Panama Canal Restores Full Operations Amid Sustainability Push And Infrastructure Plans

The Panama Canal Authority (ACP) has officially restored full operational capacity, maintaining a 50-foot draft through the 2025 dry season — a key recovery milestone after drought-induced restrictions disrupted global shipping in 2023 and early 2024. The update was shared during the ACP’s third quarterly market call.

Return to Full Capacity

• The canal now supports fully laden container ships and bulk vessels, restoring scheduling reliability across East-West and North-South trade lanes.

• This marks a rebound from past transit and draft limitations, which had impacted global supply chains and rerouted some cargo.

Financial Strength and Revenue Growth

• Debt reduced: From $2.6 billion in 2019 to $600 million in 2025, per ACP CFO Victor Vial.

• The Long-Term Slot Allocation (LoTSA) system has yielded $77+ million in new revenue, increasing transparency and flexibility for carriers.

Trade Trends and Future Projects

• Rising volumes: LPG and container traffic continue to grow; dry bulk has rebounded.

• The ACP is evaluating:

  • New transshipment infrastructure

  • A possible LPG pipeline, to further enhance its role as a global logistics hub.

Sustainability and Community Engagement

• Hybrid tugboats and a carbon-reduction slot programme are being deployed to cut emissions.

• ACP is expanding watershed conservation and community support efforts near the canal.

Governance Concerns

• ACP has expressed concern over a proposed $23 billion global ports transaction involving two Panamanian terminals, warning that it may threaten the canal’s neutrality, a cornerstone of its international trust.

With full draft and transit capacity restored, the Panama Canal is poised to resume its central role in global trade. Backed by fiscal strength, green initiatives, and strategic development plans, the ACP aims to boost efficiency and long-term resilience, while guarding the canal’s political and operational independence.