PANAMA CANAL

Growing fear of toll increases

The expansion is costing $2.3bn

STAFF

PANAMA. Just as Panama starts work on the massive construction of the new locks project an article in Logistics Management cites Panama on the transparent way in which the bidding process was achieved.

Sam Talifiero on his Developer’s Blog, draws attention to another article in London’s Daily Telegraph shares a growing concern among ship owners about the increase in fees the canal is implementing.

Coming alongside the dismal news of the massive shrinkage of the container industry, those are bug concerns for Panama

Ship owners acknowledge the fact that some one has to pay for the expansion, but it comes at a time when shipping volume is way down along with associated shipping fees.

They say they are looking at every other alternative in shipping routes.

Anxious not to lose traffic to the Suez Canal and US railways that transport containers coast to coast, the Panama Canal Authority (ACP) is borrowing $2.3billion to fund the project.

In a further attempt to drum up capital, toll charges on seven of the ten types of vessel that pass along the canal have risen between 6.5 and 14 percent since last May, says the Telegraph while charges based on displacement tons have increased 9 per cent.

Edmund Brookes of the British Chamber of Shipping raised fears that toll increases could deter British companies from the canal.

“We welcome the fact that British companies will be able to take larger containers through the canal, but our concern is that this has to be funded somehow,” he said.

“The result is that canal tolls have gone up and there have been squeals about those increases. We want reasonable tolls to make it worthwhile to use the canal, otherwise people may find alternative routes,” the Englishman said.

Publicidad