(VOVworld) – The Panama Canal, the vital waterway connecting the Pacific and Atlantic Ocean, is being upgraded and is scheduled to reopen on May 31. The canal has been an important international maritime trade route for the past century.
Panama Canal 2014 expansion aerial view
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On February 16, Ilya R. Espino De Marotta, the Panama Canal Authority (ACP) Executive Vice President, said the expanded Panama Canal will receive larger cargo ships. The ACP said Panama’s national construction group has successfully tested the new facilities and independent supervisory experts, scientists, and engineers from the Panama University of Technology have checked the quality. The ACP said 96% of the work has been completed and they are satisfied with the results. The Panama Canal expansion project began in 2007 with an estimated cost of 5.25 billion USD and aimed to double the canal’s capacity. The project is now 2 years behind schedule.
100 years ago on August 15, 1914, the Panama canal officially opened after 10 years of construction. The 80-km canal connecting Panama city on the Pacific ocean and Colon city on the Atlantic ocean revolutionalized global trade. The route saves time and costs for ships sailing from Europe to Western America or from East Asia to Eastern America, which otherwise would be obliged to round Cape Horn in South America. Each year approximately 14,000 ships from 84 countries use the canal, 5% of the global trade volume. The canal also has great political importance. Tolls for using the canal, which total about 1 billion USD a year, are Panama’s chief revenue source. The Panamanian government has invested 5 billion USD in canal maintenance and expansion. When larger freighters start to pass through the canal in May, there will be new opportunities for Panama and global trade.