Panama Canal
The Panama Canal was built by America in the early 1900’s, championed by Theodore Roosevelt. President Carter felt that the Canal was obsolete so he surrendered it during his term as President. Another bad decision by another president who had no real understanding of economics.
But the Chinese do understand economics and have signed a long-term management agreement with Panama regarding the Panama Canal. As a result, the Chinese are widening the Canal to handle the super tankers and super freighters that the world now uses.
Currently, there is some controversy over the $1.8 Billion over-run in the cost of widening the Panama Canal, but there is no doubt that construction will be completed.
One of the impacts of the completion of the widening of the Canal will be a significant increase in tonnage coming into the Port of Hampton Roads, Virginia. Hampton Roads is one of the few natural ports on the east coast of the United States that has water deep enough to handle the huge freighters that will now be coming through the Panama Canal.
The economy of the Commonwealth of Virginia has the potential for significant benefit if road construction is completed to handle the increased truck traffic coming out of the Hampton Roads ports. In the land market we have had contact with speculators for sand and gravel for the proposed, but not yet started, Route 460 Bypass construction.
Long term we do expect an impact in the land prices in that corridor if 460 Bypass is built. The exact impact will be determined by a complex matrix of factors, so not every tract of land will benefit equally.
A really good tract of land is the best long-term investment possible. Not every tract of land will benefit to the maximum from what is coming. The really good tracts of land will benefit most. Call us. We would love to help your investment be a brilliant one!