Talks between the striking workers and the consortium Grupo Unidos por el Canal (GUPC) continued today with the mediation of Labor Minister Alma Cortez in an attempt to resolve the strike, which started on Monday, 16 January 2012. The Trade Union of Construction Workers and Similar (SUNTRACS), which supports the striking workers, called for a raise to $9.00 per hour for skilled workers and $5.40 per hour for assistants. This Saturday they lowered their proposal to $8.00 per hour for skilled workers and $5.23 for assistants. The government proposed an increase of 12.5% for skilled workers and 15% for assistants. Their initial proposal was for a 5% increase. But things have gotten complicated. Labor Minister Cortez warned that if an agreement is not reached today, the government will withdraw from the negotiating table. "Right now we're at an impasse, the workers brought their indications, the instructions from their members, and they have remained at that point," she said. Cortes said she asked them not to do that, because they have come a long way. At approximately 12:42 they called for a half hour break. This Sunday (tomorrow) Cortés goes on a trip to Washington and President Ricardo Martinelli departs on Monday for Davos, Switzerland. (Estrella)

Editor's Comment: I don't care what the Labor Minister had planned in Washington DC for next week, but no matter what it is, the strike that has effectively shut down the project to expand the Panama Canal is the most important thing she could possibly be doing with her time. Her handling of this strike will mark the administration, either for the good or the bad. If she hops on a plane to attend some gaggle in DC - without having first resolved this strike - then that's a massive "phale" on her scorecard. Think about it. Panama. Panama Canal. Panama Canal Expansion Project. $5.25 billion (with a "B") dollars. And she wants to go screw around in DC? What could be more important? Explain it to me. Is the United Nations having a regional symposium on the impact of the development of cellulite in the butt cheeks of office workers who spend too much time at a computer desk or something? Yeah, I'm sure her attendance there is critical. The workers have just said they would remain on strike and wait for her to get back. Great. Good call. (Fucking unbelievable...)   

Negotiations between the consortium consorcio Grupo Unidos por el Canal (GUPC) and the construction workers who have been on strike since Monday who are building the third set of locks as part of the project to expand the Panama Canal continued their discussions and negotiations on Saturday, 21 January 2012, at 11:00 am at the headquarters of the Ministry of Labor and Workforce Development in Plaza Edison on Tumba Muerto, mediated by Labor Minister Alma Cortez. Juan Arce, a spokesman for the strikers, told La Prensa that during the previous days of negotiations the workers have been lowering the percentage of the wage increase they are demanding because they have noticed the government's willingness to negotiate. The government made a proposal for a 5% increase, which was countered by the workers with a demand for $8.25 per hour for skilled laborers and $5.15 per hour for assistants, that according to the spokesman "is a salary that is commensurate with reality." On the other hand, Arce said yesterday, Friday, after having spent more than eight hours in negotiations, they failed to reach an agreement, so therefore the workers will remain on strike until they receive a definitive answer. "The important thing in these negotiations is to reach a favorable agreement for all," he said. The striking workers continue to demand a wage increase, the payment of overtime worked, better security and safety on the job site, improved transportation for the workers, and other requests. (Prensa)   

The strike by the workers of the Consortium Unidos por el Canal who are building the new third set of locks as part of the project to expand the Panama Canal enters its fifth day. The strike is costing the company about $2 million dollars per day. Yesterday, representatives for the striking workers held a marathon meeting with the company, with mediation by the Ministry of Labor and Workforce Development and with the presence of a member of the Panama Canal Authority as an observer, but no consensus was reached. The Minister of Labor, Alma Cortez, said the losses must be borne by the Panama Canal Authority (ACP), but this position has to be supported by legal authorities. There were ACP officials present at the talks, but they did not participate.

Little progress: In the two days of talks held by the parties they have only discussed three of the 27 items on the list of demands. The points discussed and refer to a demand for a wage increase, the installation of a "micro-commission" related to the disputes between labor and management, and the creation of a regulation to disclose the mechanism for the payment of overtime to the workers. Jorge Federico Lee, a lawyer for the company GUPC, said the pay raise issue should be taken as a priority item of analysis. He also said the 24 remaining points on the list of demands put forward by the workers will be taken to the committee of the Panamanian Chamber of Construction (CAPAC) and SUNTRACS.

Sanctions: According to Minister Cortes, due to the errors committed by GUPC, such as the payments for working on Sundays and for overtime, among others, the company will be sanctioned with fines from $500 to $1,000 for each worker affected.

Saul Mendez, Secretary of the Sole Union of Construction and Allied Workers (SUNTRACS), said the strike will continue. The construction workers union approved protests and demonstrations in other provinces around the country in support of the strike. (Siglo)

Editor's Comment: The longer this strike goes on, the more attention it's going to be getting from the international community. The wages to be paid to the construction workers are established in the contract signed between the GUPC and the government. The men who are working on this project are already getting paid more than most other construction workers in the country. GUPC has a payroll of about 6,000 workers. By law they can have as many as 15% foreigners - or 900 foreign workers - working on this project. Right now they only have about 225 or so foreigners on the books, total. I bet they will start bringing in more foreign workers ASAP - from Honduras - as a stop-gap measure.   

