Panama Canal upgrade expected to cost US ports billions.

(From Lloyds List)

Byline: Tampa chief says about 40% of post-panamaxes would be unable to enter east coast ports without improvements, writes Keith Wallis in Hong Kong

'BILLIONS and billions of dollars' will be needed to upgrade US east and Gulf coast ports to handle ultra large containerships using the widened Panama Canal when the third set of locks is commissioned around 2015.

Sounding the warning Tampa Port Authority director and chief executive Richard Wainio said about 40% of post-panamax containerships would be unable to enter ports in the eastern half of the country without improvements.

Speaking at the container summit organised by Lloyd's List's sister company IBC Asia, Mr Wainio estimated that up to $7bn would need to be spent on dredging alone to increase the depth of approach channels and turning basins. Further cash would be required for terminal, road and rail improvements.

'Several tens of billions of dollars would be needed,' he said, adding that in Florida $3bn-$5bn would be spent on infrastructure improvements over the next five to 10 years.

At present about 75% of the cost of dredging work is financed by the federal government, but Mr Wainio believed the sheer volume and cost of the work would mean that the financial burden would fall increasingly on state governments.