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The Challenges of the Panama Canal, Including Route Congestion and Water Supplies

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The Challenges of the Panama Canal

Increased cargo traffic, improving the availability of water for the passage of ships and construction of the rolling cargo port, are some of the challenges the authorities of the interoceanic route face for the coming years.

Friday, September 28, 2018

Representatives from the Panama Canal Authority reported that the levels of traffic currently being reported have already reached the figures expected to be reached in 2020.

If this rate of growth continues, the third set of locks will be close to reaching its maximum capacity in 2026, however, before thinking about a new expansion, authorities are warning that increased water availability must be ensured.

See "More Traffic Projected in Panama Canal"

Concerning the possibility of an extension, Jorge Luis Quijano, head of the Panama Canal Authority, told Prensa.com that " ... they are not promoting any type of expansion, but he points out that projections indicate that by 2030 capacity of the waterway will need to be increased."

Another issue that is a priority is that of the port in Corozal, which consists of the development of a 1,200 hectare logistics area near the International Terminal of PSA Panama, former port of Rodman.

See "Roll On- Roll Off Port Plan Revived"

The purpose of the terminal, which will specialize in rolling cargo, is to convert the area where it will be built into a center for redistributing vehicles, machinery and heavy equipment to serve the local market and other countries in Latin America.

In regards to this, Quijano added that " ...'We need to give value to the cargo we handle. Because we are not producers, we must look for mechanisms to generate new revenues', giving formality to what will be diversification of business in the Canal."



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Panana Canal and people urgently need more reservoirs

MORE neopanamax ships
Post Views: 300
WHILE the trade war has not yet affected the Panama Canal its future depends on the water supply that maintains adequate levels in Lake Gatun for the transit of large containerships, neopanamax and methane tankers, and cruise ships which now have access because of the expanded locks, and new reservoirs are urgently needed.

The statement came from the Canal Authority Administrator Jorge Luis Quijano on Tuesday. October  23 at  a f.orum sponsored by  La  Prensa

The administrator said that by 2020 it is estimated that the water consumption of the Canal basin will rise 79% due to the demand of the population for which it is vital

“The total consumption will increase from 438 million gallons per day to 662 million gallons by 2020, which is worrying because there will be more pressure on the resource that is vital to maintaining the competitiveness of the Canal, ” he said

Quijano said that it is fundamental to be able to adequately manage water consumption both for the population and for the supply of Gatun Lake and the entire Canal route.

He indicated that currently, the Canal basin supplies about 60% of the consumption of the

Panamanian population and there must be a project to supply water, from Lake Bayano to Pacora to supply the urban growth of the East area, as well as other projects that will demand more water resources.

“In the coming years, 225 million gallons a day will be extracted from the waters of the Canal by new water treatment plants and the consumption of the population,” he said.

Trade war
Cargo traffic through the Panama Canal has not yet felt the negative effects of the trade war between the United States and China, said Quijano. the United States is the first user of the Canal followed by China, so any restriction in trade between these two countries will have an effect on the route.

“There has not yet been a negative effect from the imposition of tariffs on imports from China, but if there is, we have calculated an effect of between $60 million and $65 million dollars,” he said.



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