| The
Panama Canal’s Strategic Importance to World Commerce
In its fourth year of administration under Panamanian
stewardship, and consonant to the celebration of the Centennial of the
Republic of Panama, the Canal continues to operate in a safe, reliable
and efficient manner.
The Canal’s strategic importance to world commerce
has no more than flourished with the major developments that have taken
place since the Canal’s transfer to the Republic of Panama.
By virtue of its location, the Panama Canal is where major
trade routes connect thus strengthening commercial ties. Each year, more
than 12,000 vessels transit the Panamanian waterway, carrying a significant
portion of the world’s goods and commodities. The Canal has played
a pivotal role for the world economy by providing an all-water route of
reliable 24-hour service shortening distances between producers and consumers,
suppliers and retailers.
Customer-oriented
Knowing the Canal’s key role in world commerce, and in the development
of major economies in North and South America and Asia, has always bolstered
the resolve of the Panama Canal Authority in moving forward in serving
the needs of its customers.
The Panama Canal has entered into a new era in its 88-year
history – it has successfully moved from a public utility to a customer-based
market-oriented business enterprise with the announcement of a new, innovative
tolls structure. This is aimed at customizing the tolls based on vessel
type and tonnage. This allows greater customer service and continual improvements
to the Canal.
The Canal is still the best bargain compared with other
alternatives.
Transit and Tolls
Business at the Canal is doing well despite the current global economic
situation. While the number of ships moving through the Canal has remained
fairly static, shippers have arranged to use larger vessels with more
cargo tonnage coming through the Canal. For fiscal year 2002, Canal revenues
were US$588 million, thus fulfilling the commitment to support the Panamanian
economy and strengthening its financial position as well.
Safety Record
The Canal has set a new outstanding safety record relating to maritime
accidents. Since the ACP assumed control of the Canal, it has steadily
reduced the number of maritime accidents from 29 accidents in fiscal year
2000 to 17 for both 2001 and 2002. Moreover, the total number of maritime
accidents occurring in the Canal for the past two fiscal years 2001 and
2002 represents a forty percent reduction from the two previous years
of 1999 and 2000. Reducing accidents and improving safety is absolutely
paramount to the ACP and its customers.
Decreased Canal Waters Time
The Canal consistently works on reducing the hours it takes a vessel to
transit, commonly known as the “Canal Waters Time (CWT). From 2001
to 2002, the ACP reduced the CWT to 26.2 hours compared to 31.15 hours
in 1999 to 2000.
Modernization, Improvements and Major Maintenance
Programs
At the Panama Canal its employees have been working aggressively
to meet the ever-changing needs of their customers through a permanent
modernization program – a series of continual improvements for the
Canal with the objective of increasing Canal capacity, improving navigational
safety and reliability.
A Wider and Deeper Gaillard Cut
The ACP recently concluded the widening and deepening work for the sections
of the Gaillard Cut. This allowed 2-way traffic along the narrowest part
of the waterway, and has increased Canal traffic by 16 percent.
New Locomotives
The locomotive fleet was increased from 80 to 100 units. Fourty new locomotives
are already in order. These locomotives help position large ships or Panamax
vessels, which comprise 37.9 percent of Canal traffic, in traversing through
the Canal locks. With the growing trend of Panamax ships transiting the
Canal each year, locomotives are indispensable for these ships’
safe passage.
New Tugboat Fleet
On the other hand, the tugboat fleet is now composed of 24 units. The
increase in size, maneuverability and power of the fleet enables the Panama
Canal to handle the increasing demands of Panamax vessels going through
the Canal.
Hydraulic Conversion and Tow Track
Rehabilitation
Moving on to the locks, the work on the hydraulic conversion of the miter
gate machinery is now 97.5 percent complete. One hundred percent of the
machinery at both the Pedro Miguel and Miraflores Locks has been done.
Furthermore, the tow track rehabilitation work started in 1997 is 52 percent
done and is scheduled for completion in 2005.
Expanded Security Measures
In response to security developments, the Canal has expanded its security
operations, strengthened its coordination with the U.S. and other international
security agencies. State-of-the-art security systems have been installed
such as a 24-hour security control center, and closed circuit television.
The Canal Protection Division personnel are also working with Panama’s
police force and coast guard to ensure the full protection of the Canal
waterway.
New Simulator Center
In August 2002, a new navigation simulator facility was inaugurated. It
comprises a 360 degrees full-bridge simulator, a 150 degrees bridge simulator
and a tugboat simulator, all fully integrated and interactive. These simulators
are fitted with the latest technology, hardware and software programs.
These are used to support basic, advance and re-certification of all maritime
personnel of the Canal including pilots, tugboat masters and transit advisors.
A World-Class Operation and Workforce
All the achievements and new developments are possible because of the
Canal’s best resource – its people. From the line handlers,
to the dredgers, to the pilots, the engineers, and the many employees
of the Canal – it is these people who have made all these things
possible. The Canal is a complex operation that needs a world-class management
team and workforce. Every Canal employee works tirelessly to provide a
high-quality, seamless, uninterrupted, cost-effective and reliable service
to all its customers.
Website: www.panacanal.com
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