Rail becomes intermodal option after Canal drought

The Container xChange report shows that Panama Canal Railroad was considered as an option for intermodal container transshipment, after the drought facing the Panama Canal.

Container xChange emphasizes that this transport connection is an excellent alternative because it offers a safe way of transporting urgent or expensive shipments.

“Rail transportation offers a reliable, affordable and efficient option for transporting cargo in difficult canal conditions,” the publication said.

The railroad transports cargo that is large or unsuitable for transit through the Panama Canal. This is especially important for specialized shipments that cannot pass through canal locks or may be subject to restrictions.

This railroad has one 47-mile rail line connecting Balboa and Colón, parallel to the Panama Canal route.

The drought is accentuated by the current El Niño phenomenon, a climate event that could last until May 2024. The drought is affecting the number of vessels passing through the canal.

Typically, a channel processes approx 5% of maritime traffic, including 46% of container traffic between the east coast of the United States and northeast Asia.

The Panama Canal Authority has reduced daily cargo ship traffic by almost 40% compared to last year.

“Since the drought has reduced the number of ships crossing the canal, rail is coming to the rescue by offering a cheaper and faster way to transport cargo. If you’re looking for containers on this route, we’ve got you covered,” adds Container xChange.

The Panama Railroad is more than a century old. It was officially opened in 1855.