The head of the
Panama Canal Authority has said that on a Miami-based arbitration board
rejected a demand by Spanish-led GUPC consortium for $192.8 million to cover
cost overruns during the building of a third set of locks for the century-old
GUPC or Grupo Unidos por el Canal includes Sacyr SA of Spain,
Impregilo of Italy, Jan De Nul of Belgium and Constructura Urbana of Panama.
The authority’s chief executive, Jorge Quijano, announced the
ruling in a post on his Facebook page.
“We have been informed that we have won a major arbitration
dealing with the expansion of the canal by the GUPC contractor for $192.8
million,” Quijano wrote in a post.
The $5.4 billion expansion of the Panama Canal was completed in
The Panama Canal Expansion was the largest infrastructure
project since the Canal’s opening in 1914. Considered and analyzed for a decade
with more than 100 studies, the Expanded Canal provides the world’s shippers,
retailers, manufacturers and consumers with greater shipping options, better
maritime service, enhanced logistics and supply-chain reliability,
Since its inauguration on June 26, 2016, the Expanded Canal
increases the waterway's capacity to meet the growing demand of maritime trade
using larger vessels, which means that the Panama route provides important
economies of scale.
The Expansion included the construction of a new set of locks on
the Atlantic and Pacific sides of the waterway, creating a third lane of
traffic and doubling the cargo capacity of the waterway. It also included the
creation of the Pacific Access Channel, improvement to the navigational
channels, and improvements to the water supply.
While the expanded locks are 70 feet wider and 18 feet deeper
than those in the original Canal, they use less water due to water-savings
basins that recycle 60 percent of the water used per transit. In line with its
commitment to customer service, the Panama Canal will continue to provide the
world with value for another century and beyond.