Challenges and Environmental Threats To Canal Operations -- Climate Change and Rainfall; Canal Lakes Water Levels; Transiting Ship Draft Restrictions; etc.

[Moderator_02]

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Panama Canal draft restrictions continue

REDUCED draft hits Canal revenue

Posted 05/07/2019

The lack of rain has forced the Panama Canal to extend draft restrictions for Neopanamax vessels that have been in place since April says  the Vice President of Environment, Water and Energy of the Panama Canal Authority, Carlos Vargas.

Vargas said that compared to previous periods there has been a 50% reduction in rainfall in the river basin from December to June.

There is a marked lack of rainfall in the headwaters that supply Lakes Gatún and Alajuela. The Gatún presents a deficit of 1.8 meters in elevation; while Alajuela is down three meters, said Vargas.

Vargas warned that the restriction measured up to April 30 would cost the Canal $15 million. In the first week of July there is still not enough rain in lakes Gatún and Alajuela.

 

https://www.newsroompanama.com/business/panama-canal-draft-restrictions-continue-1

[Moderator_02]

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Panama Canal Authority suspends latest draft restrictions on ships

Jim Wilson, Australia Correspondent 1 week ago [July 13, 2019]

A suspension “until further notice” of the latest round of draft restrictions on ships using the Panama Canal was issued yesterday by the Canal Authority. Dry conditions are likely to continue throughout July and may last to the end of the year.

The current maximum authorized draft of 44.0 feet (13.41 meters) Tropical Fresh Water, for ships transiting the Neopanamax locks, and a draft of 39.5 feet (12.04 meters) Tropical Fresh Water, for vessels transiting the Panamax locks, will remain in effect until further notice.

In the “Advisory to Shipping A-26-2019”, the Canal Authority suspended the previous draft limit of 43.0 feet (Neopanamax locks) and 38.5 feet (Panamax locks), which were due to take effect on July 16 owing to the lower-than-normal water levels in Gatun Lake.

Gatun Lake – a critically important waterway

Gatun Lake, which covers 163.38 square miles was created by the building of Gatun Dam in 1910 across the Chagres River. The lake provides about 20 miles of the waterway that ships use to transit through Panama.

Water from Gatun Lake is also pumped into waterway’s lock chambers. That lifts ships 85 feet above sea level and allows them to sail from one side of Panama to the other. About 101,000 cubic meters of water (3.56 million cubic feet) are used to fill a lock chamber. The Canal Authority says that an average of 52 million gallons of fresh water are used in each transit.

So it can be seen that Gatun Lake is vitally important to the correct functioning of the Panama Canal. Unfortunately, the level of rain in the Panama Canal watershed during December 2018 was about 90 percent below average. The Canal’s watershed – an area where rainfall and ground water drains into a common body of water – includes the hills, mountains and rivers around Gatun Lake, Miraflores Lake and the Madden Lake. Numerous small streams and rivers drain into the lakes.

Owing to the drier-than-normal weather, the Canal Authority said back in January that “water levels in Gatun and Madden Lakes [dropped] below the expected levels for this time of year. As a result, the Panama Canal has deemed it necessary to implement water conservation measures to delay implementation of seasonal draft adjustments and to minimize the adverse effect that these may have on our customers”.

A cascade of draft restrictions

The first draft restriction this year was set at 49.0 feet in January and took effect February 11. The Canal Authority said that vessels arriving with drafts over 49 feet might be required to trim or off-load cargo to transit.

Although the first draft limit was set at 49 feet in early January, a spate of advisories in January and February quickly dropped the level of allowable draft at the Neopanamax locks.

The allowable draft was quickly reduced to 48 feet, effective late February. Another reduction was announced to take effect in mid-March, down to 47 feet. By the end of February, the Authority had announced a further restriction in draft to 46 feet, to take effect March 29. By early March yet another restriction had been announced, this time to take effect in early April, when the allowable draft would be 45 feet.

But when early April rolled around, the Canal Authority found it necessary to reduce draft to 44 feet, which would take effect by the end of that month.

Container lines responded to the ongoing reduction in draft. APL, for instance, issued an advisory to customers stating that the draft reduction would “likely result in [a] reduced number of containers per vessel on services transiting the Panama Canal”.

In early May, the level of allowable draft was reduced yet again, and this time to 43 feet, to take effect by the end of May.

However, shortly after mid-May, the Authority was reporting that “as a result of the amount of rainfall in the Panama Canal watershed during the past week”, the previously announced limit of 43 feet was postponed to June 12 instead of taking effect on May 28.

Rainfall continued in the watershed and the reduction in draft to 43 feet was postponed from June 12 to June 19. It was again postponed a few days later to June 26, then to July 03, to July 16 and now it has been postponed “until further notice”.

