The Panama Canal Authority has presented the measures to counter the severe drought, and revealed investments aimed at promoting sustainability and reducing emissions.
According to the Panama Canal Authority, as the midway point of the dry season is reached, the waterway undergoes a significant turning point. Reflecting on the journey of the past months, the following milestones mark key moments in the management of the waterway:
Trying to tackle the issue of drought
On October 3, 2023, the Gatun reservoir witnessed a daily inflow from rainfall and river flow, totaling seven million cubic meters (m³), which is less than half of the expected 15 million m³ in a typical year. Combined outflows from Canal operations, evaporation, human consumption, and industry amounted to ten million m³, resulting in a daily deficit of three million m³.
By October 31, 2023, a record low rainfall of 41 percent below the usual level was recorded for October 2023. To safeguard operations, a gradual reduction in daily transits was announced, decreasing from 32 to 24 in November, 22 in December, 20 in January, and 18 in February. These measures were implemented in addition to previously adopted water-saving practices, such as the use of water-saving basins in the Neopanamax locks and cross-filling in the Panamax locks.
On November 29, 2023, modifications were introduced to ensure fairness in special auctions and provide options for all segments and shipping companies.
Due to extensive water-saving measures and a slight improvement in rainfall in November and December, a turning point in water levels was reached by December 15, 2023. This allowed for an increase in daily transits to 24 in mid-January, contrary to the earlier plan of reduction.
By December 31, 2023, the waterway recorded the transit of 2,534 vessels and 108 million tons of cargo between October and December 2023. Despite the challenges faced, all reserved transits were honored and facilitated on schedule.
On January 16, 2024, in line with the previous announcement, 24 transits a day commenced, with the commitment to communicate any necessary adjustments in advance.
On January 24, 2024, Deputy Administrator Ilya Espino de Marotta was appointed as the Panama Canal’s first Chief Sustainability Officer, emphasizing the ongoing commitment to sustainability. Her role will focus on developing a comprehensive sustainability strategy centered on decarbonization, adaptation, and just transition.
Looking towards the future, sustainability takes center stage in the waterway’s plans:
- In 2024–2025, collaboration with the World Bank and International Finance Corporation (IFC) is ongoing to finalize the Greenhouse Gas emissions inventory. A climate risk assessment will be completed, and commitment to the Science Based Targets initiative (SBTi) will be made, with aggressive emissions reduction targets to follow.
- From 2024 to 2030, sustainability will be integrated into capital investments exceeding $8.5 billion. This surpasses the $5.4 billion required by the Panama Canal Expansion Program, with significant portions allocated to infrastructure, equipment, sustainability initiatives, water management, digital transformation, and decarbonization-focused improvements.
- The Panama Canal aims for net zero carbon emissions by 2050, aligning with global goals. Action and engagement with the maritime value chain are planned to create a climate-resilient environment, fostering success in a new climate economy for customers and employees alike. The transformation of the business is expected to enable all stakeholders to overcome climate risks.
