When I read about it and thought a little it made sense. Panama Canal while in place and in good use is limited. Even with the recent expansion that should come through in the next few years. My feeling is the rail purchase in Panama, and investment into Columbia's rail and other infrastructure sets up the whole region for a greater volume of trade with Asia. The problem is things actually being developed and more importantly used post-facto.
Panama Canal Expansion Project Called `Disaster' in U.S. Diplomatic Cable - Bloomberg
An alternative to the Panama Canal? | PRI's The World
Colombia, China plan rail alternative to Panama Canal - Colombia news | Colombia Reports
My feeling is that most traffic will be one way or value added. Ergo Chinese enterprises can set up shop in both ports and import either finished goods for export or partly completed material and add local labor/material to re-export value added things. Development of Coal deposits and other raw materials from inland makes it more realistic this is mentioned in the article in relation to coal at least.
Colombia optimistic about approval FTA and trade preference - Colombia news | Colombia Reports
I get a feeling this is a playing off into the trade leverage space.
Panama Canal Expansion Project Called `Disaster' in U.S. Diplomatic Cable - Bloomberg
An alternative to the Panama Canal? | PRI's The World
Rather than a waterway, Colombia and China are discussing a so-called “dry canal.” It would consist of about 150 miles of railroad linking Colombia’s Pacific coast to a new Atlantic port that would be built near the city of Cartagena. The railroad would make it easier for China to import Colombian commodities, like coal, and to export Chinese electronics and other goods to the region.
Nevertheless, other analysts are skeptical of the economic benefit of a "dry canal" linking both oceans. A shipping executive told the FT newspaper that moving containers onto and off the rail link at either end would probably cost $200 each in addition to $100 fees for the rail transport. In comparison, fees for the canal are around $100 a container.
Colombia optimistic about approval FTA and trade preference - Colombia news | Colombia Reports
I get a feeling this is a playing off into the trade leverage space.
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