Panama Canal Meets with Industry Representatives

Future Toll Structure Discussed

The Panama Canal Authority (ACP) Administrator Jorge L. Quijano met with the Union of Greek Shipowners, the International Association of Independent Tanker Owners (INTERTANKO) and the International Association of Dry Cargo Shipowners (INTERCARGO) in Greece.

These meetings are part of the discussions held with customers and industry representatives regarding the waterway’s toll structure once the expanded Canal opens to commercial transits.

”The dry and liquid bulk carrier segments are an important part of our core business”, Quijano said. ”It is important for us to get direct face-to-face feedback from the industry representatives to ensure that our tolls and services remain competitive and are properly structured to reflect the commercial value of our route”

A total of 14 percent of vessels that transit the Panama Canal are Greek-owned. Liquid and dry bulk carriers are two important segments for the Panama Canal, representing approximately 16 percent and 23 percent, respectively, of the total tonnage transiting through the waterway.

For the liquid bulk segment, the main commodity is diesel and gasoline exports from the Gulf of Mexico to Asia and South America. Grains remain the top commodity transported in bulk carriers through the Panama Canal from the United States and South America to Asia.

During the meetings, ACP presented the results of the feedback received regarding toll structure during previous meetings with these associations. Canal officials had the opportunity to present a progress update of the Expansion Program and the requirements for the New Panamax vessels to transit the new lane once it is completed

The Panama Canal also presented the new business initiatives that are currently under analysis to add value to route for its customers. Such developments include a port on the Pacific side, logistics parks, top-off operations for dry bulk carriers and bunkering stations to take advantage of the new liquefied natural gas (LNG) segment that will be able to transit through the Canal.

INTERTANKO is an open forum for independent tanker owners and operators of oil and chemical tankers in the industry. INTERCARGO is an association for owners, operators and managers in the dry bulk cargo industry.

The Expansion Program will build a new lane of traffic along the waterway through the construction of a new set of locks, which will allow the transit of vessels with more tonnage capacity. Currently, the Expansion Program is 64.6% complete.

The Panama Canal Authority (ACP) reminds that vessels arriving at Canal waters, whether for docking or transiting the Panama Canal, must comply with vessel requirements as follows:

Faximum Length

The maximum length overall including bulbous bow for commercial or non-commercial vessels acceptable for regular transit is 366 meters. Vessels transiting the Canal for the first time, whether newly-constructed or newly-modified, are subject to inspection and prior review and approval of vessel plans. Vessels not receiving advance approval and/or not in compliance with Canal requirements may experience delays or denial of transit
The maximum length for integrated tug-barge (ITB) combination acceptable for regular transit is 366 meters overall, including the tug. A tug-barge combination must transit together as one unit with the tug supplying propelling power.
The maximum aggregate overall length for non-self-propelled vessels acceptable for transit is 305 meters, including accompanying tugs. Accompanying tugs must lock through with the non-self-propelled vessel. One time only transits that exceed these limitations may be permitted on a case-by-case basis with prior approval of the Executive Manager for Transit Operations, and subject to requirements listed in Section 2.k(9), of the OP’s Notice to Shipping No. N-1-2013 (Rev 1),”Vessel Requirements.”