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How expansion of Panama Canal will save costs for Asian trade

According to the latest updates nearly 5 billion US dollars have been invested in the expansion of the Panama Canal which will be ready to handle a new type of ships by early 2016. These ships are being called “Post Panamax ships” (their size is twice as large as the biggest ships ever). These ships will have the capacity of handling up to 15000 containers which is 5000 containers at present.

Some of the main points which will impact Asian trade routes are:

  • Till now Asian trade route has been using ports of Los Angeles, Long beach, Oakland, and Seattle in West coast from where the containers are transported through train/trucks till the East coast.
  • Widened canal will save the costs of the shipments meant for eastern coast as they will have to travel less and can be sent directly to east ports.
  • New eastern ports which will be able to handle Panamax ships are: Miami, Norfolk, New York and Baltimore.


A new ‘ triangular trade route’ is being expected which will be :

  • Flow of Consumer goods from ASIA-NORTH AMERICA
  • Pharmaceuticals from NORTH AMERICA-SOUTH AMERICA
  • Coal and iron ore from VENEZUELA/BRAZIL-CHINA

It can thus be concluded that widening of Panama Canal will save costs for imports/exports of the North America-Asia trade route.

By Kanika Adlakha

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Why Logistics is important for ‘Make in India’

The coming years are projected to be good for the logistics industry if PM’s “Make in India” project takes of successfully. It has rightly been labelled as –“mass production and production by masses”.

Inviting foreign companies to ‘make in India” will require a solid base of the logistics industry as distribution will play a key role after the manufacturing of product.

Some of the important points which will impact Logistics in a big way are being discussed below:

Rail Corridors: If dedicated freight trains can be run on time tables like the passenger trains and the frequency of such trains is increased, then a lot of time will be saved between port and inland cities like between Mumbai-Delhi. Time can be drastically reduced from 60 hours to just 18 hours.

Warehousing: Rail corridors will lead to industrial corridors which can be located on-route. Warehouses can be set up along such industrial corridors instead of being scattered all over the country.

GST: Implementation of GST will be two-fold beneficial. Firstly, it will reduce the overall logistic cost and secondly it will give the option to choose warehouse as per the logistics flow instead of being located in the states which are tax optimal.

Red Tapism: The present turnaround time for a vessel in India is 4 days approximately while it should be maximum 1-2 days as per global standards. If the manufacturer is not able to supply goods on time to his global customers then no foreign company will be ready to come to India. Here, red –tapism is the main culprit which should be removed along with endless documentation procedures.

It can thus be concluded that logistic industry should be put up in right order if “Make in India” project is to succeed.

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