Why be dry? El Niño, that’s why

In Panama, the dry season runs from January to March, according to the UN Food and Agriculture Organization. This year, the dry spell was drier than normal owing to the “El Niño” weather phenomenon with up to 60 percent less rain than the long-term average, the UN FAO said. There is a very high likelihood (over 80 percent) that El Niño conditions would persist until the end of July and a 50 percent chance they would persist until the end of the year. 

“El Niño” and “La Niña” are related weather phenomena that bring drought to some parts of the globe but heavy rains and floods to others. They are caused by winds driving warm water back and forth across the Pacific Ocean.

 

https://www.freightwaves.com/news/panama-canal-authority-suspends-latest-draft-restrictions-on-ships

[Moderator_02]

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Low level  of lakes  threaten Canal revenue, drinking water

Alhajuela Lake supplies, along with Gatun, the water treatment plants in the provinces of Panama, Panama Oeste and Colón. Taken from @IDAANinforma PANAMA CANAL

Posted 24/10/2019

In spite of recent heavy rainfall, the Gatún and Alajuela lakes, which provide drinking water to Panama City l and the provinces of Colon and Panama Oeste, remain at levels below the historical average for this time of year.

Alajuela reached 70.95 meters on Thursday, October 23  while Gatún remained at 24.90 meters, both below the expected levels of 71.38 and 26.34 meters, respectively.

It is not ruled out that for the next year a restriction on the draft of ships transiting the canal will be ordered, which this year cost the Canal Authority (ACP) $40 million, in lost income reports La Prensa

 

https://www.newsroompanama.com/business/low-level-of-lakes-threaten-canal-revenue-drinking-water

[Moderator_02]

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Canal expands water saving measures as dry reason looms

Posted 01/11/2019

The effects of  climate change gave The Panama Canal basin its third-lowest October rainfall in 70 years and  the  authorities   have redoubled the measures it has been applying to conserve water and have a more efficient use in the operations of the interoceanic waterway

The low precipitation of October maintains the trend of the year in which all the months of 2019 the rains in the river basin have been lower than their historical level.

Several regions of the country are affected by drought, which led to the declaration of a state of emergency in the provinces of Coclé, Colón, Darién, Herrera, Los Santos, and Veraguas

The emergency measures include the suspension of power generation at the Gatún hydroelectric plant since October 2018 so as not to wastewater through the turbines.

During the transit of vessels, conservation actions are implemented such as the elimination of hydraulic assistance in Panamax locks, which speed up the transit of ships but mean greater use of water.

Cross-locks are applied, sending water between the two lanes of the Panamax locks during transits, to reduce their discharge to the sea. To the extent that the size of the vessels allows it, two ships are traveled at the same time (simultaneous locks). There is intensive use of water-saving tubs in the neo-Panamax locks.

The low rainfall has caused the level of the Gatun and Alajuela reservoirs that supply water to half of the country's population, to be well below average, with the risk of not reaching adequate margins to face the upcoming  dry season

In previous years, the low level of the reservoirs has affected the supply of water purifiers that take water from Gatún and Alajuela for the provinces of Panama, Colon and Panama Oeste, while the

Canal has had to reduce the draft for transit ships, negatively impacting income.

 

https://www.newsroompanama.com/business/canal-expands-water-saving-measures-as-dry-reason-looms

[Moderator_02]

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Climate Change Leaves Canal Reservoirs Short

Posted 22/11/2019

Low rainfall on the Canal Hydrographic Basin in recent days have not been sufficient for the Alajuela reservoir to remain at its reference level, said the Panama Canal Authority on  Friday, November 22.

At 7:00 am, Lake Alajuela recorded 74.16 meters, lower than its guide level of 74.39 meters, while the Gatun reservoir continued below its reference with  25.16 meters, below its  26.68 meters guide level.

As a result of the low rains nationwide, including the hydrographic basin of the interoceanic highway, the Canal has prioritized water storage in Lake Alajuela in the management of reservoirs, through measures such as limiting energy generation at the Madden hydroelectric.

Gatún and Alajuela are artificial lakes that store the rainwater that falls in the Canal watershed and from there they supply the water treatment plants that serve two million people in the provinces of Panama, Colon and Panama Oeste, as well as the interoceanic operations.

As a result of climate change, several regions of the country are affected by a prolonged drought, which led to the declaration of a state of emergency in the provinces of Coclé, Colón, Darién, Herrera, Los Santos, and Veraguas.

Faced with this situation and anticipating the deficit of water accumulation in reservoirs a few weeks after the beginning of the dry season, the  Canal Authority has redoubled the measures it has been applying to conserve water and have a more efficient use in the operations of the interoceanic route.

