THE ISSUE: Panama Canal expansion

OUR OPINION: S.C. wise to secure links with Panama and canal

Jafza International made clear its selection of Orangeburg County for a major logistics and distribution center was in part a product of business forecasts surrounding widening of the Panama Canal.

The historic waterway is being expanded in order to accommodate much larger ships, a development that Jafza and others see as a major boost for ports in South Carolina and Georgia.

The two states have the ground transportation infrastructure and the location between Florida and the North to make our ports ideal points of entry to capitalize on East Coast markets.

The canal expansion project is expected to have an impact on consumer prices in the States. The new canal is to be able to accommodate ships that can carry triple the amount of cargo as present canal users. With two-thirds of the cargo passing through the canal going to and coming from the United States, the impact is significant. Bigger loads should mean less transportation costs — and lower prices.

No longer will delivering to Pacific ports and moving cargo across the nation be necessary. It’s too expensive. Going through the canal to Charleston or Savannah, moving the cargo to logistics centers such as Jafza’s and transporting out by truck will be the order of the day. More efficient, more timely.

For its part, the state of South Carolina sees the significance of canal expansion.

Juts recently, the South Carolina State Ports Authority renewed a memorandum of understanding with the Panama Canal Authority.

The Canal Authority announced the three-year agreement means the agencies will work in joint marketing efforts and exchange data and market studies.

The idea is to increase business for both the canal and South Carolina ports.

A number of products, including household goods, furniture and machinery, are shipped through the canal to and from Charleston.

The agreement extends an understanding first signed in 2003 — and makes South Carolina a continuing player as the state awaits completion of the canal expansion.

You must be logged in to comment.