Labor Minister Alma Cortés warned today she would sanction the Grupo Unidos por el Canal and would not accept GUPC's excuse that their software was wrong because she will not set a bad precedent. "What I did tell the company was that we are not going to permit their excuse that the software was wrong, because if I allow that thesis, then I will have to allow it for I don't know how many other companies in the country, and that would set a bad precedent," said Cortez. So far, the consortium led by the Spanish company Sacyr and also comprised of Italy's Impregilo, Belgium's Jan de Nul and the Panamanian company CUSA, have excused themselves, saying that "we had implemented a new payroll system that despite three successful tests conducted together with the supplier, there was an error in the amount paid to workers for the first half of January."

Labor Minister Cortes said she could not understand why the striking construction workers have not make an official request through the correct legal channels so that "we can take over the administration (of the company) and verify their accounts." So far, the MITRADEL authorities have repeated they will sanction the company with fines as established in the Penal Code for breach of contract with the workers, but they had not (yet) raised the possibility of taking over the administration of the company.

The Panama Canal Authority appealed to the parties to reach an agreement, but said other parts of the project to expand the Panama Canal are ongoing and that the waterway is providing normal service, because the strikers did not work for the Panama Canal Authority. (TVN)

Editor's Comment: Holy shit! The Ministry of Labor might take over the administration of GUPC? And if you look at the video of the statements made by the Labor Minister, she is practically "coaching" the workers to make this request. She said it like "I don't know why that haven't asked us to do this..." meaning, if you ask, we will do it. Wow. The statements being made by the Panama Canal Authority are clearly an effort to assuage the worries of the international shipping community. This strike is now in its fourth day, and all of the international news wires are starting to pick it up. The Panama Canal Authorities message - that the Panama Canal is operating normally, that other parts of the expansion are continuing normally, and that the striking workers don't work for the Panama Canal - are aimed at them. But the part of the project affected by the strike is the critically important construction of the third set of locks on both ends of the new canal. That part of the project is already behind schedule, and it's slipping further and further with each passing day. And in her statements and actions Labor Minister Cortés has repeatedly expressed her support for the position of the workers. Why? Maybe Martinelli wants to take over the administration of this consortium in order to get a better look at their inner workings? Maybe he's reading Panama Guide and he knows they are falling way behind schedule? Maybe he knows that if he was running the expansion program himself it would be more efficient? Maybe there's nothing else left to take over? It's probably a combination of all of those things. Stand by, this one could get really, really interesting.   

Three party talks continue this morning between striking construction workers, the company working to expand the Panama Canal, and the Ministry of Labor. The talks started at 10:00 am in the Ministry of Labor offices in Plaza Edison on Tumba Muerto in Panama City, and they seek to find a resolution to this labor conflict. Today the strike enters its fourth day. Yesterday, Wednesday, 18 January 2012, the striking workers met with representatives from the consortium Grupo Unidos por el Canal, mediated by the Minister of Labor and Workforce Development, Alma Cortez, but they failed to reach an agreement.

Genaro Lopez, the leader of the Sole Union of Construction and Allied Workers (SUNTRACS) told La Prensa the negotiations are locked on the issue of a wage increase. "The strike is continue if there is no agreement," said Lopez. He said SUNTRACS will be represented by Saúl Méndez and David Niño, and the meeting will also be attended by delegates selected by the groups of striking workers from both the Atlantic and Pacific sectors.

Demands: Lopez said the company has not wanted to agree to a wage increase for the workers. With regards to the demands related to transportation, safety and security measures, and the payment of overtime, he said eventually these issues will be discussed, but for now they will focus on the wage increase. Lopez insisted that the government has to make a decision on this issue, and what can be done via a decree in order to reform Executive Order Number 4 of March 1980, which regulates worker's salaries. The SUNTRACS labor union leaders and the construction workers themselves are demanding that their wages be the same as those who work for the Panama Canal Authority. (Prensa)

Editor's Comment: Yesterday in the midst of this strike a story was released saying the government of Panama is planning to allow construction workers from Honduras come to Panama in order to work on the Panama Canal expansion project. According to that article, and unskilled laborer would be paid about $1,000 per month, or about twice what is being paid to the Panamanian workers. Obviously the Panamanian workers want more money. Let's see how this works out. Every day lost during the dry season hurts, a lot. This project is already way behind schedule, and there's no way it gets delivered by 15 August 2014 - none.    

The leader of the National Union of Workers and Similar (SUNTRACS), Genaro Lopez, was met with stones and insults hurled by more than 1,000 striking construction workers who have paralyzed the project to expand the Panama Canal in the sector of Gatun, on the Atlantic side. Lopez arrived at about 9:00 am yesterday morning to try to talk to the workers from the company Grupo Unidos por el Canal (GUPC), who have been on strike since Monday. They booed him and called him a traitor because they say he has not supported the working class as he should. At the moment when the SUNTRACS leader was talking to the press, one worked flipped off his helmet and another threw a stone, causing a confrontation among some of the leaders of this union in Colon and the GUPC workers, so Lopez decided to retreat to his car, and at that moment the workers threw more stones. His pick-up took some shots. (Siglo)

Editor's Comment: SUNTRACS collects 2% of every member's paycheck as dues, every month. If the average construction worker makes about $450 per month, that's $9.00 dollars. There are about 6,000 workers on strike. Multiply the $9 bucks a month times 6,000 workers, and that's $54,000 dollars SUNTRACS is received from these guys, every month. Over the course of a year that comes to a total of $648,000 dollars. This project started last year and the construction will run for at last five years, bringing the total in labor union dues to more than $3.2 million dollars. Yeah, it's about time that someone told Lopez to shove off.    

