Week 63 In Global Logistics

Panama Canal NADO Report March 2012

Panama Canal Improvements May Cause Freight Flow Changes – The Panama Canal Expansion project may potentially change global freight flows by causing a shift in a percentage of Asian imports to the East and Gulf Coasts. This could affect transportation and economic networks. The National Organization of Development Organizations has released a report to help regional planning organizations prepare to take advantage of the changes.

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Mombasa Port to be Expanded and Modernized – The dredging of the Kilindini Harbour in Mombasa, Kenya will deepen the channel by 15 meters and widen it to 500 meters in order to accommodate larger vessels of up to 4,500 TEUs. Currently, the port can only accommodate ships with an average length of 200 meters and 2,000 TEU. Although the project is expected to be completed in August, the work will be completed this month instead. As a result, the Kenya Port Authority is facing new pressures to expedite the expansion and modernization of the Mombasa port.

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Reverse Logistics in Cuba – In Cuba businesses are forced to deal with extreme resource scarcity where a lack of food, medicine, electricity, and raw materials is a daily struggle. As a result, Cuba has created supply chains that re-use and re-cycle almost everything, despite the lack of government-mandated recycling programs. This adaptation to recycling may be the type of closed loop supply chains need in the future.

Read more from Supply Chain Management Review

South Texas Alliance for Regional Trade – The ports of Corpus Christi, Laredo and San Antonio are working on ways to begin their land-sea-air joint marketing initiative, the South Texas Alliance for Regional Trade. The initiative was created in 2011 after the ports came to a consensus to build working relationships that could facilitate trade. The Alliance would market South Texas’ energy, aerospace, manufacturing, consumer and military industries, among others, to the rest of the world through Corpus Christi’s water connections and air and land connections in San Antonio and Laredo, which is the largest inland U.S. port.

Read more from Caller