After nearly 10 years, $5.4 billion and the toil of 40,000 workers, the recently renovated Panama Canal opened for official business on Sunday, June 26. Viewing citizens and visitors waved flags and cheered to the tune of rapturous fanfare. Juan Carlos Varela, the President of Panama, entertained foreign delegations with a weekend soirée. With these latest additions, the historic canal has been fitted with new locks and widened channels that allow larger ships to travel even faster through the isthmus, a welcome update that keeps the canal relevant in a competitive oceanic market.
The vitalness of the canal for Panama, both in economics and national symbolism, cannot be overstressed. In fact, it wouldn't be too presumptuous to say that the pithy palindrome (A man, a plan, a canal: Panama) not only describes the importance the canal holds for Panamanians, but also their relationship with the United States, the original builders and operators of the canal. Until it was transferred to Panama's sovereignty in 1999, the canal represented Star-Spangled imperialism in its tropical backyard for almost a century. So to a certain extent, the emotional benefit goes to Panama. Though the original canal was built by the United States, the upkeep and long-awaited renovation has been conducted by its host country, despite numerous delays that have generally disheartened the patriotic mood.
The financial benefit is that the expansion will hopefully propel a resurgence in trade, on which the country's economy chiefly relies on. International companies, particularly those reliant on shipping, are expected to ratchet up their business in the country. The Maersk Group, which runs a global shipping conglomerate and is one of the biggest customers of the canal, is one such organization already preparing for the prospect. Similar companies involved in oil and gas in particular trade are likely to increase activity as well.
U.S. ports are eager if unsure whether or not they are capable of handling this expected surge of shipping -- it'll take some time to adjust. Many, such as Tampa and New York, are limited by the size of ships they can dock at a given time, and may need to begin expansions of their own as soon as possible to accommodate the rise in traffic.
Of course, there are downsides lurking in the underbelly of such a large undertaking, such as a spike in trans-national crime, specifically trafficking or smuggling. U.S. officials remarked that drug cartels may seize advantage of the new canal as an opportunity to scale up their exports. The future challenges to law enforcement may likely prompt new methods to deal with the potential increase in illicit activity.
On a more reflective note: the first ship to pass through the refurbished canal was a massive black steel Chinese cargo ship, bearing 9,472 containers, and owned by Cosco Shipping Panama. One might slyly note the symbolic significance of a Chinese freighter inaugurating what used to be a uniquely U.S. and Central American icon. Given that most of the traffic that passes through the canal travels from the Eastern United States to East Asia, such an observation summarizes the present tilt of the world's economy.
During the opening ceremony, a moment of silence was held for those who perished whilst repairing and renovating the 102 year old landmark.