New routes in the artic and expansion of panama canal
There is a new paradigm taking place in sea transport in the world. For the first time in the history of the world new arctic route passage has been made possible, thanks to global warming, and the Panama Canal is preparing to play a larger role on world logistics after the United States government withdrew from its management. The new paradigm in sea transport as marked by the increased intention of use of these two routes is embedded in the desire to use short cuts. It is expected that by 2014, the current project to expand the Panama Canal will be completed and more shipment to the United States will be made through the canal. The Panama Canal expansion project is expected to build new locks to the existing one to enable it to handle more ship. Currently the canal is handles about five percent of the world sea transport and it is expected that the expansion of the canal will increase its capacity by more than twenty percent (Alfu, 2009). Analysts estimates that more than forty percent of U.S Shipment from Asia will be passing through the canal (Spears, 2009).
The shortcut through the Artic route will also connect Europe to Asia. This means that apart from looking for efficient transportation system the new paradigms is also looking at opening Asia to the rest of the world. It is recognition of the important role that Asia is playing in development of world trade and hence the need to construct new sea transport routs that will connect Asia to the rest of the world. For example to test the probability of using the Artic shortcut, two German ships have already left South Korea for Rotterdam (Business Monitor Online, 2009). This is seen as a fulfillment of dreams for a shortcut passage between Asia and the West and thanks to global warming this has become possible (Kramer and Revkin, 2009).
However the new paradigm is likely to meet a lot of obstacles. Environmentalists have already raised their concern regarding the use of the Arctic route citing possible negative impact. Both projects are also faced with need for capital in order to put in place the necessary infrastructure and equipments.
The implementation of the new paradigm will have different effects on sea transport. This new paradigm will have the following effects:
The new mode of transport is likely to affect the basics of water transport in different ways. First it will increase the traffic between Asia and the rest of the world. The Artic shortcut will create direct like between Asia and the West and hence more propel doing business between the two countries are more likely to consider using the new transport paradigm. Expansion of Panama Canal will also increase its capacity and hence most people will prefer using it to access United States from Asia (Spears, 2009). This new paradigm will therefore ease the cost and reduce time of transportation since it will come with increased efficiency and reduction in time needed to reach destination.
Modal consideration asses how one prefers to use one mode of transport over the other. Water transport has been the preferred more of transport in international trade due to its ability to carry large volumes. One of the greatest limitations of this mode of transport has been the time it takes to transport compared to other modes of transport. However, this problem may be overcome with the implementation of the new paradigm since increased efficiency of Panama Canal and reduced distance between Asia and the West through new artic route will make it a preferred mode of choice for transport (Maya, 2009). The new paradigm is therefore likely to replace other modes of transport. Considering that Asia is becoming increasingly important in the world trade and most companies are outsourcing their products from Asian countries, the new paradigm is poised to become a mode of choice for most organizations especially those with their operation in Asia (Murphy, 2009). The reduce time of transport will perhaps be the greatest attraction in this mode as compared to others.
For the last few decades, there has been increase exploration of new sea transport routes to create global transport networks. Sea transport is the backbone of world economy the more networked the world is, the better for the growth of world economy. The new paradigm is creating a new network in transport. Specifically, the artic route will create direct network between Asia and the West while expansion of the Panama Canal will increase the network between United States and the rest of the world. The exploration of the new artic route and expansion of the Panama Canal has been cited as one of the current effort to expand the global network structure (Rodrigue and Comtois, 2009). They will also help to create more land to sea networks and hence increased global trade.
The new paradigm will only be successful if there is investment in the infrastructure and equipments. Although the artic route has been explore, there is more that need to be done to make it passable. The two German ships which used the route for the first time had to be accompanied by Russian icebreakers to clear the way. This implies that it is a possible shortcut but there must be investment in development of the basic infrastructure to enable it to be used. The same applies to the Panama Canal. To construct more locks, there must be investment in development of the actual infrastructure and equipments (BBC, 2006). Investment in equipment will reduce the bathing time and hence make them more efficient. Without investment in infrastructure and equipments, the new paradigm may have little effect on the current world transport.
Intermodal transport implied to the use of more than one modes of transport. This term is used to describe the common pattern in international trade system where business organizations are forced to use more than one mode of transport. The new paradigm will require linking up with other modes of transport to enable products reach their destination. Like in the current transport system, there will be little effect in the intermodal transport since products will either have to be taken by road, railway or air transport to reach their destination. This means that although the new paradigm will reduce the distance and increase efficiency of sea transport, it will require to be backed by a strong intermodal transport to make it successful.
Logistics entails management of the flow of goods, information and other important service that are important in life. Logistics mainly pertains to management or ensuring good flow of goods and services. In sea transport, logistics implies to management of flow of goods or movement of goods from one port to another or linking of up goods from sea transport to other modes of transport (Baziotopoulos, 2008). Due to increased flow of traffic, the new paradigm will require movement improvement in logistics. There may be need to take new studies on management of logistics in these new routes to ensure that the changes like increase in the volume of cargo handled is efficiently managed. Logistics will require developmental in all areas from investment in equipments, infrastructure, and human resources.
The new paradigm will also affect management systems. Unlike the current transport network the new route like artic route and expanded Panama Canal will come with a loot of challenges that will require efficient management system in order to overcome these challenges (Baziotopoulos, 2008). It is important to come up with new management system especially in the area of the environment. The increase flow of traffic will also require new management systems that are efficient in handling the high number of vessels passing through the new routes.
