Reuters report that the Panama Canal could take much longer to become a new route for specific types of ships, with vessels such as oil tankers needing to undergo significant retrofits before they are able to fit through the new locks.
Traders are concerned about this delay, especially after the business expansion, as they have realised the potential for gaining access to international markets, particularly in the oil trade.
As the new locks use tugboats, as opposed to locomotives to pull vessels, the larger oil tankers will be the vessels that require the modifications.
Sandith Thandasherry, CEO of India-based vessel servicer Navgathi Marine Design and Construction said that he knows for sure that the number of people who are applying is increasing after the opening.
Daniel Abt, an Inspection Engineer for Vessel Classification Society DNV GL, said that the current market conditions are challenging for many ship owners. So retrofit measures can be a financial strain.
It was found recently that Iran is looking to accelerate the US$50 billion Nicaragua Canal project, in collaboration with HKND. This could be a plan to rival Panama, especially when it comes to allowing bigger oil tankers to pass through.
A study released recently by PGI Intelligence found that, at 427 metres long and 55 metres wide, the new locks would be, which suggests that this is another class of ship that may need to be modified to increase efficiency.
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Reference: Reuters, Port Technology
