Modernization & Improvements

An ambitious investment program to modernize and improve the Canal’s infrastructure was initiated in 1996 to guarantee the Canal’s ability to serve anticipated traffic growth. The goal of this capital program is to upgrade its infrastructure, enhance safety and security, and improve customer service. The Canal is committed to improve the quality and efficiency of its services by adding or upgrading systems and equipment.

These core projects will allow the Panama Canal Authority (ACP) to increase Canal operational capacity, by permitting more flexible traffic scheduling through the waterway and reducing disruptions in Canal operations.

  1. Widening the Gaillard Cut: Through the years there has been an upward trend in the size of vessels transiting the Canal. It is expected that the number of Panamax vessels, the largest permitted in the Canal, will consist of more than a half of oceangoing transits by the year 2006. (Panamax vessels, those with beam or 100 feet or more, now represent approximately 38 percent of total transits through the waterway.)

    A widening program was designed to meet future traffic demands and to safely accommodate two-way passage through the Gaillard Cut, the narrowest channel in the Canal. The program was completed early and under budget.

    As a result of the widening, after pertinent testing, many of the restrictions in the Cut, particularly those limiting traffic flows to a single direction, may be significantly reduced. However, in order to increase the transit capacity of vessels 900 feet in length or more, an additional project was launched to straighten certain curves.

    Paraiso Tie-up Station: As a result of the Gaillard Cut Widening program, this facility is being relocated to Cucaracha Reach. The tie-up station plays an active role in ACP’s operations, serving as a mooring area for vessels that are forced to interrupt their transits due to mechanical problems. It also serves for the pre-positioning of vessels during lane outages, or periods of high-traffic demand. The ACP is currently evaluating the possibility of adding a second tie-up station on the west bank to further enhance its capacity to manage the increase in traffic through the Canal.
  2. Deepening Gatun Lake: The ACP is currently working on deepening the navigational channel in Gatun Lake. Nearly 40 percent of this project has already been completed, ahead of schedule and within budget. When completed, the deepening will provide an additional meter (3.29 feet) of water storage, which represents a 45 percent increase in water storage capacity. This will minimize the need for draft restrictions and accommodate future demand for drinking water. The anticipated completion date for this project is 2010.

    Increasing maximum transit draft by one foot: The project consists of sealing all the overflow points to the machine rooms at the north end of Miraflores and Pedro Miguel Locks, in order to raise the level of the Miraflores Lake by one foot. This raising by one foot will allow vessels to transit with an additional foot of draft, which may represent 2.5 percent more of its loading capacity or as much as 1,500 additional tons.

    Deepening of the Atlantic and Pacific Entrances of the Canal: The project involves the dredging of the navigation channel in order to provide more depth to the vessels that transit the Canal.
  3. Modernizing and acquiring new equipment, machinery and controls: The following improvements will allow the ACP to be in a better position to provide expeditious transits.

    - Construction of New Drill Barge. The ACP is building a new drill barge, entirely on-site in Panama. The assembly of the barge will allow ACP employees to develop new skills and provide for training with new technology.

    - Managed by the Dredging Division of the ACP, the new drill barge will assist with projects to increase Canal capacity, such as the Deepening of Gatun Lake and the Gaillard Cut. Measuring 51 meters long and 15 meters wide, the barge’s construction is estimated to take 12 months. The first stage of the construction project, which included planning and logistics, began in February 2004. De Donge Shipbuilding, Holland, will provide the primary materials, such as steel, equipment and parts.

    - ACP-Built Launch. In a formal ceremony at the Industrial Shipyard Division, the ACP recently inaugurated an aluminum launch that was built entirely on-site in Panama. The construction provided an opportunity for ACP employees to acquire new skills and experience, while reducing costs.

    The launch measures 16.2 meters long and 4.6 meters wide and will be used to transport Canal line handlers to ships navigating the Canal. The twin screw launch holds a maximum of 31 passengers and two crew members, is powered by two Deutz 653 horsepower engines, and is equipped with hydraulic steering and air conditioning.

    - Dredge replacement: The acquisition of a new suction dredge for the ongoing dredging programs, which include the Deepening of the Gatun Lake and straightening of the Gaillard Cut, will reduce the execution time of the projects. This dredge will replace the Dredge Mindi, which has been in service for 61 years.

    - Increased tugboat fleet by 20 percent: The ACP recently increased its tugboat fleet to 24 units. This increase has improved the Canal’s ability to assist vessels during transits, especially at the locks entrances, and through the Gaillard Cut, where maneuverability and power are required.

    In addition, due to incremental arrival of vessels with overall length of 900 feet and more, the ACP decided to replace eight tugs in a multi-year program initiated in FY 2004. These new tugs, with a bollard pull of 60 tons, 50% more power than those tugs being replaced, will help to cope with the increased number of Panamax vessels.

    - Replaced locomotive tow tracks: The ACP is replacing more than 16 kilometers of existing tow track with a new design built to withstand current and future Canal traffic demands. This new track lowers maintenance costs, improves service and enables the locomotives to assist transiting vessels maintain position within the locks chambers. The project is scheduled for completion in 2006.

