Title: News from ... the Panama Canal
Full Citation
Permanent Link: http://ufdc.ufl.edu/UF00099414/00014
 Material Information
Title: News from ... the Panama Canal
Physical Description: Serial
Language: English
Publisher: Autoridad del Canal de Panama
Place of Publication: Balboa, Panama
Publication Date: March 2006
 Record Information
Bibliographic ID: UF00099414
Volume ID: VID00014
Source Institution: University of Florida
Holding Location: University of Florida
Rights Management: All rights reserved by the source institution and holding location.


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New tie-up station increases capacity

New tie up station
increases capacity.

Visits to customers

Canal Master Plan

Short and medium
term Investments

Long term

Transit Statistics
for First Quarter of
FY 2006

MIT receives the six
largest gantry
cranes in Latin

Panama Canal
Authority forms
strategic alliance
with Dallas NAFTA
Trade Corridor

services to the
maritime industry and
in sustainable
development for the
conservation of the
Panama Canal

the global
transportation system
and driving force for
the progress,
development and
growth of Panama.

MODEL of excellence,
integrity and
transparency in our
conduct; committed to
the integral
development of our
human resource team.

Each day at the Panama Canal, vessels are
programmed in a convoy in each direction during
daylight hours, one of northbound vessels from the
Pacific Ocean and another southbound from the
Atlantic Ocean. At approximately noon each day, the
northbound convoy's last Panamax vessel clears the
meeting point at Gamboa, 30 kilometers from the
Pacific anchorage. The 13 kilometer-long Gaillard
(Culebra) Cut stretches over the continental divide
between Pedro Miguel Locks, on the Pacific side of the
Canal, and Gamboa. Because Panamax vessels
cannot yet meet oncoming traffic in the Cut (the
narrowest channel in the Panama Canal), the Pedro
Miguel Locks remain idle as much as 2.5 hours daily.

The Panama Canal Authority (ACP) has implemented a
capacity-building measure to leverage this idle time at
one end of the waterway, while vessels are making
their transits from the opposite side. The new tie-up
station, located at the east side of the Gaillard Cut and
just north of the Centennial Bridge, permits vessels to
advance from the Pacific Ocean to the southern end of
the Gaillard Cut, while the first southbound vessel is
heading towards Pedro Miguel Locks.

The new tie-up station provides capacity for one additional transit
each day.

One Panamax or two smaller vessels may be moored
at the Cucaracha (Reach) tie-up station. The tie-up
station will not only increase capacity, but also will
provide flexibility in scheduling, especially during fog
season and locks' maintenance outages. Moreover, it
can be used for vessels experiencing system difficulties
while in transit, thus enhancing safety.

The new tie-up station will help accommodate growing
demand by providing the capacity equivalent of one
additional Panamax transit each day or approximately

10 million net Panama Canal/Universal Measurement
System (PC/UMS) tons annually.

A second tie-up station is scheduled to be constructed
in the Paraiso Reach, located just north of the Pedro
Miguel Locks on the southwestern end of the Gaillard
Cut. The initial dry excavation work was contracted in
December 2005. The project is slated for completion
toward the end of 2007. "Once this new tie-up station is
completed, two additional Panamax vessels will be able
to advance to it while the first vessel of the southbound
convoy reaches the Pedro Miguel Locks. When this
occurs, the Pedro Miguel Locks will be operating
virtually 100 percent of the time, thus maximizing Canal
throughput and adding an additional 20 to 30 million
PC/UMS tons of annual capacity," stated Jorge L.
Quijano, ACP Maritime Operations Director

Visits to customers
From February 20 through March 1, Panama Canal
Administrator Alberto Aleman Zubieta, Director of
Corporate Planning and Marketing Rodolfo Sabonge,
and Director of Maritime Operations Jorge L. Quijano,
visited customers in Europe and Asia to update them
on the waterway's traffic statistics, the status of the
modernization program, and the Canal Master Plan.

Among the customers visited were MSC, CMA-CGM,
K-Line, NYK, Yangming, COSCO, MOL and Evergreen.

New Illumination Svstem

Over the past four years, the Panama Canal Authority (ACP) has
been working diligently in preparing a Master Plan that will determine
the fundamental direction of the waterway to the year 2025 as well as
the strategic actions and investments required to ensure that the
Canal is able to meet customers' demands.

