Global trade and logistics support play a very vital role in today’s economy. Ports, seas and canals play a significant role in international trade and international logistics support.
Along with the sea, the canal has a very big role in the global trade. Around 80% to 90% of the world’s trade is done through the sea.
Suez Canal and Panama are a center of international trade because through these canals, trade between North America, Europe and Asia takes place and it is also considered the largest canal in the world.
In today’s article, we will especially learn about the Suez Canal and the Panama Canal and will know which of these is most important for the world.
Suez Canal
The construction of Suez canal was started in 1859 and it was completed after about 10 years i.e. in 1869, after which it was operational on 17th November 1869.
The Suez canal, about 193 km long, 205m wide and 24m deep, joins the Red Sea to the Mediterranean Sea.
Suez canal joins Asia and Europe and differ the continent of Asia and Africa. The main purpose of building this canal was to promote the trade route. Through this canal, Indian Ocean can be directly connected to South Atlantic through the Mediterranean sea.
By using this artificial canal, the distance between India and European countries is lessen by 7000 km, while the distance between London and the Arabian Sea is lessen by 8900 km.
India imports and exports crude oil, gold, coal and many other products through this trade route.
The Suez Canal has been built on the Sinai Peninsula of Egypt, located at the confluence of two continents Asia and Africa.
Importance of Swez canal
Approximately 10% of the world’s trade and about 30% of global containers go through the Suez Canal.
Before the construction of this canal, the countries of South Asia had to travel around the entire African continent to reach Europe, which was very long.
Port Said is located on the Mediterranean coast to the north of the Suez Canal, while Port Suez is located on the Bay of Suez to its south.
Little Bitter Lake, Great Bitter Lake and Timsah Lake are located on the route of the Suez Canal, which are considered salt water lakes.
Suez Canal comes under Egypt country so it is not only important for the world but is also very important for Egypt. Every year Egypt generates a good amount of income from Suez Canal.
Besides being the world’s busiest route, it is also a source of income for Egypt as 300 million tonnes of goods are transported through the canal every year. Egypt has earned around 4 billion US dollars from the Suez Canal in 2024.
Panama Canal
From bullet trains to airplanes, everything has played a huge role in reducing distances. Canals have also played a huge role in reducing distances in today’s modern economy.
The concept of the canal gave the world an opportunity to think differently, one of these canals is the Panama Canal located in Central America. In today’s article we will learn about the Panama Canal.
This canal, with the best engineering expertise, is today a lifeline for all the countries around Central America.
The Panama Canal, which is the backbone of around 100 countries and the source of their economic income, was occupied by many empires and many countries tried to build it, including countries like France, United Kingdom, Panama and Spain, but these countries did not succeed in building it.
In the late 18th and early 19th centuries many canals were built in many countries. In the 1820s the US succeeded in building the Erie Canal through New York.
Panama was earlier a part of Colombia but on 3 November 1903, Panama got independence from Colombia. America played a lot of diplomatic responsibility in liberating Panama from Colombia.
Under an agreement between the US and Panama, the US built the Panama Canal and also took the responsibility of operating it.
A budget of approximately US$375 million was set to build the Panama Canal, of which Panama had to pay US$10 million as per the agreement.
America started the construction of the Panama Canal in 1904 with many engineers and experts and it was completed after 10 years i.e. in 1914. The most interesting thing here is that it was completed 2 years before the estimated time for the construction of the Panama Canal.
This canal passes almost through the middle of the Central American country Panama. One end of it opens into the Pacific Ocean and the other into the Caribbean Sea of the Atlantic Ocean.
The Panama Canal passes through the Gatun Lake, an artificial freshwater lake whose water level is approximately 26 meters above sea level. The Panama Canal handles 5 to 6% of the world’s trade.
The length of the lake is approximately 82 kilometers and its width is approximately 100 m. The work of managing and operating the Panama Canal is done by the country of Panama, while the work of providing security to this canal when it is in danger is done by America.
This canal is 82 kilometers long, 100 meters wide and 12 meters deep and connects the Pacific Ocean to the Atlantic Ocean.
Before the construction of this canal, the distance between San Francisco and New York City was about 20,900 km because the ships running from there used to travel around South America, which increased the distance, but after using this canal, the distance between these two cities has become only 8370 km.
For the Panama Canal to be fully operational, it is necessary to have water in the Gatun Lake. About 13,000 to 14,000 ships pass through the Panama Canal every year, but when there is a shortage of water in the Gatun Lake, the number of ships passing through also decreases.
The Panama Canal works on a locking system, which means that to take a ship out of the Panama Canal, first the ship is lifted up by filling water at one end and then it is taken to the other end through the lake and the water is let down and the ship is lowered into the sea.
What is the difference between Swez Canal and Panama Canal?
Suez Canal and Panama Canal have their own importance and contribution but in this article we will now know the difference between these two.
- The Suez Canal connects the Indian Ocean to the Atlantic Ocean via the Red Sea and the Mediteranean Sea while the Panama Canal connects the Pacific Ocean to the Atlantic Ocean.
- The length of the Suez Canal is 193 kilometers while the length of the Panama Canal is only 82 kilometers.
- Egypt has control over the Suez Canal, but the Panama Canal is managed and operated by the Panama while the US is responsible for its security.
- The Suez Canal was completed in 1869 while the Panama Canal was completed in 1914.
- The Suez Canal handles 10% of the world’s trade, while the Panama Canal handles about 5% to 6% of the world’s trade.