Introduction:
In this assignment I will first explain the Panama Canal modernization and then I will discuss about the industry experts/forecasters prediction about its impact on east and west coast of U.S. followed by the detailed analysis to evaluate the accuracy of the prediction. Furthermore, based on the analysis, I will present my opinion for rejecting or agreeing with the forecaster’s prediction of the panama canal’s positive impact on intermodal traffic market share of east coast ports and west coast ports, western railroad of U.S.
Overview:
The Panama Canal expansion is one of the biggest developments in maritime trade in last few decades. When the canal first opened in 1914, it reduced 8,500 miles and several weeks of transit
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ports to gulf or east coast U.S. ports as a result of Panama Canal expansion.
Most businesses in the area numbered as 5, currently rely on West Coast ports to receive goods namely Los Angeles-Long Beach, Oakland, Seattle, and Vancouver. After the Panama Canal expansion, shipping through the East Coast will be especially attractive to businesses that are more price-sensitive and less time-sensitive.
Therefore, for companies in the 5th region, it will become cheaper to handle goods through East Coast ports, although doing so will add a few weeks to the total transit time but a justification for this potential switch will highly depend on a company’s time preferences, price sensitivity, and costs of working capital.
Thus, there is a prediction from forecasters that, that West Coast ports and western railroads would see a significant drop in intermodal traffic market share. Eastern and Southern ports and railroads, on the other hand, would see a corresponding increase.
Analysis to find out accuracy of the prediction:
So, after 18 months, is the prediction
a great financial crisis. This allowed European ships to pass through the canal and cut thousands
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This was Theodore Roosevelt's first act as president. The Panama Canal was a project that would have a canal built to connect the Atlantic and the Pacific Ocean and be used in international trading. The British and the French have both thought about and attempted this before and now the United States would try. The canal was supposed to travel through the Nicaragua, but Roosevelt wanted the canal to travel across the Isthmus Mountains because he thought the larger ships would not fit through the Nicaragua. So, he attempted to sign a treaty with Columbia but was rejected by the Colombian senate. Roosevelt decided to plan with Philippe Bunau-Varilla who represented the French Panama Canal Company. His plan was to have panama revolt against columbia. On November 3, 1903 the revolution was announced and now considered panama independent. Roosevelt was able to get the treaty signed by Panama on November 18 that would allow the United States to build the canal. “When it was completed in 1913 at a cost of $387 million, the canal represented one of the most expensive construction projects ever undertaken” (Linn, Charles). Although the canal was not finished until 1913, Theodore Roosevelt still considered it the greatest achievement of his
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The canal was the best thing that ever happened to Panama. The Panama Canal was started under President Roosevelt and completed by his successor, William Howard Taft. The canal was built across an isthmus, a narrow body of land that connects two larger land areas, which connects North and South America. In some places in Panama the isthmus is only 50 miles across. The French started the canal in the late 1800’s. They had just built the then famous Suez Canal with relative ease. The Suez Canal, unlike the Panama Canal, was a straight canal on level ground, in a relatively dry climate. The French had failed in building the Panama Canal because of the tropical climate, in which deadly tropical diseases consumed their