Fireworks exploded on Sunday as a huge container ship made the inaugural passage through the newly expanded Panama Canal, formally launching the Central American nation’s multibillion-dollar bet on a bright economic future despite tough times for global shipping.
The Chinese-owned COSCO Shipping Panama went through the Atlantic locks at Agua Clara in the early morning, sailed the 80km passage to the Cocoli locks near the capital and passed into the Pacific Ocean in the evening, stewarded by tugboats and cheered by dignitaries and exuberant crowds of thousands.
The US$5.25 billion project went online nearly two years late after construction delays, labor strife and apparent cost overruns, but officials were still bullish and in a celebratory mood as they declared the expanded canal open for business.
Photo: EPA
“This is an achievement that all of us Panamanians should be proud of,” Panamanian President Juan Carlos Varela said at the inaugural ceremony on the outskirts of Panama City. “Today marks a historic moment for Panama, for our hemisphere and the world.”
“This new transit route is the tip of the iceberg in making Panama once again the logistics center of the Americas,” canal Administrator Jorge Luis Quijano said. “And it represents a significant opportunity for the countries of the region to improve their infrastructure, increase their exports.”
Crowds that began gathering before dawn lined both sides of the canal waving flags, partying to salsa music and watching videos on giant screens. Authorities said about 30,000 people and eight foreign heads of state were attending.
“It’s a one-time experience, a great achievement,” said Felicia Penuela, a homemaker from Colon Province. “Panama is showing the world that even though it is a small country it can do great things.”
The COSCO Shipping Panama is a 48.2m wide, 300m long behemoth that is one of the modern New Panamax class of mega-vessels that are seen as the future of global shipping and will now be able to use the canal.
It carried about 9,000 cargo containers during the inaugural voyage and now heads to South Korea.
The waterway’s capacity doubles with the new locks, and canal authorities are hoping to better compete with the Suez Canal in Egypt and tap new markets such as natural gas shipments between the United States and Asia.
Authorities said that 85 percent of the 166 reserved crossings scheduled for the next three months are for container ships. Container cargo accounts for nearly 50 percent of the canal’s overall income.
Panamanians at the ceremony expressed hope that the expansion would help the economy in a nation where about 25 percent of the people live in poverty, something that Varela echoed in his remarks.
“I think the inauguration of the locks is excellent for the current generations and those to come,” said Moises Gonzalez, a 40-year-old mechanic who worked on the construction of the locks for six years. “Opportunities for us. We have to find a way for it to reach the people.”
However, the party comes amid a lull in global shipping due to the drop in oil prices, an economic slowdown in China, which is the canal’s second-largest customer, and other factors that have hit the waterway’s traffic and income.
While authorities anticipate increasing commerce between Asia and ports on the US East Coast, doubts remain that not all those ports are ready to handle the huge New Panamex-class cargo ships.
Panama began the expansion nearly a decade ago. Originally planned to open in 2014 around the canal’s centennial, the new locks can accommodate ships that carry up to three times the cargo of those that previously used the canal.
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