Panama Canal Relies on Louisiana Grain Infrastructure

By Mike Danna
Louisiana Farm Bureau Federation Public Relations Director

An official of the Panama Canal told a group of Louisiana farmers traveling here that the state’s grain export infrastructure is essential to global commodities shipments through the Central American country.

During Friday’s briefing with members of the LSU AgLeadership Development Class 13, Havier Ho, a grain shipment resource manager for the Panama Canal, said grain facilities like Bunge in Destrehan, the Louis Dreyfus facility in Port Allen and elevators in Convent and Reserve are critical to meeting world demand for corn, wheat and soybeans.

“China is expected to increase its grain imports in 2014 and those facilities along the (Mississippi) River in Louisiana are very, very, very important to us here in the Canal,” Ho said.  “We know those facilities will be called upon to continue to provide grain for much of the export world.”

Ho, who attended both Southern and LSU in Baton Rouge, said grain is the No. 2 commodity shipped through the Panama Canal, second only to container shipments, which usually carry consumer goods.  He said 65 percent of all cargo ships passing through the Canal either originate in or are bound for the U.S.  Petrochem products are No. 3 in transport volume.

Opened in 1914 the Panama Canal bills itself as the “Way to the World.”  Built at a cost of $400 million, more than 9 billion tons of cargo moves through the Canal today.  The Canal generates shipping revenues of $6 million per day.

A new, larger lock is being constructed on the Atlantic side of the Canal.  The new lock will be able to accommodate the world’s largest ocean-going cargo ships.  As the world’s middle class grows, particularly China’s, the demand for TVs, cars, appliances, toys and other consumer products is increasing exponentially.

The current expansion, begun in 2007, will cost $5.3 billion and is funded by 500 banks around the world.  Construction companies from 11 countries are working around the clock to complete the project by 2015.

The class toured the Canal in the morning and many were struck by the size of the Canal and its operation.  Just as we arrived a large container ship was making its way through the Mira Flores Lock.  In the time we were there, about three hours, six ships had passed through the Mira Flores, being pulled along by cable trains.

So far the class is holding up pretty well.  We hit the gift shop at the Canal where Donnie Wooley bought a Panama hat.  Not many of us can say we bought a Panama hat in Panama at the Panama Canal.  And it was made in Ecuador, where the Panama hat originated.

As we were leaving the Mira Flores Lock we were informed the A/C on the bus stopped working.  Not good in 90-degree weather.  (Although I’m sure we’ll get no sympathy from the folks back home contending with snow and ice.)  After about an hour a new bus arrived and took us to the Atlantic side of the Canal.  There we had lunch, but because of our delay the shopping for the afternoon was cancelled. (Again, no sympathy, I’m sure.)

Tomorrow we check out of the Hotel El Panama and travel to Santiago.  There we’ll visit a cattle operation.  Thanks for the posts and comments.  We’ll do our best to keep them coming from our end.

Until next time…