Background

The Panama Canal Authority (ACP) Secretariat recently visited the ICS offices in London. This meeting was originally meant to be led by the ACP Administrator, however, due to pressing issues related to the new U.S Administration, he was unable to attend. Instead, the ICS Secretariat was visited by the Chief Financial Officer, Mr Victor Vial; the Budget Manager, Mr Juan Mojica; and Mr Ricaurte Salamin, the Business Development Manager. They met with the ICS Deputy Secretary General and the Policy team.

Meeting Report

The meeting provided a valuable opportunity to reconnect with the ACP and discuss their future plans. They shared that the Rio Indio reservoir project has been approved by the board of directors and is set to commence. However, the project is expected to be a lengthy process, with an estimated timeline of around five years.

In 2024, ACP opened a sustainability office, which they have been using to guide their environmental initiatives. For example, while they currently operate 50 tugs, many are hybrid models. This strategic choice ensures they can easily transition to newer, more advanced tugs as technology evolves. They are also exploring the creation of a fuel farm through a joint venture with private companies, aiming to provide a variety of fuel options for ships transiting the canal. ACP highlighted that they plan to adopt a science-based approach to many of their policies.

ACP also updated on the auction process, noting that while it previously involved a 7–10 day wait, they have successfully reduced this to just 24 hours through the reservation system. This change has decreased emissions and allows ship operators to plan their transit times with certainty. Additionally, ACP clarified that while they have been under scrutiny for conducting auctions, only three ships per day are now assessed through the auction process, with slots allocated by segment to ensure container ships do not dominate all available slots.

Most importantly, regarding toll structures, ACP stated they would align toll adjustments with inflation but, noting the challenges faced by the industry, do not currently plan to implement any further changes until 2026. ICS reiterated the importance of industry receiving advance notice of any changes to tolls as much in advance as possible and expressed interest in being part of any future consultation processes on proposed toll adjustments. ACP mentioned they are philosophically opposed to charging the same tolls for environmentally friendly ships as for higher-emission vessels. To set appropriate fees, they plan to consult with shipbuilders, but, at the suggestion of ICS, may also take account of the outcome of the current IMO GHG negotiations scheduled to conclude in April

The meeting concluded with a commitment to continue collaboration between ICS and the ACP through annual meetings, either in London or in Panama.