The Panama Canal Authority is aiming to double the number of containers passing through the waterway, according to its chief, Ricaurte Vásquez.
The Panama Canal Authority expects to double the number of containers passing through the waterway in the coming years, according to its chief, Ricaurte Vasquez.
As Reuters reported, speaking at the Houston International Maritime Conference on Friday, Vasquez outlined a US$ 8b investment plan, which includes a water conservation strategy following a drought that forced ships to take alternative routes between the US and Asia in 2023-2024. The authority is encouraging cargo consolidation to reduce water usage, particularly for container ships.
Container ships are the canal’s most important business segment. While a previous expansion in 2016 shifted the focus to container vessels, bulk carriers have recently returned. The canal also plans to expand Panama’s cargo transfer capacity by using land on its west bank. This could increase capacity by 5m TEU annually by 2045, bringing the total to 13.3m TEU.
Read more: Panama needs two more terminals
A new long-term reservation system, which allocates 40% of the largest locks’ capacity for next year, has been introduced. Most of the available slots are taken by container and LNG vessels. Despite easing drought restrictions, LNG traffic remains lower than expected, as U.S. producers favour alternative routes. However, rising demand in Asia could boost LNG traffic next year.
Vasquez also expressed concerns over potential trade tensions between China and the U.S., which could impact LNG trade and distort the canal’s business. Energy products have become a significant part of the canal’s customer base, and the authority is exploring new opportunities with the Port of Houston.
source: Vasquez: Panama Canal could double container traffic ‣ WorldCargo News
