MercoPress. South Atlantic News Agency

Panama Canal expansion begins second half 2007

Work on an ambitious project to enlarge the canal of Panama including three new locks will begin next year making Panama the Americas' most important logistics hub, announced Tuesday the water way's General Manager Alberto Aleman Zubieta.

Last Sunday Panamanians voted on a referendum which supported by a landslide the expansion project of the canal which is Panama's main resource.

Mr Aleman Zubieta said that towards the end of 2007, dredging and excavation will commence under the management, or subcontracting, from the Canal's Authority, ACP, which is responsible for the administration of the canal.

He added that the enlargement project which will allow post-Panama vessels through the water way is scheduled to be concluded by 2014, when the Canal will be celebrating its first century existence.

The canal which was begun by French engineer Ferdinand de Lesseps in the early XX century was finished and inaugurated by United States in 1914.

The expansion project which includes three additional locks in the 80 kilometers long canal is estimated will cost 5.2 billion US dollars. This will be partly financed by raising tolls in one of the world's most relevant water ways for global trade.