Panama Canal Opens $5B Locks, Bullish Despite Shipping Woes

Authorities are hosting a big bash Sunday to inaugurate newly expanded locks that will double the Panama Canal’s capacity in a multibillion-dollar bet on a bright economic future despite tough times for international shipping.

The Malta flagged cargo ship named Baroque, a post-Panamax vessel, arrives to the Agua Clara locks on a test of the newly expanded Panama Canal in Agua Clara, Panama, on June 24, 2016. AP Photo/Moises Castillo

PANAMA CITY—Authorities are hosting a big bash Sunday to inaugurate newly expanded locks that will double the Panama Canal’s capacity in a multibillion-dollar bet on a bright economic future despite tough times for international shipping.

Nearly two years late due to construction delays and labor strife, the $5.25 billion project formally launches with the transit of a 158-foot-wide (48.2 meters), 984-foot-long (300 meters), Chinese-owned container ship, one of the modern class of mega-vessels that will now be able to use the canal.

With 30,000 people and eight foreign heads of state expected to attend the festivities, officials are bullish.

“There is evidence that the Panama Canal, with this expansion, is an important player not only for regional maritime commerce but worldwide,” said Oscar Bazan, the Panama Canal Authority’s executive vice president for planning and commercial development. “The canal is a winning bet. (Clients) will benefit from saving not only time but also money, because the canal is a route that shortens distance.”

Two police officers cycle past a "Panama" sign in Panama City, on June 25, 2016. The $5.25 billion expansion of the Panama canal is set to open Sunday, June 26. The expansion will also allow larger ships to pass, increasing efficiency. The renovations will double the canal's capacity, tap new markets such as liquid natural gas shipments and cut global maritime costs by an estimated $8 billion a year. AP Photo/Arnulfo Franco