Panama Canal turns 110 years old

Panama CityThe Panama Canal, a waterway through which 6 percent of the world’s maritime trade passes, celebrates 110 years of operation this Thursday, while waiting for things to return to normal after a year in which drought forced a reduction in crossings and the maximum permitted draft of ships.

After 10 years of construction and an investment of 380 million dollars at the time, the canal was inaugurated on August 15, 1914 with the crossing of the steamer Ancón.

Panama’s independence from Colombia in 1903 is linked to the interoceanic canal.

Following the failure of the French Count Ferdinand de Lesseps to open a canal in the isthmus, the United States promoted the separation of the province of Panama and signed a treaty with the nascent country that ceded land and water in perpetuity to build it.

Washington established the “Canal Zone,” an enclave where the American flag flew, with its own military bases, police and justice system.

This led to decades of Panamanian demands to reunify the country and take control of the waterway. In 1977, Panamanian nationalist leader Omar Torrijos and US President Jimmy Carter signed treaties that allowed the canal to be handed over to Panama in 1999.

Savings of more than 20 thousand km

The 80-kilometer route that connects the Pacific Ocean with the Caribbean Sea is operated by locks, a kind of elevator that raises ships 26 meters to reach the level of Gatun Lake and cross it. Another set of locks lowers them to sea level to continue their route.

Ships can cross from one ocean to the other in about eight hours without having to go all the way to Cape Horn. From New York to San Francisco, a ship saves 20,300 kilometers.

The canal also connects more than 1,900 ports in 170 countries. Its largest users are the United States, China, Japan and South Korea.

In 110 years, the only time it has been closed is in 1915 due to a landslide and in 1989 when Panama was invaded by the United States. In 2010, it was closed for 17 hours due to flooding.

Economic contribution for Panama

For Panama, the canal represents a contribution of 6 percent to its gross domestic product (GDP).

The Vice President of Corporate Affairs of the Panama Canal Authority (ACP), Salvatore Basile, explained a few days ago that from 2000 to 2023, the Panama Canal has provided 25 billion dollars in direct contributions to the nation’s budget.

However, this year, due to the severe drought and the problem of water availability, it will be the first time that a lower figure will be received.

Drought and future challenges

It was last year that alarm bells rang when drought forced the reduction of daily vessel transits through the canal from 38 to 22. The flow has been recovering and it is expected that daily transits will increase to 36 next month from the current 35.

Last month, the deputy administrator of the highway, Ilya Espino, announced that they plan to build a new reservoir in six years, for some 1.6 billion dollars, which would allow the interoceanic highway to have more water to maintain its operation.