Despite the global recession, the sounds of construction are well underway along the pathway that brings about 2.1 million tons of general cargo to Miami's port each year after passing through the Panama Canal. Along the canal, cranes and bulldozers hum as reminders that, yes, in fact, things will get better.

Global economic downturn? Yes.

But transportation needs remain high with continuing demands placed on the Panama Canal's existing capacity.

As a result, the Panama Canal Authority (ACP) embarked on one of the world's largest construction projects: the expansion of the Panama Canal.

As canal expansion moves forward, remarkably on-time and on-budget, it is more important than ever that key ports around the world, like Miami's, also make the necessary preparations to keep up with demand.

As the closest U.S. port to the Panama Canal, the Port of Miami has much at stake. The port serves more than 20 shipping lines that call on more than 100 countries and 250 ports across the world. It contributes $17 billion annually and 176,000 direct and indirect jobs to the local economy.

With such huge regional economic contributions made by the port, keeping up with Panama Canal expansion is not only important, it's a necessity.

Prepare for larger ships

Why is it so important for the world's ports to be prepared for the Panama Canal's expansion? Because those ports that don't keep up won't be able to meet demand or accommodate the new, larger post-Panamax ships that are increasingly dominant on the world's waterways since the start of canal expansion.

The expansion project will build a new lane of traffic along the canal by 2014 through the construction of a new set of locks, doubling the canal's capacity and allowing more traffic and passage of longer, wider ships.

On Aug. 18, the ACP issued the Notice to Commence, an order officially signaling the beginning of construction work on the centerpiece of this expansion -- the new locks.

The ACP awarded the contract to design and build the locks to the consortium Grupo Unidos por el Canal (GUPC) following an airtight, fully audited contract review process, setting a new standard for transparent contract review.

Were there disappointed world-class competitors?

Yes. But fairness and transparency were such that no protests followed the competitive process.

In addition to awarding the locks, other expansion projects are well under way. The ACP is now dredging to accommodate the larger ships' deeper drag. Excavation to widen the Pacific access channel continues, and efforts to straighten the winding Gaillard Cut will facilitate larger ship passage. In the meantime, engineers are building access roads, installing water lines and moving power lines.

So far, expansion has proceeded without interruption of service -- a remarkable feat considering the enormity of this $5.25 billion project. This expansion is the canal's largest endeavor since its original construction. The canal will be ready to accommodate increased transit needs and the world's largest cargo vessels. Other major ports of the world don't want to be left behind, unable to service the post-Panamax vessels.

Expansion is moving forward as the canal celebrates its historic 95th Anniversary. Cutting through the Isthmus of Panama, once considered an impossible dream, is now an engineering marvel relied on by the entire world. Yearly, up to 14,000 vessels use the canal. Commercial transportation activities through the channel represent about 5 percent of world trade.

Regional solutions

The Port of Miami clearly values its relationship with the Panama Canal. Just last year, the ACP renewed its Memorandum of Understanding with the port, underscoring the commercial bonds between the two and a joint commitment to market-based, regionally driven solutions for the international maritime community and its trade routes.

As economists muse as to when the recession will end, the Panama Canal isn't waiting for consensus. Economic projections show booming demand on the canal over the next 20 years.

The Panama Canal will meet expansion milestone deadlines and budgets in 2014. With proper resolve and prior planning, the ports also will be ready.

Joe Reeder, a member of the Panama Canal's International Advisory Board, was Army undersecretary and chairman of the Panama Canal Commission from 1993 -1997.