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UNLOCKING ’S POTENTIAL WEALTH CREATION

Unlocking Panama’s potential Traffic through the Panama had been regularly exceeding its capacity, with some owners paying high premiums at ‘auctions’ to have priority of passage. To meet the forecasted increasing demand, a third wider lane, with the world’s largest lock footprint, is to be added. David Tozer, Business Manager of Container at Lloyd’s Register, looks at plans for the construction and subsequent impact on the size of shipping in the future.

The is one of the sometimes resulting in longer 300 million PCUMS tons. This world’s greatest engineering than optimal lock times. figure is expected to recover as achievements. It plays a critical First opened in 1914, today the world’s economic conditions role in facilitating and shaping the canal transports nearly 15,000 improve. Even at these lower global trade and acts as a conduit vessels every year carrying 5% of , the Panama Canal is between the Pacific and Atlantic the world’s seaborne cargo – but running close to 90% capacity. oceans. The dimensions of the it is nearing its physical limit. In During maintenance periods, existing locks have defined a 2007, 312 million Panama Canal some ships are forced to wait whole breed of designs Universal Measurement System in extreme cases for up to a that have been built with a (PCUMS) tons of trade transited week to obtain passage through no greater than 106 feet the canal. Due to the current the narrow artery, costing (32.3 m). These ‘’ ships global economic crisis there has thousands of US dollars a day. have been made to fit tightly been a small reduction in This congestion is expected to into the existing locks, requiring demand and 2009 is forecast to worsen as ships become larger Panamax ships pass through the Locks © PA precise control of the vessel and end with approximately and more numerous.

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To accommodate larger vessels 100th anniversary of the original constructor Sacyr Vallehermoso, and anticipated growth in opening of the existing canal. the Italian builder Impregilo, the volumes of trade passing After competitive tendering, Belgian company Jan De Nul through it, the Panama Canal the Grupo Unidos por el Canal and local construction company Authority (ACP) has embarked (GUPC) consortium won the Cusa. Two new navigational on an ambitious project to add a contract in July 2009 to design channels will be constructed third lane of locks to the Panama and build the new locks for the to enter the new locks, which Canal, which is planned to price of US$3.12 billion. The will be larger than the originals come into service in 2014 – the consortium consists of Spanish and with enough capacity to accommodate bigger ‘post- Panamax’ ships, thus doubling the amount of cargo transported along the canal. Increasing container capacity The canal expansion involves the construction of two sets of three lock chambers along the canal’s 50-mile length: one at the Atlantic end of the canal, east of Construction of a dyke is one of five projects necessary to excavate the Pacific access channel. Between the Pedro Miguel and Miraflores Locks, 30 million cubic the Gatun Locks and the other at metres of earth needs to be excavated. These explosions on Paraiso Hill in September 2007 marked the beginning of the first project that sought to reduce the height of the hill © Autoridad del Canal de Panamá the Pacific end to the southwest The Panama Canal is 80 km long. The Gatun Locks system enables ships to ascend or descend the 24 m difference in of the Miraflores Locks. Vessels water level. The Miraflores Locks cover a 16 m drop in height currently transit the Panama draught (depth in the water) of channel to the new locks on vessel which has 10 drilling be deepened by 1.2 m and Canal via two shipping up to 15 m. the Pacific end, the widening towers. In total, an extra 8 km widened by an extra 128 m (for lanes; the new third lane will This increase in size will and deepening of existing of channels will be excavated a total of 356 m in the turns). accommodate much larger prompt the development of navigational channels at the to connect the new locks to The maximum operating lake ships. This is important news for post-Panamax vessels sea entrances and the elevation existing shipping lanes. level will also be raised by 0.45 m the container shipping industry, (see post-Panamax container of ’s maximum Around 10,000 workers to provide, on average, an extra which currently dominates the ships) optimised for transit operating level. Gatun Lake is a will be employed on the 165 million gallons of water Panama Canal route in terms through the locks. Shipyards 456 km man-made lake, whose project. Panama’s Gatun per day which will allow about of both number of transits and are already taking orders for surface is roughly 26.5 m above Lake, which forms a large part 1,100 full additional transits capacity. This traffic accounts for such vessels and Lloyd’s Register mean sea level. Together with of the shipping