 

https://www.newsroompanama.com/environment/climate-change-leaves-canal-reservoirs-short

[Moderator_02]

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Lake Gatun  below expected level as dry season looms

Posted 27/12/2019

In spite of recent rains  and with Panama on the eve of an anticipated severe dry season, Lake Gatun  remains 1.3 meters below the expected level

In addition, it was reported that Lake Alajuela stood at 76.99 meters, compared to 76.73 meters of the guide level.

 Gatun supplies the water treatment plants in Mendoza, Laguna Alta, Monte Esperanza, Miraflores, Sabanitas, Escobal, Cuipo and Gatún; as well as the Panama Canal operations ,

At 7:00 am on Friday, December 27, the lake  registered 25.51 meters, lower than 26.82 meters of the expected level for this date, while Lake Alajuela stood at 76.99 meters, compared to 76.73 meters of the level guide, says the Panama Canal Authority (ACP).

Gatun Lake, with 436 square kilometers of surface is 10 times larger than the Alajuela, so requires much more rainwater to fill at an optimum level to face the dry season that is approaching, said the ACP.

The water intake of the Federico Guardia Conte water treatment plant in Chilibre is located in Alajuela, which produces more than 200 million gallons of water per day to supply Panama City.

In addition to the low rainfall in the Canal Watershed, there is a deficit in the contributions of the main rivers, because this year the rains have been 27% below the historical average.

As part of the Canal's strategies, water from Alajuela is being sent to Gatun, but according to the ACP, "this volume of water has not been sufficient to significantly increase the level of Gatun."

Economy measures
Water saving measures are also applied in Canal operations such as suspending hydroelectric generation at the Gatun plant since October 2018 so as not to waste water through the turbines.

Hydraulic assistance is also eliminated in the panamax locks, which speed up the transit of ships, but imply greater use of water.

Cross-locks are applied, that is, water is sent between the two lanes of the panamax locks during transits, to reduce their discharge to the sea.

To the extent that the size of the vessels allows it, two ships are trafficked at the same time and the use of water-saving tubs in the Neopanamax locks is maintained.

 

https://www.newsroompanama.com/business/lake-gatun-below-expected-level-as-dry-season-looms

[JohnF13]

We need another lake.

[Moderator_02]

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Challenges ahead for the Canal

Posted 01/01/2020

We celebrate - with abundant and justified reasons - the twentieth anniversary of the transfer of the Canal to Panamanian hands. Since then, our people have received more economic benefits than in the entire history of the road under the United States administration. In addition, for years, Panamanians managed to modernize several of their operations and facilities, including their successful expansion. Nothing fills us with more pride than seeing each one of the plans elaborated to maintain the commercial validity not only of the Canal, but of the route. But the challenges are far from over. Making the Channel a source of alternative and complementary businesses is another objective of the current administration, while simultaneously Alternatives are sought to meet the growing demand for water in the operations of the interoceanic canal and the needs of the growing population of the metropolitan area. To this, we must add efforts to counteract the effects of climate change, which can become risks for the existing route, as well as for the operation of the current Canal. Now is the time to celebrate, but without forgetting that we have responsibilities ahead.-LA PRENSA, Jan 1.

 

https://www.newsroompanama.com/opinion/challenges-ahead-for-the-canal

[Moderator_02]

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Canal water woes worst in 70 years

Posted 06/01/2020

2019 ended with the fifth-lowest amount of rainfall in the last 70 years in the Canal Hydrographic Basin, with a 20% reduction compared to the historical average, reports the Canal Authority (ACP).

Last year there were 2,149 millimeters of precipitation, which represents 20% below the historical average of 2m 695 695 millimeters, fifth-lowest since 1949.

At 7:00 am on Monday, January 6, Gatun Lake recorded 25.72 meters (84.37 feet), 1.08 meters below the expected level for this date that should be 26.80 meters (87.92 feet), while Lake Alajuela stood at 76.85 meters (252.28 feet), compared to 76.63 meters (251.42 feet) of the guide level.

Gatun Lake supplies the water purifiers of Mendoza, Laguna Alta, Monte Esperanza, Miraflores, Sabanitas, Escobal, Cuipo, and Gatún, as well as the  Canal operations

Gatun Lake, with 436 square kilometers of the surface is 10 times larger than the Alajuela, therefore, requires much more rainwater to fill at an optimal level to face the dry season ahead.

During all the months of last year, the rains in the Canal Hydrographic Basin were lower than their historical level, according to the ACP report.

This situation leads the Canal to continue with water-saving measures by suspending the hydroelectric generation in Gatun, eliminating hydraulic assistance in the Panamax locks, applying cross-lock in the Panamax locks, simultaneous locks and use of savings vats of water in the neo-Panamax locks.

