Panama has opened the long-awaited $5.4 billion expansion of its inter-oceanic canal, completed after nearly a decade of work and forecast to boost global trade. China's container ship Cosco Shipping Panama was the first to pass through the expanded canal, crossing from the Pacific to Atlantic June 26, emerging at a ceremony attended by thousands of onlookers and foreign dignitaries. The expansion is designed to accommodate the huge "neo-Panamax" ships to move far greater quantities of cargo through the canal—also dubbed "mega-ships." But the Spanish-led consortium that carried out the expansion is demanding hundreds of millions of dollars in cost overruns. And there are long-term concerns about available fresh water to feed the expanded canal's new locks. The expanded canal is relying on the same water sources as the original canal—which are already under stress. During this year's El [7]Niño [7]-related drought, shippers had to significantly lighten their loads through the canal. Jorge L. Quijano, CEO of the Panama Canal Authority [8], has been pressuring Panamanians to conserve water to assure the functioning of the new mega-canal. (China Daily [9], June 27; Radio Australia [10], June 26; NYT [11], June 22; Miami Herald [12], June 20; American Shipper [13], March 22)