route, will a year. half of the canal´s revenue. is helping the industry to upstream Alajuela Lake, they The new sets of locks will understand the context in which provide all of the freshwater each feature three chambers, these ships will operate. required to operate the canal, similar in configuration to the as well as potable water for existing Gatun Locks, but using residential and industrial use in different technology with regard Engineering . to the lock gates and filling and works The civil engineering emptying systems. The new The whole programme to involved is monumental in scale, chambers, each connected to increase the capacity of the requiring the excavation and three water saving basins, are Panama Canal involves three dredging of some 147 million The civil engineering involved is monumental larger than those in the existing main components besides cubic metres of earth and rock. two strings of locks and will the construction of new lock This is made possible by using in scale, requiring the excavation and allow transit of vessels with a facilities at the Atlantic and – among many large pieces of dredging of some 147 million cubic metres of beam of up to 49 m, an overall Pacific ends of the Canal. There equipment – the world’s largest A schematic of the proposed new locks with water saving basins © IV-Groep/Autoridad del Canal de Panamá length of up to 366 m and a is the excavation of an access floating drilling and blasting earth and rock.

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Lock alternatives are fully retracted into recesses normally carry approximately The new reinforced-concrete in the lock walls and don’t take between 10% to 15% of locks will each measure over a up any additional space when the weight of the gate, the mile-and-a-half in length. The open. They also reduce the remainder of the weight chambers will each be 427 m length of the lock only by their is carried by flotation from long, 18 m deep, and 55 m wide. own width, unlike the mitre strategically located buoyancy A major change compared gates, which project forward into chambers. The upper wagon to the existing locks will be the lock and take up even more is fixed at the top corner of the the type of lock gates used. precious space. gate and rolls along supports Mitre-style lock gates – like on both sides of the length those currently on the Panama of the recess. The other is New gates affixed diagonally opposite at Canal – consist of two leaf The new locks will incorporate the bottom corner of the gate gates. They are analogous to twin gates at either end of each and rolls along the bed of the a set of double doors, except chamber, held in recesses at right lock on crane rails. The gates that they close on to each other angles to the lock wall. Both gate are operated with a winch and at a pitch angle of 2:3. From a recesses are located in specially motor system. When the lock is plan view they form a wedge designed wall monoliths called to be used, the gates are pulled shape in the lock. Always facing ‘lockheads’. Both gates weigh forward, by means of large the incoming water, as pressure roughly 3,000 tonnes and rest diameter wire ropes, sliding builds up they are forced more on wagons at either end which them into the lock. To open tightly into each other and to allows them to roll in and out of them, they are pulled backwards their wall bearings. Mitre gates the lockhead. into the recesses. The time become less efficient at longer The twin rolling gate estimated for the gates to open lengths – there is no lock in the design introduces a valuable or close is around four minutes. world wider than 42 m that uses redundancy to the system. this type of gates. While one of the pair acts as The new locks will incorporate twin gates at When fully open, they the operating gate that retains Easier to maintain fold into the sides of the lock water in the lock, the other acts The positioning of the sets of either end of each chamber, held in recesses and this, in part, is one of as an auxiliary gate that serves as wagons on each gate allows at right angles to the lock wall... both gates their disadvantages. The lock backup when the primary gate for simplified preventive must include gate recesses requires maintenance or is out of maintenance. While the top weigh roughly 3,000 tonnes and rest on in the walls or be wider than commission for any reason. wagon is easily accessible, the necessary for the vessel so as to Each gate has two sets bottom wagon can be taken out wagons at either end that allows them to accommodate the gates (when of wheels (or ‘wagons’) that for maintenance by emptying roll in and out of the lockhead. open) and long enough so that the gates can swing open or close without damaging the vessel. A schematic that shows the proposed new locks with one of the 3,000 tonne gates already slid open © IV-Groep/ The alternative is to use Autoridad del Canal de Panamá Testing the water rolling gates, which have been Lloyd’s Register carried out its ultra-large (ULCS) study selected for the new locks. in association