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Panama Canal Travis Cleveland               Linda Garder Mehdi Najah                    Thomas Rona
The beginning… ,[object Object]
 Vasco Nuñes de Balboa- first to discover the narrow piece of land separating  Atlantic and Pacific Oceans ,[object Object],  leadership to build the canal. ,[object Object]
 The project was postponed because of numerous wars that broke out in    Europe.
Restarting the project… ,[object Object]
 German scientist Alexander von Humboldt showed interest in the project.
 1819- the Spanish government gave authorization for the project.
 International company was hired to build the Canal
 The International Company failed.,[object Object]
 Ferdinand Marie de Lesseps was leading the company.
 De Lesseps had previously constructed the Suez Canal.
 American started showing interest in building the Canal; the main reason for  that was the discovery of gold in California in 1848. * 1879- De Lesseps came up with the proposal for the Canal.
Roosevelt and the Canal… ,[object Object]
 Offered the Colombian government $10 million in order to gain control over the  fifty-mile strip over the isthmus. ,[object Object]
 After refusal, decided to no longer negotiate and started supporting Panama’s  independence movement. ,[object Object]
 The newly independent Panama accepted his offer and was compensated  by  an initial payment of $10 million and an annuity of $250,000.
Building of the Canal by the U.S… ,[object Object]
 The workers had to put up with the heat and mosquitoes that carried malaria.
Methods that had to be undertaken to fight the mosquitoes carrying malaria   included “clearing 200-yard-wide areas around where people lived and worked,    draining more than 100 square miles of swamp, building nearly a thousand miles   of earthen ditching, about 300 miles of concrete ditch, 200 miles of rock-filled   trench, almost 200 miles of tile drain, cutting hundreds of acres of wild vege-   tation, spraying standing water with thousands of gallons of oil, and breeding   spiders, ants, lizards to feed on adult insects” etc. ,[object Object],  dramatically. ,[object Object], villages from the area, the fact that Panama was insufficiently developed or   equipped to support the additional population created by the growing Canal labor  force, providing satisfactory housing and food for the workers
John Frank Stevens… ,[object Object]
 It was the Chief Engineer of the project, John Frank Stevens, who convinced  Roosevelt to build a lock canal as opposed to a sea level canal. ,[object Object],  building a sea level canal would take at least until 1914. ,[object Object],  months of that year more than 512,500 cubic meters of material was    excavated and the total workforce exceeded 39,000 men. ,[object Object],  fall behind schedule.
Locks and Dams… ,[object Object]
 Gatun- two parallel sets of locks and each one consists of three flights.
 At Gatun the locks are 33 meters wide.
 Pedro Miguel- the locks only have one flight; can raise or lower ships 10 meters.
 Miraflores- two flights, they can raise or lower ships 16.5 meters.
 The excess oil was used to construct the Gatun dam.
 The Gatun dam is 1.5 miles long and almost 0.5 miles wide.
 There are also small dams at Pedro Miguel and Miraflores.,[object Object]
 Celebration was cancelled due to World War I.
 Total cost of the Canal: $375,000,000 (including the $10 million paid to Panama   and $40 million paid to de Lesseps). ,[object Object]
 Total cost of the project was about $23,000,000 less than the 1907 estimate.

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Panama Canal Project

  • 1. Panama Canal Travis Cleveland Linda Garder Mehdi Najah Thomas Rona
  • 2.
  • 3.
  • 4. The project was postponed because of numerous wars that broke out in Europe.
  • 5.
  • 6. German scientist Alexander von Humboldt showed interest in the project.
  • 7. 1819- the Spanish government gave authorization for the project.
  • 8. International company was hired to build the Canal
  • 9.
  • 10. Ferdinand Marie de Lesseps was leading the company.
  • 11. De Lesseps had previously constructed the Suez Canal.
  • 12. American started showing interest in building the Canal; the main reason for that was the discovery of gold in California in 1848. * 1879- De Lesseps came up with the proposal for the Canal.
