QUICK TAKES

Panama Canal Expansion Moves Full Speed Ahead

By Juan Carlos Martinez

The fourth and last dry excavation project in the Canal Expansion was just bid on and the consortium made up by FCC from Spain, ICA from Mexico and Meco from Costa Rica has offered the lowest price for the fourth excavation project.  

The project is the digging of an access channel from the Pacific to the new set of locks to be built in the Canal Expansion which will join the new post-panamax locks with Gaillard Cut.  In volume this contract is the second largest in terms of cost in the Canal Expansion project.  Other companies participating were the Panamanian consortium ISC, the Belgian consortium Jan de Nul and the Brazilian company Norberto Odebrecht.  The ACP (Panama Canal Authority) had estimated USD400 million for this project and would award the bid based on the lowest price. 

The biggest project for the Canal Expansion was awarded by the ACP in June to Spanish led consortium, Sacyr Vallehermoso.   This latest contract was awarded to Spanish company FCC in association with other companies.  They will be required to move approximately 27 million cubic meters of unqualified material, build a 2.8 kilometer stone dam as well as various access and drainage channels. 

Overall the Canal Expansion will contemplate the building of two new sets of locks: one on the Pacific side and one on the Atlantic side.  Each set of locks will have three levels and will include tubs for reusing the displaced water.  Additionally the project will include the creation of access channels to the new locks, the widening and deepening of the existing shipping channels as well as the raising of the maximum level of performance of Gatun lake. 

Having awarded the last contract is a big step in pushing the Canal Expansion forward and 2010 is expected to be when the actual work starts for this mega-project.  This project as well as several other major infrastructure projects are expected to fuel the economy for the next few years.  Interesting times are up ahead for this tiny country.

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