Why are waterways important for trade

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File photo used for representational purpose. The Panama Canal, which takes between 6 to 8 hours for ships to transit provides a reduced route from the Far East to the US East Coast of around 3, miles km. With growing trade between East and West due to manufacturing in the East and a growing middle-class in Asia with a demand for Western goods, there has been a sharp rise in the number of vessels navigating these canals. The increase in shipments has led to delays, whilst, at the same time, there has been a dramatic increase in the size of the modern ships being built, to the extent that many are too large to navigate the canals.

As such, steps have been taken to improve these important shipping channels to cope with the increased demand, through the largest expansion projects on both the Suez and Panama since the initial construction of either canal. On the Suez Canal construction was undertaken to develop a new channel parallel to the original to allow for separated passing of ships.

Investment on both canals has been made to increase operating capabilities and to obtain a competitive edge over the other. The operation of a productive canal system has positive effects on the surrounding community.

Economic investment in the expansion and development of ports and supporting infrastructure in countries within the vicinity of the canal brings with it jobs. And in the instance of the World of shipping, it appears that size really does matter. Due to the limitation on the size of ships capable of passing through the Panama Canal prior to expansion, Maersk took the decision in to move all shipments to the Suez Canal as it worked out more cost effective to put 1 x 9, TEU through Suez as opposed to 2 x 4, TEU through Panama.

From there, a ship can continue south to an ocean port in Chittagong or Kolkata or travel west to inland Indian ports on the Ganges River. The Government of Nepal also recently opened its own inland vessel registry. Many sections of rivers need to be dredged and deepened before ships can use them.

In response, the Government of Bangladesh and the World Bank are working together to improve the navigability of kilometers along the Chittagong-Dhaka-Ashuganj corridor and connecting waterways. Passenger terminals at Sadarghat, Narayanganj, Chandpur, and Barisal are being upgraded to provide safer facilities and greater access to transport services, especially for vulnerable groups such as women, children, and the elderly.

In India, a major project is underway to improve the navigability of the Ganges River from the inland city of Varanasi to Haldia, an eastern seaport 1, kilometers away. However, less than one percent of that cargo is now shipped via water. Transportation planners aim to boost that to 10 percent when the waterway improvements are completed. Rail or road shipments take longer, less efficient routes that add costs.

Six cargo terminals will link the river with highways and a rail freight line to move goods to markets in India and abroad. Additional funding came from the United Kingdom and Australia through a trust fund promoting South Asia regional trade. The environment may also benefit from fewer greenhouse gas emissions when goods and people are transported by water instead of trucks. This workforce is relied upon to meet surges in shipping needs in the advent of emergencies.

The merchant marine has played a historical role in military conflicts. In , the Maritime Security Act established the maritime security program to support a fleet of U. The inland waterways are also a national security asset. The Jones Act required domestic waterborne commerce to be transported in vessels built in the United States, documented under U.

Many other countries have similar laws restricting foreign access to domestic trade shipped via waterways. The MTS is also vital to national security. The ability to rapidly deploy troops and materials worldwide is critical to the country's defense.

The Voluntary Intermodal Sealift Agreement VISA is a standby agreement intended to make commercial, intermodal dry cargo capacity and supporting infrastructure available to meet contingency deployment needs of the Department of Defense. Since World War II, approximately 95 percent of all military equipment and material sent to combat and crisis areas was ship cargo transported by ocean vessels. For example, during the Persian Gulf War — , nearly all domestic supplies intended for U.

Marine transportation is an important use of the ocean. Increased demands will be placed on U. These increases in the use of waterways and port facilities must be achieved while still protecting human health and the environment. Bauer, K. Hershman, Marc J. Urban Ports and Harbors Management. Hill, Forest G. Kendall, Lane C. The Business of Shipping. Marcus, Henry et al. Federal Port Policy in the United States. Great Lakes and Seaway Shipping. Navigation Data Center.

Army Corps of Engineers. Port Totals by Type Service. Army Corps of Engineers and Department of Transportation. What is the Marine Transportation System? Department of Transportation. Toggle navigation.