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U.S. infrastructure lags behind Panama Canal expansion

The executive director of the Soy Transportation Coalition says the official opening of the Panama Canal expansion will benefit U.S. farmers, but it won’t make up for deteriorating U.S. shipping infrastructure.

Mike Steenhoek watched the first ship pass through the improved locks on Sunday and tells Brownfield from Panama that the improvement will allow more U.S. goods through the canal.

“But it won’t come to fruition if we’re not making corresponding investments in our infrastructure, our ports, our inland waterways,” Steenhoek told Brownfield Ag News from Panama City Monday.  “If we don’t do that then the expanded canal will really be a missed opportunity for our industry.”

Thousands of people were on hand to watch the inaugural passage on Sunday.  The channel’s capacity is even more than the first ship to pass through, according to Steenhoek.

“This was a 9,000-container vessel,” said Steenhoek.  “They’ll be able to handle up to 13,000 containers, but this was certainly a very large vessel, larger by far than what the current canal is able to accommodate.”

The seven-year project is the first major expansion for the 101 year old channel.  So far, it’s cost more than $5 billion, and Steenhoek says eventual expansion costs will exceed $6 billion.

AUDIO: Mike Steenhoek (14 min. MP3)