Panama Canal Authority (ACP) Administrator/CEO Alberto Alemán Zubieta and Alabama State Port Authority (ASPA) Director/CEO James K. Lyons have signed a Memorandum of Understanding (MoU) to jointly help foster commercial activity between the two entities.
The MoU will increase cooperation and help boost trade along the increasingly important "all-water route", the route from Asia to the US East and Gulf Coasts via the Panama Canal. This arrangement is renewable on a two-year basis.
"As the global economy recovers, we must continually pursue smart business partnerships," said Mr Zubieta. "The exchange of ideas and information-sharing demonstrate our desire to execute solutions for the long-term growth needs of the shipping community and international trade."
As the Panama Canal undergoes its historic expansion, which will double the waterway's capacity and allow more traffic and the passage of longer and wider ships, the ASPA embarked on port improvements to capture the anticipated traffic growth. So far, ASPA has completed a US$300 million container terminal in partnership with APM Terminals North America, a subsidiary of Maersk, and CMA CGM.
Work began last year on a new turning basin in the lower harbour that will allow vessels, in excess of 270 metres in length, to access the port's deeper draught terminals.
The port is also constructing an intermodal rail facility to capitalize on the port's five Class I railroads and to expand the port's transportation reach into mid-west and southeast US markets.
"We view Far East trade through the expanded canal as most significant for both our port and our state," said Mr Lyons. "The expansion will increase traffic, as well as accommodate larger vessels, currently serving Asian trade lanes."