Panama Canal earns record revenue despite drought

A tanker ship enters the Panama Canal from the Pacific side on October 25, 2024. – The Panama Canal earned record revenues of just under $5 billion last year despite a reduction in ship traffic due to a drought, the waterway announced October 25. (Photo by MARTIN BERNETTI / AFP)

Panama City, Panama — The Panama Canal earned record annual revenues of almost $5 billion, despite a reduction in ship traffic due to a drought, its operator said Friday.

The waterway’s income comes from the collection of transit fees, the sale of electricity and maritime services.

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Revenue increased one percent in the fiscal year through September, to $4.986 billion, the Panama Canal Authority reported.

“If water had been available, this year’s result would have been much better than the one last year,” canal administrator Ricaurte Vasquez told a news conference.

The canal allocates about half of its income to operations and maintenance, while the rest goes to the Panamanian treasury.

The lack of rain led the canal authority to reduce the daily passage of ships from 38 to 22, though the drop was offset by ship operators bidding up transit fees.

The century-old maritime channel, which uses rainwater stored in two artificial lakes, eased the traffic restrictions after the rainy season began in May.