 

https://www.newsroompanama.com/business/canal-water-woes-worst-in-70-years

[Moderator_02]

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Driest-year-ever strategy for Canal

Posted 12/01/2020

The Panama Canal’s response to climate change in 2020 will be to work as if it were the driest year in its history, which will be a tolerance test for waterway operations.

 On December 31 the Canal administrator, Ricaurte Vásquez, warned of lack of rain, with the purpose of trying to conduct the entire operation efficiently and guaranteeing the future traffic of ships.

It is assumed that by mid-January Vasquez will have the result of the analyzes that have been made regarding operations under these extreme conditions.

On Monday, January 13, the roadmap that the waterway will assume could be revealed. The announcement will be given by administrator Vásquez, who has previously commented that "so far this century we have seen new opportunities and threats, most of them, climate change that clearly affects us."

Water saving
* Suspension of power generation at the Gatún hydroelectric plant since October 2018 so as not to wastewater through the turbines.

* During the transit of ships, hydraulic assistance was eliminated in the Panamax locks, which expedite the transit of ships, but imply greater use of water.

* Cross locks. With this, water is sent between the two lanes of the Panamax locks during transits, to reduce their discharge to the sea. * The use of water-saving tubs in neo-Panamax locks is maintained.

2019 concluded as the fifth lowest year of the last 70 years in terms of rainfall in the Canal River Basin.

The Canal Authority confirmed that last year there were 2,149 millimeters of precipitation, which represents 20% below the historical average of 2 695 695 millimeters.

2019 Vásquezsais that “ at present we cannot forget that the main asset of our operation is water, and that it is being affected by climate change, impacting rain patterns and, consequently, the capacity to supply the lakes that supply water to more than half of the population of the country and give reliability to the transit of ships ”.

 

https://www.newsroompanama.com/environment/driest-year-ever-strategy-for-canal

[Moderator_02]

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Climate change forces surcharge for ships transiting Canal

Posted 13/01/2020

For the first time since the first ship passed through the Panama Canal in 2014, a price tag will be put on the freshwater used for each lock. The additional charge will depend on the level of the lakes: the lower the water level, the higher the cost of transit

Climate change is behind the imposition.., On  Monday, January 13 the Canal administrator, Ricaurte Vásquez, announced that from  February 15 they will charge an additional fee for the use of water during each transit.

Last year there were unprecedented low levels of rainfall - 34% less than the average in October and 27% less in November - added to irreversible effects of climate change on the water sources used by the Canal for locks. The Canal administrator announced immediate actions to address the lack of water. The most important is the surcharge for freshwater which has two components: A fixed charge of $10,000 for each vessel 91 feet wide or more and .a variable charge depending on the tonnage of the ship and that depends on the level of Gatun Lake, and that will go from a minimum of 1% with the lake at its maximum level and 10% with the lake at its minimum level.

Vásquez admitted that the measure could cause a reduction in transits,. But the reduction in tonnage will be recovered from the surcharge.

 The situation will be 'short-term' in relation to the phenomenon of rains, if it starts to rain earlier for example, but the surcharge will be maintained to give sustainability to the new investments that are in process to ensure new sources of water to continue operating, in addition to guaranteeing the water supply for human consumption.

 

https://www.newsroompanama.com/environment/climate-change-forces-surcharge-for-ships-transiting-canal

[JohnF13]

Ridiculous.  Climate change does NOT force a surcharge.  That is entirely the fault/responsibility of the ACP.  What they are trying to do here is get the same amount of money by providing less service.  Eventually they will price themselves out of the market, resulting in much hand wringing and crying.  Look for solutions, build another lake, find out why the catch basins are not working efficiently, utilize ocean water more.  It's not like there isn't enough water around, just that it is not the type that the ACP wants to use.

[BD]

3 hours ago, JohnF13 said:

Ridiculous.  Climate change does NOT force a surcharge.  That is entirely the fault/responsibility of the ACP.  What they are trying to do here is get the same amount of money by providing less service.  Eventually they will price themselves out of the market, resulting in much hand wringing and crying.  Look for solutions, build another lake, find out why the catch basins are not working efficiently, utilize ocean water more.  It's not like there isn't enough water around, just that it is not the type that the ACP wants to use.

I tend towards your line of thinking on this topic. It’s not politically correct to say certain things now a days, such as this.

Edited January 15, 2020 by BD
spelling correction

[Uncle Doug]

As the articles above state, this was the 5th lowest rainfall in the past 70 years.  That means that at least four other times since 1950 it has been even drier.  It happens. They didn't impose Climate Change surcharges previously, so this is a convenient way to hike fees and blame it on everyone else.

[Keith Woolford]

3 hours ago, Uncle Doug said:

this is a convenient way to hike fees and blame it on everyone else.

