The New Panama Canal: A Risky Bet

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Late Edition
Today, cloudy, periodic rain, thunderstorms, not as warm, high 76.
Tonight, plenty of clouds, low 64.
Tomorrow, sunny, warmer, high 82.
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VOL. CLXV . . . No. 57,272
$2.50
NEW YORK, THURSDAY, JUNE 23, 2016
© 2016 The New York Times
CLINTON SAYS SHE Bedlam Erupts
IS READY TO FIX In House Sit-In
By Democrats
FISCAL PROBLEMS
Standoff With G.O.P.
Over Gun Control
A NOD TO VOTERS’ ANGER
Policy Speech Suggests a
Break From Obama’s
Economic Policies
By NEIL IRWIN
It has been a year dominated by
populist rage, embodied in Bernie
Sanders’s calls for a political revolution and Donald J. Trump’s angry assertions that the United
States, and its workers, are losing
badly in the global economy.
In an economic policy speech on
Wednesday, Hillary Clinton gave
this message: I alone am the candidate who knows how to turn
those underlying frustrations into
actual policies that might make
things better. She offered herself
as someone who would not merely
vent voters’ anger, but respond to
that anger by pulling the levers of
the federal bureaucracy and creating legislation that can be
scored by the Congressional
Budget Office and just maybe
pass a Senate committee.
“It’s not easy to change Washington, or how corporations behave,” Mrs. Clinton, the presumptive Democratic presidential
nominee, said before exuberant
supporters in Raleigh, N.C., a day
after a speech blasting Mr.
Trump’s business record, ethics
and often-erratic policy positions.
“It takes more than stern words or
a flashy slogan. It takes a plan,
and it takes experience and the
ability to work with both parties to
get results.”
Unlike her primary opponent,
Mr. Sanders, she did not promise
to provide free college tuition or to
break up major banks; she instead said she would make sure
students could graduate without a
Continued on Page A21
ON ATTACK Donald J. Trump calls
Hillary Clinton a liar. PAGE A21
REVERSAL Marco Rubio will run
for the Senate after all. PAGE A22
By DAVID M. HERSZENHORN
and EMMARIE HUETTEMAN
WASHINGTON
—
A
Democratic sit-in on the House
floor demanding votes on guncontrol legislation led to a remarkable scene of pandemonium on
Wednesday night as Speaker Paul
D. Ryan was shouted down as he
tried to regain control.
Democrats pressed against the
podium, waving signs with shooting victims’ names and chanting
“No bill! No break!” as Mr. Ryan
repeatedly banged his gavel in an
attempt to restore order.
When Mr. Ryan gave up and left
the speaker’s chair, Democrats
shouted,
“Shame!
Shame!
Shame!”
There were scenes of chaos
across the floor. At one point
Democrats began singing “We
Shall Overcome” — altering the
lyrics to say “We shall pass a bill
some day” — as Republicans
shouted in outrage.
And when Representative Don
Young, Republican of Alaska,
tried to confront the chanting
Democrats, he was restrained by
aides and colleagues.
The chaos was set off when
Democrats reiterated their demand for a vote on the gun
measures before a weeklong recess for the July 4th holiday.
With no ability to adopt legislation either in the House or Senate,
the minority Democrats have resorted to spectacle to underscore
their anger over the failure by
Congress to take any action in the
aftermath of numerous mass
shootings, including the massacre
in Orlando. And they have repeatedly accused Republicans of kowtowing to the National Rifle Association, siding with the gun lobby
over innocent victims of gun violence.
Democrats have been exasperated since four measures — two
favored by Democrats and two by
Republicans — were defeated in
the Senate despite a 15-hour filiContinued on Page A20
CARLOS JASSO/REUTERS
On June 9, the Baroque Valletta became the first of the huge “neo-Panamax” ships to use the Panama Canal’s expanded locks.
The New Panama Canal: A Risky Bet
How a $3.1 Billion Expansion Collided With Reality
This article is by Walt Bogdanich, Jacqueline
Williams and Ana Graciela Méndez.
PANAMA CITY — On July 8, 2009, the
champagne finally flowed.
