EXPANSION PROGRAM COMPONENTS Third Set of Locks The project consists of the design and build of new Post-Panamax locks in the Pacific and Atlantic sides of the Panama Canal. Each complex will feature three chambers, nine water-saving basins, a lateral filling and emptying system and 16 rolling gates. Pacific Access Channel This project undertakes the creation of a new access channel north of the Third Set of Locks on the Pacific side. It was divided into four phases (PAC 1-4) and entails the excavation of approximately 5 million cubic meters of earth or various geologic materials along 6.1 kilometers. Improvement of the navigation channels This component includes dredging of both entrances to the Canal and the course of the Culebra Cut and Gatun Lake. Improvement of the water supply These works will allow a 45 centimeter rise of the maximum operating level of Gatun Lake which will increase the Canal s water supply and reliability of its draft. 2 1. Atlantic entrance dredging 2. New Atlantic locks 3. Gatun Lake
PROJECTS The Panama Canal Expansion Program registers 81.6 % overall progress, as stated in the October 31, 2014 Report to the Nation. PACIFIC ACESS CHANNEL 43.8 M m³ excavated of 49 M m³ Progress as of October 31, 2014: 81% The 2.3 kilometers-long Borinquen 1E Dam is built west of the Pedro Miguel Locks. The dry excavation of a new channel to connect the Third Set of Locks with the Culebra Cut started on September 2007, when the expansion works were officially inaugurated. This project was divided into four phases: the first three have concluded successfully. The fourth and last is performed by the ICA-FCC-MECO consortium and it was awarded on January 7, 2010. A vital part of this project is the construction of a 2.3 kilometer-long dam to make up for the 9 meters difference in levels between Miraflores Lake and the new channel. Made of rock and an impermeable clay core it will separate the two fairways. Borinquen 1E its given name will be located west of the Pedro Miguel Locks. The dry excavation has required the clearing of 400 hectares of land contaminated with unexploded ordnance (UXO) left behind by the US military during its deployment in the Panama Canal Zone. 4. Culebra Cut entrance/exit 5. Pacific Access Channel 6. Miraflores Lake 7. New Pacific Locks 8. Pacific entrance dredging 3
DREDGING To guarantee the safe navigation of Neo-Panamax ships along the Canal s route, the Expansion Program included dredging projects on both oceanic entrances, Culebra Cut and Gatun Lake. The deepening and widening activities on the Atlantic and Pacific entrance have already concluded. Trailing suction hopper dredger De Boungainville removed material on the Atlantic entrance of the Panama Canal. Pacific Entrance 8.6 M m³ dredged Contract award: April 7, 2008 End of contract: July 31, 2013 This contract was awarded to the Belgian company Dredging International Panama, S. A. (DI). The project consisted of deepening the Canal s Pacific entrance to 15.5 meters below mean low water level and widening it to 225 meters. It also entailed the partial construction of the south access of the new locks. For this project DI deployed the powerful dredgers D Artagnan, Vlanderen XI and Lange Wapper. Atlantic Entrance 17.6 M m³ dredged Contract award: September 25, 2009 End of contract: October 4, 2013 Jan De Nul n.v. (Belgium) won the tender for this contract. It dredged 13.8 kilometers and widened the current navigation channel on the Atlantic entrance to a minimum of 225 meters and the access channel to the new locks to a minimum of 218 meters. An option to increase the depth from the established 15.5 meters to 16.1 meters was exercised in this contract, meaning an additional volume of 2.3 million cubic meters was dredged. A great variety of equipment was deployed simultaneously, among them the trailing suction hopper dredger Fillipo Bruneleschi and cutter suction Marco Polo. The operation concluded on January 30, 2013 when the Neo-Panamax dredger Charles Darwin removed the last high points of the expanded access. 4
CULEBRA CUT AND GATUN LAKE 24.3 M m³ dredged of 26 M m³ Progress as of October 31, 2014: 88% This project calls for the removal of subacuatic material to deepen and widen the navigation channel in the Gatun Lake and the Culebra Cut. Works for the latter were concluded by the end of 2012. Activities on the lake are mostly carried out by personnel and equipment of the Panama Canal Dredging Division, however they count with additional support from dredgers Il Principe y Cornelius, both rented from Boskalis Panama S.A. Remaining works were awarded to contractors Jan De Nul n.v. (North access to the new locks on the Pacific, finished on November 2012) and Dredging International (reaches at the north of Gatun Lake, finished on March 2012). The Dredging Division continues dredging on the lake using the hydraulic dredger Mindi, mechanical Rialto M. Christensen, cutter suction Quibian I and backhoe Alberto Aleman Zubieta. Thirty-three new sailing range towers have been installed along 38 kilometers of Gatun Lake, from Gamboa to the Atlantic locks. RAISING GATUN LAKE S MAXIMUM OPERATING LEVEL The Lake s level will increase 45 centimeters. Progress as of October 31, 2014: 93% This component of the Program consists of raising Gatun Lake s maximum operating level from 26.7 meters to 27.1 meters to improve the Canal s water supply. This improvement will increase the reservoir capacity by 200 million cubic meters of water, thus adjustments and modifications will be required to the structures of the existing locks. The 14 gates of the Gatun spillway have been extended to contain the new level and two additional gates were built at the Canal s industrial dry dock. In 2014, 32 hydraulic cylinders for the gates-opening mechanism were replaced on the Gatun and Pedro Miguel Locks to install new waterproof units. 5