Information management and technology is prerequisite in the development of the new paradigm (Baziotopoulos, 2008). Panama Canal has an efficient operating information management and technology system which means it will only need to be expanded in order to cope with the increasing need. On the other hand, there are plans to build Artic ICT infrastructure that will be used to support the new sea route (Christopher, 2008). One fact remains clear that there will be no notable development in the new routes unless ICT infrastructure is put in place to assist in management and operations.
The shortcut through the Artic route will also connect Europe to Asia. This means that apart from looking for efficient transportation system the new paradigms is also looking at opening Asia to the rest of the world. It is recognition of the important role that Asia is playing in development of world trade and hence the need to construct new sea transport routs that will connect Asia to the rest of the world. For example to test the probability of using the Artic shortcut, two German ships have already left South Korea for Rotterdam (Business Monitor Online, 2009). This is seen as a fulfillment of dreams for a shortcut passage between Asia and the West and thanks to global warming this has become possible (Kramer and Revkin, 2009).
However the new paradigm is likely to meet a lot of obstacles. Environmentalists have already raised their concern regarding the use of the Arctic route citing possible negative impact. Both projects are also faced with need for capital in order to put in place the necessary infrastructure and equipments.
The implementation of the new paradigm will have different effects on sea transport. This new paradigm will have the following effects:
a) Transportation Basics
The new mode of transport is likely to affect the basics of water transport in different ways. First it will increase the traffic between Asia and the rest of the world. The Artic shortcut will create direct like between Asia and the West and hence more propel doing business between the two countries are more likely to consider using the new transport paradigm. Expansion of Panama Canal will also increase its capacity and hence most people will prefer using it to access United States from Asia (Spears, 2009). This new paradigm will therefore ease the cost and reduce time of transportation since it will come with increased efficiency and reduction in time needed to reach destination.
b) Modal Considerations
Modal consideration asses how one prefers to use one mode of transport over the other. Water transport has been the preferred more of transport in international trade due to its ability to carry large volumes. One of the greatest limitations of this mode of transport has been the time it takes to transport compared to other modes of transport. However, this problem may be overcome with the implementation of the new paradigm since increased efficiency of Panama Canal and reduced distance between Asia and the West through new artic route will make it a preferred mode of choice for transport (Maya, 2009). The new paradigm is therefore likely to replace other modes of transport. Considering that Asia is becoming increasingly important in the world trade and most companies are outsourcing their products from Asian countries, the new paradigm is poised to become a mode of choice for most organizations especially those with their operation in Asia (Murphy, 2009). The reduce time of transport will perhaps be the greatest attraction in this mode as compared to others.
c) Networks
For the last few decades, there has been increase exploration of new sea transport routes to create global transport networks. Sea transport is the backbone of world economy the more networked the world is, the better for the growth of world economy. The new paradigm is creating a new network in transport. Specifically, the artic route will create direct network between Asia and the West while expansion of the Panama Canal will increase the network between United States and the rest of the world. The exploration of the new artic route and expansion of the Panama Canal has been cited as one of the current effort to expand the global network structure (Rodrigue and Comtois, 2009). They will also help to create more land to sea networks and hence increased global trade.
d) Infrastructure and Equipment
The new paradigm will only be successful if there is investment in the infrastructure and equipments. Although the artic route has been explore, there is more that need to be done to make it passable. The two German ships which used the route for the first time had to be accompanied by Russian icebreakers to clear the way. This implies that it is a possible shortcut but there must be investment in development of the basic infrastructure to enable it to be used. The same applies to the Panama Canal. To construct more locks, there must be investment in development of the actual infrastructure and equipments (BBC, 2006). Investment in equipment will reduce the bathing time and hence make them more efficient. Without investment in infrastructure and equipments, the new paradigm may have little effect on the current world transport.
e) Intermodal
Intermodal transport implied to the use of more than one modes of transport. This term is used to describe the common pattern in international trade system where business organizations are forced to use more than one mode of transport. The new paradigm will require linking up with other modes of transport to enable products reach their destination. Like in the current transport system, there will be little effect in the intermodal transport since products will either have to be taken by road, railway or air transport to reach their destination. This means that although the new paradigm will reduce the distance and increase efficiency of sea transport, it will require to be backed by a strong intermodal transport to make it successful.
f) Logistics
Logistics entails management of the flow of goods, information and other important service that are important in life. Logistics mainly pertains to management or ensuring good flow of goods and services. In sea transport, logistics implies to management of flow of goods or movement of goods from one port to another or linking of up goods from sea transport to other modes of transport (Baziotopoulos, 2008). Due to increased flow of traffic, the new paradigm will require movement improvement in logistics. There may be need to take new studies on management of logistics in these new routes to ensure that the changes like increase in the volume of cargo handled is efficiently managed. Logistics will require developmental in all areas from investment in equipments, infrastructure, and human resources.
g) Management Systems
The new paradigm will also affect management systems. Unlike the current transport network the new route like artic route and expanded Panama Canal will come with a loot of challenges that will require efficient management system in order to overcome these challenges (Baziotopoulos, 2008). It is important to come up with new management system especially in the area of the environment. The increase flow of traffic will also require new management systems that are efficient in handling the high number of vessels passing through the new routes.
h) Information Management and Technology
Information management and technology is prerequisite in the development of the new paradigm (Baziotopoulos, 2008). Panama Canal has an efficient operating information management and technology system which means it will only need to be expanded in order to cope with the increasing need. On the other hand, there are plans to build Artic ICT infrastructure that will be used to support the new sea route (Christopher, 2008). One fact remains clear that there will be no notable development in the new routes unless ICT infrastructure is put in place to assist in management and operations.
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