    - Increased and improved locomotive fleet: The ACP has been upgrading its locomotive fleet over the past several years in a multi-year contract with Mitsubishi, which entitles the ACP to exercise unique options. Recently, the ACP purchased 34 new locomotives, 16 of which will be assembled in Panama by Mitsubishi and ACP employees working together. Rarely done by Mitsubishi, the local assembly will provide ACP employees with a transfer of technology skills and know how. The locomotives to be assembled have 50 percent more towing power and a faster return speed than previous models, and may reduce the time vessels spend transiting the locks. Each locomotive weighs 55 tons, operates with two 290 HP traction units and has a towing capacity of 311.8 kilonewtons.

    - Installed new locks machinery controls: The ACP has installed a new hydraulic system to operate the miter gates that requires less maintenance than the previous electromechanical system. This new system incorporates modern and programmable controls, enhances safety, reduces maintenance costs and increases consistency via computerized equipment monitoring. Today all miter gates are operated with hydraulic cylinders, which are connected to the locks new computerized machinery control system. Conversion of valves and other auxiliary equipment is underway at all locks.

    Improved illumination at the locks: Efforts to improve the illumination system at the locks in order to adequately meet current and future demands of the Canal are underway. This project will employ state-of-the-art lighting technology, and aims to eliminate restrictions for night transits in the locks, which will allow for a more flexible and efficient use of the Canal, and thereby result in improved customer service.
  4. Enhancing navigational safety and security: The ACP is firmly committed to protecting the Canal and maintaining an excellent record of service.

    - Implemented a vessel traffic system: The ACP has implemented an Enhanced Vessel Traffic Management System (EVTMS), a state-of-the-art vessel tracking system with a maritime operations information database. Implementation of this system allows the Canal to optimize the use of resources through the incorporation of vessel tracking and communications.

    ­ Compliance with the International Ship and Port Facility Security (ISPS) Code. The ACP recently implemented requirements of the International Ship and Port Facility Security (ISPS) Code and received fulfillment certification from the American Bureau of Shipping (ABS) Consulting (an affiliate of the American Bureau of Shipping). Mandatory for ship and port facilities by July 1, 2004, the ACP voluntarily chose to comply with the Code and sought certification. The enhanced security will improve upon the way the Canal works with ships and port facilities to detect and deter security threats within a standardized and consistent framework, exchanging pertinent security information, establishing methods for assessing security and ensuring the enforcement of safety measures.

    ­ Implementation of the Automated Data Collection System (ADCS): On April 1, 2004, the ACP began the process of implementing a new system to send and receive data to and from vessels planning to transit the Canal. Called the Automated Data Collection System (ADCS), the new system eliminated the previous process of data collection via paper, substituting it with an electronic exchange of information between the ACP and its customers. It was fully implemented on July 1, 2004. Vessels transiting the Canal will be required to report all necessary data 96 hours before arrival to Canal waters. The ADCS will improve and facilitate the process of data submission needed for risk assessments and transit operations as well as comply with the new security requirements of the ISPS Code when fully implemented. The ADCS will save time, minimize errors and reduce delays.

    ­ Implemented new vessel tracking software: The ACP has implemented a new navigation system software, Automatic Identification System (AIS). The new software allows the ACP to efficiently increase traffic and better monitor ships and route traffic for safety and security purposes.

    ­ Established a Simulator Center: The ACP has installed a state-of-the-art Simulator to enhance the training of ACP pilots, tugboat captains, seamen and launch operators. The Center includes the latest technological advances, providing Canal personnel with the highest maritime training standards. The Center’s equipment includes a 360-degree visual simulator, a 150-degree simulator and a third auxiliary tugboat simulator, which reproduces the systems installed in the floating units of the Transit Resources Division. These three simulators are fully integrated, thus producing the resultant effects of all three vessels being maneuvered.

    ­ Installed security systems: The ACP has installed a 24-hour Security Control Center and a closed circuit television system to ensure the safety and security of all Canal customers, the infrastructure of the waterway, and its workforce.

    ­ Expanded security operations: The ACP has strengthened coordination with international security agencies, as well as Panama’s security forces, to ensure the safety of ships transiting the Canal. The ACP has implemented the International ISPS Code and works closely with the National Maritime Service to patrol the waterway. Internationally, the ACP is adhering to the International Safety of Life at Sea agreement (SOLAS) and has implemented a safety and security software, Electronic Data Collection System, which collects information about vessels’ ports of origin, ports visited and crew lists. Additionally, the ACP is working with the U.S. Army Corps of Engineers to complete security assessments regarding Canal facilities and infrastructure.

    ­ Gatun Locks fire fighting system: The ACP will upgrade the existing firefighting system of Gatun Locks in an effort to enhance its functionality and operation. This system will be similar to the system previously installed at the Miraflores and Pedro Miguel Locks. This improvement will provide greater response capabilities in order to better guarantee the safety of transiting vessels and ACP installations.
  5. Improving Telecommunications Network: The ACP has improved its telecommunications network by installing and updating its systems. Most recently, an underground duct line was completed which links principal operating areas throughout the Isthmus and increases reliability over the existing aerial optical fiber cable. A new telephone switch was installed at the ACP campus in Corozal which will provide telephone service to this location and improve system reliability by decentralizing many of the functions which are now concentrated in Balboa. Additionally, telephone switches are being updated at all key locations and a Network Operating Center is being installed at Corozal. Several radio communications sites are being refurbished, including a new 300 feet tower at Gordo Hill.