Panama Canal Brief

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Report summary

The recent skirmish between the Panama Canal Authority (PCA) and the construction GUPC threatens to delay the completion date of the Panama Canal expansion and could plunge the parties into a legal battle that could take years to resolve. Wood Mackenzie’s current base case assumes that the Panama Canal will initiate expanded operations in January 2016. We ultimately expect the impasse to be resolved; however a lengthy delay portends certain risks to the global trade of oil, gas, and coal.

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