Friday, July 14, 2006

Panama Canal


Panama canal expansion is taking long time to complete, Port of California/Los angles might be congested again, if you were living in Mexico, didn't you think about a mexican solution?
Yes they did! narrowest point in Mexico(between Atlantic and pacific ocean) is about 200 km. so you can think about two ports on either side connected by a small land bridge could serve the merging traffic flow.
so they can both attract considerable portion of canal traffic plus serving southern US, BUT its not working! why?
As per Canal authority studies; a container moving via land bridge would be handled six times before it is loaded on the other side, incurring a cost of $ 435 per TEU compared with $ 49 cost incurred passing through channel!
Do you still prefer land bridge even if canal is congested?(of course level of congestion is not as high as to convince you to pay about 400 more, but might it be in future?)

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