Panama Canal to Build New Water Resource to Protect Against Future Droughts
The Panama Canal Authority is pushing forward with a key project to expand its water resources for canal operations while also emphasizing the vital trade role of its operations. The authority is taking the necessary steps to prepare for the future ignoring the threats from Donald Trump.
Media reports indicate an uneasiness standstill after Panama hosted the visit by U.S. Secretary of State Marco Rubio. Panama took some public moves including serving official notice on China that it was withdrawing from the Belt and Road initiatives while also emphasizing the country’s sovereignty.
The Panama Canal Board of Directors at the end of last week approved the next critical phase of the canal with the authorization to move forward on a new man-made lake to supply water for residents and the operations of the canal. It is a key component of the water management plan developed in Panama in responses to the 2023-2024 drought that severely restricted canal operations.
They report that the project will become one of the decade’s most significant public investments. The board authorized moving forward with the necessary resources for the construction of the lake in the Indio River Watershed. The project is expected to start by 2027 and take up to six years.
“This project is a key element in Panama’s comprehensive solution for the water challenge, significantly increasing the storage capacity of this vital resource,” the board said announcing its decision. “It represents a significant step towards canal sustainability, reliability, and competitiveness, for the benefit of all Panamanians and global trade.”
Hoegh Aurora on her recent transit (Panama Canal Authority)
They report the Water Projects Program was created to guarantee water supply for over 50 percent of the country’s population, nearby communities, and canal operations, as well as to foster other productive activities across the country. The resolution also includes funds allocated for compensation, resettlement, and support for families and property owners who may be affected by the project.
The water project is designed to advert the next drought, which officials had said could come within four years without intervention. They are seeking to maintain the momentum that has returned to the operations.
The canal also highlighted a new record for the transit of the largest vehicle carrier. The new Hoegh Aurora (25,500 dwt) delivered in 2024 with a capacity for 9,100 vehicles made the transit on a trip from China, South Korea, and Japan before heading to Jamaica, Mexico, and the U.S. Gulf Coast. It surpassed the previous record which was set in 2016 by the Hoegh Target, which has a capacity of 8,500 vehicles.
The Canal Authority emphasizes the important trade role of the operations and the need to maintain fair administration. They are working to strengthen the operation to continue deal with the increasing size of vessels and the anticipated volume.