Suez Canal a threat to Panama?

The Egyptian Canal has an advantage over the Panamanian one not only in terms of its effectiveness in adapting to changes in the shipping industry, but also in the use of the opportunities that it creates for the logistics sector.

The speed with which Egypt has extended the Suez Canal  in 12 months, at a cost of $8.2 billion- gives it an advantage over the Panama Canal, and it is enough to note Maersk’s decision to switch from the Panama route to Suez says CentralAMericaData.com
An analysis of the issue by Ruben Arosemena Valdes, on Prensa.com highlights the will of the Egyptian government to take advantage of its Canal traffic, in order to develop commercial and logistics services in the area of ​​influence.

“… It is interesting to observe how the Egyptian government used the expansion to create new employment and development opportunities, and for that purpose, has created the Authority for the Development of the Suez Canal Zone.”

“… Unlike Egypt, which is preparing for the development of a comprehensive area of ​​logistics, shipping services, industry, ship repair, maritime auxiliary services sector and trade, in Panama we have unfortunately fallen short on integration and focus on the logistics sector. “

Panama “… lacks an economic strategy to develop the adjacent area with an integrated master plan, along with studies on the new shipping, logistics and industrial services that could be developed successfully. After that we must pass legislation for tax incentives to attract companies wishing to use the new logistics platform to ship goods to the markets of Central and South America. “

World Maritime News takes a less bullish tack in assessing the usage of the Suez route.

“It is yet unclear whether the New Suez Canal will spur more traffic or better accommodate the major rise in throughput since 2011 as macroeconomic factors and toll levels may be far more influential in determining future shipment volumes than the introduction of two-way traffic, according to trade analyst Argus.”

The New Suez Canal, has taken the four double zones and six by-pass sections and joined them together to create a new channel, allowing ships to travel in both directions, with the aim of decreasing transit waiting time, reducing congestion and allowing more vessels to transit each day.

The project should reduce vessel waiting times to three hours from up to 11 as well as allow two-way traffic in the canal, but has not raised the maximum passable tonnage.