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Panama Canal in billion dollar facelift
The Panama Canal is set to undergo $5.2 billion worth of modernization, reports Escapes2.com...
Voters in Panama overwhelmingly approved the largest modernisation plan in the 92-year history of the Panama Canal, backing a $5.2 billion expansion that will allow the world's largest ships to squeeze through the shortcut between the Pacific and Atlantic.
In a nationwide referendum, Panamanians approved buy four to one plans to build a third set of locks on the canal's Atlantic and Pacific sides to handle modern container ships, cruise liners and tankers that are too large for the waterway's current 33-metre-wide dimensions.
Work on the expansion plan is due to start in 2008 and be completed in 2014. Panamanian authorities say it will generate thousands of jobs.
Heavy traffic causes costly delays
The canal was completed in 1914 and, despite a series of upgrades over the past 92 years, has failed to keep pace with the growing scale of cargo ships.
Forty ships a day - 14,000 a year - pass through it, about 5% of all world shipping.
Traffic has become so heavy that vessels using the canal can face costly delays as they wait in a queue to pass through
Expansion will be paid for by increasing tolls to produce annual revenue of over $6 billion by 2025. A large chunk of canal revenues go to education and other Panamanian social programmes.
Building a better country
President Martin Torrijos, a supporter of expansion, said after voting on Sunday that the referendum was "probably the most important decision of this generation.
"Never in the history of the country have we Panamanians taken a decision of this magnitude. We have laid the foundation to build a better country." Torrijos added.
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