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The purpose of this study is to find out the future development of the Panama Canal after opening of the new waterway (third set of locks project), in terms of the change of cargo throughput, further deployment of fleets by the shipping companies and competition for the canal.

The research of this paper is based on an empiric study by collecting the relevant data from annual report of the Panama Canal Authority, publications related to the same field. Graphs pertaining to toll revenue also are made based on statistical data provided by the Panama Canal Authority.

The findings show that the opening of the new waterway of the Panama Canal generates more toll revenue for Panama government by allowing mega-vessels to transit, expediting further economic development of the country largely from behind. At the same time, shipping operators also can enjoy earning more revenue by deploying New Panamax vessels transiting the Canal.

Ingenuity in tabling the users of the Panama Canal by incorporating the logo marks of the shipping companies/implication is drawn through empirical analysis to provide the shipping companies and ports authorities concerned with more understanding toward the very significance of the new waterway expansion of the Panama Canal.

Historically, Panama has always been “a place of transit.” While technically the isthmus formed part of Colombia in the nineteenth century, it was linked geopolitically to the United States soon after the California gold rush, beginning in the late 1840s. The first attempt at building a canal ended in failure in 1893 when disease and poor management forced Ferdinand de Lesseps to abandon the project. The U.S. undertaking to build the canal could only begin after Panama declared itself free and broke away from Colombia in 1903, with the support of the United States.

The purpose of this paper is twofold: first, to investigate project management dimensions while constructing the Panama Canal from the end of ninetieth century to the start of twentieth century and then benchmarking against the Palm Diera Island at the lapse of a century. Second, to highlight issues of project management, specially the risk management with its economic, social and political domains at the construction site and in France and America.

The case study research method of qualitative research has been adopted when comparing two mega projects executed in different time and space. For the Panama Canal project documentation investigation was performed. However, a semi-structured interview data collection method was adopted for the Palm Diera Island project. A comparative study of two projects helps in deeper understanding of cross-project management dimensions.

The research reveals that the French team failed to complete the Panama Canal construction project due to inadequate planning, inappropriate design, lack of risk management, health and safety of the staff and non-availability of finances. However, the Americans successfully completed construction of the canal within budget and time and this was due to the support of change in the purpose of the canal construction adding to achieve its commercial objectives and at the same time strengthen its naval presence. American took its construction as a national objective than the individual enterprise as executed by the French team.

Data collection for the Panama Canal was limited to only historical data available from the literature as documentary investigation. The researchers visited the canal to get in-depth understanding of the construction practices and the scale of construction. However, for the Palm Diera project, data collection was limited to three key personnel interviews.

The Americans were successful in completing the canal due to the US Government control on management and finances of the canal construction and lessons learned during the French construction period. The paper serves as a benchmark for project management dimension in two different regions in different times. The paper bears economic implications for the construction of the mega projects both in South America and the Middle East. Cost overrun construction of the Panama Canal during the French period influenced political spectrum in France resulting into the defeat of the government. During the American period of construction first time out of country visit by the sitting president of the USA reflects its economic and social importance. The valley of death was converted into the valley comfort during the American period resulting into social welfare of the workers. Completion of the canal by the Americans helped them secure operations of the Panama Canal for the next 100 years, contributing to its economic and naval strength.

The paper reveals that safety and social implications for the work place in two different regions and at two different times. The impact of safe and improved working conditions at Palm Diera Island resulted into no injury or loss of life, however, during the Panama Canal construction more than 30,000 workers died affecting not only families of the respective workers but their nations as well. The impacts of both the projects on the society were also significant. The public opinion against the construction of the canal during the French period of construction was so significant that they had to abandon their construction equipment at the site. On the contrary, completion of construction of the Panama Canal during the French period helped secured political mileage for President Roosevelt and his party.

The paper benchmarks two different mega projects with different scope executed in two different regions at the lapse of a century. No such research work was found to have compared project management dimensions of two mega projects at the lapse of a century and in two different regions.

Since the sixteenth century, Panama has been an important logistic node for communication between South America, North America, and Europe for trade and load transit. Panama ports move more than 700 million tons per year while Panama Canal moves 325,428,407 tons, according the statistics of 2014. Most of the maritime cargo moved through Panama is transit and transshipment cargo. Consequently, and due to the geographical position and future opportunities based on the expansion of the Panama Canal, Panama could be a strategic hub of global trade flows. This is an opportunity to develop value-added logistics services (VALS) in Panama Canal. Thus, this research aims to present a preliminary analysis of VALS industry in Panama, identifying critical variables that could enhance these services. This is a survey-based research, using interviews with the main suppliers of VALS in Panama and some of their customers. The methodology applied to analyze the data is means-end value hierarchy model (MEVHM), which was used to understand VALS industry in Panama and identify what is valuable to customers. Results showed that each VALS provider serves a mean of 20 companies, 22% of them are national clients while 78% are international clients, which recognized the geographical position as their main reason to work with logistics experts from Panama. Furthermore, 92% of them were very satisfied or satisfied with the service received. Main VALS in Panama are labeling, tagging, and packaging. In contrast, areas to be improved are customs procedures, national logistics processes, product’s traceability, competitive prices, and human resources training.

The expansion of the Panama Canal that is completed in 2016 provides container carriers with new opportunities to redeploy global oceangoing trunk routes. The purpose of this paper is to examine the cargo sources and geographical locations of three trunk routes, the departure points of which are all in East Asia.

The operating conditions of various shipping practices were used to simulate trunk route deployment after canal expansion. Subsequently, a clean-line strategy featuring liquefied natural gas (LNG) as a replacement for heavy oil is proposed to explore the effects that container carriers have on energy savings and emission reductions.

The results showed that the unit emissions of ships traveling trunk routes in East Coast North America and East Coast South America did not differ significantly regardless of whether the container carrier employed a conventional method or the new deployment plan following the expansion of the Panama Canal. By contrast, the adoption of a new method for sailing through the canal yields significant emission reductions for Far East/Europe routes. In addition, the slow-steam strategy adopted by carriers and the more costly clean-line strategy of LNG-fueled ships are both effective when applied to trunk routes.

The results of this study provide a reference to container carriers deploying route structures and the International Maritime Organization when promoting emission-reduction policies.

This paper focusses on the aftermath of disruptions and the importance of the two largest canals (Suez and Panama), commenting on how during the pandemic the canal fees were lowered. Considering the ongoing efforts to decarbonize shipping, some of the ongoing disruptions will help reach these objectives faster.

Following a literature review of route choice in shipping, and a presentation of significant disruptions in recent years, the author deploys a simplified fuel consumption model and conduct case study analyses to compare different routes environmentally and economically.

The results explain why at times of low fuel prices as in 2020, canals provided discounts to entice ship operators to keep transiting these, instead of opting for longer routes. Considering the ongoing repercussions of the pandemic in supply chains, as well as the potential introduction of market-based measures in shipping, the value of transiting canals will be much higher in the coming years.

The main limitation in this work is that the author used the publicly available information on canal tolls, for the different ship types examined.

The envisioned model is simple, and it can be readily used for any ship and route (port to port) combination available, if ship data are available to researchers.

It is possible that canal tolls will increase, to account for the additional environmental benefits brought to ship operators.

The methodology is simple and transferable, and the author proposes several interesting research questions for follow-up work.