A preliminary analysis of U.S. import volumes and regional effects associated with the Panama Canal expansion. (December 2020)

• Record Type: Journal Article
• Authors: Medina, Jorge; Kim, Jong-Ho; Lee, EunSu
• Is Part Of: Research in transportation economics. Volume 84(2020)
• Publication Date: 2020-12
• Subjects: Maritime transportation -- Maritime logistics -- Neopanamax -- Panama Canal -- Container port -- Port investment; O18 -- R12 -- R41 -- R42 -- R58; Transportation -- Periodicals; 388.05
• DOI: 10.1016/j.retrec.2020.100969
• Languages: English
• ISSNs: 0739-8859

Abstract

Abstract: This paper examines the regional impact of the Panama Canal expansion on U.S. import volumes by using a fixed effect model and panel data for U.S. container ports from 2000 to 2017. The increasing number of larger vessels traversing the expanded canal increases the number of containers for relatively large ports in the Gulf and Atlantic coasts. Our results reveal that the expansion of the canal increased import volumes by an average of 24.2%, compared to ports in the Pacific Coast. Various robustness checks reduce our estimations, but they remain statistically significant. Highlights: Regional impact of the Panama Canal expansion using historical data. Expansion increases import volumes in the Gulf and Atlantic compared to the Pacific. Positive impact of the canal expansion warrants investments in port capacity.