The Panama Canal Promoted its Ambitious 10-Year Investment Plan in Spain

The Panama Canal Authority (ACP) presented its investment plan for the next 10 years in Spain, amounting to approximately $8.5 billion, seeking to develop essential infrastructure projects for the future of the interoceanic waterway, ACP Vice President of Operations Boris Moreno told the newspaper.  “We will carry out the work through public-private partnerships and with our own resources,” Moreno commented during his visit to Spain to meet with suppliers and engineering and construction groups interested in or already participating in his investment plan.  The Panama Canal hopes to continue its infrastructure expansion with projects that secure its most vital resource: water. 

Indra, Sener, Typsa, Altia, Asch Grupo Alava, and Proes were some of the companies that learned firsthand about the waterway’s investment plan, according to various international media outlets.  In a statement, the ACP explained that Moreno’s visit to Spain is part of an international agenda, which included a business meeting at the headquarters of the Royal Academy of Engineering in Madrid.  This meeting, he stated, is part of a series of strategic meetings between the ACP and key players in the European infrastructure and technology ecosystem, with the aim of strengthening cooperation ties, exploring joint investment opportunities, and positioning Panama as a reliable ally for global sustainable development.

During the visit, Moreno discussed topics such as the evolution of the Panama Canal in recent years, water resource management in the face of climate change challenges, opportunities for revenue diversification, and ongoing strategic projects.  One of the central focuses of his intervention was the management of the recent water crisis that affected the canal’s operations: “With the crisis, we became water managers, experts in operating the locks with the lowest possible consumption, trying to offer the customer what had been promised,” said Moreno.  The Vice President also shared the Canal’s long-term vision, focused on sustainability and innovation. “The idea is to work on sustainability, maintain the Canal’s reliability and competitiveness, and make it even more relevant.

This isn’t a concept of the Panama Canal; it’s a concept of the Panama Route,” Moreno stated.  He presented the Canal’s most significant advances, including the recovery of its operational capacity by the end of 2024, a 30% year-over-year increase in traffic, sustained investment in infrastructure and maintenance (more than $15 billion between 2000 and 2025), and strategic plans to diversify its revenue through projects such as the energy corridor and the new Indio River reservoir.  Regarding the latter, Moreno emphasized that “this project has an estimated budget of $1.6 billion and will increase lockages by between 14 and 15 times daily.”

Investment Plan

The ACP’s 2025-2035 Master Plan contemplates the construction and operation of an 80-kilometer gas pipeline across the isthmus to expand its business. According to projections by administrator Ricaurte Vásquez, this is a highly relevant market segment for the canal, as demand will double over the next 10 years.  The construction of this pipeline would connect the two ends of the Canal to transport liquefied natural gas (LNG) and thus free up the passage of these vessels. The idea is to connect the network to storage tanks. The investment, which will exceed $2 billion, will be made through a public-private partnership (PPP).  The bidding process is planned for next year, with operations slated to begin in 2031, with target revenue of more than $35 billion between 2035 and 2050. 

The Canal also plans to build the Río Indio Dam by early 2027, after finalizing agreements with the community. This new reservoir, through a tunnel, will feed Gatún Lake with the water needed for the maritime corridor.  It has also budgeted $1.5 billion for these works, including the construction of the dam, environmental costs, and social impact mitigation measures.  The ACP also plans to develop a multimodal logistics hub with new port terminals, highways, and railways.  Spain is already participating in part of the new investment plan, as the ACP has placed an order with the Armón shipyard for 10 tugboats, expandable to 10 more, to handle vessel movements. This is a state-of-the-art fleet with hybrid engines, for which the ACP will pay the Spanish shipyard $185 million for the first 10 units. Armón is building the order at its facilities in Gijón.

Boris Moreno – Vice President of Operations of the ACP

We will carry out the work through public-private partnerships and with our own resources.”