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Corvallis firm wins Panamanian bid

CH2M Hill will manage Panama Canal expansion project, allow shorter routes for cargo vessels

Issue date: 4/14/08 Section: News
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A familiar Oregon design firm, CH2M Hill, has been hired to manage the project expanding the Panama Canal.

Currently, the Panama Canal is not large enough for post-Panamax class vessels to go through. Instead of using the canal to get from Japan, China, or Korea to the East Coast, the ships are having to deposit their loads in West Coast seaports and then have them sent to the east. Some of them are even traveling further to go to the Suez Canal.

This is putting an economic strain on Panama. About 6 percent of their GDP comes from the canal.

"If the canal does well, you can feel its effect in the overall economy of Panama," said Jorge Quijano, the executive vice president overseeing the expansion project for the Panama Canal Authority.

The U.S. shipping network and the Suez Canal are benefiting from the ships that are able to get through.

Even with the problem of the giant ships being unable to fit through the Panama canal, others are continuously backed up while waiting to get through.

Garry Higdem, a group president for CH2M Hill, notes that every time he flies over the area, there are as many as 95 ships waiting to enter the canal.

The project will be adding a third shipping lane that will lessen the wait to get through and even accommodate the larger ships not yet able to fit through the current lanes.

Other firms were in the running for the Panama Canal project besides CH2M Hill. However, the quality of their services, the price, and their ability to begin right away helped CH2M Hill secure the job.

CH2M Hill has consistently hired OSU graduates. Currently there are more than 200 active engineers with CH2M Hill who are OSU graduates. Affiliation with CH2M Hill will help OSU in their goal to join the ranks of the nation's top 25 engineering schools.


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