Panama Canal expansion plan has Gulf ports racing for potential new business

Canal expansion sets off race among Gulf ports

NEW ORLEANS — Gulf of Mexico ports are hoping hundreds of millions of dollars in expansion projects proposed before the economic downturn will help them capture more trade as the world economy recovers.

A $5 billion project to expand the Panama Canal will enable the largest container ships to cut through to the eastern side of North America. That might cut into the dominance of West Coast ports handling freight from Asia.

Port directors in Houston, New Orleans, Tampa, Mobile, Ala., and Gulfport, Miss., say expansion projects should go ahead now to get ready to handle the massive container ships.