Panama Canal faces key decisions amid climate impacts
The lush landscape of El Zaino y La Arenosa in western Panama, home to farming and fishing communities, may soon be flooded by a man-made reservoir designed to keep the Panama Canal safe The future under worsening drought conditions. The proposed $1.6 billion Indio Dam project, led by the Panama Canal Authority, aims to ensure a sustainable water supply from the canal locks, but not without significant trade-offs, including the displacement of thousands of residents and environmental concerns. Also read: Panama Canal makes $3.45 billion profit despite drought reducing shipping Communities in transition Tres Hermanas is a small town with farms, schools, churches and clinics, and dozens of communities will be relocated if the project goes ahead. Residents are divided: some demand fair compensation, others are determined to stay. As seen in previous projects, community opposition poses a potential risk to the approval of the dam. "We were born and raised here. If we leave, it will not be because…
Panama Canal net profit $3.45 billion
The Panama Canal posted a 9.5% profit increase in the fiscal year to September 2024, generating revenue of $3.45 billion, despite a severe drought that restricted ship traffic in the vital waterway. Also read: Panama Canal transit resumes, full normalization still to be resolved Weather challenges and shipping restrictions Bad weather has forced the canal authority to reduce the number of daily ship transits and impose draft restrictions through late 2023 and early 2024. The restrictions caused severe delays and forced some ships to reroute other routes, although they were lifted later this year. Strategic cuts of 5% in operating costs have helped offset the financial impact of the drought, allowing the canal to maintain profitability. Revenue also rose slightly by $18 million to $4.99 billion, Canal Vice President of Finance Victor Vial said. Focus on sustainability and resilience “Our financial strategy is complemented by environmental initiatives that ensure operational resilience,” canal chief Ricaurte Vásquez said in a statement. While…
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