The U.S. Grains Council reports talks between the Panama Canal Authority and a Spanish-led building consortium fell apart this week, and work on the project to expand the Canal was stopped.
The building consortium is asking for an additional $1.6 billion for cost overruns. The consortium’s bid on the project was $1 billion lower than the nearest competitor.
U.S. Grains Council Regional Director of the Americas Kurt Shultz says the Panama Canal Authority is taking a firm stance saying the builder must honor its contract.
Construction is already six to nine months behind schedule. The contractors were hired to expand the 48 mile long canal with a third set of locks to accommodate more ships.