This strategic plan includes several short and medium term
investments -some of which are currently underway- and long term
investments that consider the construction of a third set of locks, a
decision that is subject to the results of a national referendum.

Short and Medium Term Investments

The short and medium term investments aim at modernizing and
improving the existing locks' capacity, while maintaining the level of
service and guaranteeing the reliability expected by customers,

1- The increase by one foot of the allowable Canal transit draft, from
39.5 ft. to 40.5 ft., a plus for customers, as they will be able to carry
from 1,800 to 2,000 additional tons of cargo per transit, thus obtaining
a better value per voyage.

2- The deepening of the Gatun Lake navigational channel to increase
the utilization of lake storage capacity, hence increasing reliability as
it will guarantee a maximum draft of 40.5 ft. The implementation of
this project will prove extremely positive in periods of severe drought,
as it will help to minimize the imposing of draft restrictions to vessels
at times where "El Nifio" phenomenon takes place.

3- The deepening of the access channels at the Atlantic and Pacific
entrances constitutes a value-added as vessels will be able to carry
more cargo and expand their transshipment operations at
Panamanian ports. In this way, vessels will be able to make the most
of the voyage value and earn more revenues given that they will
transship greater amounts of cargo.

4- The straightening and widening of the Gaillard Cut, which will
increase capacity by facilitating the passage of larger vessels at night
and reducing the periods of one-way traffic through the Cut, will have
a positive effect on Canal Waters Time (CWT).

5- The enhancement of the illumination system at the locks will allow
for the extension of daylight hours. The locks are the real bottlenecks
of the Canal as it takes a Panamax vessel two hours to transit them
and this can only be done during daytime hours to safeguard the
integrity of both the vessel and the Canal's infrastructure. The
installation of the new illumination system will allow Canal
management to extend daylight hours and provide for the passage of
more Panamax vessels, resulting in a more efficient use of the
waterway as well as improving customer service.

6- The establishment of new tie-up stations will improve the efficiency
of Pedro Miguel Locks as they will serve to pre-position vessels
during lane outages or periods of high-transit demand, maximizing
the use of the locks system. The tie-up stations will also serve as a
mooring area for vessels that are forced to interrupt their transits due
to mechanical problems.

More Panamax vessels will be able to transit the locks at night
once the new illumination system is in place.

Deepening the Navigational Channel to 34' PLD

With the implementation of the short and medium term investments,
the ACP will be able to increase capacity from 279 million Panama
Canal/Universal Measurement (PC/UMS) tonnes in 2005, to 340
million PC/UMS tonnes by 2009.

Long Term Investments

As for the long-term, the ACP Master Plan contemplates the
construction of a third set of locks, which will run parallel to the
existing locks, and will provide the required capacity to allow for the
transit of more and larger vessels. The projected Post Panamax
locks will be able to accommodate time-sensitive container vessels
with a carrying capacity of 10,000 TEU and dry bulk and liquid bulk
vessels of up to 120,000 deadweight tons. Their design incorporates
water-saving basins or "holding pools" adjacent to the new locks,
which will reduce the water required per lockage by storing and
re-using a portion of the drained water for the following filling cycle of
the locks.

Canal Master Plan

w- -p ^^^^^

The expansion would benefit all Canal users as it would eliminate the congestion that would result from the projected increase in demand.
By expanding the Canal, the ACP would increase capacity as well as its capabilities, and this would translate into an optimal service level to all

Atlantic Locks Alignment

Atlantic Ocean


3 Step
Post-Panama : Gatun locks locks

Gatun Dam saving

Gatun Lake

Pacific Locks Alignment

---------- Culebia Cut

-------------------- Pedio Miguel

Approach ....._______. -------...... Miiafloies
Channel Lake

3 Step ------- Mirafloies
Post-Panama:< Locks
S-------- saving



The Master Plan considers the construction of thrid set of locks that would run parallel to the existing locks and would provide for the
transit of Post Panamax vessels. The locks'design incorporates water saving basins that will allow for the recycling of water, optimiz-
ing the use of the Canal's main resource.

Post Panamax Ship and Lock Dimensions


(106') -


r--- (160') ---

[ (15.3m

54.9m 1.5 -3m
L ----- (180') (-10')

Existing Lock Post Panamax Lock
Chamber length 305m (1,000') Chamber length 427m (1,400')
Vessel length 294.3m (965') Vessel length 385.8m (1,265')

(2') 33.5m

Vessels with a carrying capacity of up to 10,000 TEU would be
able to transit through the locks.

