Panama Canal administrator, Dr Ricaurte Vásquez, has hinted at the possibility of a pipeline option as part of a new initiative to diversify the waterway’s operations in light of ongoing climate change disruptions.
Speaking at the Houston International Maritime Conference (HIMC), he stressed the need to maintain longevity and sustainability to keep the waterway functioning effectively.
“Fresh water is one of the main resources used by the Panama Canal, and to that end, we depend on the rainfall to transit vessels. Due to climate change, we expect to see an increase in the number of episodes caused by the El Niño phenomenon.
“Over that, we have no control, and that’s why we see an opportunity to diversify our operations and to serve the maritime industry in a different manner,” he said.
Vásquez discussed the strategic partnership between the Port of Houston and the Panama Canal and underscored the Canal’s integral role supporting Texas ports’ trade activities.
“For this reason, it is important to look at Panama as a main route, with the Canal as the keystone, which makes options for circumnavigating the Canal critical,” Vásquez explained.
“This is why we want to highlight that, in response to [Panamanian] President Mulino’s request to increase the volume of WTI [West Texas Intermediate oil] going through the Canal, we are looking at different diversification options, including other forms of transportation, such as pipelines that will allow the Panama Canal to look beyond maritime transportation and take advantage of its geographical location to find alternative income streams,” he said.
The waterway has allocated $8.5 billion over the next five years to support the Panama Canal’s net-zero carbon emissions goal by 2050 to ensure the reliability and sustainability of the waterway.
The Port of Houston remains the Panama Canal’s largest client in Texas, with its container cargo imports reaching 3.9 million tons, and 42.7 million tons of petroleum and petroleum products dominating exports.