Not unlike the Fuel surcharge on Airfares

[Moderator_02]

Unedited automated translation of the above Tweet:

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The lack of rainfall is not only in the Canal Basin, it occurs in other regions of the country. In the Canal Basin, reforestation in the last 10 years has been much higher than the level of forest cover that is lost.

 

[Moderator_02]

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Extension for Payment of Panama Canal Fee

The Panama Chamber of Commerce requested the Panama Canal Authority to postpone the start of collection of the fee for the use of fresh water in the Canal, which would begin to be paid on February 15, 2020.

Thursday, January 16, 2020

On January 13, the Panama Canal Authority announced that this year "... the value of water will be incorporated into the line of other maritime services through a charge for fresh water, which will depend on the availability of the resource at the time of the vessel's transit. The freshwater charge is applicable to all vessels over 125 feet in length that transit the Canal:

Fixed component: $10,000 for each transit
Variable component: percentage of toll set on the basis of the daily level of Lake Gatun of between 1% and 10% of the toll. That is, the higher the level of the lake, the less percentage would be charged, and similarly, the lower the level of the lake, the higher the percentage."

In light of this announcement, the Panama Maritime Chamber (CMP) has expressed its "... concern that these measures have been announced, without prior formal consultation with the different guilds of the national maritime industry, and the international end users of the Canal."

For the CMP, the measure lacks elements of certainty and clarity for the ACP's end customers, in order to determine, under criteria within its control and estimation, the rates to be recognized by the Authority for the transit of vessels, according to the guild's statement.

The House calls on the ACP to postpone charging, as dialogue must first take place with the aim of finding alternatives that will benefit the Authority and the maritime industry, without affecting the competitiveness of the sector and transit projections and estimates. The CMP requests that the methodology for calculating this new cost be reviewed.

 

https://www.centralamericadata.com/en/article/main/Extension_for_Payment_of_Panama_Canal_Fee

[Moderator_02]

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Panama’s water crisis

Posted 21/01/2020

Never before has the water situation been so critical for the country. The legacy of decades of improvisation and environmental irresponsibility is taking our toll. The Panama Canal Authority (ACP) is looking for the most sustainable way to guarantee water for human consumption in the metropolitan area, and for the Canal operation. This is not a problem of the ACP, it is a challenge of the entire Panamanian State.

The administration of President Laurentino Cortizo must, without further delay, do what is necessary to be on the same page as the ACP in this effort If the difficult water situation for the Canal is resolved, that represents more health, more jobs and more economic activities. It seems a great contradiction that Idaan is more concerned with the tank truck business, than for definitely solving the water supply of the entire metropolitan area.

Both Idaan and the Ministry of Economy and Finance must be part of the task of keeping the Panama Canal viable. Otherwise, they will be stealing the future from Panamanians. In the end, it is a political decision. So, the question is: Are you willing to do it? -LA PRENSA,  Jan.21

 

https://www.newsroompanama.com/opinion/panamas-water-crisis

[Moderator_02]

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Canal Authority $2 billion rescue plan

Ricaurte Vásquez

Posted 21/01/2020

The Panama Canal Authority (ACP) projects an investment plan that adds about $2 billion in the next five years to add new water sources that guarantee waterway operations and human consumption needs.

On the road map is the Bayano reservoir as the first short-term alternative that will allow the water to be piped and transported to Lake Alajuela. However, taking this step is conditioned on the negotiation between the State and AES, a concessionaire of the Bayano hydroelectric plant, which includes the reservoir reports La Prensa.

Meanwhile, the Canal has already made the decision to make soil drilling in the arm of the Trinidad River, to explore the construction of small reservoirs within Gatun Lake. This is an alternative that, in addition to damming freshwater, will allow controlling the navigation channel to increase the draft, on request, in the dry season.

The Canal administrator, Ricaurte Vásquez, told La Prensa that the Canal has the capacity to do these projects, but changes will be required in the planned projects, to give rise to a five-year investment plan of about $2 billion for water.

 

https://www.newsroompanama.com/business/canal-authority-2-billion-rescue-plan

[Moderator_02]

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Panama Canal implements water tax on ships

Posted 15/02/2020

Ships passing through The Panama Canal began paying a water tax  of up ro $10,000  on  Saturday February 15.

For the use of fresh water they will pay  , to enable the  Canal authority (ACP) face the shortage derived from the climate crisis and  to finance future plans to ensure its  full disposition.

"Water is scarce," said  the Canal Authority admnistrator Ricaurte Vásquez  in a recent forum. The announcement of the surcharges for the use of fresh water and other measures, such as a fee for registration of a transit itinerary of between $1,500 and $5,000 dollars, were announced on January 13 and entered into force on Saturday.

