Panama Canal’s 10-year strategic plan will surpass expansion in scale, Miguel Lorenzo says

The Panama Canal is preparing a 10-year infrastructure program that Miguel Lorenzo, its vice president for infrastructure and engineering, says will be even larger in scale than the canal expansion.

The plan’s main challenges include securing water resources, developing new port projects and advancing a gas pipeline. Water is a priority not only for the canal’s continuity and long-term sustainability, but also for drinking-water supplies to about two million Panamanians who currently depend on lakes along the interoceanic route. The Río Indio project forms part of the effort to meet those needs.

The proposed port infrastructure is intended to strengthen the logistics position of both the canal and Panama. Lorenzo said it could create capacity for about five million additional containers to move through Panama each year, while allowing some cargo to be processed in the country and generate greater added value.

The gas pipeline would target part of the energy-products market that currently uses the canal’s water route, moving that cargo by another means. The broader aim is to diversify businesses linked to Panama’s geographic position and pursue opportunities beyond traditional canal transit.

Lorenzo did not provide an estimate for the additional revenue the projects could generate. He said the canal’s budget for next year includes $3.6 billion for canal operations and that revenue is expected to increase substantially once the new projects come online. He also identified staff renewal as a challenge, saying the canal is working on succession and training programs to prepare employees for future positions.