Impact of Panama Canal Expansion on Soybean Farmers Illinois Farm Bureau Panama Tour

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Impact of Panama Canal Expansion on Soybean
FarmersIllinois Farm Bureau Panama Tour
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Panama Canal A critical link in the ag logistics
chain
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Panama Canal A critical link in the ag logistics
chain

• Completed in 1914
• 48 miles in length
• Over 14,000 (40 per day) ships handled annually
• 39.75 million metric tons (1.5 billion bushels)
  of U.S. grain transported through the Panama
  Canal in 2010
• 42 of U.S. grain exports transit the Panama
  Canal
• 540 million bushels of soybeans shipped through
  the canal in 2010 1 commodity
• Source Panama Canal Authority

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Panama Canal Soybeans
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Size of Cargo Vessels (smallest to largest)

• Handysize numerically the most common size of
  bulk vessel 15,000-35,000 metric tons deadweight
• Handymax 35,000-60,000 metric tons deadweight
  492-656 feet in length
• Seawaymax the largest size which can transit the
  canal locks of the St. Lawrence Seaway 740 feet
  long by 78 feet wide
• Panamax the largest size which can transit the
  locks of the Panama Canal 65,000-80,000 metric
  tons deadweight 965 feet long by 106 feet wide
  by 190 feet high 2 million bushel capacity
• Suezmax the largest size which can transit the
  Suez Canal since the Suez Canal does not have
  locks, the main factor limiting size is draft
  currently 53 ft. 150,000 metric tons deadweight
• Capesize larger than Panamax and Suezmax
  vessels must transit around the Cape of Good
  Hope and Cape Horn in order to travel between
  oceans above 150,000 metric tons deadweight

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Panama Canal Expansion

• Scheduled completion 2014 Cost 5.2 billion
• Larger ocean vessels 1,200 ft. long (vs. 965
  ft.), 160 ft. wide (vs. 106 ft.), 50 ft. draft
  (vs. 39.5 ft.), 12,600 TEUs (vs. 4,400 TEUs)

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Panama Canal Expansion

• Can U.S. Ports handle the larger ships?
• U.S. port working depths at Mean Low Water (MLW)
• East Coast U.S. Gulf
• Boston 40 ft. Houston 45 ft.
• New York/New Jersey 45 ft. New Orleans 45 ft.
• Norfolk 50 ft.
• Charleston 45 ft. West Coast
• Savannah 42 ft. Los Angeles/Long Beach 50
  ft.
• Miami 42 ft. Seattle/Tacoma 50 ft.
• Source AAPA 2009 Directory
• Can our customers handle the larger ships?

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Panama Canal Expansion

• Once the canal is expanded, will the increased
  throughput benefit containerized shipping or bulk
  shipping?
• 5.6 increase in containers 1 in bulk (Panama
  Canal Authority)
• Gulf ports will see a 12-13 increase in cargo
  shipments (Port of New Orleans)
• Which port region of the U.S. West Coast, East
  Coast, Gulf will likely be able to achieve the
  most balance between imports and exports?

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Thank you

• Soy Transportation Coalition
• 1255 SW Prairie Trail Parkway
• Ankeny, Iowa 50023
• 515-727-0665
• 515-251-8657 (fax)
• www.soytransportation.org
• Mike Steenhoek, Executive Director
• msteenhoek_at_soytransportation.org