The New Panama Canal

...and how it will affect Houston.

by: Paul E. Martin, AIA

Not much of a secret; the Panama Canal is being widened and lengthened to accommodate super tankers and super cargo ships. The $30 billion+ project began construction in 2007 and is scheduled for completion in 2014.

The impetus to do so came from the increased trade between the United States and China and the growth of ships greater than the capacity that the Panama Canal can now accommodate. Currently 4% of all world trade passes through the Panama Canal. Some sources anticipate that cargo passing through the canal will increase by 50%. A modest sum by most standards, however others anticipate that the impact will be double and much of the destination ports for the United States will move from the eastern and western ports to Gulf ports. The largest of the Gulf ports, Houston, will be supported by recent construction of the Bayport Super Port, widening and deepening of the Houston Ship Chanel, security upgrades and the existing inter-modal system of distribution. Other ports that will benefit are Galveston, New Orleans and Tampa...

Houston's port is well placed in the center of the Country, shortening the inter-modal distribution by several days in some cases. Houston has a larger inter-modal system than the other Gulf Ports and a favorable attitude towards growth.

Trammel Crow pulled a coup by wooing a share of the flower imports from South America that have traditionally funneled through Miami to a new air cargo facility at Bush Intercontinental (IAH).
The impact on Houston could place it as the Number 1 port by tonnage in the United States. The Port is preparing itself and so are those who will benefit most. The real winner is Houston's sustained economic growth...opportunities abound!

When will this affect increased business for Houston? NOW! Property is being purchased along the ship channel where industrial centers will be constructed. Land developers, Architects, Engineers, Contractors and all of its support industry should be starting to notice changes in the first half of 2010.

We will report all current news references and rumors regarding this exciting, "under the radar," event of the decade as they develop. Stay tuned and please share with us your own observations!

Thanks!