Understanding the economic, environmental and energy consequences of the Panama Canal expansion on Midwest grain and agricultural exports.
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2011-05-01
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NTL Classification:NTL-ECONOMICS AND FINANCE-Economic Impacts;NTL-ENERGY AND ENVIRONMENT-Environment Impacts;NTL-FREIGHT-Intermodalism;NTL-MARINE/WATERWAYS TRANSPORTATION-MARINE/WATERWAYS TRANSPORTATION;
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Abstract:The Panama Canal Authority (ACP) is currently building a third lock scheduled to open in 2014, significantly changing the capacity of the
canal for inter-ocean movements. Midwest specialty grain and agricultural product exporters will be directly affected as all-water routes
are improved and landbridge requirements reduced. The study assesses the expectations of public and private sector stakeholders,
analyzes possible changes in greenhouse gas emissions and energy consumption, and examines potential economic impacts the
expansion may cause in these commodity sectors. Findings suggest that the canal expansion may decrease transit times, incentivize
export to Asia via Gulf Cost ports and containerized modes, increase greenhouse gas emissions and energy consumption, and a
diminished competitive position for the US West Coast - intermodal route.
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