How much did the new Panama Canal cost?

How much did the new Panama Canal cost?

The Panama Canal cost around $375,000,000 to Americans, including the $10,000,000 paid to Panama and the $40,000,000 paid to the French corporation. It was the most costly building project in the history of the United States at the time. Fortifications cost an additional $12,000,000. The total cost of the canal was $487,000,000.

It took 5 years to complete the project from start to finish. The Panama Canal opened on August 13, 1914. It replaced the old canal which had been built by the French from 1881 to 1904. The new canal cut waterway times by more than half from about 22 days to about 7 days. This made trade between the Americas and Asia possible for the first time. Before its construction, most ships had to stop at South America or North America to repair their hulls and then start again across the ocean. After its completion, any ship of a reasonable size could sail directly from Europe to Asia without stopping at all!

In addition to reducing shipping time, the new canal also reduced shipping costs. Before its construction, most ships were owned by merchants who would sell them to raise money under the assumption that they would earn enough profit shipping goods between countries to pay off the loan. But after its construction, large commercial vessels became popularized as ships, owners no longer had to pay up front for them but instead rented them out to traders who hired them for a certain period.

How much will it cost to widen the Panama Canal?

The total cost of the canal enlargement project might approach $7 billion. Panama had projected that the total renovation would cost $5.2 billion, with new broader locks and deeper channels allowing larger ships to pass through the 50-mile waterway created more than a century ago. The final price tag is expected to be about $6.5 billion.

The project was announced by President Ricardo Martinelli in April 2012, just months after he took office. At the time, he said that the work should be completed by 2016, at a cost of $3.5 billion. But construction has already started on some fronts and many observers expect it to be far more than that.

"It's going to be very expensive and take very long," says Andrew Smith, professor of international relations at the University of Pittsburgh. "But it's needed if Panama wants to remain an important player in global commerce." The goal is to make the canal zone an economically viable alternative to the Suez and St Lawrence Seaways in terms of shipping volume, says Mr Smith.

The first section of the new canal is scheduled to open in early 2015, when larger cruise ships will be able to enter. The entire project is expected to be finished by 2045.

About 100,000 people are expected to be directly affected by the project. They include dockworkers, shipbuilders, engineers and others.

Was the Panama Canal good for Panama?

Clearly, despite the fact that the canal was built in Panama, the country did not gain much from the time period in its economy. The project cost 4.8 million dollars (plus 6% interest) and was entirely funded by Panamanians, despite the fact that it was the initiative of the United States.

During construction, many workers lost their lives. Although this number is little compared to other projects at the time, it still represents a large proportion of the population. At the end of the day, only 12 people were responsible for building this important piece of infrastructure which allowed ships to travel faster between the Atlantic and Pacific Oceans. They received plenty of money but they spent it all on luxury goods and didn't save any money for themselves or the country.

In addition to being expensive, the canal also caused environmental damage. By cutting off land connections between the oceans, it made it easier for sea water to enter local rivers, causing ecological problems for locals who depended on these waterways for fishing and irrigation.

Finally, the canal benefited foreign companies more than anything else. American and European businesses gained from the presence of so many shipping lanes in one place, but Panamanian businesses ended up with fewer customers since most ships used the canal instead of traveling around South America.

In conclusion, the Panama Canal was a huge investment for the United States but it wasn't very beneficial for Panama.

How much did the Suez Canal cost?

In 1870s money, the Suez Canal cost roughly half a billion francs to build. The canal firm receives several noteworthy legacy payments, such as 120,000 gold francs every year provided to the Lesseps family. Interesting. Also received by the family in return are two large paintings by French artist Jean-Louis Forain. One of these paintings is displayed at the Musée de la Canne in Le Havre, France.

The canal was designed by Ferdinand de Lesseps, an Italian who had no experience in engineering but rather in politics and business. Lesseps managed to gather the necessary funds for the project by selling shares that would yield a substantial profit once the canal was completed.

The canal was opened on November 17, 1869. It was a huge success and proved to be very profitable for its investors. By 1914, the total value of the Suez Canal Company was estimated at $150 million ($1.5 billion in today's dollars).

Lesseps died in 1912, a wealthy man. His son Maurice took over management of the company and built more ports along the canal route to increase traffic. In 1956, the government of Egypt took control of the Suez Canal Company and continues to manage it today.

The canal has been renovated several times since its opening but it remains an expensive undertaking.

About Article Author

Mike Guido

Mike Guido is a self-employed contractor and building inspector. He's been in the construction industry for over 15 years, and worked his way up from general labourer to foreman. Mike takes pride in his work and always tries to do his best when it comes to overseeing projects. He loves the challenge of working with new people and learning new things, which makes each day different from the last.

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