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DESIGN AND CONSTRUCTION OF THE THRID SET OF LOCKS Conceptual design of the Thrid Set of Locks. 41.6 M m³ excavated of 48.7 M m³ Progress as of October 31, 2014: 78% The design and construction of the Third Set of Locks is the largest and most complex project under the Expansion Program. With a cost of B/.3.2 billion, the contract is carried out by the consortium Grupo Unidos por el Canal, S.A. (GUPCSA), formed by Sacyr Vallehermoso, S.A. from Spain; Impregilo SpA, from Italy; Jan De Nul n.v., from Belgium, and Constructora Urbana, S.A. from Panama. The project involves the design and construction of two lock complexes, one on the Pacific and the other on the Atlantic side. Each will have three chambers, nine watersaving basins, a lateral filling and emptying system and a redundant system of rolling gates. The design of the Third Set of Locks, like the fabrication of some of its components, are developed in several parts of the world. In Italy, Cimolai S.p.A. fabricated the 16 gates that have already been delivered to Panama. South Korea, Hyundai Samho Heavy Industries fabricated 158 valves, 84 bulkheads and 328 trashracks. Their last delivery was on January 15, 2014. To build the new locks, the contractor erected industrial parks on each site for the concrete and aggregate production. The rock extracted from the Pacific side excavations basalt is used as aggregate and sand for the concrete mixes on both sites. EXISTING LOCKS Maximum capacity of transiting vessels 4,400 TEU 294.1 m 33.5 m NEW LOCKS Maximum capacity of transiting vessels 13,000-14,000 TEU 49 m 366 m 55 m Vessel draft Lock wall height 30 m 427 m 304.8 m Operating water depth 18.3 m Vessel draft 12.8 m min. Operating water depth The new rolling gates are easier to service. 8
ARRIVAL OF THE ROLLING GATES Six different types of gates were fabricated; their characteristics will depend on their location. The 16 rolling gates to be installed in the Third Set of Locks are in Panama already. Four shipments of four gates each sailed from the port of Trieste, in northern Italy, to Colon, on the Canal s Atlantic side. The first arrival happened on August 20th, 2013; the second on June 10th, 2014; the third on September 7th, 2014, and the last one on November 12th, 2014. The rolling gates system is one of the most significant element of the design and construction of the locks. Its cost of B/.547.7 million includes fabrication, transport and installation. Each one will open and close in five minutes. There will be six different types of gates and their characteristics vary according to where they will be installed. For example, the tallest ones 33.4 meters will be installed at the Pacific entrance of the Canal to resist the significant tidal oscillation. Even though the heaviest gates are 4,242 tons, they were designed with flotation chambers to be able to slide on rails with only 15% of its weight. The unloading and installation of the gates is done with transport vehicles with hundreds of wheels and remotely operated. The gates will be moved inside the recesses before the flooding, allowing installation time of mechanical parts to be reduced once the concrete walls are finished. In the second semester of 2014, the gates were moved to begin their installation. In July, five of them were mobilized to the chambers in the Atlantic locks, and between October and November, other six transited the Canal and arrived at a dock specially designed in the area of Cocoli, in the Pacific. The gates are mobilized with special transport vehicles that are remotely operated. 9
ENVIRONMENT 2 1 3 4 5 6 11 10 7 8 12 9 Environmental activities on the Expansion Program continue with the coordination between contractors and Panamanian institutions, such as the National Environment Authority (ANAM) and the National Authority of Aquatic Resources (ARAP). LOCATION OF REFORESTATION PROJECTS 1. Volcan Baru National Park - 30 ha 2. Chiriqui Viejo River Mangrove - 50 ha 3. Forest Research Center - 100 ha 4. El Montuoso Forest Reserve - 50 ha 5. Omar Torrijos National Park - 150 ha 6. Altos de Campana National Park - 30 ha 7. Camino de Cruces National Park - 115 ha 8. Chagres National Park - 40 ha 9. Tapagra Hydro-Protected Zone, Chepo - 61 ha 10. Bahía de Chame Multiple Use Zone - 59 ha 11. Soberania National Park - Camping Resort - 65 ha 12. Soberania National Park - Aguas Claras - 62 ha PALEONTOLOGICAL AND ARCHAEOLOGICAL RESEARCH To date, more than 5,600 mammals, birds, reptiles and amphibians have been rescued and relocated. As part of the ecological compensation, reforestation with native species continues in 813 hectares two for each hectare affected by the Expansion Program. The ACP has paid B/.3,893,977.85 to ANAM and ARAP for the ecological indemnification of the Expansion Program. The Expansion Program also preserves the cultural heritage. Objects of great value have been rescued from the job sites like a 16th century Spanish dagger, pre- Columbian arrowheads, and bottles dating back to the beginning of the 20th century. In paleontological matters, a contract between ACP and the Smithsonian Tropical Research Institute (STRI) ended in 2012. The result: 8,862 samples of which 5,377 are rocks and sediment and 3,485 are fossils. Fossil finding during the excavation works. ACCOUNTABILITY To fulfill its responsibility of keeping the public informed about the Expansion Program, and in compliance with Law 28 of July 17, 2006, the Canal publishes quarterly progress reports. These contract reports are sent to the Executive Branch, the National Assembly, the Office of the Controller General, and the Ad-hoc Committee (formed by members of civil society). The contents of these reports are available for public review in the Canal Internet page at www.micanaldepanama.com. The Expansion Program has also established a hotline (800-0714) and an e-mail address (ampliacion@pancanal.com) to provide general information about the program. 10
LABOR The Expansion Program has been an important source of new jobs and training for professional in various fields. Since its inauguration, it has directly generated 36,000 jobs. Direct employment in the Expansion Program (until September 2014) contractors and SUB CONTRAcTors panama canal TOTAL FINANCING Accumulated jobs 34,818 1,182 36,000 active jobs 9,519 975 10,494 The Panama Canal Authority signed agreements with five bilateral and multilateral financing institutions to procure financing of up to B/.2.3 billion required to complete the Expansion of the waterway. All of these funds have already been paid out. 11