Charges range from $2,500 - for ships with a length  from  38.1 meters ( 125 feet) to 60.96 meters (200 feet) -and  up to $10,000, for ships with a length greater than 91.44 meters (300 feet).

A variable charge, of 1% and 10% of the total toll, is applied depending on the level of the Gatun artificial lake (1913).

The Panama Canal, which joins more than 140 sea routes and 1,700 ports in 160 countries, reduced daily quotas from 32 to 27, to make water use more efficient and the transit service more reliable.

Vasquez has said that the surcharges for the use of fresh water will not be suspended once the levels

of Lake Gatun are recovered, because they are a source to finance "the important investments" that the Canal must face "to give certainty to the water supply".

No project has yet  been defined but ACP authorities have already mentioned desalination  of water from the Atlantic or taking the resource of a large dam in the area surrounding Panama City, among others.

User reaction
Eight of 10 shipping companies have said that "if this is what we have to do, let's do it and do it now,"

said Vásquez about the reaction of the users of Canal, whose main clients are the United States and China,

"We have talked with the various agencies linked to shipping associations and explained to   the maritime business the reason for  the new charges” said Vasquez.

 

https://www.newsroompanama.com/environment/panama-canal-implements-water-tax-on-ships

[Moderator_02]

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Drought forces Canal Authority to cut  draft for bigger ships

Posted 06/03/2020

Starting  March 30, the  Panama Canal Authority (ACP)   will reduce the draft of the Neopanamax vessels using the new locks by half a foot which means reducing the amount of cargo they can carry while transiting the waterway.

A message has been sent from the ACP  to shipping agents, ship owners, and operators. With the adjustment, the draft allowed or depth that reaches the part of the vessel that is submerged for the neo-Panamax will fall from 46 feet currently accepted, to 45.5 feet.

Canal administrator  Ilya Espino de Marotta, said that for now "there should be no greater impact on any vessel with 45.5 feet of draft."

But she warned that there can be an impact, it is necessary to adjust the draft to 44 feet.

Ships arriving with a draft greater than 45.5 feet after March 30 may transit, depending on the actual level of the Gatun, or they will be asked to remove weight.

 

https://www.newsroompanama.com/business/drought-forces-canal-authority-to-cut-draft-for-bigger-ships

[Moderator_02]

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Panama’s water crisis endangers canal

Posted 08/03/2020

The Panama Canal Authority has taken heroic measures to efficiently manage the water available for road operations. These actions are only a palliative for this serious threat to the operation of the Canal and, of course, to the competitiveness of the Panamanian economy.

If the transiting ships carry less cargo, or enough draft cannot be guaranteed to cross the Canal, the country loses confidence and international reputation.

 It would be clear to the entire world that Panama is not able to manage the water necessary for this activity. Panama has a history of negligence and indifference to environmental issues that, such as climate change and deforestation, now faces an expensive bill.

 The water crisis facing agriculture, industry, tourism, the Canal and, of course, human consumption, urgently requires decisive state action, perhaps with the same intensity as the response to the coronavirus. If we do not guarantee the availability of water in quality and quantity sufficient for our present and future needs, we will lose the country through ignominy and ignorance. This task is vital and requires immediate decisions - LA PRENSA, Mar 8

 

https://www.newsroompanama.com/opinion/panamas-water-crisis-endangers-canal-1

[Moderator_02]

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Maersk doubles down on Panama Canal freshwater surcharge

March 3rd, 2020
Sam Chambers

Maersk risks irking the shipper community by doubling down on Panama Canal tariffs.

In the wake of the canal authority’s decision to raise a $10,000 per transit fresh water surcharge for all ships longer than 38.1 m, a measure that came into effect last month to fight an ongoing drought in the Central American nation, liners have had to ponder what to pass on to clients. Setting the ball rolling, Marseille-based CMA CGM and subsidiary APL eight days ago announced a $15 per teu canal transit surcharge.

Maersk yesterday came up with its own Panama Canal surcharge, twice as high as its French rival. Effective April 1, shippers will be hit with a $30 per teu surcharge for all cargoes transiting the waterway.

In January, acknowledging the climate crisis, the Panama Canal Authority announced a $10,000 fresh water surcharge for all transits, effective February 15. In addition, a variable fee ranging from a minimum of 1% to a maximum of 10% of the vessel’s toll will be applied. The percentage to be applied will depend on Gatun Lake’s level at the time of transit. The lake is a key part of the waterway, where water levels have dropped alarmingly over the last 12 months. The official lake level will be published daily, as well as forecasted for the following two months.

The Central American nation has battled enormous droughts of late, which saw the canal’s watershed being approximately 20% below normal levels last year and stark images of previously submerged trees reemerging along the edges of the expanded canal.

