A delegation of Louisiana politicians and business owners are visiting Panama, in hopes to gain support from the Panama Canal authority in opening broader shipping routes between the Panama Canal and the Gulf of Mexico. Members of the delegation include New Orleans mayor Ray Nagin as well as other politicians and business leaders from the city. New Orleans, still reeling from destruction of Hurricane Katrina, is interested in establishing ties with the canal, and is hoping to receive traffic from the large Asian cargo ships that will be able to traverse the isthmus once the canal expansions have been completed. The city’s plans to attract the shipping industry include a $500 million expansion to their ports. According to Nagin, “this is another step toward reclaiming this region.”
The Port of New Orleans faces stiff competition from other American ports in the Gulf to attract traffic from the Panama Canal. The Port of Tampa recently signed an agreement with the Panama Canal Authority to route traffic to their port, which is the largest in Florida. These new agreements will be instrumental in bolstering trade routes between the United States, China, and other Asian countries.
So what does this mean for investors? For one, it shows the commitment of American ports in supporting the Panama Canal expansion, and Panama’s crucial role as the midpoint of trade between China and the east coast of the United States. In addition to this, members of the New Orleans delegation are also discussing opportunities to connect international flights between Panama and New Orleans, which would make Panama City and other locations in Panama even easier to access from the United States.
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