  • 13.
  • 14.
  • 15.
  • 16. The newly independent Panama accepted his offer and was compensated by an initial payment of $10 million and an annuity of $250,000.
  • 17.
  • 18. The workers had to put up with the heat and mosquitoes that carried malaria.
  • 19.
  • 20.
  • 21.
  • 22.
  • 23. Gatun- two parallel sets of locks and each one consists of three flights.
  • 24. At Gatun the locks are 33 meters wide.
  • 25. Pedro Miguel- the locks only have one flight; can raise or lower ships 10 meters.
  • 26. Miraflores- two flights, they can raise or lower ships 16.5 meters.
  • 27. The excess oil was used to construct the Gatun dam.
  • 28. The Gatun dam is 1.5 miles long and almost 0.5 miles wide.
  • 29.
  • 30. Celebration was cancelled due to World War I.
  • 31.
  • 32. Total cost of the project was about $23,000,000 less than the 1907 estimate.
  • 33. 5,609 total lives lost.
  • 34.
  • 35.
  • 36.
  • 38.
  • 39.
  • 40. Factors Affecting Trade Flow Economic and Trade growth Shipper Logistics requirements Carriers Strategies
  • 41. 2007 Fiscal Year Stats 14,721 vessels transited. 3.7% increase from 2006. Canal Water Time decreased from 30.5 to 27.8 hours. 25 Panamax vessels transited in 09/2007 breaking previous record of 24 in 07/2003. 300 million gross tons transited in 2007.
  • 42. Investments Acquire 18 locomotive Tow Track rehab Replace miter gates w/ hydraulic system Acquire and replace tugboats Expand Canal Deepen Gatun lake and acquire more dredging technology
  • 43. The Expansion project construction of lock complexes at each end of the Canal. One lock complex will be located on the Pacific east of the existing Gatun Locks Each lock complexe will have three consecutive chambers Each chamber will have three lateral water-saving basins
  • 44. Numbers 427 meters (1,400 ft) long 55 meters (180 ft) wide 18.3 meters (60 ft) deep
  • 45.
  • 46. Estimated Costs $5.25 billion to construct Atlantic side Lock: USD $1.110 billion Pacific Side Lock: USD $1.03 billion New Locks Access channels USD $ 820 million cost includes contingencies to cover risks and unforeseen events
  • 47. Estimated Profit 12% internal rate of return Tolls increasing at an annual average rate of 3.5% for 20 years USD $2.3 billion temporary external financing financing could be repaid in approximately eight years. investment costs will be recovered in less than 10 years
  • 48. Stopford’s 10 Variables in the Shipping Market Demand The World Economy-W Seaborne Commodity Trade-S Average Haul-S Political Events-S Transport Costs-S Supply World Fleet-S Fleet Productivity-S Shipbuilding Production-S Scrapping and Losses-S/W Freight Rates-W/S
  • 49. Current Situation Current backlog is high due to Peak Season congestion Both arrivals and transits relatively steady (Giraud)
  • 50. Current System Ranking is based 40% on # of transits, 60% toll revenue Updated monthly, based on last 12 months Rankings determine scheduling preference, competitions to bump/bid (Giraud)
  • 51. Opportunities Panama Canal Authority Increase in Toll Freight. Current Tariff fixed Rate + $63/TEU, $3.37/ton. Annual 3% increase. Terminal operations, FTZ, tourism
  • 52. Opportunities Oil- BP/ Petroterminal de Panama Rail- KCS/ Panama Railroad US East Coast Ports www.google.com
  • 53. Savannah Savannah Harbor Expansion Program-$1.3 billion for 48’ depth Infrastructure- 7,500 truck moves/day Lease Incentive for customers Terminal Capacity: 2.7- 6.5 m/TEU Savannah River
  • 55. Threats World Trade/Affected Trade Routes Freight Rates Partners/Customers Alternate Routes …Northwest Passage
  • 56. 1985 vs 2008 www.envisat.esa.int www.nasa.gov