Port Authority of Jamaica to capitalize on Panama Canal expansion

The Port Authority of Jamaica is moving to capitalize on the economic gains to be made from the expansion of the Panama Canal, which is expected to be completed by 2014.

Noel Hylton, President and CEO of the Port Authority, who made the announcement on Tuesday afternoon, said an all-water service through the Canal to the US East Coast will result in a more balanced and reliable transportation network.

Mr. Hylton said the expansion programme will enable 12,000 20ft Equivalent Units or TEU's to traverse the Canal.

He boasted that the Kingston Container Terminal (KCT) is already able to comfortably accommodate up to 10,000 TEU cargo vessels.

He said it is expected that with the completion of the Panama Canal, the Caribbean is set to benefit tremendously.

“Shipping experts are of the view that when the Panama Canal expansion is completed a large portion of that cargo which is now transported over land to the East Coast and Midwest will no longer be shipped to the West Coast ports,”

“As a result the prognosis is that upon completion of the Panama Canal expansion, the Caribbean will likely be one of the greatest beneficiaries as it is expected that there will be a marked increase in the number of transshipment cargo traversing the region,” he said.

Mr. Hylton said the Port Authority has already set up a plan to ensure that the KCT is fully equipped to handle the mega container vessels which include, expanding the Port into Fort Augusta to provide additional berthing of 1,500 metres.

He said the Authority, like the rest of the world, is confident of the benefits of the expansion of the Panama Canal and have already made bookings with hub ports worldwide.

And the Port Authority's President says they are now negotiating contracts with three of the world's largest shipping lines.

“This means that we’re taking a bold decision to sign contracts to provide service which we have not put in place as yet, so it means that between now and 2014, regardless of what happens, we have to put in place those things which I have spoken about which will be close to approximately US$200 million,” Mr. Hylton said.