Panama Canal agency hints at expansion delay

OREANDA-NEWS. October 01, 2015. The Panama Canal Authority (ACP) is not ruling out the possibility of a delay in a major expansion project resulting from "seepage" in part of the new installations.

The ACP said today that GUPC, the main contractor on the project to install a third set of locks, is preparing a report on the project following the detection of the leak.

GUPC "verbally indicated that the completion date for the Expansion Project will remain April 2016, as planned; however, the ACP is awaiting formal confirmation from GUPC, in the form of a comprehensive report which should also include the root cause of the detected filtrations."

The ACP had said late last month that the project was on time despite the leak.

Citing a recent letter from GUPC, the ACP now says "the localized seepage was the result of insufficient steel reinforcement in the area which was subjected to stress from extreme condition testing. After careful examination of all the other sills in both lock complexes, GUPC stated that in addition to reinforcing the sill that presented the issue, they would also reinforce the first and second sill in the Cocoli Locks and the first three sills in the Atlantic-facing Agua Clara Locks as a preventative measure, though these sills have not presented any issue."

Once expanded, the canal will allow the transit of larger vessels, including LNG tankers.

LNG exports from the US will utilize the canal to ship cargoes to Asian-Pacific and South American destinations, but these are scheduled to get underway late this year, before the expansion is completed.

The leaks are the latest setback for the strategic project, following controversial cost overruns and labor strikes.

GUPC is led by Spain?s Sacyr and and includes Italy's Impregilo, Belgium's Jan de Nul and Panamanian builder Constructora Urbana (Cusa).