WATCH: Panama Canal Celebrates First Anniversary of Expansion
Panama Canal Administrator Jorge Quijano celebrated the first anniversary of the canal’s expansion with promises to increase the waterway’s transit capacity. But further expansions will be challenging, given the low price of oil, and the 65 percent reduction in tolls at the Suez Canal, which is its main competition.
When the Panama Canal expansion project was launched, oil prices were around $ 85 a barrel but since have dropped to $43. That makes the Panama Canal less competitive than longer routes, according to Quijano.
The Panama Canal Authority plans on developing a roll-on roll-off (RoRo) terminal and has also found room to develop an LNG terminal on the Atlantic side of the waterway to provide liquefied natural gas bunkering and distribution capabilities.
The authority also stated that it will continue to advance plans for the Corozal Container Terminal.
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