The 2025 Investors Forum, organized by the Latin American Stock Exchange (LATINEX), delved into the economic and operational strategies of the Panama Canal, particularly during the challenging dry season brought on by the 2023-2024 El Niño phenomenon. During the event, Panama Canal Administrator Ricaurte Vásquez Morales shared the strategic measures implemented to maintain ship transits and revenue generation during these months.
Adapting to Environmental Challenges
In his presentation, titled “Adaptability in Times of Uncertainty,” Vásquez outlined the social and environmental hurdles faced by the Panama Canal and the short-, medium-, and long-term strategies adopted to ensure operational efficiency and maintain the canal’s competitive edge in the global maritime market.
One of the key strategies implemented during the dry season was the auctioning of transit slots during days of draft restrictions. This approach helped mitigate the impact of reduced transits due to water shortages. Vásquez emphasized the financial success of the strategy:
“We designed a new pricing structure based on the locks used by ships, establishing an economic value for water usage. Just as other countries value oil or minerals, we’ve set an economic value for freshwater from the lake, ensuring revenue optimization and cost reduction.”
Long-Term Social and Environmental Strategies
The forum also highlighted the Panama Canal’s long-term initiatives aimed at social and environmental sustainability. Among the programs presented were land registry and titling efforts in the Eastern Watershed, as well as agroforestry and forest protection programs that have shown positive results in the provinces of Panama, Panama Oeste, and Colón.
Following the successful implementation of these programs, a similar strategy is now being rolled out in the Western Watershed, which includes communities along the banks of the Indio River between the provinces of Coclé and Colón. This region was returned to the Panama Canal’s management in July 2024, and early efforts are already underway to adapt these projects to the cultural realities of local communities.
Long-Term Slot Allocation Method
One of the key economic innovations presented at the forum was the Long-Term Slot Allocation method. This initiative allows shipping companies to bid on transit slots for the upcoming fiscal year, ensuring greater certainty in scheduling. The system, which began with gas carriers, has seen early success and will continue to expand. Vásquez noted:
“This system assures shipping companies of properly scheduled cargo movements, strengthening our service reliability.”
Did you Subscribe to our daily newsletter?
It’s Free Click here to Subscribe!
Source: pancanal.com
