Re: New Panamax - Good news for CSX/NS? Yes, but...
Author: BOB2
Date: 12-18-2014 - 23:35
Don't believe everything you read, especially if it is a kind of Chamber of Commerce rah rah piece......promoting Florida ports.
Florida and Gulf ports will see increases, not necessarily from west coast diversion, as it is a very long way out of the way, even with Panamax, from China, India, and Japan to many major US markets.
It is more likely Panamax will cause increased trade and improved access to places like Chile. So it is probably a little premature to panic and sell your Berkshire Hathaway, just yet.
Panamax also allows more direct Europe-South American access, which will have little effect on the US. Natural Gas to Europe from Bolivia via Chile is also another potential benefit from Panamax, unless you're Putin.....
Increased US trade with Africa (some of the fastest growing third world economies, of late) will also most likely benefit Florida and Gulf ports, with or without Panamax. And, of course, opening Cuba would also benefit Florida and Gulf Ports. None of this growth would come at the expense of West Coast ports, though.