Panama Canal expansion to open

The expansion of the Panama Canal is to open June 26. The canal handles about a third of Asia-to-Americas trade. The nine-year expansion project cost about $5.4 billion, and more than doubles the canal’s cargo capacity. A third lane was added to accommodate ships that can carry up to 14,000 containers, compared with around 5,000 currently; and will alleviate bottlenecks caused by smaller ships. The expansion will shorten the one-way journey by sea from Asia to the U.S. Atlantic and Gulf coasts by about five days. The expansion isn't going to be a guaranteed panacea. Some East and Gulf Coast ports have poured billions into infrastructure. But, bigger doesn’t always mean more cargo. “It’s a common mistake to think that if you build up a port, traffic will come,” said Asaf Ashar, a port infrastructure expert and professor emeritus at the University of New Orleans. But there has been a surge in U.S. natural-gas output, and interests in new export markets like Japan, South Korea, India and China. By 2020, the Panama Canal’s VP for business development, Oscar Bazán, expects liquid natural gas to be one of the main products transported through the canal. There is only one facility, Cheniere Energy Inc.’s Sabine Pass terminal, in Cameron Parish, La., capable of processing natural gas for export from the Gulf of Mexico. (Source: Wall Street Journal 06/20/16)