The Panama Canal faces a water shortage and Ricaurte Vásquez, its head, says an extra freshwater source is essential.
The Canal aims to build a dam on the Indio River for this. Reduced rainfall is causing a US$200 million loss in 2024 revenue.
Lake Gatun, the main reservoir, now needs help. Vásquez stated a shift in weather patterns is affecting rain levels.
Unlike the Suez Canal, the Panama Canal uses only fresh water. The Canal links the Pacific and Atlantic Oceans.
Major users include the U.S., China, Japan, and Chile.
To save water, daily crossings fell from 39 to 32. Plans for 2024 suggest 30 or 31 crossings per day.
This impacts the nation’s budget as the Canal’s surplus goes to the state.
Water from the new dam would flow to Lake Gatun through an 8-km tunnel. Another option is drawing from Lake Bayano.
Both plans aim to secure a steady supply of drinking water too.
Vásquez denied that the Canal raises market prices. He also dismissed claims by Colombia’s President Gustavo Petro that the Canal had closed.
He questioned Mexico’s plan for a new maritime route, stating the Canal remains the top choice.
A tanker recently paid a record US$2.4 million to skip the wait. Vásquez concluded that such high bids show the Canal’s importance.
Background
The Panama Canal was opened in 1914 by the United States. For decades, ample rainfall made its operation smooth.
But climate change seems to be reducing the rain. This poses risks to a waterway that handles 6% of global maritime trade.
The proposed dam is not just for the Canal. It will also support the area’s drinking water supply.
This is critical for the country’s most populated region. The Canal’s challenges show the broader impact of climate shifts on key global infrastructures.