Panama Canal celebrates 111th birthday with sustainability momentum

August 18, 2025, by Naida Hakirevic Prevljak

On August 15, 2025, the Panama Canal, an artificial waterway connecting the Caribbean Sea with the Pacific Ocean, marked 111 years of operations, renewing its commitment to a sustainable future.

Since the waterway’s inauguration in 1914, with the historic transit of the steamship Ancón, which, for the first time, connected the Pacific and Atlantic Oceans, the canal has been a driver of Panama’s economic and social development while also a transformer of global maritime trade. This impact has grown over the past 25 years under Panamanian administration.

“In 25 years under Panamanian administration, the canal has doubled its capacity, expanded its locks, and strengthened its security. It has grown from being a strategic passage to a model of efficiency, transparency, and technical commitment. Every dollar generated is reinvested to ensure this artery continues to beat in service to the world while any surplus is contributed towards Panama’s social development,” Ricaurte Vásquez Morales, Canal Administrator, commented.

The Panama Canal pursues a sustainability strategy with a focus on decarbonization and climate change adaptation. In line with the International Maritime Organization’s target, it has pledged to achieve carbon neutrality by 2050.

View on Offshore-energy.

Key actions include specific emission reduction goals and the acquisition of ten tugboats with hybrid propulsion systems. On August 15, the first two vessels, the Isla Barro Colorado and the Isla Bastimentos, were christened, the Panama Canal Authority (ACP) revealed. These vessels are said to significantly reduce emissions, improve energy efficiency, and lower underwater noise.

View on Offshore-energy.

Earlier this year, ACP unveiled the initiative that prioritizes vessels running on low-carbon fuels and ships fitted with energy-efficient technologies, an endeavor in line with its commitment to climate neutrality.

View on Offshore-energy.

Furthermore, the Panama Canal’s sustainable watershed management has benefited thousands through socio-environmental programs such as land titling, reforestation, agribusiness, and environmental education. Within this framework, the project to create a lake in the Río Indio watershed, currently under development, seeks to deliver benefits to local communities by improving their quality of life while helping conserve their environment. The goal is to ensure water security for more than two million Panamanians who rely on the Panama Canal’s lakes.

With a vision focused on national and regional development, the Panama Canal is promoting four strategic initiatives: an energy corridor, new port terminals, a logistics corridor, and the reinforcement of the water system. These projects are designed to generate long-term value, foster innovation, and solidify Panama’s position as a key hub for global trade and connectivity.