Panama Canal expansion could boost US Maritime Industry

By Finance

The new gates and new sets of locks for the Panama Canal and the plan for expansion will allow bigger vessels to pass through the canal. U.S. shipyards could benefit of the new expansion project. New vessels will be needed for moving cargo from larger container vessels.

The Panama Canal expansion project is estimated to $5 billion and the idea behind is to allow bigger container ships to bring goods from Asia to the U.S. East Coast.

Matt Paxton, president of the Shipbuilders Council of America announced:
"A possibility is that the larger vessel traffic coming from the Panama Canal could generate a shuttle service, a short sea shipping service of these vessels offloading some of their container traffic."

Larger the vessel more difficulties to enter the U.S. ports. Ports could not handle the newly designed container vessels. The solution for this problem is U.S. shipyards to build smaller vessels with the idea to transport the cargo from the large container ships.

The Panama canal expansion project is expected to be finished in mid-2015. Shipyards are already receiving orders for building tankers, barges and small vessels to ship domestic crude and its byproducts to refineries and ports across the U.S, thanks to the current domestic oil and gas need.

The statistics 10 years ago shows that the maritime industry was not in good state, people did not wanted to invest their money for building vessels. Now we are seeing something different.