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🌐Panama’s $1.6B Plan: Can a New Lake Save the Canal?

🌀The canal ran low on water. Panama wants a new reservoir. It could help ships move again — if courts and local communities agree.

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Maritime Analytica
Oct 11, 2025
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🔥 Greetings, Maritime Mavericks!

Imagine a 80km shortcut between two oceans running short of water.

That’s the Panama Canal in recent dry years.

  • In 2023–2024, the worst drought in 70+ years hit.

  • Daily transits fell from ~36–38 to ~18.

  • Ships had to carry less cargo or move boxes by rail and truck across Panama.

  • Why? The canal uses fresh water from Gatún Lake, which dropped ~2.5m.

When the lake is low, the canal limits draft (how deep a ship sits).

Each 0.3m less draft can mean ~300–500 fewer containers on a big ship.

  • 🔁The Fix: The Río Indio Reservoir

  • 🌎The Human Side

  • ❓How Shippers Are Adapting Now?

  • 🌀Why the U.S. Should Care?

  • 📅Key Dates

  • 📊Fast Facts

  • 🌐What Smart Operators Do Now?

  • 🎖️Maritime Analytica Insight — Big Picture

Let’s dive deep…


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🔁The Fix: The Río Indio Reservoir

Panama Canal Authority (ACP) has a plan:

  • Cost: $1.6 billion (with ~$400M for compensation and relocation)

  • What: Dam the Río Indio and drill a 5-mile tunnel to Gatún Lake

  • Water: Up to 970M gallons/day extra for canal lakes

  • Benefit: Up to +15 more ship transits/day in the dry season (Jan–May)

  • Timing: Aim to start in 2027; build time ~5+ years

  • Context: ACP made ~$5B revenue and ~$3.4B net income in 2024

💡But: The plan faces a Supreme Court challenge and local resistance.


🌎The Human Side

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