The work to expand the Panama Canal in the sector of Cocoli has been paralyzed by striking construction workers who are working on the project, who demand better wages and benefits. Panama Canal Administrator Alberto Aleman Zubieta German called what is happening an "unfortunate situation," and he called for an atmosphere of tranquility to discuss or negotiate the issues. "There is no reason to stop the work, we as Panamanians should feel responsible for the construction that is a project for the world," said Zubieta while speaking to RPC news. He said an internal "fight" between the union and the workers is compounding the issue. The Minister of Labor and Workforce Development, Alma Cortez, visited on Tuesday, 18 January 2012, the area where the work is being done to expand the Panama Canal, in Cocolí, to discuss and reach agreement with the workers who also were in that sector. "You are builders, people who who build and not destroy, we will support you," said the minister. A meeting was scheduled at the regional headquarters of the MITRADEL in Balboa with representatives of the ACP, the company Grupo Unidos por el Canal, and the workers, to find a solution to the problem. (Panama America)   

The striking construction workers from the company Grupo Unidos por el Canal designated eleven representatives to negotiate with the company under the mediation of Labor Minister Alma Cortez. Minister Cortez went to Cocolí where she spoke with the striking workers to tell them they all should be treated equally and they should not be discriminated against in terms of wages. "You are the builders of this mega-project" she said, as she received the applause from the workers who are now entering their third day of the strike. The workers are demanding more buses for transportation, the reinstatement of workers who were dismissed for supposedly no reason, and other economic demands. (Critica)

   

PANAMA CITY (AP) – About 6,000 workers have gone on strike for higher wages at a $5.25 billion project to widen the Panama Canal to accommodate larger ships. Workers representative Rolando Gonzalez says the employees want the base wage raised from $2.90 per hour to $4.90, and the wage for the most skilled workers raised from $3.52 per hour to $7.10. Employees of the multinational construction consortium Grupo Unidos por el Canal claim the firm has failed to pay them some overtime and vacation pay. They are also complaining about deficient workplace safety. Gonzalez said Tuesday the strike will continue indefinitely. The company acknowledged in a press statement that some data-entry errors apparently had been committed when the company recently switched payroll systems.   

Work on the Panama Canal expansion ground to a halt yesterday after a bitter labor dispute resulted in the walkout of thousands of workers. According to the workers union, the largest in the country, its members left their posts yesterday in demand of better working conditions and the payment of back wages. “Work is completely paralyzed, on the Pacific and the Atlantic side,” said Saul Mendez, head of the National Union of Workers in Construction and Allied Industries. The Panama Canal, responsible for five percent of the world’s yearly trade, is currently undergoing a US$5.25 billion expansion to allow the world’s largest vessels to safely navigate the 102-mile waterway. According to Mendez, union members are also demanding a rise in the basic minimum wage of $2.90 an hour given to the majority of workers on site, and a stop to the mistreatment of workers by foreign foreman overseeing the project.

Monday’s labor stoppage was followed by a day of protests including the burning of tires, according to MSN News. Construction contractor the United Group has strongly denied the allegations, stating that it “fully complies with the pay and working conditions and it is very respectful of Panamanian regulations.” However, the United Group has admitted that the distribution of wages had been miscalculated by a local contractor due to what it calls “errors in the incorporation of data”. The United Group added that they are currently working on rectifying the situation.

The Panama Canal has generated a total of $6.6 billion for the Central American country since the control of the vital waterway was handed over by the United States over a decade ago. The Panama Canal expansion is scheduled to be completed by 2014. (porttechnology.org)   

The contractor Grupo Unidos por el Canal, S.A. (GUPCSA), responsible for building the new third set of locks as part of the project to expand the Panama Canal, informs the general public that due to the work of the project: Design and Construction of Third Set of Locks - Pacific Sector - they will be conducting the transportation of the steel plates for the installation of the new lock gates from the Port of Balboa to the project area in Cocolí, from Thursday, 12 January until Monday, 23 January 2012. For this activity they will be using the route: Leaving the Port of Balboa - Northern Corridor - Centennial Bridge - Inter American Highway - Cocolí. It was reported for this activity they have received the proper permits from the Ground Transit and Transportation Authority, to move cargo from Monday to Sunday from 6:00 am to 6:00 pm. Grupo Unidos por el Canal, S.A. (GUPCSA) apologizes for any inconvenience caused by this movement of cargo. (Estrella)

Editor's Comment: Apparently these things are too big and heavy to go over the Bridge of the Americas, so they have to take the long way around over the Centennial Bridge.   

By DON WINNER for Panama-Guide.com - Very nice. Thanks Jack. These photos were taken by Jack B. Hood, who went on a helicopter tour over the Panama Canal on 30 December 2011. When I started watching the YouTube video the first thing I thought was "I wish you had a video camera" because the video is really a collection of still photos. Very nice still photos mind you, that document the progress being made on the project to expand the Panama Canal to date, but lately I've been getting more and more into video. And then at the end of the video when I saw the credits, I realized that the photographer also wrote and sang the song "Digging The Panama Canal" in 1977, and he's also an accomplished banjo player. So you get photos, a tour, and music all in one. Thanks again for sharing this with me, Jack.

