Project would build third set of locks

The Panama Canal Authority has proposed to double the capacity of the canal in a $5.25 billion expansion project. Under the plan, a third set of locks would be constructed, which would allow box ships up to 12,000 TEUs to traverse the canal. Currently, the Panama Canal can only accommodate ships of about 5,000 TEUs.

The project would be paid for by toll increases that are expected to run about 3 percent annually over the next 20 years, said an official with the Panama Canal Authority.

The agency estimates that the expansion could be completed by 2014, the centennial of the opening of the canal.

President Martin Torrijos and his cabinet are now reviewing the proposal, which then goes before the National Assembly. The assembly must then pass a law requiring a referendum, which could take place in the fourth quarter of this year.