MercoPress. South Atlantic News Agency

Panama Canal: record year but cloudy future

The Canal of Panama concluded fiscal 2005 with a record traffic of 14.011 vessels equivalent to 279,1 million tonnage, a 4,6% increase over the previous year reported Alberto Aleman CEO of the Canal authority.

The largest portion of the volume was containers, bulk carriers and vessels over 900 feet long with deep draught representing 12.648 crossings, 130 more than in 2004.

"The results fill us with pride particularly because once again they show Canal workers know how to face challenges to our organization, always concentrating efforts in improving the reliability of the service we offer the maritime industry which has chosen our route", added Mr. Aleman.

Panamax, the largest vessels in the world in using the canal totalled 304 in fiscal 2005 (ended September 30), a 5,7% increase over 2004.

Apparently Panama has warned that the post-Panamax generation of vessels will not be able to use the current canal's locks system which will necessarily force an enlargement of facilities.

Mr. Aleman warned that viability assessment plans have still to be finished but Panamanian president Martin Torrijos assured that next year a referendum will be called to decide whether the expansion and modernization plans can go ahead.

Any changes in the structure of the Canal must be consulted according to the Panamanian constitution. If the referendum is positive, an estimated 8 billion US dollars will have to be invested in the undertaking.

A vessel's crossing time has been cut down from 26,7 to 24,6 hours and the number of accidents last year was only twelve according to Mr. Aelman's report. The Canal of Panama is currently involved in an ambitious one billion US dollars program to renew locomotives, improve the illumination along the route and widen some of the narrow passages.

The Canal built between 1904 and 1914, is managed by Panama since December 31, 1999, following the 1977 agreement between former presidents Omar Torrijos and Jimmy Carter.