By TBY | Dominican Republic | Aug 31, 2014
The widening of the Panama Canal, scheduled for completion by the end of 2014, will greatly impact shipping routes, port development, and cargo distribution around the world, and is expected […]
The widening of the Panama Canal, scheduled for completion by the end of 2014, will greatly impact shipping routes, port development, and cargo distribution around the world, and is expected to reorganize maritime routes in the Caribbean, becoming an excellent opportunity for the Dominican Republic to transform into the hub of the Caribbean.
In the current situation, over 14,000 ships pass through the canal per year, while around 70% of its containerized cargo is either destined for, or coming from the US, which is also the main market for Dominican import and exports.
The widening of the canal responds not only to increasing world cargo trade, but also to shipbuilding trends, with much larger vessels than the canal can accommodate being built every year.
The maximum vessel size able to cross the Panama Canal is the Panamax class of 294 meters in length, 32 meters in width, and with a draft of about 12 meters. Once the expansion project is completed, Post-Panamax vessels will safely traverse its waters. Moreover, Post-Panamax and certain Super Post-Panamax vessels will also sail it daily.
Becoming the regional hub—this combined with the business generated by a free port—will attract shipping lines. Puerto Caucedo has been undergoing expansion plans to be able to host the anticipated vessel influx and become a hub port, as Central America needs to enhance logistic coordination, intermodal networks, and trucking services, as the Inter-American Development Bank points out.
Within the Caribbean major hubs competing with the Dominican Republic’s Puerto Caucedo are Kingston, Jamaica; Freeport, Bahamas; Port of Spain, Trinidad and Tobago, and Panama, although today only the Dominican Republic through the port of Caucedo can handle Post Panama vessels together with the Panama terminals.
The Port of Caucedo, following the expansion and construction works undertaken by DP World is managing 1.2 million movements, although the number is shortly set to rise to 2.5 million movements. Puerto Caucedo will, therefore, complement the services provided by the Panama Canal.
