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Re: Article: Rebooted Panama Canal causes hand-wringing at Port of LA
Author: Espee99
Date: 07-10-2012 - 12:10
It's all about costs, the port, RR, Truckers, etc will need to price end-to-end ground to be less than going through the canal.
Traffic to Europe will go the canal way anyway, what they (LA and LB) want to protect the domestic traffic. If it takes longer to send a container to NY but is less expensive end-to-end, they will lose the business, if the cost with the LA trans-load is cheaper the traffic will stay in LA. Time is not a factor when we are talking only a few days. Most of the traffic is not that critical.
Remember they need to recover the cost of the construction which will raise the toll rates for ships crossing through the canal.
This may be why we will never see double track across Doner, if the ships bypass the west coast the rail traffic goes away, and there is not a business case for the double track investment.
Traffic to Europe will go the canal way anyway, what they (LA and LB) want to protect the domestic traffic. If it takes longer to send a container to NY but is less expensive end-to-end, they will lose the business, if the cost with the LA trans-load is cheaper the traffic will stay in LA. Time is not a factor when we are talking only a few days. Most of the traffic is not that critical.
Remember they need to recover the cost of the construction which will raise the toll rates for ships crossing through the canal.
This may be why we will never see double track across Doner, if the ships bypass the west coast the rail traffic goes away, and there is not a business case for the double track investment.
