An amended memorandum of understanding (MOU) has been signed by the Port of South Louisiana and the Panama Canal Authority (ACP) for the next five years in order to solidify an alliance created between the two parties in January 2013.
The initial alliance was focused on facilitating international trade and generating new business for the Port of South Louisiana and Asian countries via the Panama Canal, according to Progressive Railroading.
The MOU involves the port and the ACP participating in joint marketing initiatives, exchanging cargo movement and transit information, and sharing knowledge on how to meet higher trade demand.
Around 30% of Louisiana's grain exports are shipped to countries in Asia.
Executive director of the Port of South Louisiana Paul Aucoin said: “It makes total sense to work with the Panama Canal Authority in cross-promoting our respective entities and regions. Our partnership would not only increase revenues, but also encourage job opportunities from the increase in traffic.”
The Panama Canal is currently undergoing a massive expansion which is nearly 80% complete. The expansion involves the construction of a third lane of traffic to accommodate bigger vessels.
The Panama Canal is expected to be completed in December 2015.