with Ocean Shipping Consultants Ltd, in which it PRINCIPLE OF Open Closed They are equivalent to sliding examined the capabilities of the major container terminals to berth doors, only on a far larger scale. large container ships, as it was understood that this would be one of GATE MOVEMENT Sheave Winch While the principle is simple, the main limiting factors for container ship size. Cable the engineering is formidable. The study determined that ship breadth would be limited by Although these new gates will the reach of most new quayside gantry cranes, meaning ships will be built along traditional lines, be limited to a maximum breadth of 22 boxes abreast on deck. Upper with special treatment of the wagon Draught would be limited to 14.5 m, similar to the design draught Gate closed in Lock chamber Gate open in recess surface to control corrosion, they of today’s largest container ships. Such a ship would have a will also incorporate a number capacity of about 14,000 TEU. ‘TEU’ is a 20 feet equivalent unit that of innovations inspired by more is used to measure the capacity of container ships. A teu container recent locks in Europe that can is 20 feet long, 8 feet wide and 8 feet six inches high. Investment accommodate bigger ships. Lower wagon in ULCS quayside gantries has seen rapid growth recently. Today Rolling gates have several there are about 570 of these gantries in service worldwide. With a advantages over the much older unit cost of about US$8 million they are used by more than 50 of the mitre gates used elsewhere on world’s principal container terminals. A schematic showing the workings of the upper wagon which pulls the gates open and shut (not to scale) the canal. For one, rolling gates

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POST-PANAMAX container ships The term ‘Panamax’ is used to refer to the largest size ship that single propeller. Such ships are now being constructed. Indeed can currently transit the Panama Canal. For a container ship, the the first are now in service, providing the most economical principal limitation is on the beam of the ship which is constrained method of transporting goods around the world. to 32.3 m (106 feet). Ships with a beam greater than this length are Today, the container shipping industry is faced with the referred to as ‘post-Panamax’. challenge of dealing with a vast order book – currently about Until recently, post-Panamax (NPX) container ships have 40% of the size of today’s fleet – which was driven by the world’s been designed to sail at 25 knots. However, the global focus on apparently insatiable appetite for containerisation. Nevertheless, environmental issues and the drive for fuel economy – a large the time will come when new ships will need to be ordered to container ship may carry in excess of 15,000 tonnes of heavy satisfy future demand. At that time, it is likely that NPX vessels will fuel oil – will probably drive down design speeds, maybe to become the workhorse of the longhaul container industry. 22 knots. As fuel consumption is proportional to speed cubed, The enormous scale of the container shipping business, and the this represents a 25% saving in fuel consumption. The reduction vast size of the deep sea vessels that transport the goods, provides in speed will necessitate a re-assessment of sailing schedules, such economies of scale that it is now possible to ship a washing requiring more ships on each ‘string’ if weekly services are to be machine, for example, from Hong Kong to the UK for as little as £10. maintained. Just a few years ago an Ultra-Large Container Ship (ULCS), if built, would have been required to carry about 100,000 tonnes of containers from, for example, China to Europe or the United A visualisation that demonstrates the workings of water-saving basins and the larger locks which will be able to accommodate post-Panamax (NPX) ships States. However, there is little cargo being carried on the ‘back haul’ so many of the boxes are carried empty; it is because of this that there is a great deal of business in carrying low-value, but heavy, cargo from Europe and America to China, such as scrap Each lock chamber in the holds the water in place in the move freight in and out of the paper and scrap metal. Panama Canal’s new set of locks lock chambers to carry out this American Midwest. The consequence of this was that a ship would be deeper will be connected to a group of operation. Tests are currently It is not only container in the water on its return journey to China, with about 118,000 three water-saving basins. The underway to optimise the filling ships and bulk carriers that will tonnes of containers. In other words, the ship would have to be basins will save up to 60% of and emptying system. evolve as a result of the canal designed to predominantly carry scrap. Then, immediately prior the water used in each transit A numerical model expansion, there are also wider to the current financial crisis, China’s thirst for containers became and the remaining 40% will be developed by Deltares, the implications for the bulk liquids, so