The Panama Canal – The Key “Waterway” Road Of The World

Through the rainforest of America, is one of the most wonderful wonders created by Man’s hands on this planet. It is the “Mother” of all shortcuts – the Panama Canal.

Two hundred million tons of cargo pass through its gates every year. This is a masterpiece from the day of canal construction.

A 48-mile (77 km), man-made waterway in Panama connecting the Atlantic and the Pacific.

Mission connecting two continents

• It is the main canal for ships and boats to pass through, crossing the Isthmus of Panama in Central America, the shortest route connecting the Atlantic Ocean with the Pacific Ocean. Great influence on water transport between the two oceans, eliminating the long and dangerous journey through the Drake Strait and Cape Horn (Cape Horn) at the southernmost point of South America.
• The canal was completed by the Americans and inaugurated and put into use in 1914.
• Before the Panama Canal was available, a ship going from San Francisco to New York had to loop down Cape Horn and then back up and took 12800 miles. If using this canal, it only takes 5000 miles to arrive. This is exactly why engineers came up with building a canal by cutting across the isthmus of Panama.
• The canal can accommodate boats from small private yachts to relatively large commercial vessels. More than 1,000 ships are transported through the canal every month.

The Canal changed the face of World Trade

• The canal became one of the 7 wonders of the modern world thanks to its size and extent. Here boats can “swim” from the Atlantic to the Pacific within 8 hours, 40 times faster than the previous time.
• Currently, this transoceanic maritime transport hub is connected to 140 sea routes to 1,700 ports of 160 countries. According to the Government of Panama, revenue from the Panama Canal since the right to manage this strategic project was returned to the Central American nation from December 1999 to now has exceeded $ 10 billion.
• As soon as the Panama Canal was completed, many ships and boats were ready to pass through it. This canal brings in 20 billion USD per year to Panama (according to 2016 statistics). Today, the canal is still operating at its absolute capacity with further investment in expanding equipment and the turnover of goods going through this canal reaching over 400 million tons / year.
• The work contributes greatly in economic terms, contributing to reducing costs in the shipping industry between the two oceans. Open the door to convenient traffic for ships and ships. Play an important role in international shipping, shorten shipping times, easy economic exchange, especially for the United States.
• Not only that, the Panama Canal also helps to reduce the length of the sea route, reduce transport costs, reduce product costs, safety for people and goods, and bring great revenue to Panama through customs duties. If the canal is closed, it will greatly affect the United States and the world.

The Panama Canal, a new age of challenge

• Besides the successes that the canal brings. When entering a new age, the challenges bring are also what experts pay attention.
• The Panama Canal is facing stiff competition from many potential competitors. However, with the capacity to reach maximum capacity and the competition from the Suez Canal, revenue is decreasing due to the competition from this canal, due to the influence of the world economy (2017). The Suez Canal currently has a carrying capacity greater than its capacity and is hitting heavily on the global market share of the Panama Canal. In this situation, the management agency of this canal has spent 1.6 billion VND to lift the load, increase its competitive position. In addition, labor disputes and arising costs are the major obstacles to the development of this canal.
• Panama hopes revenue from the Panama Canal will continue to increase as the new vessel allows the large Postpanamax to pass through the canal, which was not possible due to the size limitation in the previous two locks.
• Delays in the construction of development projects could cost the canal millions of dollars in transportation and tolls. The demand for the Panama Canal continues to grow. At the same time, it also poses an obstacle when shipping companies want to bring larger boats into the canal.
• Environmental pollution caused by the presence of many boats also threatens the ecological diversity of an entire Central America.

Panama has been improving and improving its competitiveness even further in the current International Maritime Industry. In 2020, a number of new projects are ready to go ahead to prepare the “New Armor” on the one hand for their Revenue collection, on the other hand to compete with their “neighboring” canals prepared 2 years ago to clearly assert its role and position in the World Trade world, worthy of the name “Artificial Wonders of the Modern World”.

Source: logisticsinvietnam

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