The $5.25 billion Panama Canal project, scheduled for completionin 2014, may take business from ports including Los Angeles and Seattle, and railroads including Burlington Northern Santa Fe Corp. It costs as much as $1,000 more per cargo container to use trains than ships. “It is inevitable that railways, such as Burlington Northern, will lose some of their cargo once the Panama Canal is expanded,” said a Korean shipping analyst. “Many more containers can be moved in a single voyage on a ship than going through the West Coast ports.”
West Coast ports are collaborating with Burlington Northern and Union Pacific Corp. to convince Asian exporters they are better options than the canal for reaching East Coast markets. They cite advantages including deep-water terminals, connections to inland transportation networks, and storage and distribution facilities. Trains also use less fuel, reducing costs and carbon emissions, they said.