Impact of the Panama Canal expansion on Latin American and Caribbean ports: difference in difference (DID) method

The expanded Panama Canal opened on June 26, 2016. This expansion is the third set of locks that enabled the canal to double its capacity through the addition of new traffic lanes, which allowed neo-Panamax and some post-Panamax vessels to transit across the canal. The widening of the canal has increased maritime traffic within Latin America and the Caribbean (LAC). Major ports in the regions have made huge investments in port expansion and infrastructural development to accommodate neo-Panamax vessels. In this study, we investigated the impact of the Panama Canal expansion (PCE) on the Latin America and the Caribbean (LAC) ports by using the Difference in Difference (DID) method. This impact was evaluated for 100 major and regular ports within the three sub-regions of LAC, namely Caribbean, Central, and South America, before and after the treatment effect, that is, the PCE. The findings from the model revealed that the average container port throughput (TEUs) for the treated ports (DTrp) was more than that of the controlled ports (CONTp) with transshipment hub, Central America, and South America having 20%, 12%, and 34% growth, respectively, since the PCE (the treatment) except for the Caribbean ports (DTrp), which experienced losses of 8% within the LAC region from 2010 to 2019.

Smart and Sustainable Logistics Ecosystem of Panama: A Conceptual Model

Greta Thunberg highlighted in her speech during the COP 2019 the lack of integrity about the goals of the countries in emission reduction when vessel and aircraft transportation has a great impact over pollution and none of them were addressed, that is the case of multimodal logistics systems in the world wide world. The question is What are Latin-American multimodal Logistics systems doing about it? Latin America has a great model in Pollution reduction and optimization of operations because Panama is working for decades to reduce emissions in the Panama Logistic ecosystem. For example, Panama Canal expansion increased the efficiency of movements in global commerce while reducing the impact of emissions. During the decade of 2010s, the Panama Canal took the risk to expand the canal to a third set of Locks and a new type of vessel arrived, the Neo-Panamax, which increased the capacity per vessel from 8,000 TEUS to 15,000 TEUs. Panama is increasing the awareness about the logistics impact over the emissions, but there are still challenges because of the increment of 87.5% of the load movement into the Logistic hub of Panama, and there is a need to address real-time information about the performance of the Distribution Centers, the ports, and the interaction with the Logistic ecosystem to increase efficiency and reduce CO2 emissions. Thus, the main objective of this research is to summarize the journey of the Panama Logistic Innovation path that results in a conceptual model of Smart and Sustainable Logistic Ecosystem (SSLE).

Effects of the Expanded Panama Canal on Vessel Size and Seaborne Transport

The Panama Canal (PC) expansion will have an impact on trading patterns and the manner in which goods are transported around the world. Once the third set of locks at the Canal began their operation, it was clear that the way in which vessels transited the canal and their maximum dimensions were going to change. As such, the expanded Canal will undoubtedly mean that a new kind of vessel will come into existence. In terms of dimensions, these Neopanamax ships will be adapted to how the locks operate. However, this effect will not be the same across the full range of traffic. After the first transit on 26 June 2016, it was possible to obtain access to transit data for Neopanamax ships. A thorough statistical study of these new datasets would involve analysing how these new locks impact the vessel size and seaborne transport.

The role of Panama Canal in global shipping

Purpose The purpose of this study is to find out the future development of the Panama Canal after opening of the new waterway (third set of locks project), in terms of the change of cargo throughput, further deployment of fleets by the shipping companies and competition for the canal. Design/methodology/approach The research of this paper is based on an empiric study by collecting the relevant data from annual report of the Panama Canal Authority, publications related to the same field. Graphs pertaining to toll revenue also are made based on statistical data provided by the Panama Canal Authority. Findings The findings show that the opening of the new waterway of the Panama Canal generates more toll revenue for Panama government by allowing mega-vessels to transit, expediting further economic development of the country largely from behind. At the same time, shipping operators also can enjoy earning more revenue by deploying New Panamax vessels transiting the Canal. Originality/value Ingenuity in tabling the users of the Panama Canal by incorporating the logo marks of the shipping companies/implication is drawn through empirical analysis to provide the shipping companies and ports authorities concerned with more understanding toward the very significance of the new waterway expansion of the Panama Canal.

Effect of Inaugurating the Third Set of Locks in the Panama Canal on Vessel Size, Manoeuvring and Lockage Time

The Panama Canal (PC) has recently been in the world spotlight. In August 2014, it celebrated 100 years of uninterrupted service and, in June 2016, the expansion project for the canal was inaugurated. The final project involved building a third set of locks. Once the canal started to operate, it could be seen that the way in which vessels transited the canal remained the same. However, the dimensions of locks and their revised operating procedures have had an effect on vessel size and the manoeuvres for the larger vessels. After the first transit on 26 June 2016, it was possible to have access to data on the new lockage systems for Neopanamax ships. The thorough statistical study of these new datasets (composed of Analysis of Variance (ANOVA), multivariate regression and statistical quality control techniques) has shown the main drivers of transit time across the Cocolí and Agua Clara locks. It has also made it possible to test the learning curve of Panama Canal pilots in the newly expanded canal. The effects of pilot training on the time it takes to transit through the locks, direction of entry in each lock, the type of vessel, vessel dimensions and the use of different types of manoeuvres have been analysed. The results are used to characterise and help optimise the performance of this new and unique lock system.

Case Study on a Maintenance and Reliability Management Model Proposal

The purpose of this chapter, is to provide a Maintenance and Reliability Management Model for the project: Design and Construction of the Third Set of Locks in the Panama Canal, with the approach of the process of asset management optimization. A practical vision of the maintenance and reliability management process and framework is presented with the idea of: Structuring the maintenance management process by grouping management activities within a series of so-called management building blocks; Structuring the framework grouping techniques that can be used to support decisions to be taken within each of these building block. This chapter presents not only a process but also the framework and techniques to manage and improve maintenance and reliability effectiveness and efficiency. This report will be used to assist different plant teams to elaborate the optimal strategies for maintenance and inspection for the assets, specified for the project: Third Set of Locks in the Panama Canal.