Getting the best out of the Panama Canal

Alexei Oduber, Managing Director GAC Panama

Shippers and operators from a wide range of sectors use of the Panama Canal. One thing they have incommon is the concern about how possibledelays might affect them.

Based on my quarter century of experiencein the waterway, it’s safe to say thatthere is always potential for transit delays.However, the Canal can do better. ThePanama Canal can accommodate 38 to40 ships a day in normal conditions and iscurrently averaging 34.3 transits, whichleaves capacity for another 4 or 5.

Night-time operations create greater options

Since the expanded canal opened in 2016,the locks have facilitated more than 400LNG carrier transits in the daytime. With this experience, the Panama Canal should be ready to offer the night transit for LNG vessels.

Operational adjustments have to be made to accommodate new slots but opening up the option for night-time LNG passages would address the important issue of delays affecting both LNG and non-LNG customers. Every time you create a new operational slot, even with transit restrictions, Canal users stand to benefit from fewer delays and more options.

Making more time

Increasing the time frame for NeoPanamax vessels to enter a port area in the Pacific side of the Panama Canal could also increase transit slots.

The approximately 4km long stretch between the Bridge of Americas and Buoy No. 6 serves as the entry and exit point – both to the Panama Canal and to Balboa Port (an important hub for Maersk) and the PSA Terminal (a key transshipment hub for MSC).

But unless you’re a container operator you may wonder why would this matter to you? Similar to how opening up nighttime LNG transits would benefit all using the Canal, there is a potential domino effect here too. Currently, simultaneous NeoPanamax vessels in both directions are not permitted, but to change it would create a window of approximately three extra hours of Canal transit time. That would mean a partial transit for one vessel, saving half a day of hire and perhaps an extra transit slot due to the decrease in Canal Water Time between arrival in Panama Canal waters and sailing from the locks.

The possibility of making these two changes is now being reviewed in detail by the Panama Canal Authority (ACP). Indeed, the Canal’s Deputy Administrator has boarded NeoPanamax vessels to assess and analyse the situation first-hand.

High noon for water levels

One big challenge remains in the quest to boost transit efficiency – the water limitation due to the Canal’s fixed storage capability. Plans are in place to improve water savings in a bid to become resistant by 2025 to the impact of decreasing levels in the summer months.

Some suggested solutions include increasing the depth of the Gatún Lake, which feeds the Panama Canal, by creating silos inside to increase water savings and enable re-use when needed. Now, the water saving pools for NeoPanamax vessels use 6% less water while transiting twice the cargo.

Currently, every transit uses 52 million gallons/196 million liters of fresh water which is dumped out into the ocean through “spillways”. Reusing this water could allow the Canal to plan additional transits. The risk, however, is that osmosis

(moving from higher to lower concentration)could increase the salinity levelsin the Gatún Lake when the water isreturned – a major issue as it is also themain source of drinking water for PanamaCity, home to about 25% of the country’spopulation. Fortunately, new technologiescan address this issue and assure safesaline controls.

Working together

Every shipping customer that uses thePanama Canal wants greater transitefficiency. Raise your concerns with youragent and we, in turn, will take them to theregular meetings we have with the ACP sowe can all work towards new, operationaland hydric sound procedures that will boostthe number of transits every day.

ABOUT ALEXEI ODUBER

Alexei Oduber has been involved in tanker, liner and agency operations in Panama since 1991 where he started working with the Panama Canal. He has managed a fleet of tanker, barges and supply vessels for ancillary services to vessels. As the administrative manager of a canal Transit Agency responsible for over 300 transits per month, implemented innovative commercial projects. Established Hamburg Süd’s commercial presence in Panama while responsible for commercial, operational, vessel utilization, and equipment usage as the country manager. Currently managing director of GAC at Panama, part of the GAC Group based in Dubai. Along with a network of over 30 GAC offices in USA, Brazil, Trinidad, Guyana and Uruguay the company has been focusing in providing specialized services to tanker and bulker sector in America.

Have spoken in international events including presenting in Nairobi to the African Nation Assembly of World Trade Organization. As an active member of the Panama Chamber of Shipping, and while presiding the Education Committee designed and implemented a program of visits and presentations to the different High Schools with a Nautical Program, thus assuring a better graduate into the system. A member of the Rotary Club Panamá Nordeste since 1998 and served as president of the club in 2005. Alexei completed six (6) Ironman triathlons (3.8km swim, 180km bike, and 42.2km run)

Born in the Republic of Panama and completed executive education at Wharton School of Business, the University of Pennsylvania. He also obtained an MBA from Nova Southeastern University after graduating from The Citadel – The Military College of South Carolina, May 1990.