Panama Canal Considers New Reservoir to Improve Shipping Route Reliability

The Panama Canal Authority (ACP) is considering the construction of a new reservoir to improve the reliability of the key shipping route within four to five years. Last year’s drought caused by El Niño led to a reduction in daily transit volumes, causing weight restrictions and bottlenecks for shipping. The ACP plans to increase daily transit allowances gradually to return to normal levels and mitigate potential passage reductions.

The construction of a new reservoir on the Rio Indio, costing around $900 million, could provide water equivalent to eleven transits and benefit 55% of the local population. However, regulatory and social hurdles, such as legal restrictions on reservoir construction, must be addressed before the project can proceed. The ACP remains optimistic about developing long-term solutions with the community’s cooperation and environmental concerns in mind.

To address the water problem and improve canal reliability, the ACP is considering other potential projects, such as transferring water from Lake Bayano to Lake Alajuela via a pipeline. The advanced booking system, implemented during the drought, has significantly improved canal reliability, reducing waiting times for pre-booked vessels. The ACP is committed to working with the affected communities and implementing necessary reforms to ensure the project’s success.

Source .