strong that the majority of boxes were being returned empty, topped up by fresh water from Dutch water technology gas and passenger shipping meaning that the total cargo weight for a ULCS would be nearer The Lloyd’s Register classed CSCL Asia is a post-Panamax container ship Gatun Lake. Without a new institute, shows that water sectors. The new wider locks in 100,000 tonnes. with 8,468 TEU capacity. She is too large to pass through the Panama design incorporating water- quality in Gatun Lake is not Panama will open up the canal Consequently, at that time it became possible to design a Canal today, but the new locks will enable her to use the canal to transit between the Atlantic and Pacific Oceans © CSCL saving basins, the expansion under threat from the new locks, to new, larger ships and will 14,000 TEU container ship that can be propelled at 25 knots by a plans would have doubled water even with waters of different mark the genesis of many NPX consumption. Instead, the new salinities entering the system ship types. locks will use 7% less fresh water and mixing from the ships’ per transit than the existing propulsion systems. locks, despite being 65% larger. BIOGRAPHY – David Tozer The basins work on the David Tozer has a Masters Degree in from the gate’s internal ballast tanks lockheads to house them in The gates are operated by water to 95% of the population simple physical principle of water Market impact University College London, is Lloyd’s Register’s Business which increases the buoyancy, their open position provides electric motors. Two on each gate around the waterway, as well as by gravity alone. The expansion of the Panama Manager for Container Ships. He trained with the Royal Corps taking the weight off the lower for an added benefit in terms offer redundancy, with a third to the locks. When bringing a vessel down Canal is likely to lead to a of Naval Constructors before moving to Newcastle to work wagon and allowing it to be of maintenance. By placing smaller emergency motor able to The canal operation is by from the lake, three-fifths of the complete redefinition of for the British Ship Research Association. He has worked for withdrawn to the surface removable bulkheads in the operate the gates – albeit much itself the most considerable water in the chamber is directed container trades. Research Lloyd’s Register for 25 years in a number of roles including through a strut that links the opening that separates the gate more slowly – should they both drain on water sources. There into the three water-saving by Lloyd’s Register and Ocean ship design appraisal, numerical analysis and research & bottom of the gate to the top. recess and the lock chamber, it fail. is also an increased demand basins. The remaining water is Shipping Consultants Ltd (see development. He developed the Ultra Large Container The strut runs through a hollow is possible to completely empty of potable water for industrial equalised with the water in the Testing the water) suggests that Ship concept in 1999 and is now, as part of his business shaft within the body of the the recess and perform gate and domestic usage due to subsequent lock chamber. To US east coast will benefit development role, investigating the implications of the gate, with enough restraints maintenance in place, under dry Water-saving the increasing Panamanian raise the water level in the lock substantially from the changes Panama Canal development on the future of the container to allow it to carry all the dock conditions. In contrast, basins population and expanding chamber, the process is reversed: and that the expansion forms trades. operational loads and still permit the existing canal gates need Even though the Panama Canal industry. To help alleviate water is released from each of the a vital element in the likely removal of the wagon. The time to be removed and taken to watershed receives 2.5 metres the problem, the Autoridad three water saving basins, one reshaping of trade patterns. Further information: required for replacement of a a remotely located synchrolift of annual rainfall, storage of del Canal de Panamá found at a time, while the remaining With larger ships able see www.pancanal.com www.lr.org/containerships wagon has been limited to just whenever they require repair or water is a continual challenge. inspiration from in water comes from Gatun Lake, to transit the canal, routes four hours. maintenance, closing down an Gatun Lake and Alajuela Lake are Germany, which use basins that 26.5 m above sea level, or from between Asia and the US The fact that the rolling entire traffic lane and causing reservoirs that, along with the recycle some of the water used the lock chamber immediately east coast will provide the The author would like to thank the Panama Canal’s Engineering and gates require recesses in the severe delays. canal watershed, supply drinking for locking vessels. upstream. A valve system most cost-effective means to Programme Management team for their help in the drafting of this article

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