To undertake the construction of a third set of locks, the ACP will
have to follow a series of steps to seek the approval from its
stakeholders at different levels. The process begins with the
approval of the ACP Board of Directors, who will then pass it on to
the President of Panama, his Cabinet and the National Assembly.
The final decision rests in the Panamanians citizens who will vote in a
referendum. It is expected that this process would be completed
during this year.

Transit Statistics for First Quarter of Panama Canal Authority forms strategic

FY 2006
Statistics for the first quarter of Fiscal Year 2006 show a total of
3,021 transits of oceangoing vessels, a reduction of 2.4 per cent in
comparison with the 3,094 transits recorded during the same period
of Fiscal Year 2005.

Transits of Panamax vessels, those of 100-feet and over in beam,
increased by 1.5 per cent with 1,466 transits registered in
comparison with the 1,444 transits recorded during the same period
of Fiscal Year 2005. Panamax transits represented 48.5 per cent of
the total number of transits of oceangoing vessels.

The chart below illustrates a monthly comparative breakdown by
fiscal year.

Trniso0 aaa esl
100gbea an over







alliance with Dallas NAFTA Trade
Corridor Coalition
On December 9, 2005, the Panama Canal Authority (ACP) and the
Dallas NAFTA Trade Corridor Coalition (DNTCC) subscribed a
Memorandum of Understanding (MOU) that seeks to increase
cooperation and boost trade along the "All-Water Route," the route
from Asia to the U.S. East and Gulf Coasts via the Panama Canal.

The DNTCC, which currently includes the City of Dallas, Dallas
County and the City of Balch Springs, has implemented an innovative
economic development plan recognizing that the Dallas area lies at
the crossroads of international trade. The Port of Dallas will be
established in this area, which is ideally located to serve as an inland
distribution hub for cargo shipped through the Panama Canal and the
Port of Houston. In April 2005, a Memorandum was signed by the
Port of Houston Authority, the U.S. Maritime Administration and the
City of Dallas to establish Dallas as an inland port for Houston.


1 5'..

MIT receives the six largest gantry
cranes in Latin America
On January 20, 2006, Manzanillo International Terminal (MIT)
received six new Post Panamax gantry cranes with the capacity to
work on vessels with up to 22 containers across. With this
acquisition, the total number of gantry cranes installed in MIT totals
16, 14 of which are Post Panamax cranes. The cranes are part of
MIT's expansion plan, valued in $250 million, which includes
increasing berth capacity and providing for 38 additional hectares for
container storage.

MIT, located in the Atlantic entrance of the Panama Canal, is one of
the top ten most efficient ports in the world and the largest
transshipment terminal in Latin America, handling 1.6 million TEU in
2005. The port's expansion plan will be completed within the next
four to seven years, and will provide the port with the capacity to
handle 4 million TEU annually.

From left to right: (first row) Wayne Middleton, Mayor of Balch Springs; Maurine
Dickey, Dallas County Commissioner; Adsinar Cajar, Consul of Panama in
Houston; Alberto Aleman Zubieta, President/CEO, Panama Canal Authority; Bill
Blaydes, Dallas Councilman. (second row) Steve Salazar, Dallas Councilman; Don
Hill, Dallas Mayor Pro Tem; Ed Oakley, Dallas Councilman; Jean E. Sides, Dean
International, Inc. Senior Public Policy Consultant; Leslie Jutzi, Manager of
Intergovernmental Services; Ron Natinsky, Dallas Councilman; John Horan,
Director of Trade Development of Port of Houston Authority.

May 10-12/0U Lane w-restrictions (3d) 26-28 (3d) tentative
Jun. 6-15/06 Lane w-restrictions (10d) 36 (10d) Tentative
July 11-20/06 Culvert Outages (10d) 36 (10d) Tentative
July 17-22/06 Culvert Outages (6d) 33 (6d) Tentative

Panama Canal Authority Tel. (507) 272-7961
Your comments and suggestions are very important to us. If you need additional Corporate Planning and Marketing (PM) Fax. (507) 272-1416
copies mailed to other officials within your corporation, please contact us at the P.O. BOX 526725 Miami FL. 33152-6725 e-mail: customerelations@pancanal.com
address indicated in the next box.
(then click on Virtual Newsrooms)

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