Bridge of the Americas at the Pacific entrance to the current canal. The parallel locks will be upstream of the bridge and all shippping will still have to pass underneath it. So Mirabella V, with a mast-height of 88.5m will still be restricted to the Atlantic - unless they want to brave the Cape....

Comments

[Nani]

Hi,

I am a student, and i am learning about the country Panama. I'm wondering if you could provide me with more information about this extension if you can.

Thanks

[Juno888]

Maybe some other blogger could give you the info. you need.

[Tony]

Just google for it!

[Tony]

Just google for it!

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