Panama Canal’s Revenue Surges By 14.9% In 2023

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  • Panama Canal’s revenue surged by 14.9% to $4.968 billion in 2023 despite handling only 511.1 million PC/UMS tons of cargo.
  • Despite facing water shortages due to climate change, the canal anticipates a 2.7% revenue increase in 2024.
  • Details shared by the Panama Canal Authority (ACP) for the period from October 1, 2022, to September 30, 2023.
  • Tolls are expected to contribute 74.56% of revenue in 2024, with additional income from other services such as power and water sales.
  • The canal employs 8,549 individuals, reflecting its significance for trade and the economy.
  • The ACP’s proposal requires government and legislative action to benefit 55% of the population, industry, and shipping.

Navigating Revenue Surges Amid Climate Challenges

In 2023, despite a reduction in cargo volume to only 511.1 million PC/UMS tons, the Panama Canal witnessed a notable 14.9% increase in revenue, reaching $4.968 billion, as announced by officials on Thursday.

The canal faces water shortages due to climate change. Still, it expects to make 2.7% more in 2024.

The Panama Canal Authority (ACP) shared these details for the period from October 1, 2022, to September 30, 2023.

Managing Water Resources And Toll Strategies

The canal needs 208,000 cubic meters of water for each ship because of its design. This water helps ships move up and down.

A new toll plan started in January 2023. It will end in 2025. The ACP believes this plan boosts income. Yet, water shortages could reduce earnings.

In 2024, tolls might bring in 74.56% of revenue. Other services could add 23.21%. Power sales might make up 1.05%, water sales 0.73%, and other sources 0.45%.

Key trade routes include trips between the U.S. East Coast and Asia and Europe and South America. The canal employs 8,549 people.

Water Expansion Proposal

Ricaurte Vásquez, the canal’s chief, says Panama needs more water for its people and the canal. The ACP has studied this for years.

The ACP suggests making the canal’s water area bigger. This needs action from the government and lawmakers. It will help 55% of the people, industry, and shipping.

Since 1999, the ACP has managed this path between the oceans. This started after the U.S. left, following a 1977 treaty.

This role is vital for global trade and Panama’s economy.

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Source: riotimesonline