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The impact of the Panama Canal expansion on Panama’s maritime cluster

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  • Anthony Pagano
  • Grace Wang
  • Onésimo Sánchez
  • Ricardo Ungo
  • Eddie Tapiero

Abstract

The Panama Canal is currently in the process of a major expansion effort. After the new set of locks is opened in 2016, significantly larger ships can traverse the Canal. The current lock system has been in place for over 100 years, even though the size of ocean-going vessels has expanded considerably. One impact is on Panama’s maritime cluster. It is expected that the expansion will result in greater demand for many of the goods and services provided by the cluster. This article examines the economic impact of the Canal expansion on Panama’s maritime cluster. Clusters of economic activity can result in economies of agglomeration and supply chain network effects. Without these economies and network effects, clusters would not have a competitive advantage over businesses that are not in a cluster. It is expected that with a larger cluster, both agglomerative economies and network effects will increase. But, which cluster components will grow and which will not be affected to a great extent? To what extent will bottlenecks appear? These are some of the questions that this article addresses.

Suggested Citation

  • Anthony Pagano & Grace Wang & Onésimo Sánchez & Ricardo Ungo & Eddie Tapiero, 2016. "The impact of the Panama Canal expansion on Panama’s maritime cluster," Maritime Policy & Management, Taylor & Francis Journals, vol. 43(2), pages 164-178, February.
    • Handle: RePEc:taf:marpmg:v:43:y:2016:i:2:p:164-178
    DOI: 10.1080/03088839.2016.1140241
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    1. Yang, Dong & Li, Chengkun & Li, Lu & Lai, Kee-hung & Lun, Venus Y.H., 2022. "Maritime cluster relatedness and policy implications," Transport Policy, Elsevier, vol. 128(C), pages 76-88.
    2. Thi Yen Pham & Ki Young Kim & Gi-Tae YEO, 2018. "The Panama Canal Expansion and Its Impact on East–West Liner Shipping Route Selection," Sustainability, MDPI, vol. 10(12), pages 1-16, November.
    3. Shi, Xin & Jiang, Haizhou & Li, Huan & Wang, Ying, 2020. "Upgrading port-originated maritime clusters: Insights from Shanghai's experience," Transport Policy, Elsevier, vol. 87(C), pages 19-32.
    4. Koliousis, Ioannis G. & Papadimitriou, Stratos & Riza, Elena & Stavroulakis, Peter J. & Tsioumas, Vangelis, 2019. "Strategic correlations for maritime clusters," Transportation Research Part A: Policy and Practice, Elsevier, vol. 120(C), pages 43-57.

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