The drought affects the channel’s revenues of $200 million

Management of Panama Canal estimates that the loss of revenue from the interoceanic highway will be between $150 million and $200 million by 2024 due to a reduction in ship transit due to the water crisis caused by the El Niño phenomenon.

A condition caused by a phenomenon Boy it will also have an impact on the budget for fiscal year 2024. The current budget that the Panama Canal presents to the National Assembly is about $4.9 billion, and a reduction is being considered for this year due to a reduction in ship transit, Panama Canal Administrator Ricaurte Vásquez indicated.

The maximum income that can be generated Panama Canal fully operational is 5 thousand 700 million dollars, explained Vásquez.

The administrator talked about estimating 30 to 32 vessels a day instead of the 36 to 38 regular transits, a measure that could be extended until September 2024.

This reduction in revenue for the next fiscal year will begin on October 1 and end on September 30, 2024, Vásquez explained.

Since last July 30, Panama Canal he limited daily traffic to 32 vessels, maintaining a draft of 44 feet from the 50 that operations regularly allow.

The worst-case scenario facing the Canal would be the suspension of traffic for less than 30 ships a day if it doesn’t rain.’

30%

of world trade passes through the Panama Canal with some 36 to 38 ships passing through daily.

32

Ships currently pass through the canal daily due to reduced traffic.

3% of the world’s trade passes through the Panama Canal, connecting 180 sea routes that reach 1,920 ports in 170 countries, the administrator of the interoceanic highway reviewed.

Panama is a water-dependent country and is responsible for supplying raw water for community consumption.

To meet the need for water, the Panama Canal requires some level of control over the areas bordering the canal’s coast, he said.

“Infrastructure and water are the main challenges facing the Panama Canal, but if we don’t have fresh water, we won’t be able to operate at full capacity,” he insisted.

To ensure the water supply of the Miraflores factory, the Canal moves the water supply from Paraís to Gambo, to ensure that this amount of water has a lower salinity so that it can be processed.

“The history of the Miraflores plant, it was originally supplied from Lake Miraflores, the introduction of historical salt water salted Lake Miraflores and it was taken to Paraíso, and now it has to be moved to Gamboa at the mouth of the Chagres where the availability of water is of a better quality that allows the operation of the plant”, detailed.

“When the dry season started, we had the lakes at their highest possible level. The first major rain happened last week, seven months later, and we expect El Niño to be just as strong for the rest of this year.”Vasquez said. “What has happened is that the duration of the dry season has been extended,” the administrator said.

The problem facing the Panama Canal operation is to restore the lake level so that it can maintain operation during the 2024 dry season, he added.

“NWe have not had a situation of this critical level in the history of the Panama Canal.”, indicated. Vásquez cited the crisis of 1997, the driest year on record for the Canal and where draft restriction was applied.

Vásquez pointed out that the only measure available to the ACP to guarantee water is traffic restrictions.