Panama Canal set for $7.5bn revamp
By Jane Monahan
in Panama City
A container ship in the Panama canal
The Panama Canal was opened in 1914
For nearly 100 years the Panama Canal has been a key link in international shipping routes, handling an estimated 5% of world trade each year.
The recent rapid growth of Asian economies like China and India has led to a surge in shipping worldwide and the canal is now operating at near full capacity.
The body that runs it has now decided that it is about time the waterway had a major refit.
It has approved plans for a $7.5bn (£4.3bn) widening of the vital trade route.
Two new 3-chamber locks will be built at the Pacific and Atlantic ends of the canal, creating a third lane of traffic capable of handling large container ships and tankers that have previously been too wide.
