Panama Canal Expansion

More than 90 years after the first ship journeyed through a new canal in the Isthmus of Panama, Caterpillar machines are now on the cutting edge of another new canal project for the 21st century.

A new single-lane, three-step lock system will allow the Panama Canal to accommodate larger vessels that can't currently pass through the canal. The Panama Canal Authority estimates the eight-year project will cost about $5.3 billion and will consist of six smaller projects requiring the removal of approximately 104.6 million cubic yards (80 million cubic meters) of material. The expense will be worth the risk as the payoff is huge—the Panama Canal Authority estimates canal toll revenues of $6 billion per year.

The locks represent 70 percent of the project budget and construction will start in 2009. Until then, the land is crawling with Caterpillars.

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