The highlight of the Panama City trip for me was visiting the Panama Canal, specifically the Miraflores locks. The interpretation center was packed when we arrived and thinned out as the morning progressed. We decided to have an early lunch and then dragged it out so we could have a prime seat for the next ship coming through.
The canal is an amazing feat of engineering and construction, especially for the time that it was designed and built. The human story behind its construction is even more compelling with many told and untold sacrifices. Its scale, reliability and impact on world commerce is impressive. Currently, the government is expanding the capacity of the canal by building two new locks to accommodate New Panamax class ships. Unfortunately, parts of that project have been delayed by construction disputes.
The Panama Canal is facing fresh competitive pressures as well. A Chinese firm has been awarded a 50 year concession by the Nicaraguan government to design, build and operate a new canal running nearly 300 km through that country. This would be one of the world's largest construction projects valued at approximately $40 Billion USD. Construction is scheduled to begin late 2014 with the new canal operational by 2020. As with nearly all megaprojects, there are concerns about environmental impact and expropriation of property. With a mindful approach, this project should be very good for the Nicaraguan economy and demonstrates the bold thinking required to improve the world's infrastructure. Many capable nations seem to have lost the plot being mired down in politics and institutionalized corruption.
Another source of competition for the Panama Canal that appears likely is the opening of new shipping routes through the Northwest Passage due to the unprecedented melting of Arctic sea ice. This could happen by mid-century and comes with severe environmental and geopolitical risks.