Report | Panama Canal Expansion... and what it means
John Carver, head of Jones Lang LaSalle’s Port, Airport & Global Infrastructure (PAGI) group, led 15 members of our Supply Chain & Logistics Solutions team as well as three U.S based developer clients on a “JLL Expedition” to tour the Panama Canal.
The expansion of the Panama Canal by way of a new, third set of locks is a reaction to the growth and evolution in the global movement of goods and materials by shipping container. The larger “Post-Panamax” ships that will be able to transit the expanded Canal will carry more TEUs (twenty-foot equivalent units) through on each trip, realizing significant economies of scale for carriers and shippers alike. In a world of ever-increasing oil and transportation costs, the eventual impact on the industrial real estate landscape in the United States will be just as important.
The expansion of the canal has already sparked competition for port market share and the need for capital investment in projects like channel dredging to accommodate larger ships with deeper drafts, but it also has the potential to shift the flow of goods as they are moved throughout the United States – and thus where warehouses and distribution centers may be needed.
For more information on how the Panama Canal expansion could impact your business, please contact our industrial team.
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