Canal Expansion Good News for US – Kind Of

DALLAS-The $5.3 billion expansion of the Panama Canal, anticipated for completion by 2015, is, according to many, supposed to bring more trade to and from the US by providing another water route comparable to the Suez Canal. This will be true, to an extent. The problem, however, according to experts at the CREW Convention & Marketplace, is that the US is not ready, from an infrastructure point of view, to take advantage of what might happen.

During a CREW plenary session entitled “Panama Canal Expansion: Impacts on the US Market,” which took place on Oct. 10, panelists said that the US is far behind the rest of the world when it comes to port usage, especially on an international basis. John Vickerman with Vickerman & Associates LLC pointed out that in 2011, of the top 10 busiest ports internationally, nine of those were in Asia. And, among that top 10, six are on China’s mainland. Furthermore, “the US is the consuming part of the logistics supply chain,” Vickerman observed.