After an intense two-year competition, a
consortium led by a Spanish company in severe financial distress learned that its rockbottom bid of $3.1 billion had won the worldwide competition to build a new set of locks for
the historic Panama Canal.
The unlikely victors toasted their win at La
Vitrola, a sleek restaurant in an upscale neighborhood east of downtown Panama City.
Within days, executives of the four-nation
consortium, Grupo Unidos por el Canal, flew
to Europe to begin planning the project.
This time, there would be no champagne.
Disputes quickly erupted over how to divide
responsibilities. Some executives appeared
not to fully grasp how little money they had to
complete a complex project with a tight deadline and a multicultural team whose members
did not always see things the same way.
Internal arguments soon gave way to bigger problems. There would be work stoppages, porous concrete, a risk of earthquakes
and at least $3.4 billion in disputed costs:
more than the budget for the entire project.
Seven years later, and nearly two years
late, the locks have finally been declared
ready to accept the new generation of giant
ships that carry much of the world’s cargo but
cannot fit in the original canal. To mark the occasion, Panama has invited 70 heads of state
to watch on Sunday as a Chinese container
ship becomes the first commercial vessel to
attempt the passage from the Atlantic Ocean
to the Pacific through the larger locks.
For more than 100 years, the canal has been
a vital artery nourishing the world economy, a
testament to American engineering and one
of the signature public works of the 20th century. The new locks, built by Panama without
help from other governments, were sold to the
nation and the world as a way to ensure that
the canal remained as much of a lifeline in the
hyperglobalized 21st century as it was in the
last.
But when the speeches and the celebrations end, one inescapable fact will remain:
The expanded canal’s future is cloudy at best,
its safety, quality of construction and economic viability in doubt, an investigation by
The New York Times has found.
In simple terms, to be successful, the new
canal needs enough water, durable concrete
and locks big enough to safely accommodate
the larger ships. On all three counts, it has
failed to meet expectations, according to
Continued on Page A12
Clearing Falluja and Revealing Grim Reminders of ISIS’ Rule A Winner in the ‘Brexit’ Vote:
Britain’s Gambling Industry
By TIM ARANGO
FALLUJA, Iraq — As Iraqi
forces move through Falluja, the
city is yielding the grim remnants
of more than two years of Islamic
State rule. Beheaded and decaying bodies. Clumps of facial hair
from fighters who shaved their
beards to blend in with fleeing
civilians.
A
prison
where
detainees were held in cages suitable for a medium-sized dog.
The forces have found books on
Wahhabism, the extreme version
of Sunni Islam from which the Islamic State draws inspiration, and
on Saddam Hussein, whose rule
by fear and secrecy the group has
replicated.
Yet even as the picture of what
life was like inside Falluja under
the Islamic State is becoming
clearer, a visit over the weekend to
areas of the city taken by pro-government forces made clear that
there is still heavy fighting.
Days after Iraqi forces raised
the national flag over the main
government compound and declared victory, the battle has
moved to western neighborhoods,
where some Islamic State fighters, many of them foreigners, remain, officials said.
About a third of the city has
been cleared of insurgents, said
Col. Christopher C. Garver, an
American military spokesman in
Baghdad. Still, American officials
believe the city will eventually fall
fully into government hands.
The battle has not yet played
out as many feared it would: as a
vicious, house-to-house fight like
the one American Marines faced
in 2004.
“The Islamic State did not fight
seriously this time because the big
leaders left their fighters on their
own,” said Col. Mohammed al-Jumaili, a commander of a government-allied Sunni militia in Anbar
Province. He said that many of the
local Islamic State fighters resisted at first, but began escaping
with their families once it became
clear that the loose, pro-govern-
ment alliance of soldiers, policemen, Shiite militiamen and Sunni
fighters was winning.
He continued: “In 2004, many
people of Falluja had resisted the
American troops because they
viewed the U.S. as invaders and
that it was an Islamic obligation to
fight them. This time the people
realized there is a difference, that
there is no purpose to fight your
own people.”
Commanders said that the Islamic State, also known as ISIS or
ISIL, built up its defenses on the
city’s perimeter, and that once
Iraqi forces punched through,
they were able to move easily on
the city center as many Islamic
State fighters fled.
“This is the Nazal area, the
most difficult area for the Americans in the first war,” said Lt. Gen.
