Panama Canal Expansion Study
U.S. Department of Transportation
MARITIME ADMINISTRATION
Brian P. Hill
MARAD – Western Gulf Gateway Office
The Western Gulf Gateway Office
area of responsibility includes all
ports/waterways within Texas
including the GIWW, and on the
Arkansas River in Oklahoma.
MARAD Gateway Focus Areas:
 Advocacy & Outreach
 Grant Management /Infrastructure
 Inter-Agency Partnerships
 America’s Marine Highways (M-10 & M-146)
 Port Readiness/RFF
Port Infrastructure Needs
The Port Challenge: Failure to Act
American Society of Civil Engineers Failure to Act Report 13 September 2012.
Continued level of investment will cost 178,000 jobs/year and $4 Trillion by 2040.
“The World Economic Forum now ranks US port infrastructure 22nd in the world,
behind such countries as Iceland and Estonia.”
(Source: Port Technology International, 12 January, 2012)
During a National Port Summit hosted by Transportation Secretary Ray LaHood,
participants made it clear that port infrastructure suffers from a lack of focused
and systematic investment. Participants also called for efficient and effective
delivery of other Federal services if the system is to operate smoothly.
(Second National Port Summit, April 21, 2011, Chicago, IL.)
Panama Canal Expansion Study
Purpose
Evaluate and assess anticipated economic and
infrastructure impacts on U.S. ports and freight
transportation infrastructure.
•
Objectives
•
Provide foundation for a realistic understanding of the
impacts of Canal Expansion on U.S. ports and the National
Transportation System.
•
Identify range of needs for both private/public investment.
•
Identify port and infrastructure policy opportunities for
consideration by Federal government leadership.
Panama Canal Expansion Study
Phases
Phase I
Phase I (Completed. Report released in November 2013)
Public Listening Sessions
Peer Review Phase I Report & Methodology by Industry Leaders
Phases
II/III
Phase II/III (Completed July 2013)
One-on-One Interviews with U.S. Maritime Communities
On-Line Survey of Shipping Industry Representatives
Peer Review Report
Phase IV
Phase IV (Underway)
Develop and Finalize Policy/Investment Recommendations
Produce Final Report
Panama Canal Expansion
Findings – Phase I
•
Greatest impact will be on container traffic.
•
East Coast can expect lower costs per twenty-foot equivalent
units (TEUs) for vessels that utilize the Panama Canal vs. West
Coast port of entry.
•
Door to door transit times will depend on routing choices by
shippers and freight forwarders.
•
Ongoing infrastructure investments eastern U.S. railroads
have made in anticipation of the Canal expansion may further
reduce the cost of all water-shipping through East Coast
ports.
•
Overall impacts to U.S. ports and inland infrastructure will
occur gradually.
Comparative Transit Times
Impacts of Panama Canal by Region
External Drivers Influencing Impacts
•Supply chain allocation of benefit (cost savings)
•Price point competition (railroad vs. canal)
•Commodities drive shipper decisions (time vs. cost)
Remaining Tasks
•
Complete the internal review of the Phases
II – IV report
•
Submit the Phases II – IV report to the
Office of Management and Budget and the
Office of the Secretary of Transportation
for review and approval
•
We hope to have the Phases II – IV report
released later in 2014