The Expansion of the Panama Canal and Its Economic Impact on the US - Student Essay Sample
The expansion plan of the Panama Canal has impacted a lot in the transportation industry today. The project that is approximately $5.5 billion will enable the passage to hold up to 12,000 TEU rather than the current 4,400 TEU, Panamax vessel. The expansion program was initiated in September 2007 and premeditated to finish in 2014. Several analysts argue that this program will create the biggest significance in the transport industry ever, since the 1950s. Now that the project is halfway, it is necessary to explore the progress and how the neighboring ports are preparing to handle bigger ships.
With regard to the ACP, 19% of the work will have ended by the end of the year 2010. The expansion of the Panama Canal will affect delivery all over the Americas, availing new opportunities and leading to new routes of transportation, new patens of supply and the establishment of new logistics hubs. It has availed the cheapest and the fastest mode of sending shipments from China. Compared to other means of transport apart from air, it takes the least number of days to China. The extension of the Panama Canal will decrease the cost of shipping by letting the Post-Panamax ships shoot straight to the US East Coast.
The expansion plan of the Panama Canal is of great magnitude to the economy of America. By providing a cheaper mode of transporting cargoes, the businesses in America will succeed because of the reduced transportation cost. Since the Panama Canal is faster compared to other means of transportation such via rail, the transactions will be conducted faster bringing more revenue to the traders and also the state. So far, the economic impact of the extension is felt with its increased capacity to handle more ships than before. The completion of the project will positively impact on America’s economy.
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