Abdulwahab al-Saadi, the commander of the Iraqi counterterrorism forces that have taken the
lead in the battle. He was surContinued on Page A16
BRYAN DENTON FOR THE NEW YORK TIMES
Iraqi government fighters rested between battles in Falluja, which had been controlled by ISIS.
By PETER S. GOODMAN
LONDON — Ask for his opinion, and David Howe eagerly tells
you how he hopes Britain will
leave the European Union.
“We need to take control of our
borders,” he says.
But these sentiments are, at the
moment, as valuable to him as his
personal views on Her Majesty’s
latest hat. He is more keen to
know how the rest of the British
electorate is inclined so he can win
some money.
Mr. Howe is standing inside a
William Hill gambling shop near
Westminster, home to the British
Parliament. It is midday Wednesday, less than 24 hours before
British voters will go to the polls to
determine the political geography
of Europe. Video roulette machines flicker behind him. Televisions above him beam in dog
races from hither and yon.
A single screen attracts Mr.
Howe’s interest: one showing the
odds on the so-called Brexit. They
have in recent days tilted heavily
toward Britain sticking with the
European Union. A bet of 9 pounds
to remain (about $13.24) fetches a
profit of only £2 (less than $3). By
late afternoon, the odds slide even
more, showing an 80 percent
chance that voters will maintain
Britain’s place in the European
Union.
Far from a curiosity, the gambling markets stand as a rare
ANDREW TESTA FOR THE NEW YORK TIMES
Screens at a gambling shop
show the referendum odds.
source of something approximating clarity in the face of Brexitborne confusion, assuming they
turn out to be right.
Political polls have generally
shown a divided electorate. Until
last week, when a member of Parliament who had advocated remaining in Europe was murdered,
a vote to leave seemed marginally
likely. Investors absorbed polls
and sent markets on a wild
plunge, selling the British pound
and London stocks in anticipation
of a Brexit. Then those markets
jumped when the polls edged back
toward remain.
All the while, gamblers held
firm, signaling faith that economic
concerns would ultimately triumph over the politics of identity.
While the margin tightened for a
Continued on Page A6
BUSINESS DAY B1-8
INTERNATIONAL A4-16
NATIONAL A17-22
ARTS C1-8
SPECIAL SECTION
The Blinders of Virtual Reality
Closer to Peace in Colombia
Companies Sued Over Flint
Dancing With Father Time
Education Innovation
Virtual reality technology leaves your
body helplessly stuck in the physical
world, Farhad Manjoo writes. PAGE B1
The Colombian government and the
country’s largest rebel group have
agreed to a cease-fire.
PAGE A16
The Michigan attorney general said two
contractors failed to sound alarms over
poisoned water.
PAGE A17
Alessandra Ferri, 53 and once retired,
will perform in American Ballet Theater’s “Romeo and Juliet.”
PAGE C1
Another Path Through Pain
North Korea Missile Test
SPORTSTHURSDAY B9-14
Anatomy of a Broadway Flop
Officials want to limit opioid use, but
getting people to try other remedies,
like meditation, has been tough. PAGE B1
North Korea launched a missile into
high altitude, showing progress after
five straight failures.
PAGE A4
Colleges and universities, facing higher
expectations than ever from students,
are experimenting with ways to address concerns, including high cost, low
graduation rates, safety on campuses
and a lack of opportunities for minorities and low-income students. Top
SECTION F
educators offer solutions.
Blockbuster Trade for Knicks
The Knicks acquired the often-injured
Bulls star Derrick Rose.
PAGE B9
EDITORIAL, OP-ED A28-29
NEW YORK A23-27
New Jersey Debates Gas Tax
After years of keeping its gasoline tax
among the lowest in the nation, New
Jersey is now thinking the previously
unthinkable: raising it.
PAGE A24
Exploring the struggles of “American
Psycho,” “Bright Star,” “Tuck Everlasting” and, below, “Disaster!”
PAGE C5
THURSDAY STYLES D1-10
‘My First Gay Bar’
Inspired by the Orlando attack, famous
gay men and lesbians recall places that
were key to their coming out. PAGE D1
Nicholas Kristof
PAGE A29
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