Mexico’s government is reviving a railway between the Gulf of Mexico and the Pacific Ocean to divert traffic away from the Panama Canal, reports safety4sea.
Tehuantepec isthmus
The construction of the Tehuantepec isthmus corridor aims to capitalise on Panama Canal’s low water levels as the region suffers increasingly frequent droughts. The lack of rainfall has caused water levels in the canal to drop, making it difficult for ships to navigate through the locks.
Alternative solutions
As a result, efforts are being made to explore alternative solutions such as water conservation measures and exploring other shipping routes to mitigate the impact of the drought on global shipping.
Seizing this opportunity, Mexico has spent around 50bn pesos on the project.Experts say it could take years to build enough infrastructure and create the underlying industries to woo global logistics players.
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Source : Safety4sea