Copyright 2012 by Don Winner for Panama-Guide.com. Go ahead and use whatever you like as long as you credit the source. Salud.   

By Ronald D. White, Los Angeles Times - A major expansion of the Panama Canal is raising alarms in Southern California, where business, labor and public officials are warning that the project threatens to dent the region's role in international trade.

The $5.25-billion project will make the canal wider and deeper, allowing huge freighters from Asia to bypass West Coast ports and head straight to terminals on the Gulf Coast and East Coast. The neighboring ports of Los Angeles and Long Beach, which together handle about 40% of the nation's imported Asian goods, could lose as much as a quarter of their cargo business by some estimates after the Panama expansion is completed in 2014.

The ports, neighboring towns and railroads have launched improvement projects aimed at keeping them competitive. One proposed project, for instance, would speed the loading of cargo onto trains; others eliminate bottlenecks or increase capacity so that the ports remain alluring to importers. But a coalition of business, labor and government contends that these efforts are jeopardized by opposition from some residents, environmental groups and others.

Two members of the Long Beach City Council, for example, sought to block the construction of a new railroad freight complex near the ports, saying it would increase pollution and force small businesses to relocate. (more)

   Click Here To Read The Full Article (1,071 words)

The project to expand the Panama Canal has advanced by 32%, said on Wednesday, December 21, Jorge L. Quijano, the Executive Vice President of Engineering and Management of the Panama Canal Authority (ACP). Quijano said as of 30 November 2011 a total of $4.257 billion dollars in contracts had been awarded, which is within the budget of $5.25 billion dollars approved to conduct the canal expansion program. PROGRESS - In a talk with reporters, Quijano explained the progress of the projects being made in the canal expansion program.

The design and construction of the new third set of locks has advanced by 16%. The Pacific access channel in four phases has progressed by 65%, and the dredging of the entrance to the Pacific by 84%. Meanwhile, the deepening and widening of Gatun Lake and Gaillard Cut has advanced by 62%, and the dredging in the Atlantic access channel has advanced by 97%. (See Comments)

For the ACP an expanded Panama Canal will further improve the position of the country in world trade, and it will also give the entity the ability to provide global guidance on project management. (Prensa)

Editor's Comment: There you go. There's official confirmation of the articles I published about the expansion project at the start of this month. Remember these articles? Panama Canal Expansion - "A Train Wreck Waiting To Happen" published on 1 December 2011 and Expansion of Panama Canal Now "At Least One Year Behind Schedule" (Cover-up) published on 6 December 2011. I was contacted by several individuals in late November and early December 2011 who expressed their concerns over the lack of progress being made on the Panama Canal expansion project, specifically with regards to the construction of the third set of locks. They explained to me how the project was falling behind schedule, and how every day they were actually getting less work done than was programmed. As a result they were falling further and further behind schedule with each passing day. In those articles I described how the construction of the third set of locks was supposed to be 28% done by now, and my inside sources told me only 17% had been completed. And now in this official press conference by the ACP they announced officially that only 16% of the work on the third set of locks has been completed. Of course the local journalists who covered this press conference simply lapped up the numbers as they were presented, and none of them had the knowledge or background information needed to be able to ask Quijano about the allegations of delays on the third set of locks construction. Anyway, as far as I'm concerned, this is official confirmation of my earlier reporting. And sure, overall the project might be 32% done, but the key element (the third set of locks) is way, way behind schedule and falling further behind every day.   

By DON WINNER for Panama-Guide.com - On Thursday, 1 December 2011 I published an article entitled Panama Canal Expansion - "A Train Wreck Waiting To Happen". The basic premise of that article is that the project to expand the Panama Canal is way behind schedule primarily due to mismanagement, that they are falling further and further behind with each passing day, and this simple fact is being covered up by the Panama Canal Administration. No one in the Panamanian press is talking about this issue. I'm the only one reporting on it. After the publication of that article I was approached by others with additional inside information who basically validated and confirmed what I have been hearing from other sources. They gave me more numbers and more data which was different and independent of what I have already received, but the new data and numbers confirmed, supported, and validated what I have already been told.

Bottom Line Up Front: The project to expand the Panama Canal is currently, today, right now - as of 6 December 2011 - already about one year behind schedule. Recently there was a big meeting convened of all of the primary project managers from all of the private companies involved in the project where they discussed these problems and concerns in an effort to rectify some of the key issues that are holding back progress. At this point they are supposed to have completed 28% of the total project, while in fact only 17% has been done. At this rate there is "no way in hell" the project will be ready for the target date of 15 August 2014 - the 100 year anniversary of the opening of the original Panama Canal. I asked one expert with access to insider information when the project will actually be completed and delivered, based on the rate of work being done and the actual progress being made on the ground, and he said - "I don't know, no one really does, but the one thing everyone is in agreement on is that it won't be ready by the projected date of 15 August 2014, that's for sure." As described in the earlier article, with each passing day they are falling further and further behind.

