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No capacity problems on updated Panama Canal.

Europe Intelligence Wire

| October 01, 2004 | COPYRIGHT 2004 Financial Times Ltd. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)Copyright

(From Lloyds List)

Byline: From Jorge L Quijano

Letters To The Editor

SIR, I wish to clarify the erroneous statement made by members of the Transpacific Stabilisation Agreement, as reported in your article 'Congestion set to trigger transpacific rate rise' (Lloyd's List, September 24).

In the piece, the TSA claims that the Panama Canal 'has reached saturation levels' and 'cannot take any more ships'. Nothing could be further from the truth.

The Panama Canal has not reached maximum capacity. Since 1996, the Panama Canal Authority (ACP) has implemented an aggressive permanent modernisation programme aimed at increasing capacity to meet growing demand from our customers.

To date, the ACP has successfully completed several projects to increase capacity, including widening the Gaillard Cut, deepening the navigational channels, acquiring new equipment and machinery, adding state-of-the-art navigation aids and vessel tracking systems, augmenting the tugboat fleet by 41% with more manoeuverable and powerful units and replacing locomotives and their tow tracks among others.

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