Impacts on the Logistics Transportation System of Port of Oakland due to Panama Canal Expansion – A Study

Abstract

The study focuses on analyzing the effects of the expansion of Panama Canal on the port of Oakland through seeking answers to three primary questions. At first, what was the speculation in terms of traffic congestion in port of Oakland before and after expansion. Secondly, if the port was ready for expansion before the deadline. Lastly, the magnitude of impact of expansion on the transportation mode (Rail, Air cargo, or trucking). It, then, discusses the various causes of congestion at the other ports such as inclement weather, industrial action, labor shortages and spikes in demand and its implicit, yet implied, effect on the Port of Oakland – 12% increase in vessel traffic and 4.6% rise in total cargo volume. It also presents the cost analysis and time effectiveness of different route alternatives considering the impact of expansion on various transportation modes. Finally, this study concludes with presenting the long-term effects on the Port of Oakland sensing the trend of vessel traffic and cargo volume in near future and noting that, even though Panama Canal provides direct access to east coast ports for Asian shippers on a reliable and cost-efficient way, it trades off the traveling time.