Panama canal awards the largest expansion contract thus far

Paving the way for construction, the Panama Canal Authority (ACP) awarded the third and largest expansion contract to dredge the Pacific sea entrance. The ACP kicked off this next phase of expansion awarding the contract to Dredging International.

The dredging of the Pacific sea entrance is essential to provide enough draft and width for longer, wider ships to pass and enter the new locks.

As the third and largest expansion program contract in terms of volume, geographical spread and price awarded to date, the selection of Dredging International is a critical next step in the creation of the new lane. This is a solid, top-tier global dredging firm with the know-how and equipment we need to commence the job at hand and complete it on-time and within budget,?said ACP Executive Vice President Engineering and Program Management Jorge Quijano.

He received bids from the industry dredging leaders and now we look forward to issuing the order to proceed to Dredging International over the coming days so that they can begin their mobilization effort promptly.

The ACP released its Request for Proposals (RFP) for the contract August 30, 2007, and previously held site visits and an informational session to answer questions regarding the project.

On March 19, three bidders from two countries submitted proposals to dredge the Pacific sea entrance. After a thorough review of the lowest priced proposal, the ACP awarded the contract to Dredging International.

The Expansion Program will build a new lane along the Panama Canal through the construction of a new set of locks that will double capacity and allow more traffic and longer, wider ships.

<Korea Shipping Gazette>