Analysis by Drewry
According to Drewry, plans for life after the expansion of the Panama Canal in 2016 are becoming firmer. Will the equation: bigger canal + bigger ships = more transhipment work for Panamas Pacific coast?
Details of the intended new vessel toll system have been released and a tender for a new five million teu capacity transhipment terminal at the Pacific end of the canal has been announced. The planned 120 hectare Corozal container terminal will have a capacity of 5.2 million teu at full build out (see above figure). With a quay line in excess of 2 kilometres, alongside depth will be 16.3 metres. Most likely a 20 year concession will be offered, renewable for a further 20 years.
Panama’s Pacific coast transhipment activity is currently handled almost entirely by Hutchison’s Balboa terminal, whilst PSA’s Rodman terminal is at present a smaller, emerging facility. Their combined current capacity is estimated to be nearly 5 million teu so the new Corozal terminal would double this figure.
Moreover, both Hutchison and PSA are reportedly expanding or have the potential to expand their capacity to a combined total of 6.8 million teu p.a. Hutchison announced in 2014 an investment of $110m to boost capacity to 5 million teu p.a. in time for the opening of the expanded canal in 2016. Meanwhile, also in 2014, PSA was given a 20 year concession for its terminal which reportedly enables it to be expanded from the current 450,000 teu p.a. capacity to 1.8 million teu, with $350 million investment, although no timescale has been announced.
Source: Drewry / Image Credit: Panama Canal Authority
