On March 9th, 2011
the National Maritime Intelligence Center (NMIC) hosted a NMIC Interagency
Advisory Group (NIAG) forum to discuss the potential impacts of the Panama Canal
expansion in relation to global shipping, U.S. port operations and port
connectivity to intermodal transportation systems across North America.
- The NIAG is a 32-member advisory group consisting of partner U.S.
Government (USG) departments, services and agencies which represent a whole of
government approach on maritime concerns. The group meets monthly to tackle
maritime information sharing impediments, Information Technology architecture
compatibility, and intelligence analysis and collection requirements. It also
ensures that the NMIC represents maritime intelligence polices and cross-cutting
issues to the broader federal interagency in a coordinated and integrated
fashion.
Background:
Significant emerging developments within the commercial maritime industry are
affecting global trade and logistics, and, most importantly, port and intermodal
transportation network systems in the United States, and all of North America.
Perhaps the single most important industry driver in terms of trade and
investment dollars is the expansion of the Panama Canal. This $5.25 billion
dollar project (16% of Panama’s Gross Domestic Product (GDP)) is planned to
double this vital waterway’s annual capacity from 300 million to 600 million
vessel tons when the new sections are opened in 2014. The resulting greater
cargo capacity will shift commercial supply chain logistics strategies and
vessel deployments worldwide, and particularly in North America.
More than 15% of maritime
shipping cannot utilize the Panama Canal because the ships are too large for its
original size. Meanwhile the number of even larger ships continues to grow. The
new Panama Canal will alleviate this problem and more than double the size of
current container ship cargos that are able to pass through. The canal’s
expansion will have global ramifications and will increase both cost and time
efficiencies of all-sea routing from Asia directly to U.S. East Coast population
centers vice current West Coast routings coupled with follow-on rail
transportation to the East Coast. Beginning in 2014, so-called “mega-ships”
[with a roughly 12,500-Twenty Foot Equivalent (TEU) maximum container capacity],
that heretofore could not use the Panama Canal, will have the choice of sending
cargo to the Ports of Los Angeles or Long Beach for intermodal transshipment to
the interior of the U.S., or transit the canal to proceed directly to ports such
as Houston, TX;, Mobile, AL;, Gulfport, MS; Miami, FL; Norfolk, VA; Charleston,
SC; Savannah, GA; or the ports of New York / New Jersey. As a result, North
America’s intermodal transportation systems will change rapidly. State and
municipal port authorities on the U.S. East and Gulf coasts are therefore
investing hundreds of millions of dollars in expanded port infrastructure to
compete for new business that will result from the canal’s expansion
Working with the
Maritime Industry: To deepen USG understanding and ensure a
collaborative approach to the projected impacts of the canal expansion, NMIC
brought together leading Maritime Industry experts to better inform NIAG’s
government-wide membership. Speakers included: Rear Admiral Richard Larrabee,
USCG, Ret., Director, Commerce Department, New York / New Jersey Port Authority;
Mr. John Vickerman, President of Vickerman Associates, LLC, a firm specializing
in the planning and design of port, intermodal and freight logistics facilities;
and Captain Gordan Evans Van Hook, USN, Ret., Senior Director for Innovation and
Concept Development, Maersk Line, Limited. Some key takeaways stressed by the
panel were the importance of increasing information sharing between the public
and private sectors pertaining to security matters and the vulnerabilities of
the intermodal transportation network, not only to kinetic attacks, but
additionally to the growing threat of cyber attacks which could also interfere
with transmodal shipping.
Increased
Awareness and Collaboration: Attendees were able to increase their
knowledge of the potential impacts of the Panama Canal expansion. The event also
helped foster critical information sharing relationships between the USG and
private sector Maritime Industry partners.