Canal administrator Ricaurte Vasquez told a news conference in January that the measures were needed to tackle the impact of climate change.

 

https://splash247.com/maersk-doubles-down-on-panama-canal-freshwater-surcharge/

[Moderator_02]

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July rainfall in Canal basin below average

Posted 06/08/2020

While the rest of the country endured frequent downpours during the month of July rainfall in the Panama  Canal watershed was  13.7% below the historical average.

According to the, monitoring rainfall in the basin, so far this year, June was the only month when it reached 20% above average rainfall.

In the rest of the months of the year, there has been a deficit in expected precipitation.

Because rainfall has been below average, the reservoirs are still in the process of recovery, after a very dry 2019.

 

https://www.newsroompanama.com/business/july-rainfall-in-canal-basin-below-average

[Moderator_02]

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ACP presupuesta plan hídrico

El programa tiene el objetivo de desarrollar las obras necesarias a corto, mediano y largo plazo para garantizar la suficiente disponibilidad de agua para que la vía acuática preste el servicio sin tener que hacer ajustes de calado a los buques.

 

Wilfredo Jordán S.

07 sep 2020 - 12:00 AM

LA PRENSA

 

La administración del Canal ha dado pasos concretos para emprender el segundo proyecto de inversión más importante después de la ampliación de la vía acuática. Ocurre cuando el Canal cumple 106 años de operaciones y 20 años de administración panameña tras cumplir la reversión, el 31 de diciembre de 1999, pactada en la firma de los tratados Torrijos-Carter el 7 de septiembre de 1977.

Se trata del programa para el desarrollo de las obras necesarias a corto, mediano y largo plazo que garanticen la suficiente disponibilidad del recurso hídrico que permita al Canal prestar el servicio de tránsito de barcos sin tener que hacer ajustes de calado a las embarcaciones durante la temporada seca.

Este plan de inversiones para los proyectos hídricos está programado en cinco años (2021-2025) y destinará un monto de entre mil 800 millones y mil 900 millones de dólares, informó a este diario el vicepresidente de Finanzas de la Autoridad del Canal de Panamá (ACP), Víctor Vial. En este costo estimado se consideran todos los gastos legales, ambientales y estudios para desarrollar el proyecto.

La primera partida está incluida en el programa de inversiones del Canal para el año fiscal 2021, que inicia el 1 de octubre de este año y que en total asciende a mil 500 millones de dólares. Aquí también se incluyen unos 50 proyectos entre los que destacan la construcción de una planta fotovoltaica en Cocolí, radares meteorológicos, reemplazo de grúas, entre otros.

En particular, para el plan hídrico en 2021 se podrían destinar entre $500 millones y $600 millones.

De acuerdo con los planes de la ACP, en las próximas semanas debe salir la precalificación de los proyectos y luego el proceso para entrega de propuestas que se espera sean revisadas el próximo año para tomar una decisión. “Es difícil decir en estos momentos cuándo iniciaría y cuál proyecto se desarrollará porque será en función de las propuestas que se reciban. Se busca escoger uno o varios que sean lo más eficientes desde el punto de vista operacional y financiero para resolver el problema”, dijo Vial.

Pueden ser propuestas para construir represas en el lago Gatún que permitan al Canal controlar el agua, pueden ser cauces que den más flujo de agua, también podría ser un proyecto de desalinización, o traer agua de otro lado como Bayano o río Indio, o todas las opciones que se presenten, explicó Vial.

El propio administrador del Canal, Ricaurte Vásquez, ha señalado que ninguna opción para tener más aportes de agua se ha descartado y posiblemente se presenten nuevas alternativas cuando se reciban las propuestas de las empresas que participen en la licitación.

Optimismo en ingresos

El proyecto de presupuesto para el próximo año, que fue presentado la semana pasada ante el pleno de la Asamblea Nacional por el ministro para Asuntos del Canal, Aristides Royo, asciende a $3 mil 308 millones. Unos $26 millones menos que lo presupuestado para 2020.

Esto es así porque se prevé el tránsito de 429.2 millones de toneladas para el año fiscal 2021, aproximadamente 64 millones de toneladas menos que en lo aprobado para 2020 debido a los efectos de la pandemia.

El año fiscal del Canal va del 1 de octubre de cada año al 30 de septiembre del siguiente.

Cada año, el Canal hace un aporte directo al fisco que corresponde a los excedentes y a los derechos por tonelada de tránsito.

En este sentido, se estima que los excedentes de los ingresos que obtenga el Canal el próximo año sean similares a los de 2020. Ayudará en los ingresos del año fiscal el cobro de la tasa por uso de agua dulce, dinero que al final se utilizará para invertir en el plan hídrico.

