US port cities to benefit as the Panama Canal expands

At more than $6.8 billion, the Panama Canal expansion is an ambitious attempt to reshape global shipping routes. A century ago president Teddy Roosevelt was instrumental in opening the canal, then a strategic shortcut between the Atlantic and Pacific oceans. Panama Canal Authority

Today, the canal is just too narrow for most commercial ships, like the massive freighters used to move goods from Asia to the United States. The Pacific Jewel, a Hong Kong cargo ship, just barely makes it through. Today only 19% of Asian imports are shipped through the canal. Currently more than 70% of Asia-to-America container traffic is shipped to the U.S. west coast. Goods heading east are then offloaded for transport by truck or train. AFP

These images show just how much bigger the ships will be. Scheduled to open in 2016, the new Panama Canal will welcome ships 12-hundred feet long and 160-feet wide. That's more than 20% longer and 50% wider than the biggest ships using it today. These vessels will carry three times more cargo. With the expanded Panama Canal, some manufacturers will be able to save time and money, traveling directly to east coast ports like New York and Savannah, Georgia Panama Canal Authority

Hoping to attract these big ships, port cities up and down the coasts are spending billions to upgrade their infrastructure. In New York City, construction workers are raising the Bayonne Bridge to accommodate taller ships. In Miami, port officials are building better trucking routes, including a 4-lane traffic tunnel. In Savannah, engineers plan to dig a deeper and larger harbor, one extending 8 miles into the Atlantic Ocean. NY/NJ Port Authority

Some analysts predict Pacific Coast ports may lose 10-20% of their cargo business to direct shipments of east-bound goods. West Coast ports are upgrading their infrastructure to keep up. Los Angeles, the country's busiest port, is spending $1.3 billion to protect its market dominance. The heavy spending on both coasts may be a gamble, but there is reason for optimism. With nearly 1.5 million containers moving through American ports in June alone, shipments are at a 5-year high. NY/ NJ Canal Authority & AJAM