In a move that will allow the Panama Canal to handle the world’s largest container ships, the Panama Canal Authority (ACP) is looking to spend a massive US$17bn on a fourth set of locks and effectively re-expand on the current expansion programme.
PTI previously reported that the Panama Canal would be implementing a third set of locks that would create a third lane of traffic, which is due to be completed in early 2016.
As reported by Business Insider Australia, Jorge Quijano, CEO of ACP, said: “Looking at our geology and the experience we gained with this current expansion, we estimate it’s a project that could cost between $16 billion and $17 billion. It has had a positive impact for us, but the Suez Canal has been the big winner because they can handle the Post-Panamax ships.”
The Panama Canal has faced much competition by the Suez Canal, which is currently able to handle 20,000 TEU ships.
The China-backed Nicaragua Canal has also posed threats to Panama as it seeks to become the largest trade lane in the world and will have cost around $50bn when it is completed by 2020.