"Panama Canal turns 100 as expansion hits snags" by Juan Zamorano | Associated Press August 16, 2014
PANAMA CITY — It was supposed to be a grand celebration of the engineering triumph that forged a nation.
Instead, the 100th anniversary of the Panama Canal’s opening on Friday was marred by doubts about the nation’s ability to harness the full benefits of a multibillion-dollar expansion beset by cost overruns, strikes, and the threat of competition from rival projects.
The latest setback in the canal’s expansion came in May, when about 5,000 laborers walked off the job for two weeks as part of a strike about wages by construction workers nationwide. That followed a two-week stoppage in February in a dispute about $1.6 billion in extra costs between the canal’s administrator and the European contractor building a third new set of locks.
Because of the interruptions and overspending, the original completion date of October has been pushed back by 14 months, and analysts say more delays cannot be ruled out.
The construction of the 48-mile ship canal across the Isthmus of Panama a century ago transformed international trade, greatly reducing travel time between the Atlantic and the Pacific by eliminating the need for ships to go around the tip of South America. The construction claimed the lives of an estimated 30,000 workers, many from diseases such as malaria and yellow fever.
As part of the $5.25 billion expansion project, wider locks with mechanical gates will reduce congestion and be able to accommodate post-Panamex vessels, which are as long as three football fields and have the capacity to carry about 2.5 times the number of containers held by ships currently using the canal.
Canal administrator Jorge Quijano acknowledges he would have liked to finish the expansion in time for Friday’s centennial. ‘‘But we knew from the beginning a project as complex as this wouldn’t necessarily be done’’ on time, he said.
Not everyone is as understanding. Taiwanese President Ma Ying-jeou complained about the delays during a recent visit to Panama, saying they affect his country’s trade with the United States. Two major cargo shippers, Denmark’s Maersk and Taiwan’s Evergreen, have already rerouted part of their operations.
When funding for the expansion was approved by a referendum in 2006, its completion was envisioned as a coming out party for Panama, a chance to showcase the country’s pro-business credentials and role as a linchpin of global commerce.
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Also see: Quick Trip Through the Panama Canal
I'm sure there was a point at the bottom of it.
Oh, right, it's all politics.
