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Panama Canal Expansion

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Texas and other Gulf states may not be ready when their ship comes in.

A massive expansion of the Panama Canal is on track to be completed in about two years, making it possible for huge ships often carrying goods from Asia to bypass their usual stops in the Los Angeles/Long Beach area and instead sail directly to Texas and other states along the Gulf of Mexico, as well as the East Coast. From there, the freight could be put on trains and trucks and shipped across the country -- potentially generating billions of dollars and creating thousands of jobs not only on the coasts but also in major inland hubs such as Dallas-Fort Worth.

But Texas and other Gulf states are woefully unprepared to handle the goods brought to the area on enormous ships …show more content…

"With these big supercontainers, no one has really looked down the future and said, 'Are we ready for this?' We have a great opportunity: With where Texas is located and with inland ports, we can actually get a lot of freight out of Houston and up the major highways of Interstate 35 and 45.

"It's going to be a lot of competition in these states to increase the capacity."

But not everyone agrees that the canal expansion will cause a spike in Gulf Coast shipments.

"It's been our position for quite some time that the impact of the new Panama Canal lock will be relatively minimal," said John Lanigan, BNSF executive vice president and chief marketing officer. BNSF specializes in hauling shipments from West Coast seaports to inland destinations.

A shipment going through the canal and arriving at Houston could take 10 days to two weeks longer to reach its destination than a shipment arriving at a West Coast seaport with a rail connection, he said.

"It's generally based on where it's going to be consumed and how long it's going to take to get there," Lanigan …show more content…

The canal, which the U.S. handed over to Panama in 1999, can handle ships up to 106 feet wide, 965 feet long and 39 feet deep but after expansion will be able to handle ships up to 161 feet wide, 1,200 feet long and 49 feet deep. Some of those larger ships can carry nearly triple the cargo of the ships going through the canal today.

But will any of those boats stop in the Gulf, or will they simply go to the East Coast or elsewhere in the Atlantic Ocean? The U.S. lacks deep-water ports on its southern shores, with limited options between Los Angeles and Norfolk, Va., officials said.

In many instances, those ports can use federal funds or raise their own dollars through debt to make the necessary improvements.

As for highways and rail lines, there are scant resources for new projects. But existing dollars, including funding from state and federal motor fuels taxes, could be steered toward projects that benefit freight movement.

Texas response

The Texas Transportation Department, for example, is creating a canal stakeholder working group to give input in the state's planning for roads, rail and other parts of the grid. The working group includes BNSF, the Texas Farm Bureau, Texas Motor Transportation Association and Texas Association of

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