{"id":26170,"date":"2019-06-05T10:56:23","date_gmt":"2019-06-05T15:56:23","guid":{"rendered":"https:\/\/panamaadvisoryinternationalgroup.com\/blog\/?p=26170"},"modified":"2019-06-05T10:56:23","modified_gmt":"2019-06-05T15:56:23","slug":"climate-change-poses-new-threat-panama-canal","status":"publish","type":"post","link":"https:\/\/panamaadvisoryinternationalgroup.com\/blog\/climate-change-poses-new-threat-panama-canal\/","title":{"rendered":"Climate change poses new threat to Panama Canal"},"content":{"rendered":"

\"\"<\/a>
\nAt the end of last year, the Panama Canal had a problem: too much water.<\/p>\n

Torrential rains had swollen its main water source, the artificial Lake Gat\u00fan, beyond capacity, forcing the canal authority to open the floodgates to evacuate the excess out into the Atlantic.<\/p>\n

But in a twist of meteorological fate, amplified by climate change, within three months the opposite was true: a severe El Ni\u00f1o weather phenomenon struck and the canal began imposing cargo restrictions to cope with what turned into the worst drought in its 115-year history.<\/p>\n

\u201cWe had no rain for nearly five-and-a-half months,\u201d Carlos Vargas, the canal authority\u2019s executive vice-president of environment, water and energy told the Financial Times. \u201cUsually the dry season lasts four months, but this was off the charts.\u201d<\/p>\n

As water levels in Lake Gat\u00fan sank as much as eight feet, five successive reductions in the weight of cargoes that ships could transport were imposed, costing the canal authority about $15m in lost fees, Mr Vargas added. About 40 ships transit the canal every day.<\/p>\n

Panama is already suffering the impact of a changing climate, with rising sea levels threatening to submerge its idyllic San Blas island chain within decades. But the threat to a vital waterway that is synonymous with the country adds a new dimension.<\/p>\n

\u201cThese extreme phenomena are here to stay,\u201d said Gustavo Alanis, head of Cemda, a Latin American environmental group. \u201cAnd with the risk implied by climate change, I think Panama should do more because its economy depends so much on the proper working of the canal.<\/p>\n

\u201dThe canal, one of the world\u2019s major trade arteries that links the Atlantic and Pacific oceans, underwent an expansion in 2016 that allowed it to accommodate bigger ships. But just three years later, additional upgrades in the form of a third lake are already needed if it is to navigate the extreme weather that is expected as a result of climate change.
\nLaurentino Cortizo, Panama\u2019s incoming president who takes office in July, will have to decide whether to build a new lake in addition to lakes Gat\u00fan and Alajuela, which not only supply the canal but provide power and drinking water to more than half the country.<\/p>\n

The canal authority will conclude a feasibility study in December for the project, which is likely to cost \u201chundreds of millions of dollars\u201d, Mr Vargas said. But F\u00e9lix Wing Sol\u00eds, a Panamanian environmental activist, sounded the alarm and said the government must take care not to construct new lakes \u201cat the expense of the forests \u2014 that would defeat the purpose\u201d.<\/p>\n

The new threat to the canal comes at a time of escalating trade tensions between the US and China and slowing world growth that have slashed the outlook for world shipping freight. Denmark\u2019s AP Moller-Maersk, the world\u2019s largest container shipping company, forecast growth of 1-3 per cent this year. Global shipping volumes grew 4 per cent last year.<\/p>\n

Mr Vargas played down the impact of the shipping curbs \u2014 in the form of so-called transit drafts that limit how low vessels can sit in the water. Ships plying ports on the US east coast usually comply with the current limits anyway, he said, adding that there was no impact on some 90 per cent of the canal\u2019s traffic.<\/p>\n

But the commercial director of a major shipping line in Panama, who asked not to be named, disagreed. \u201cYes, it is having an impact on us. The same ship carries less so we either have lower turnover or higher costs,\u201d the shipping official said.<\/p>\n

If ships are too heavy to meet the restrictions, they have to offload containers and transit them overland, which is more expensive. \u201cWe prepare by lowering the weight so we can cross, because of the costs,\u201d the official added.<\/p>\n

That is a cautionary tale for Mexico, where President Andr\u00e9s Manuel L\u00f3pez Obrador hopes to revamp a train route across the Isthmus of Tehuantepec, the shortest route between the Pacific and the Gulf of Mexico, and upgrade the ports on both sides. While the government sees it as a short-cut for ships to avoid having to sail as far as Panama, shipping companies are dubious.<\/p>\n

\u201cIt would have to be very competitive to make sense to unload, reload, unload and reload,\u201d said the shipping official in Panama, adding that shipping companies would need vessels at each end and Mexico would need to speed up its famously bureaucratic customs formalities to make it work. Mexican freight trains have also been targeted by thieves \u2014 a further disincentive.<\/p>\n

To great fanfare, Nicaragua announced in 2014 plans for a $50bn Chinese-built waterway to rival the Panama Canal. But the ambitious \u2014 critics said implausible \u2014 project appears quietly to have been abandoned.<\/p>\n

Meanwhile, Panama\u2019s prayers for rain have been answered in the past couple of weeks, enabling the authority to postpone a sixth \u2014 and it hopes final \u2014 scheduled restriction order until June 12.<\/p>\n

\u201cNature has now stepped in,\u201d said Gustavo C\u00e1rdenas, a geographer and hydrographer in Panama who studies climate change. The rainy season is expected to start in earnest by late July.
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    At the end of last year, the Panama Canal had a problem: too much water. Torrential rains had<\/p>\n","protected":false},"author":5,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[242,12,241,39,248,34,33,62,42,219,11,249,243,7,255,246,244,44],"class_list":["post-26170","post","type-post","status-publish","format-standard","hentry","category-news-articles-panama-perpsective","tag-boca-chica-real-estate","tag-boquete","tag-boquete-real-estate","tag-buenaventura","tag-casco","tag-casco-antiguo","tag-casco-viejo","tag-coffee-in-panama","tag-estate-homes-in-panama","tag-move-to-panama","tag-offshore-real-estate","tag-panama-offshore-real-estate","tag-panama-papers","tag-panama-real-estate","tag-panama-real-estate-bocas-del-toro","tag-relocate-to-panama","tag-rum-in-panama","tag-travel-to-panama"],"yoast_head":"\nClimate change poses new threat to Panama Canal - Blog and Newsletter<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/panamaadvisoryinternationalgroup.com\/blog\/climate-change-poses-new-threat-panama-canal\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Climate change poses new threat to Panama Canal\" \/>\n<meta property=\"og:description\" content=\"At the end of last year, the Panama Canal had a problem: too much water. 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