Happy Wednesday!
The Panama Canal has had a pretty
interesting year with the Panama Canal Authority having announced they were planning on spending $8.5 billion
for their capital investment budget over five years to aid in their net-zero
goals and help with the sustainability of this important waterway. We have written on the progress they have
made on their plans and snags for Rio Indio Reservoir. We blogged on how the ports on both coasts are
being sold and how there is a snag in the sale.
(Please see our previous Blogs for details.) Well, the Panama Canal Authority see
how certain transits will help them meet or improve their bottom line in the
coming year.
Did anyone
happen to read gCaptain Daily Newsletter on November 4, 2025, they
reprinted an article from Reuters titled, “Panama Canal Bets on LPG Transits to
Offset World Trade Slowdown Next Year”? The
article speaks in regard to the Panama Canal Authority had a representative
at Houston International Maritime Conference and they gave a talk on the canal and
its future, and how they believe there will be an increase in certain kinds of commodities
going through the Panama Canal which will help improve their bottom-line next
year. In 2026, the Panama Canal will expect
more liquified petroleum gas (LPG) and agricultural cargos to come through this
important waterway. In 2025, the Panama
Canal had almost 20% increase in the number of vessels passing through this
waterway which improved their bottom line by approximately 15%, and there were notably
more LPG and agricultural cargo ships.
The increase in traffic has in part been due to fluctuating U.S. trade
policy as well as the improved water conditions, and the energy sector recovering
Asian markets which were lost during the drought in the previous year. The increased traffic brought in much need
cash to help fund future and current plans.
The article
goes on to give a bit of an update on the Panama Canal Authority plans. The Panama Canal Authority is gauging
interest for a proposed LPG pipeline which would connect the coasts with an
anticipated 2030 operational date and it would be a way to work around any
future canal droughts. Currently, they
are anticipating their ambitious Rio Indio Reservoir completion date to be in
2031. They are currently vetting companies for those
wanting to construct and manage two new harbors in the Canal Zone and they will
be expected to be operating in four years. We wish
the Panama Canal Authority luck with fulfilling their goals for the
canal. If you would like to read more of
gCaptain’s article, please click the link: Panama Canal Bets on LPG Transits to Offset World Trade Slowdown Next Year.
If you would
like help in looking into how to update your midstream terminal, contact us via
email in the Blog and check out ESC's website for contact
information!
We hope you have a wonderful evening, and a great rest of
your week! Enjoy the Hunters Moon, tonight!
**Disclaimer: You may be charged a fee to read the gCaptain’s
article. **