Not Being Reported - Anywhere Else: Yup. At this point I'm the lone voice in the wilderness. The public relations office of the Panama Canal Authority has not issued a single statement or report indicating that the work on the project is falling behind schedule. The Panamanian news media and press has not written or published a single article to that effect. The Panama Canal Authority issues a statement, and they repeat it, that's it. When foreign or international reporters come down here to cover the expansion of the Panama Canal, they are given access, shown the work that is being done (which is, in fact, considerable) and the progress that has been made. But so far no one is talking about the ever-slipping completion date, delays, missed targets, and incorrect projections. I suspect the administration of Ricardo Martinelli might be hoping to sit on it as long as possible, to just let the project advance and to make as much headway as possible - but the next general election will be held in May 2014. Sooner or later they are going to have to deal with this slipping of the projected completion date and delays, but so far - silence.

Copyright 2011 by Don Winner for Panama-Guide.com. Go ahead and use whatever you like as long as you credit the source. Salud.    

By DON WINNER for Panama-Guide.com - I was contacted today by some insiders who have intimate knowledge of the work being done to expand the Panama Canal. These people have requested I protect their identities over fear of being fired if it is discovered they were talking to the press. They tell me the company that won the largest part of the contract to build the expansion project - the consortium "Grupo Unidos Por El Canal (GUPC) - seriously underbid the project in order to win the contract. The largest Panamanian partner in that consortium - CUSA - has long standing and direct ties to Alberto Alemán Zubieta, the CEO of the Panama Canal Authority. Considering Alemán's ties to CUSA it was really no surprise when GUPC - comprised of the Spanish company Sacyr Vallehermoso, the Italian company Impregilo, the Belgian company Jan De Nul, and the Panamanian company Urban Construction, Inc. (CUSA) - won the contract. However now there are reports of very serious delays in construction, cost overruns, and idle equipment.

Construction Delays: I have to be very careful in how I present these numbers, because my sources are concerned that someone might be able to figure out where I got them. Suffice it to say I was provided with some very specific numbers and data regarding construction schedules and projects, and the amount of work that was supposed to have been done by now, compared to what has actually been done and the speed of the advance of the work that has actually occurred. In order to mask the specifics I'm going to melt it down as a percentage - only 28% of the work was completed in recent months, compared to what was scheduled and projected. One of my sources told me "at this rate, for every day that goes by, they are falling another half day behind schedule." It's pretty simple. They have a programmed rate of work that needs to get done in order to deliver the project on time. However in fact they are only progressing at a rate of 28% compared to that schedule. So, while some work is in fact getting completed, it's not happening fast enough to meet their own projected time lines and schedules.

Cost Overruns and Idle Equipment: They also described how in some cases there is equipment sitting around and not being used because of mismanagement - there's no money to pay for the fuel. They described the management of the project as a "total goat rope, complete cluster fuck..." pulling no punches with regards to how things are actually going, on the ground, at the work site. My sources described how in many cases managers simply decided to dive into an element of the work without providing the proper education or training to the workers who actually have to go there to do it. and in many cases things are being done poorly (best case) or not to specifications (worst case). There is a potential for some kind of catastrophic failure at some point down the line. And it all comes back to one thing - mismanagement.

Corruption? I mentioned the current scandal involving the three Italian companies subsidiaries of Finmeccanica, compared against the fact Alemán has ties to CUSA and one of the companies in the GUPC consortium - Impregilo - is also an Italian company, the question was obvious. Is there any chance the same sorts of kickbacks occurred on this contract. They said "when this train wreck occurs - and it's going to happen, no doubt - it will make the Finmeccanica scandal look like kids playing in a sandbox."

Not The First Rumblings: Awhile ago I was contacted by another source who made very similar allegations. However I didn't really know that guy, nor did I have any way of validating what he was telling me. And in addition it was also much earlier in the process. Now the work is being done and it's possible to watch and see and count and know - they are falling way (way) behind projected schedules. And no one in the Panamanian media is talking about his. No body. In this case my sources are much better, trusted, and confirmed. They have no political reasons whatsoever to try to toss a brick under the wheels or anything like that. They have a genuine concerns over the way the project is being executed, the manner in which the work is being done in terms of quality, and they know without a doubt there is no way in hell the project will be completed without major cost overruns and delays. It's just a matter of time before this ticking time bomb goes off. And remember, you heard about it here first, when it all eventually goes down the crapper. The "big dig" comes to Panama. Wunderful.

Copyright 2011 by Don Winner for Panama-Guide.com. Go ahead and use whatever you like as long as you credit the source. Salud.   

#Panama - Amid applause, in an act of protocol act by ships of the ACP, the water from Gatun Lake begins to flood the new phase of inter-oceanic canal, which will be used in the future by Post Panamax ships. At about 9:30 am on Wednesday, October 18, president Ricardo Martinelli opened the valve that will allow for the slow flooding of the first part of the dry excavation work done as part of the construction of the third set of locks, one of the major projects of the Panama Canal expansion. Martinelli said during the ceremony that the project to expand the Panama Canal, together with the Free Trade Agreement with the United States, will provide many benefits to the country. He added he would propose to the National Assembly the creation of a sovereign fund created from the tolls paid by ships passing the Panama Canal, to be used to benefit the people and improve their quality of life.

