Despite exceptional drought-related challenges, the Panama Canal has posted FY24 total revenues of 4.99 billion PAB ($4.89bn), 209 million PAB above budget, and 18 million PAB more than FY23.
The canal faced the historic challenge of a prolonged drought that impacted the Gatun and Alhajuela lakes at levels rarely seen in 110 years.
Results shared in a media presentation showed that operating costs for the interoceanic route had decreased by 5%, and net income had increased by 300 million PAB compared to the previous fiscal year.
Victor Vial, vice president of finance for the Panama Canal Authority, said revenues for the interoceanic route had grown by 1%, with an estimated increase of 1.8 billion PAB over five years. “This reflects the reliability of the route and its resilience during the challenging pandemic period and adverse climate conditions,” he added.
Despite positive financial results, one of the most noticeable impacts of the drought on canal operations was the decrease in the FY24 deep-draught transits, which totalled 9 944, marking a 21% reduction from FY23 due to the water-saving measures temporarily adopted last year.
“Our financial strategies are complemented by environmental initiatives to ensure the canal’s sustainability in the future,” said Ricaurte Vásquez Morales, administrator of the canal.
“This approach ensures our operational resilience and strengthens our financial position for a new era of investments. Key financial strategies implemented to achieve projected revenue, despite reduced ship transits, included the Freshwater Surcharge (Cargo por Agua Dulce or CAD), improved water yield through structural and operational upgrades, system enhancements for reservations and auctions, and maritime service operations, which ensure safe and efficient transits.”
Amid the drought that affected the region during FY24, the Panama Canal Administration implemented draught and transit adjustments to ensure sustainable water use, prioritising more than 50% of the population that relies on their water supply from Lakes Gatun and Alhajuela.