Sin embargo, evidentemente sí hay una proyección de disminución en el tonelaje que transitará por el Canal como parte de los efectos de la pandemia.

Los pronósticos económicos para el 2021 aunque positivos, resultan insuficientes para recuperar los niveles de actividad previos a la pandemia. Se proyectan 33 tránsitos por día, que son superiores a los 30 diarios del segundo semestre del año fiscal 2020, pero inferior a los 36 por día del primer semestre del año fiscal 2020.

Debido al menor porcentaje de tonelaje y sin aumento de peajes para 2021, se reducen los ingresos por peajes, particularmente de buques de pasajeros, portavehículos y gas natural licuado.

En total, el Canal presupuestó $1,760.3 millones en aportes para el Estado para el año fiscal 2021.

Para el año fiscal de 2020, que está por terminar, se han calculado $1,824 millones.

 

 

Moderator comment: Below is an unedited automated translation of the above news article.

Quote

ACP budgets water plan

The program has the objective of developing the necessary works in the short, medium and long term to guarantee sufficient water availability for the waterway to provide the service without having to make draft adjustments to the vessels.

Wilfredo Jordán S.
07 Sep 2020 - 12:00 AM

<<QNIGTRU2XJG7HHGKL6SAIUHT54.jpg>>
THE PRESS

The Canal administration has taken concrete steps to undertake the second most important investment project after the expansion of the waterway. It occurs when the Canal celebrates 106 years of operations and 20 years of Panamanian administration after completing the reversal, on December 31, 1999, agreed at the signing of the Torrijos-Carter treaties on September 7, 1977.

This is the program for the development of the necessary works in the short, medium and long term that guarantee sufficient availability of the water resource that allows the Canal to provide the ship transit service without having to make draft adjustments to the ships during the season dry.

This investment plan for water projects is scheduled for five years (2021-2025) and will allocate an amount of between 1.8 billion and 1.9 billion dollars, the vice president of Finance of the Panama Canal Authority informed this newspaper ( ACP), Víctor Vial. This estimated cost includes all legal, environmental and study expenses to develop the project.

The first item is included in the Canal's investment program for fiscal year 2021, which begins on October 1 of this year and which in total amounts to 1.5 billion dollars. Some 50 projects are also included here, including the construction of a photovoltaic plant in Cocolí, meteorological radars, replacement of cranes, among others.

In particular, for the water plan in 2021, between $ 500 million and $ 600 million could be allocated.

According to the ACP's plans, in the coming weeks the prequalification of the projects should come out and then the process for submitting proposals that are expected to be reviewed next year to make a decision. “It is difficult to say at this time when it would start and which project will be developed because it will be based on the proposals that are received. The aim is to choose one or more that are the most efficient from the operational and financial point of view to solve the problem, ”said Vial.

They can be proposals to build dams on Gatun Lake that allow the Canal to control the water, they can be channels that give more water flow, it could also be a desalination project, or bring water from another side such as Bayano or Indio River, or all options that are presented, explained Vial.

The Canal administrator himself, Ricaurte Vásquez, has indicated that no option to have more water contributions has been ruled out and new alternatives may be presented when the proposals are received from the companies that participate in the tender.

Optimism in income

The draft budget for next year, which was presented last week before the plenary session of the National Assembly by the Minister for Canal Affairs, Aristides Royo, amounts to $ 3.308 million. About $ 26 million less than budgeted for 2020.

This is so because the transit of 429.2 million tons is forecast for fiscal year 2021, approximately 64 million tons less than what was approved for 2020 due to the effects of the pandemic.

The Canal's fiscal year runs from October 1 of each year to September 30 of the following.

Each year, the Canal makes a direct contribution to the treasury that corresponds to surpluses and rights per ton of transit.

In this sense, it is estimated that the income surpluses obtained by the Canal next year will be similar to those of 2020. The collection of the tax for the use of fresh water will help in the income of the fiscal year, money that will ultimately be used to invest in the water plan.

However, there is obviously a projection of a decrease in the tonnage that will transit through the Canal as part of the effects of the pandemic.

The economic forecasts for 2021, although positive, are insufficient to recover the levels of activity prior to the pandemic. 33 transits per day are projected, which are higher than the 30 daily for the second semester of fiscal year 2020, but less than the 36 per day for the first semester of fiscal year 2020.

Due to the lower percentage of tonnage and no increase in tolls for 2021, toll revenues are reduced, particularly from passenger ships, vehicle carriers and liquefied natural gas.

In total, the Canal budgeted $ 1,760.3 million in contributions to the State for fiscal year 2021.

For the fiscal year 2020, which is about to end, $ 1,824 million has been calculated.

 

https://www.prensa.com/impresa/economia/acp-presupuesta-plan-hidrico/