With the recession showing signs of ebbing, Gulf of Mexico ports hope hundreds of millions of dollars in expansion projects proposed before the downturn will help them capture more trade as the world economy recovers. A US$5.25 billion project to expand the Panama Canal will allow the largest container ships to cut through to the eastern side of North America — and perhaps cut into the dominance of West Coast ports handling freight from Asia. The Panama Canal project, approved by Panamanian voters in a 2006 referendum, involves construction of two larger locks expected to double the 50-mile canal’s capacity within 20 years. An Alabama Port Authority executive said he believes the Gulf Coast will eventually be a lower-cost alternative to the West, despite the additional 4,500 miles ships from Asia have to travel to reach the Gulf of Mexico.
