Panama Canal’s $5.25 Billion Expansion Project at Risk
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The $5.25 billion expansion of the Panama Canal was at risk of being delayed after negotiations on cost overruns between a construction group led by Spain’s Sacyr SA and the waterway’s authority broke down.
The Panama Canal Authority said that the construction group building new locks meant to accommodate larger ships traveling from North America to Asia suspended work on the project today. Afterward, a spokeswoman for Sacyr said work had been slowed, not stopped. The company’s shares fell as much as 8.4 percent, the biggest intraday drop since Jan. 3, and closed down 6.9 percent at 3.62 euros in Madrid.