Progress in Panama 2009

July 17, 2009 - PRLog -- The bids have been opened for the largest part of the Panama Canal expansion. A consortium of Italian, Spanish, and Panamanian companies named Grupo por el Canal has come in under projections with a bid of $3.1 billion to build the “third lane” locks. These locks will be significantly larger than the current locks which were finished in 1914 and were just wide enough for the largest US warship of the day. The $5.25 billion project is on time and on budget for completion in 2014, the Panama Canal centennial year.

The awarding of the contract for the new, larger locks is based upon a combination of price and a technical score. According to the Panama Canal Authority (ACP) the consortium with the lowest bid also had technical scores when reviewed by ACP. The technical scores are now going to a technical advisory committee before the contract will finally be awarded. The project manager is CH2M Hill of Denver. This firm manages complex, large scale construction projects throughout the world.

Once the final review of technical plans is done the contract will be awarded and construction of the newest, largest, set of locks in the world will begin.

What Does this Mean for Panama?

Panama expects to see two outcomes from this project. First, the influx of skilled workers, engineers, and administrative personnel for lock construction as well as the digging of huge channel to link the Pacific locks to the ocean, will give Panama’s real estate market a boost.

AB Panama Real Estate, a company headquartered and licensed in Panama notes that, “there are many large multi-national companies moving hundreds of families here, as well as the canal expansion, bringing thousands of engineers and managers.” AB Panama’s expectation is that this influx of buyers and renters will have a significant affect on the high end of Panama’s real estate market. Affects will not be limited to the real estate market in Panama as the new locks will need huge amounts of cement and steel and lots of local workers.

The second affect will be the doubling of the Panama Canal’s capacity. Currently very large ships must pass south of Tierra del Fuego or through the Suez Canal. Panama is already gearing up its ports and container shipping facilities for the expected increase in transits and cargo volume. This will be the long term affect of the Panama Canal Expansion. Currently 5 percent of world shipping passes through the Panama Canal and that could well become 10 percent after 2014.

Other major construction projects anticipated in Panama include a subway or metro system. Panama City’s economy has grown rapidly with the two decades of prosperity since the ouster of Manuel Noriega and the number of cars is outstripping the ability of the roads to handle the traffic. Panama’s new president, Ricardo Martinelli, intents to push through a multi year metro construction program which will stimulate Panama’s economy and provide jobs into the next decade and more.

Current and New Panama Canal Lock Comparison
Specification   Current Locks   New Locks
Length   304.8 meters   427 meters
Width   33.53 meters   55 meters

# # #

About AB Panama Real Estate: AB Panama Real Estate is a bilingual realtor headquartered in Panama City, Panama. James Walker writes for AB Panama Real Estate in Panama , City Panama. Jim writes about local news as it relates to Real Estate in Panama. AB Panama Real Estate publishes a weekly newsletter pertaining to events in Panama.