Speeches 2007
May 7, 2007
Remarks by the Honorable Mary Peters, Secretary of Transportation, at Expotrans 2007 Conference, Panama City, Panama
Buenos días, y muchas gracias por su invitación a ExpoTrans. Good morning, and thank you so much for allowing me to be a part of ExpoTrans 2007.
Ambassador Sosa, Secretary Slater, it is an honor to join you here today. Let me congratulate you and the U.S.-Panama Business Council on an outstanding program. The businesses here today are true ambassadors for the United States. On behalf of President Bush, I thank you for everything you do to further the already warm relationship that exists between our two nations.
This forum provides a wonderful showcase for what U.S. businesses can offer as Panama builds up its transportation network to support a booming economy at home and as it expands the Panama Canal to meet the growing demands of the global economy.
There is clearly a lot of excitement among the business community – among people in this room – eager to be part of the $5.25 billion Canal expansion. U.S. companies have enormous interest in the progress of the Canal modernization, and have a lot to offer, both in the management of large projects and in participating as partners and subcontractors.
It is not just the Canal itself. As ports on both sides of the Canal expand, opportunities open for construction and for a wide variety of the products and services American companies are known for – everything from maritime equipment, electronics, hydraulics, and navigation aids to security systems, dredging, and computer technology and information management.
Part of my mission today and tomorrow is to share that point with senior officials here and to encourage them to consider seriously your interest. My message to these leaders will be clear – continuing to open doors for U.S. transportation companies will strengthen Panama’s role in the global marketplace and bring greater prosperity to the people of both our nations.
There is no transportation project in the world today as crucial to the success of our two economies as plans to expand the Panama Canal. That is because it lies at the fulcrum of the world trading network, connecting east and west.
President Bush met with President Torrijos at the White House in February. They discussed Panama’s plans for the third lock system, as well as the importance of opening and promoting trade between our two countries.
President Bush believes very deeply that when trade barriers are removed, greater opportunity and prosperity follow. And he is right. Removing barriers will bring opportunities for new levels of cooperation between our countries, and our businesses.
When it comes to transportation, the United States and Panama have a long history of cooperation. A good example is the shared research that produced a modern satellite-based control system for the Canal Authority and our St. Lawrence Seaway, which operate very similar locks. The system is credited with reducing accidents and helping the Panama Canal Authority achieve an all time safety record, even with dramatic increases in the tonnage moving through the Canal.
U.S. businesses also are contributing to Panama’s economic success. SSA Marine has invested more than $200 million in the Manzanillo International Terminal. I will be visiting the SSA/MIT terminal tomorrow to get a look at the expansion taking place there. It is an outstanding example of how governments and U.S. businesses can work together to expand and support global trade.
Like the SSA/MIT Terminal, the Canal expansion creates exciting opportunities for U.S. companies. It is important that Panama be able to draw on the resources and expertise U.S. businesses have to offer as it adds a wider and deeper channel to the Canal.
No one ships more through the Panama Canal than the United States. Approximately 69 percent of all Canal transits are departing from or heading to our ports. A U.S. Department of Transportation report issued in April shows that one in every nine maritime containers in the world is either bound for, or coming from, the United States. Increasingly, much of that container traffic will come on larger, deeper-draft vessels.
Unfortunately, these vessels cannot fit through the Canal’s locks.
As ports like Los Angeles and Long Beach on our western seaboard become more congested, growing numbers of containers are now coming through U.S. ports in the Gulf of Mexico and the Atlantic coastline. But without the wider, deeper locks envisioned as part of Panama’s ambitious plan, these new container ships will be forced to take their cargo elsewhere. That will deprive Panamanians of vital revenue and needlessly drive up the cost of U.S. products.
When it is built, the new Panama Canal lock system will open alternatives to crowded West Coast ports like LA-Long Beach. Super-sized container ships will be able to use the Canal as they head to America’s eastern ports and Panama will retain and grow its share of maritime business.
Our companies are well positioned to help make Panama’s plans a reality. Together, we can make sure that this narrow isthmus helps bring our global marketplace closer together instead of farther apart.
When the locks opened in 1914, the Panama Canal transformed world trade patterns, providing a short-cut between the Atlantic and Pacific Oceans. Now, history stands to repeat itself when the third lock system opens in 2014, giving a new generation of ships an efficient way to get their cargos across the Americas.
Much has changed since the original locks were built, including ownership of the canal. Today, Panamanians can be proud of the world-class business operation carried out by the Panama Canal Authority.
The Authority is to be commended for the open, efficient, and transparent approach it is taking. The bidders conference in March drew 600 people from 222 companies and 31 nations, including some of you. I am, of course, delighted to see that U.S. firms want to support the Panama Canal Authority as it moves forward on this important project.
One hundred years ago, the Panama Canal was acclaimed as an engineering marvel. With the technologies and talent represented in this room, we have the opportunity to help build an engineering marvel for the 21st Century and bring greater prosperity to the people of both Panama and the United States.