Progress of The Expansion Program: The project to expand the Panama Canal is 33% completed, and expected to be ready by 2014, the year the waterway will be celebrating 100 years of operation. This part of the project, whose cost of design, contracting and administration, was $36.6 million dollars, included the excavation of 8.2 million cubic meters of material, cleaning 190 acres of former shooting ranges, and the leveling of Paradise Hill from 46 meters to 27.5 meters above sea level. During the nearly three years of implementation, this project was completed in the expected time and cost and in compliance with stringent environmental, safety, hygiene and quality requirements, according to information from the ACP. To date three of the four phases of dry excavation have been completed, of the 6.1 km long channel to be used by the Post Panamax vessels once the expansion program is completed. (Estrella)

   

#Panama - The Panama Canal Authority (ACP) reported on Tuesday, October 11, the culmination of the third phase of dry excavation of the Pacific access channel, as part of the expansion program of the waterway. This channel will join the third set of locks to the Gaillard Cut and Gatun Lake, according to the plan. This project had a cost of design, contracting, and administration of $36.6 million dollars. It included the excavation of 8.2 million cubic meters of material, the cleaning of 190 hectares of old military firing ranges, and the leveling of Paradise Hill, from 46 meters to 27.5 meters above sea level, the ACP said in a statement. To date the ACP has completed three of the four phases of dry excavation of 6.1 kilometer long channel, that will be used by post-Panamax vessels once the Panama Canal Expansion program is completed. (Prensa)   

(AP) PETERSBURG, Va. — A Petersburg steel mill is playing a role in major upgrades to the Panama Canal. Steel sheet piling produced by Gerdau Ameristeel's mills in Petersburg and Midlothian, Texas, is being used in the expansion of the one of the world's most vital shipping paths. The $5.25 billion project will double the capacity of the canal, allowing more ships and larger ships to traverse it. "It is one of those projects that doesn't come along too often, to be able to participate in the expansion of such a notable feature on the globe," said David Maedgen, manager of piling sales at Gerdau Ameristeel. "There is so much international traffic that goes through that canal." The Richmond-Times Dispatch reports that the Petersburg mill produced 1,200 tons of sheet piling the company manufactured for the Panama Canal expansion. Steel sheet piling is a manufactured construction product with connections that interlock to form a continuous wall. The materials will be used for the excavation of the canal's Pacific access channel and the construction of the Borinquen Dam, a key part of the expansion. The process of moving the steel from the Virginia and Texas facilities to the site in Panama involved 161 rail cars, four oceangoing vessels and 880 truckloads. The Petersburg mill has 415 employees and the capacity to produce 1 million tons of steel per year.

   

By Ben Sills (Bloomberg) Sacyr Vallehermosa SA may earn $30.9 million a year over the five-year contract for expanding the Panama Canal, Cinco Dias reported, citing people close to the Panamanian government without naming them. The project, in which Sacyr owns a 48 percent stake, may earn $322 million before interest, tax, depreciation and amortization over the period, giving it a 10 percent profit margin, the newspaper said. The company is assuming it will have a margin of at least 6 percent, the newspaper said, citing people in the industry. It said that Sacyr declined to comment.   

The project to expand the Panama Canal has advanced by some 20%, and contracts worth a total of more than $4 billion dollars, of the estimated total of $5.25 billion, have been awarded according to the Panama Canal Authority (ACP). The ACP administrator Alberto Zubieta German, introduced the financial report to the Commission on Public Infrastructure and Canal Affairs of the National Assembly. The modernization process includes the widening and deepening of the access channels ships use to enter the Panama Canal from both the Atlantic and Pacific oceans, as well as the deepening of the 13 kilometers of the Gaillard Cut that is considered to be the most narrow part of the waterway. The project also includes the construction of a new interconnection channel to access the new locks from the Pacific side with an approximate length of 6.1 kilometers, and another new access on the Atlantic side as well.

The largest segment of this multi-billion dollar mega project is the construction of two new locks, which will be located at the entrance to both Pacific and Atlantic, to allow for the passage of the giant PostPanamax ships. The corporation responsible for building these locks is Grupo Unidos por el Canal (GUPC), which is led by the Spanish company Sacyr Vallehermoso and is accompanied by Italy's Impregilo, the Panamanian company Constructora Urbana, and Belgium's Jan de Nul. This business group was awarded the work for $3.118 billion dollars and due to the magnitude of the locks project they expect to hire about 7,000 people over the next three years.

According to estimates by the ACP with the completion of the expansion works in 2014, after seven years of continuous work, the new Panama Canal will double its capacity from 300 million to 600 million tons annually. During the presentation of the report, Aleman Zubieta also announced that on 29 April 2011 they will be opening the proposals, delivered in a sealed envelopes, to hire the company for the design of a third bridge over the Panama Canal. The Panama Canal operations during fiscal 2010, ended with toll revenues of $1.482 billion dollars, an increase of 3% over 2009 in which they received $1.43 billion dollars. (La Prensa)   

Gov. Rick Scott said Friday that he is redirecting $77 million in Florida Department of Transportation funds to help dredge the Port of Miami to 50 feet deep. The deeper channel will help the port accommodate larger cargo ships expected to use the expanded Panama Canal. Scott’s office could not immediately say what projects the money was being redirected from, how it arrived at the estimate the project will create 30,000 jobs or whether any similar funding might be steered toward Tampa. Tampa Port Authority CEO Richard Wainio said he was told of Scott’s decision about the Miami port early Friday. “I am pleased that Governor Scott has shown a strong understanding of the importance of trade for the Florida economy and a desire to help fund Florida’s important seaport projects,” Wainio said in a statement. “Accordingly, I am confident that Governor Scott and the Florida Legislature will approve additional funding for other important port projects to include several projects under development at the Port of Tampa.” Scott made the announcement at the Miami waterfront minutes after the Florida Supreme Court upheld his decision to reject $2.4 billion in federal funding to build a high-speed rail line between Tampa and Orlando. “This is the type of infrastructure project that will pay permanent, long-term dividends, and provide a solid return on investment for Florida’s taxpayers,” he said in a statement. (bizjournals.com)   

