Busan Port Authority participates in the opening ceremony of the Panama Canal expansion
Busan Port Authority(BPA) stated on the 21st that BPA will attend the Panama Canal expansion opening ceremony on the 26th.
Situated in the isthmus connecting North and South America, the Panama Canal is the shortest watercourse that links the Atlantic and the Pacific. Furthermore, it is a global core infrastructure that 6 percent of global sea trade goes through.
The canal initiated the expansion project with a budget of 5.25 billion dollars in 2007 as it approached its maximum capacity due to lifting restrictions for night operations in 2007 and increase in vessel size. The project completed it's decade long construction in June 2016.
By expanding the canal, a 14,000 TEU class container vessel can travel through the Panama Canal and 10~15 vessels can pass through the third set of locks.
In particular, shipping companies are expected to deploy large scale vessels in the Asia-Eastern United States in order to achieve economy of scale. In addition, major ports in the Eastern United States are planning to invest 8.5 billion dollars in port infrastructures.
In this regard, the shipping industry anticipates a significant change for the Panama Canal including severe competition for cargo attraction among ports and shipping service reform.
BPA will discuss close collaboration for mutual growth of Busan and Panama while visiting the Panama Canal Authority(ACP) and plans to establish its status as a Transshipment hub in the Pacific rim.
Meanwhile, 12,386 vessels sailed through the Panama Canal last year and 229,143t cargoes were processed. Cargo for the U.S. East Coat-Asia route accounted for 35.8%.
BPA expects to see an increase in service and cargo volume thanks to the Panama Canal expansion and a rise in T/S cargo volume at Busan Port.
