Understanding the Potential Consequences of the Panama Canal Expansion on Midwest Grain and Agricultural Exports

摘要

The Panama Canal Authority (ACP) has announced ambitious plans to open a third lock by2014, significantly changing the capacity of the canal for inter-ocean movements. Midwest specialty grainand agricultural product exporters will be directly affected as all-water routes are improved andlandbridge requirements reduced. The project analyzes data from a variety of sources, summarizesindustry and public sector interviews, and examines the results of an industry survey to develop anunderstanding of changing transport decisions, energy consumption trends, and economic impacts that theexpansion could cause in these commodity areas. Findings suggest that the Canal expansion may decreasetransit times, incentivize export to Asia via Gulf Coast ports, promote greater containerization of grain,and increase the energy costs of transportation.