Tuesday, February 27, 2024

The Panama Canal with its year of reduced daily transits just received a boost of a more promising future with more money pledged to its capital investment budget!

Happy Tuesday!

Did anyone happen to read gCaptain Daily Newsletter on February 22, 2024, their article titled, “Facing a Water Crisis, Panama Canal Pledges $8.5 Billion Towards Climate Resilience”?  The article speaks in regard to the Panama Canal Authority’s announcement in which they will up their capital investment budget to $8.5 billion dollars over the next five years, and the projects will be leaning to sustainability and a net-zero goal by 2050 for decarbonization.  Panama has been in a drought which has affected the Panama Canal.  The canal gets its water from Gatun’s reservoir which has been in a drought for 2023 and it has been the driest October on record for the region.  The reservoir has been three-million cubic meters (792,516,157 US liquid gallons) low, and it hasn’t been replenished by the normal rainfall.  The Panama Canal has reduced the number of ships from the normal 36 to 24 transits daily in February.   They were able to keep the number of transits daily by they had good rainfall in November and December, and they started water-reduction protocols.

The capital investment budget for the Panama Canal will be broken down into about $3.5 billion going to infrastructure and equipment which the investment will be towards them going green and investing in clean energy like solar panels and buying EV’s and hybrid tugs.   Then an additional $2 billion will be invested in renewable or eco-friendly projects and another $2 billion will be invested in a better water management system.  The last billion will be used in upgrades of their digital transformation and reduced emission focused projects for the canal like the rest of the world they will be reducing the greenhouse gas emissions and aiming for net-zero by 2050.

The Panama Canal Authority will have several publications this year which include a greenhouse gas emissions inventory, a climate risk assessment with their Science Based Targets initiative (SBTi) with their target goals and timeline for the 2050 goal.   They have added a new position as of January at the Panama Canal Authority called Chief Sustainability Officer, and Deputy Administrator IIya Espino de Marotta was appointed to the position.  The Chief Sustainability Officer position has the responsibility to finding the solutions for climate change and what that means to the canal. 

The Panama Canal’s generous capital budget was a promising site for the marine industry, and their dedication to finding a way to keep the important waterway open.  This good news with the end to El Niño coming in a couple months and La Niña bringing the promise of more rainfall to the region 2024 may end up being a good year after all.  If you would like to read more of gCaptain’s article, please click the link: Facing a Water Crisis, Panama Canal Pledges $8.5 Billion Towards Climate Resilience (gcaptain.com).

Check out this link, if you would like to know more about the Panama Canal, Panama Canal - Wikipedia.

If you would like help in looking into how to update your terminal and docks, contact us via email in the blog and check out our ESC's website for contact information!

We hope you have a wonderful evening, and a great rest of your week!

**Disclaimer: You may be charged a fee to read the gCaptain’s article. **