Global News Panama Canal transits rise to almost normal levels as expansion work begins

The Panama Canal is looking to increase the number of daily vessel transits to 36 as of September as it seeks to resume normal transit levels in the coming months following robust rainfall levels in June and July.

“Even though there has not been an official announcement to shipping clients, it is very likely that the increase will take place,” a spokesperson for the Panama Canal Authority (ACP) told the Journal of Commerce.

The usual number of transits is between 36 to 38 per day, the spokesperson added, although 40 to 42 vessels can transit in ideal conditions.

The move to increase ship traffic comes as ACP has started talks with some of the Panamanian citizens who will be affected by a $1.6 billion project to expand the canal’s water catchment, including construction of the Río Indio reservoir. The spokesperson confirmed that while the expansion includes construction of the reservoir, the ACP did not rule out the possibility of enlarging the project to include the construction of several smaller reservoirs, which would further guarantee water supplies for both the canal and local residents.

“Currently, the canal has only one multipurpose reservoir planned, in Río Indio,” the ACP spokesperson said. “[But] the Panama Canal administrator [Ricaurte Vásquez Morales] has said that the most important task is to ensure that Panamanians have drinking water. For this, we are considering establishing multipurpose reservoirs to compensate for the water extracted during the canal’s transit operations and for potable water.”

The additional water taken from the Río Indio reservoir will increase the number of canal transits by 11 per day, while also providing extra drinking water.

The ACP confirmed that its personnel have so far talked to more than 800 residents living in over 60 communities.

“Some of the residents have expressed concerns and opposition to the project but also a majority indicates that they are willing to participate in the process if their rights are respected,” the spokesperson said.

Nearly 13,000 inhabitants living in 200 villages in three main settlement areas will be affected by the project, including 2,000 who will be directly affected and face being relocated. Project completion slated for 2030 The spokesperson said 18 to 24 months will be needed to address social issues related to the expansion and carry out the environmental impact study. ACP estimates construction of a multipurpose reservoir such as Río Indio will take approximately four years from awarding a construction contract. That means construction of the reservoir, associated water pipelines and related infrastructure, including roads and power supplies, is slated for 2026 with completion in 2030.

The ACP spokesperson said the US Army Corps of Engineers is providing ongoing technical assistance, which includes engineering services and overall analysis of the project.

The expansion is intended to guarantee water supplies in the face of increasingly unpredictable rainfall and climate conditions. ACP has made the project a top priority after Panama experienced its second-driest year on record in 2023, which forced the canal to sharply cut the number of daily transits and impose draft restrictions on vessels.

The subsequent congestion led to a trail of approximately 100 ships waiting to pass through the canal last August and led operators to divert vessels around southern Africa to avoid lengthy waits and expensive transit slot costs. The low point was reached last November when only 25 transits per day were allowed, although heavy rainfall in the winter months led to an easing of the restrictions.