By JENNIFER RICH - MANATEE -- New figures rank Florida as the nation’s fourth largest export state even as facilities like Port Manatee ready themselves for an increase in traffic expected from the Panama Canal expansion. The state’s exports grew by nearly 18 percent in 2009-10 from the previous year, moving it into fourth place behind Texas (1), California (2) and New York (3), according to U.S. Department of Commerce figures. Although the number of exports at Port Manatee are overshadowed by its imports, Steve Tyndal, senior director of trade development and special projects, says the overall growth in state exports shows there is great potential for Port Manatee to grow. “Florida exports are typically high value, and high value cargo is more often shipped in containers,” Tyndal said. “We want to get in that business for a variety of reasons, it creates more revenue for the port, but also creates more jobs for the region.” The port soon will be completing the final part of a nearly $200 million, 11-year expansion when it begins dredging Berth 12 in April to a depth of 41 feet and extending it from 1,000 feet to 1,584 feet to accommodate container vessels.

The new berth sits adjacent to a planned 52-acre container terminal on the port’s south side that is all part of the port’s plans to take advantage of the completion of the Panama Canal expansion in 2014. Phase one of the container terminal project will begin this year, according to Tyndal, with expected completion by 2014. Tyndal said the port’s expansion will “let container lines and shippers know we are serious about establishing ourself in the container business.” Florida’s move up in export rankings shows the state is serious about becoming a major international trade player, officials say. “Being ranked above four states in as little as six years is a tremendous feat in trade,” said Manny Mencía, Enterprise Florida’s senior vice president overseeing its International Trade & Business Development division. Enterprise Florida is the state’s economic development arm. Since December, the agency has opened offices in São Paulo, Brazil, and Montreal, and is hosting export sales missions to Chile and Peru in May.

The overall growth in U.S. exports last year came after a dip for most ports because of the country’s financial crisis, said John Murphy, vice president for international affairs with the U.S. Chamber of Commerce in Washington, D.C. “It hammered international trade more than the rest of the economy except maybe housing,” he said. “Credit markets seized up and globally we saw 20 and 30 percent declines (in trade),” Murphy said. “Last year the U.S. and other countries came roaring back.” Florida’s exports had dropped 13.6 percent in 2008-09 from the previous year. The value of the dollar, lower tariffs and stronger economic growth has increased exports, Murphy said. He thinks Florida has been very aggressive in growing its international trade, particularly with South American countries and the Caribbean. That’s a change from the past when in the early 1990s, the state was a minor trade partner. “The state of Florida is well positioned with the widening of the canal, which will make trade even cheaper,” he said.

More companies overall are looking to export, says Sandra Campbell, director of the U.S. Commercial Service with the Department of Commerce, a trade promotion agency in Clearwater. “Our goal is to steadily grow our exports in the next five years,” she said. “We are the gateway for the Caribbean and South America.”   

The construction of what will be the new lock of the Panama Canal began this year, within the time allowed, according to the consortium Grupo Unidos Por el Canal (GUPC), that is responsible for the project. The cost of the project to expand the Panama Canal is estimated at $5.25 billion dollars, and should be ready by 2014. Antonio Zaffaroni, GUPC consortium's executive director, said today that the excavations have reached the expected level of progress, "we have completed the installation of the industrial plants and have started with the concrete." This means - the executive explained - that "we have entered the industrial process" to build the third set of locks during the next three years. Under the expansion project, construction of the third set of locks is estimated to cost $2.73 billion dollars and the water saving basins $620 million. This represents 65% of the total cost of the project. Zaffaroni said production will increase gradually and by the end of 2011 it is expected that the work will be between 25% to 30% completed. Today, he said, there are 2,500 people working on this project (in the physical part) and as the demand for labor increases it will peak at 5,000 workers. (La Prensa)

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By RUSS BYNUM - SAVANNAH, GA. - East Coast seaports from New York to Miami are in a race for government permits and funding to dig deeper harbors. The ports need more room to handle giant cargo ships expected to sail through an expanded Panama Canal in just a few years. By the end of 2014, the Panama Canal is expected to allow passage of ships loaded with more than double the amount of cargo of most vessels now calling on the Atlantic Coast. The supersize ships need up to 50 feet of water to navigate. Only the port at Norfolk, Va., is that deep on the eastern seaboard. The port of New York/New Jersey already has a $2.3 billion project underway to dredge its harbor. Port officials in Savannah, Ga., are seeking a $588 million deepening. Charleston, S.C., and Miami are also in the hunt. (Business Week)   

Tampa Bay Business Journal - by Mark Holan , Staff Writer - An ambitious expansion of the Panama Canal remains on track for 2014 completion. Port of Tampa and Port Manatee officials expect to see more traffic as a result. The Panama Canal Authority’s top executive told maritime officials in Tampa Tuesday that after completion the amount of cargo moved will quadruple compared with what was moved in 2000. Larger vessels will travel more quickly through the 48-mile ship canal. “Everything so far is going in the right direction,” Alberto Aleman Zubieta said during remarks at the fourth annual Shifting International Trade Routes conference at the Grand Hyatt Tampa Bay. “This is a game changer.” Panama is using the canal expansion to develop its own port with some dredge material being used to increase landside facilities on the Atlantic and Pacific ends of the canal. “We are the only port in the world with two oceans,” Zubieta said.

