The Panama Canal's Expanding Impact

When the Panama Canal was completed in 1914, it was considered a marvel of engineering. Construction was at first started by the French in 1881, but they gave up 13 years later due to the immense technical challenges and 22,000 worker deaths (mostly Caribbean natives). So in 1903 the U.S. bought the canal property and equipment for $40 million from the French, and after negotiations with Columbia for a perpetual lease broke down, militarily supported a succession movement that ultimately became Panama.

The U.S. brought with them railroad engineers and valuable quantities of pesticides and water treatment technologies. As a result, malaria and yellow fever deaths were practically eliminated. And the engineers, specifically John Frank Stevens, sought ingenious building solutions to bridging the isthmus. The French and several other American engineers believed the solution was to cut a sea-level canal completely across Panama. However Stevens saw that flooding the lowlands of the Chagres River Valley would eliminate the need to excavate about 26 miles of channel, and locks on both sides would be used to elevate ships between sea level and lake level. The creation of Gatun Lake was a huge factor in the ultimate success of the canal and the United States' 99-year lease that was finally terminated in 1999.

Almost immediately Panamanians recognized that the canal needed more work. Container ships are getting larger and more important to international trade, and Panama Canal's primary competition is the Suez Canal in Egypt, which can accommodate larger ships. So in 2006 Panama began preparing for a canal expansion that will finally be completed in 2016. It's not a moment too late, as the Suez is also constructing an expansion, and China has just invested $50 billion into a Pacific-Atlantic canal across nearby Nicaragua.

The expansion will widen and deepen the existing access canals on both oceans, as well as build new canals leading to new, larger locks specifically for larger ships. Gatun Lake's shipping channels will also be widened and deepened, and the lake's water level will be raised by about 1.5 feet. These changes will allow the canal to accommodate ships with a 50% larger footprint, but will also double the cargo transit. Panama is also constructing new ports and facilities, as they hope to draw business in manufacturing and materials.

The effects of the Panamanian expansion are being felt thousands of miles away. To take advantage of the maximum ship specifications, a new class of container ship is being built. Panamax-class container vessels are the maximum size for the old canal, but New Panamax-class container ships will be among the first vessels using the deeper and wider canal routes. These ships can carry 13,000 containers, compared to the Panamax's 5,000 containers.

Additionally, numerous ports are expanding to accept New Panamaxes. The ports of New York and New Jersey, Baltimore and Norfolk have all deepened their vessel berths, and the New York and New Jersey port even spent $750 million raising a bridge by 64 feet to permit New Panamax access to inland ports. The Port of Liverpool in England has constructed a totally new port, Liverpool 2. Ports in Miami, Jacksonville, Savannah, Ga., Mobile, Ala., and Charleston, S.C., are all pending similar renovations.

While all this is happening, the engineering spectacle is easy overlooked. Perhaps something that was done for the first time 100 years ago isn't as impressive considering the immense mechanical and technological improvements. But when the entire spectrum of developments and innovations is considered, I'd argue that the spectacle is even bigger than the first time.