Project Report: Benefits, Stakeholders, and Challenges of Panama Canal

This report provides a detailed analysis of the Panama Canal expansion program, focusing on benefit management, stakeholder engagement, and encountered challenges. It begins with an overview of the project's benefits, including increased trade, improved maritime logistics, and enhanced consumer options. The report then delves into stakeholder management, identifying key stakeholders and outlining engagement strategies through communication plans. Key challenges such as competition from other canals, fluctuating shipping costs, and infrastructure pressures are discussed, alongside lessons learned and recommendations for future project success. The report emphasizes the importance of low-cost, sustainable supply chains, improved transport infrastructure, and leveraging Texas's export potential to maximize opportunities.

Running Head: Project report 1
PANAMA CANAL EXPANSION PROGRAM: BENEFIT MANAGEMENT,
STAKEHOLDER MANAGEMENT, CHALLENGES AND RECOMMENDATIONS
Submitted by
Affiliation
Supervisor’s name
Date of submission

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1.1. Project benefits management
The goal of the program is to expand the Panama Canal in Texas State. The benefits of the
program can only be achieved by suitable benefits identification, analysis, planning, delivery,
transition and sustainability (Adams Joseph, Aaron Davidson, 2012). The benefit management
provides a suitable way of preparing Texas land and sea for the Panama Canal expansion in
water infrastructural project.
Program benefits identification-Benefits of the program were identified by having meetings with
stakeholder working group that involved sharing of ideas. Some of the benefits identified and
discussed through the program included: The expansion is expected to dramatically open up and
boost East and Gulf coast container trading, connecting the pacific and Atlantic oceans. Other
benefits were to increase consumer options, getting a wider maritime service, and enhancing
suitable supply chain maritime logistics reliability (Adams Joseph, Aaron Davidson, 2012).
Program benefits analysis and planning- the analysis and planning of the program included teams
identifying the key deliverables to achieve the intended goal. The analysis of the benefits
involves making a comparison of what the program is going to achieve with program goals. The
Panama stakeholder working group settled on creating a pacific access channel that will expand
trade to wider regions and markets, improving navigation channels linking the Atlantic and
Pacific oceans, and improvement of a water way that will increase maritime service and make
maritime logistics reliable. Another planning done is on the basis of infrastructure planning by
ensuring linkages from other mode of transports. The benefit of it is to allow easier inland and
land transport that enhances cargo transportation and avoid congestions (Texas transport
institute, 2014). Achievement of the three specific deliverables would lead to achievement of the
desired program benefits.
Program benefit delivery-It involves process and activities that would be performed to achieve
program benefits (Bryde, Broquetas & Volm , 2013). Program management team will need to set
a suitable delivery method that will ensure program deliverables are met (Heagney, 2016). The
program delivery would consist of constructing new set of locks on the Atlantic and Pacific sides
of the water way, creating a 3rd way traffic and doubling cargo capacity of water way. In addition
it involved improving water supply by developing 70 feet wider and 18 fronts that will recycle

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water basins (Walter. Armstrong & Wallance , 2001). The water will be reliable in recycle
process and 60% of it will be used for transit.
Program benefits transition- After delivery of the program it is expected that outputs would be
generated from the transition process (Lock, 2014). There are several activities that will be done
to provide transition from deliverables to outputs. From the transition the project is expected to
have increased water way capacity which has enabled meeting the demand of maritime trade
using larger vessels. The project delivery has enabled to enjoy economies of scale, and new set
locks have increased cargo capacity along the water way. Higher returns will be expected from
the project achievement of economies of scale.
Project benefit sustainability- The expansion of Panama Canal is expected to be beneficial by
enhancing long term strategic positions to several routes. The program ensures that environment
sustainability is achieved by having water recycling process and ensuring water is used for transit
purposes. Provide economic benefits options to clients from several transition routes and
channels from affordable cost structure for services offered (Bello, 2016).
1.2. Project stakeholder management
Stakeholders are important component of any program management they provide information
needs in which projects will need to be managed. The stakeholders represent those directly or
indirectly influence/or not influenced by the project (PMI., 2013). The Panama Canal expansion
program identified a number of stakeholders represented in a group known as Panama
stakeholder working group. Stakeholder identification: the stakeholders the following
summarized in table 1.