The Canal Authority is sponsoring the Retail Industry Leaders Association Logistics Conference Feb. 20-23 in Orlando. It will bring together representatives of all major retail and consumer product segments, along with service providers. Zubieta sidestepped a question about a toll increase to pay for the $5.25 billion project, saying his agency would adjust tolls to remain competitive. “Ships will move to whoever has the best service at the best cost,” he said. U.S. Maritime Administration chief David Matsuda said his agency is studying how the canal expansion will impact commerce and infrastructure requirements in America. The agency expects to release a series of reports beginning in the second quarter.

Tampa Port Director Richard Wainio expressed concern about the United States falling behind in infrastructure investment. “If we do not modernize soon we will not lead in the 21st century; we will follow,” he said. The Shifting International Trade Routes conference continues through lunchtime Wednesday with discussions about distribution and warehousing, and highway and railroad perspectives.   

By Kevin Smith, Staff Writer - International trade has long been one of Southern California's top economic drivers, but some business leaders fear that expansion of the Panama Canal could divert freight movement away from Southland ports and threaten much-needed jobs in the San Gabriel Valley and beyond. A diversion of goods could slow business for scores of importers and logistics and warehousing operations in Industry. A project to widen and deepen the Panama Canal is scheduled to be completed in 2014. The expansion includes the construction of two new sets of locks - one on the Pacific side and one on the Atlantic side - as well as the widening and deepening of existing navigational channels. The expansion will allow the canal to take on bigger ships. More importantly, it will make ports in the southern and eastern United States more desirable to Asian shippers. "There are some very significant concerns," said Lee Harrington, executive director of the Southern California Leadership Council. "If you look at the big picture, one in four jobs in California is related to trade flows." Much is being done to streamline and speed the flow of goods moving to and from the ports of Los Angeles and Long Beach, and more projects are planned, but if some of those planned improvements aren't stepped up, freight movement at the ports may erode and jobs will be lost, according to Harrington. "The Panama Canal is being built with the objective of taking away a big part of our market share in terms of trade flow," he said. "A 25 percent cut in our market share is not inconceivable." (more)    Click Here To Read The Full Article (1,274 words)

by Shelby Sebens - Councilwoman Laura Padgett went to Panama last month to get a look at the Panama Canal expansion which will bring larger ships to the east coast. Padgett said the opening of the new locks in 2014 will be an economic opportunity for east coast states and North Carolina needs to get ready if it wants a piece of the pie. She chided the state for moving away from the proposed N.C. International Terminal near Southport. She said N.C. ports need be getting ready to accommodate the larger vessels. “If we don’t we miss a huge economic, job building opportunity for all of the eastern half of NC,” she said. (Star News Online - Cape Fear Watchdogs)   

(AFP) Panamanian President Ricardo Martinelli says he had total confidence in the expansion of the critical Panama Canal, denying it was a "disaster," as a US ambassador said in a diplomatic cable released by WikiLeaks. "We are here to show our support for all the work that has been done to date by the Canal Administrator and his entire team. This is a project that will benefit the country and the entire world," Mr Martinelli said in a statement issued after a visit to the site. His comments were the first government reaction to a leaked diplomatic cable in which then-US ambassador to Panama Barbara Stephenson described the vice president's deep concerns over the project.

According to a January 2010 memo, Vice President and Foreign Minister Juan Carlos Varela told the US representative: "The canal expansion project is a disaster." "In two or three years, it will be obvious this was all a failure," he said, adding he was worried about the financial stability of the consortium expanding the canal. Ms Stephenson also reported that Mr Martinelli himself had "grimaced" when asked how the project was going and had indicated he was worried the construction bid had been tipped to a group that included the canal administrator's cousin.

An international consortium, led by Spain's Sacyr, won a $3 billion bid in 2009 to expand the canal's locks. - AFP

Editor's Comment: And now, when high ranking Panamanian politicians talk to the US Ambassador, they will only discuss the weather ... "My, these crumpets are delightful. Have you tried the shrimp dip?" The President then "grimaced" and said "the last time, they gave me gas." No doubt, this whole Wikileaks thing is going over like a fart in church.   

By GRACE GAGLIANO - PALMETTO - Port Manatee has a full slate of projects ahead for 2011. Improvements to the south port area will be under way, port staff and consultants will work on identifying new business consistent with the Panama Canal expansion, and the Manatee County Port Authority will search for a successor to port Director David McDonald, who retires in January 2012. 2010 brought a wealth of fortunate news for the port. It was awarded $15 million in federal and state grants to develop the south port area. The port also gained business from several new tenants that include Martin Marietta and Port Dolphin. A new aggregate terminal by Martin Marrietta, set up in the fall, is expected to bring in $600,000 to $700,000 annually. And payments from Port Dolphin, a natural gas pipeline to run from about 30 miles off Anna Maria Island to Port Manatee, are projected to be nearly $1 million next year. (more)    Click Here To Read The Full Article (887 words)