WHAT IS IMPACT OF PANAMA CANAL WIDENING?

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WHAT IS IMPACT OF PANAMA CANAL WIDENING? Introduction One hundred years ago, in 1914, the Panama canal was opened. At the time it was the biggest American engineering project. Ever since it has played a major role in world trade (about three percent global cargo pass through the canal 1). The major widening project (5.4 billion US$) commenced in 2008 and is expected to be completed in 2015. This would enable larger vessels to transit the canal, up to three times size. The Panama Canal Authority has come up with requirements for the vessels to transit the canal. This paper outlines the need and the process for undertaking such modification and preparing the booklet for submission and approval prior vessel calling. 1 Panama Canal Authority. 2014 Annual Report. Available at: http://www.pancanal.com/eng/general/reporte-anual/2014/pdf/annual- report-2014.pdf Navgathi Page! 1 of 6!

Value Creation SHORTER ROUTE FOR US EAST COAST The biggest benefit of the canal if for US east coast bound cargo (mainly from East Asia) which instead of going around the Cape of Good Hope or westward via Suez Canal can now go though the Panama Canal. As seen in the figure below, the current size limit of Panama canal (vessel in red) is about 4500 TEU. Vessels of up to three times the current size can pass through. This opens a wide range of possibility for the trade pattern. Refer Appendix 1 for understanding the impact on the various types of ships. Navgathi Page! 2 of 6!

Procedure The dimension limitation of the old and new Panamax vessel is shown below. Size Existing Panamax New Panamax 1. Pilot Platforms and Shelters Pilot platform and shelters with dimensions 1.5 x 1.5 area and headroom of 2.1/2.25 m to be provided on bridge wings. Length (m) 294.13 366 Beam (m) 32.31 49 Draft TFW (m) 12.04 15.2 TEU 4,500 13,000 FLOW CHART The summary is given below. Study Vessel drawings to list non- compliance 2. Protrusion Protrusions - cargo or extensions beyond the ship s side located 16.4 m or less above the waterline is not permitted. If chocks and bitts needed, then under deck stiffening and approval from class Prepare the ACP docket with all documents PROCESS The first step is to identify the additional requirements to meet compliance. The list of requirements are as follows: 3. Visibility requirements The requirement are clearly spelt out in the rules - 1 ship length in loaded and 1.5 ship length in ballast condition (See figure) for all vessels. For container vessels this is 2 ship lengths or 500 m, whichever is lesser. Navgathi Page! 3 of 6!

3. Mooring Arrangements The requirements for bollards and chocks are specified based on the vessels size. Chocks that are specified as single chock shall have SWL of 45.36 T and double chocks shall have SWL of 64 T. For a vessel that is over 173.74 m length or 22.86 m width, the following chocks are required: Bow centerline (double), stern centreline (double) Two double (of centreline not provided) Set 1 (Double 12-16 m abaft of stem) Set 2 (Single 24-28 m abaft of stem) Set 3 (Single 24-28 m forward of stern) Set 4 (Double 12-16 m forward of stern) 4. Mooring Lines, Anchor Vessels are required to have on deck six manila or synthetic mooring lines forward and six aft in good conditions. Each line shall be 75 meters in length and have an eye of 1.5 meters spliced in one end. 5. Wheelhouse The wheelhouse and bridge wings are required to have a list of equipments and facilities like clear safety glass, rudder angle indicators, rpm indicator, VHF trans-receiver. Usually most of these requirements would be met, except some of the devices not being there in bridge wing. 6. Vessel Section The section of the vessel in the canal with all clearance need to be made for both locks. 7,5 55 7,5 9 9 Mooring winches shall be capable of retrieving the lines at 37 meters per minute. Anchors shall be retrieved at rate of 9 meters per minute. HIGH MAST POST 30 M HIGH @80.00 M NEAREST TO THE WALL MACHINERY ROOM BUILDING NO.8 CULVERT VALVE STEM LEVEL 28.70 46.74 HIGH MAST POST 30 M HIGH @80.00 M NEAREST TO THE WALL BACKUP CONTROL BUILDING CULVERT VALVE STEM * EQUILIZATION VALVE STEM LOW LEVEL 16.31 M BOTTOM -1.99 M Navgathi SECTION- UPPER CHAMBER ATLANTIC LOCK Page! 4 of 6! WATER LEVEL LOW 7,5 55 7,5 9 9

Case Study of 4,743 TEU Container Vessel Mission SWL 67T To analyse the requirements to comply with ACP regulations and make modifications if any. Study The vessel was a 1995 built, 4,743 TEU container vessel with a length of 299.95 m and breadth of 37.1 m. DOUBLE CHOCK PC(B) PANAMA CANAL SWL 64T REQUIREMENT * 3564 PANAMA CANAL REQUIREMENT : 3-6 M SINGLE CHOCK PC(A) SWL 46T G SWL 67T C AP 5 10 15 20 25 C.L Initial study identified modifications in many areas. 65Ø NYR UPP.ROLL 1. Pilot Platform and Shelter The vessel did not have a pilot platform and shelter. This need to be added. 65Ø NYR UPP.ROLL 12831 (PANAMA CANAL REQUIREMENT :12-16 M) 25837 (PANAMA CANAL REQUIREMENT :24-28 M) FR.05 DOUBLE CHOCK PC(B) SWL 64T * * SINGLE CHOCK PC(A) SWL 46T FR.22 BŌP(400*) 2. Visibility For each condition of operation (standard draft and trim) the list of container to be removed from the vessel to meet the visibility requirements was identified and listed. MAIN DECK PLAN * Additional single tugboat chocks for vessels 27.73 m in beam and over. ** Vessels will be required to provide single closed chocks located further forward, respectively, than those required by Panama canal requirement of 24-28 m depending on the convenience for Tug operation. MOORING ARRANGEMENT NAVGATHI MARINE DESIGN & CONSTRUCTIONS PVT. LTD. ALL DIMENSIONS ARE IN MM A3 SCALE 1:150 NAV/MSC/MESSINA/OF061 SHEET : 9/10 3. Mooring Additional chocks - 6 single and 6 double were needed to be added in aft and forward part of the vessel. Four number of bollards were also needed to be added. The additional chocks and bollards needed to be installed on deck with additional stiffening underdeck. These stiffening were designed for the worst operating conditions and approved by class (BV). 4. Wheelhouse Few equipments were missing in the vessel bridge wings that needed to be added. These include rudder angle indicators, RPM indicators. 5. Vessel Section The section of the vessel with the Atlantic and Pacific side locks were drawn to see the clearances. About Navgathi Navgathi is a marine design and construction firm with extensive experience in ship design, repair and conversion. They have done new building project management of large oil tankers, container vessels, bulk carriers. Navgathi assists shipowner in all d e s i g n re l a t e d re q u i re m e n t s f ro m s m a l l modifications like Panama canal compliance to major design projects like bow optimisation and vessel widening. Navgathi was founded in 2008 and is based in Kochi, India. E: sales@navgathi.com W: www.navgathi.com T: +91-484-6492607 Navgathi Page! 5 of 6!

Appendix - 1 Container Fleet From the container world fleet list it is clear that the amount of TEU capacity in vessels that can now pass through the Panama canal will double once this is opened. Source: Mercator Source: Alpha Liner (2011 Fleet) The major impact on the widened canal will be in the container segment where the widening can help most of the vessels to transit. Bulk Fleet Many of the small capes can now pass through the expanded canal. Source: Mercator Liquid Bulk Fleet All the current Panamax, Aframax and some of the Suezmax vessels can now pass through the expanded canal. Navgathi Page! 6 of 6!