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Dredging and quay works begin at PPIT as part of Panama's expansion project

CONSTRUCTION of an 800-metre quay and dredging works have begun at PSA Panama's International Terminal (PPIT) as part of a US$450 million expansion project to boost the facility's capacity to 2 million TEU.

The expansion, which was approved by Panama's National Assembly earlier this year, is scheduled to be made operational in the first half of 2017.

The dredging work involves the excavation of 4 million cubic metres of material, as well as the construction of an 800-metre quay wall. When fully operational, PSA Panama will be able to handle two mega ships simultaneously.

New container handling equipment to be added includes eight new super-post-Panamax quay cranes as well as 12 rail-mounted gantry yard cranes. All in, the expansion will be achieved at an investment cost of approximately US$450 million dollars.

After six months of design and tendering process, the first contracts have been awarded to Jan De Nul and Saipem - construction contractors headquartered in Belgium and Italy respectively.

"We are pleased to partner Jan De Nul and Saipem in the construction of this new expansion phase. Our combined expertise will help ensure the building of a more robust terminal infrastructure at PPIT," said PSA Panama General Manager, Alessandro Cassinelli.

Head of Latin America for PSA, Enno Koll, said: "Panama is a key node in the Latin America and plays an important role in facilitating and growing regional trade and commerce. The expansion of our terminal in Panama's Pacific coast is testament to PSA's commitment to this region".

"PPIT's expansion gives shipping lines the peace of mind that there is enough capacity on the Pacific side of Panama for the foreseeable future and enables us to capitalize on the opportunities that the expanded Panama Canal brings".

The project will generate an estimated 1,000 jobs during the two years of construction, and at least 400 additional long-term jobs for the operation of the expanded terminal.

Located on the western bank of the Panama Canal's Pacific entrance, the current terminal opened for business in 2010 and currently offers 330 metres of berth length, 450,000 TEU annual capacity, served by three quay cranes and nine yard cranes, and is one of the most productive terminals in Latin America.