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Table 1 Stakeholder summary
No
.
Stakeholder/representation Role
A Harris county representative Provide state opinions and expectations of project
deliverables
B Union pacific representative They will provide ideas on matters related to Pacific
C Office of Governor reps Provide compliances of how the project will need to
be executed and mplemented
D Texas motor transport association Consultancy on motor transport metrics
E Texas oil and gas association Guidance in relation to oil and gas management.
&safety
F Texas port association Provide compliance matters on port management
G Port authority advisory committee Guidance on port management and approvals on
matters related to the ports
H Program sponsor They will be key in providing support and approvals
to various activities
I Metro political planning org Represent client expectations of the program
J Regional mobile activities org Provide ideas of future expectations of the program

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Stakeholder engagement planning- It is a critical part in management of stakeholders it involves
mapping stakeholder on the basis of their influence to the project (Pritchard, 2013). The mapping
will facilitate creation of a stakeholder register or communication plan for them (Bello, 2016).
Table 2 shows how the Panama Canal stakeholders were mapped after identification. The
mapping was based on stakeholder identification letters (A-J
High kee
Power
Low
Low High
Interest
Stakeholder engagement: it is a process that involves sharing program information needs and
provides a channel of managing different stakeholders (Bourne, 2015). Table 3 shows a
communication plan for Panama Canal program.
Keep satisfied Manage closely
A, B, G, I D, E, F
Monitor (minimum effort) Keep informed
J C, H
Keep satisfied Manage closely
A, B, G, I D, E, F
Monitor (minimum effort) Keep informed
J C, H
Keep satisfied Manage closely
A, B, G, I D, E, F
Monitor (minimum effort) Keep informed
J C, H
Keep satisfied Manage closely
A, B, G, I D, E, F
Monitor (minimum effort) Keep informed
J C, H
Keep satisfied Manage closely
A, B, G, I D, E, F
Monitor (minimum effort) Keep informed
J C, H

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Table 3 communication plan
Audience Message Delivery Method Delivery
Frequency
Communicator
Harris county representative Informed on program status Formal meetings Periodic Program manager
Union pacific representative Informed on program
progress and expectation
Formal meetings Often Program manager
Office of Governor reps Need to seek approvals on
program progress
Meetings and
mails
Often Steering committee
Texas motor transport association Consulted on transport
matters
Mails and
meetings
Frequently Program manager
Texas oil and gas association Consulted on oil and gas
management planning
Formal mails Periodic Steering committee
Texas port association Obtain approvals Meetings and
mails
Frequently Program manager.
Port authority advisory committee Consulted on matters relation
to ports
Mails and
meetings
Frequently Steering committee
Program sponsor Consulted and sought for
program approvals
Emails, reports Periodic Program manager
Metro political planning org Consulted on program
deliverables & expectations
Meetings Often Administrator
Regional mobile activities org Consulted on project benefit
expectations
Meetings Often Administrator

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1.3. Challenges and problems encountered
There are several challenges and problems that faced the implementation and execution of the
Panama Canal expansion program. They included:
Competition from other canals- they are faced with stiff competition originating from the Suez
Canal which has expanded in Mediterranean basin along the South and South East Asia.
Maritime shipping costs- the costs for running maritime activities keep on fluctuating which
poses a threat to choice selections. Higher shipping costs make clients to reconsider alternative
routes and canal channels. The users have to make choices among the options by comparing
favorable cost structures offered by the routes.
Global sourcing- the rising labour and energy costs have incited supply chain managers to look
for closer sourcing options as Latin America or within United States avoiding long distance
shipping trade. Panama Canal management need to look for better ways of managing energy and
labour costs to tap more business opportunities (Ferguson, B. C., Brown, R. R., Frantzeskaki, N.,
de Haan, F. J., & Deletic, A., 2013).
Larger ships have provided additional pressures on the existing port and inland infrastructure
which requires management to plan for future expansions or create operational limits. The
harboring of huge ships creates daily additional costs for maintenance and purchase of
equipment’s (Burke, 2013).
The emergence of Savannah gateway brings out a different way of co-ordinating freight
distribution which influences other routes to access the market. The gateway controls and co-
ordinates major freight operations and distributions over a vast of the markets this makes the
Panama Canal to factor major decisions of Savannah gateway.
1.4. Lessons learnt and recommendations
There are several lessons that can be learnt from the largest shipping infrastructural project the
expansion of the Panama Canal. The lessons and recommendations are summarized as follows:
There are more business opportunities existing in Texas State. To be able to manage any
competition and increase the demand for the opportunities along Texas as global gateway the

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management of Panama Canal need to provide a low cost, safe and secure multimodal and
environmentally sustainable supply chain to tap opportunities.
Interdependencies of mode of transport are important for the project expansion. Texas authorities
need to improve its freight plan for road, and railway transports. The improvement of the mode
of transport will help in goods movements, relieve any form of congestion and provide several
options to the clients to choose upon. The Panama Canal expansion program will highly depend
on the in ways and out ways provided by other mode of transports.
Findings show that Texas is a leading State in the country in form of exports. The finding is an
important business case of expanding the Panama Canal to take advantage of the increased bulk
export accessibility and development.

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