Panama gets over $1 billion from Canal

DSC_0258Panama’s National Treasury will get more than $1 billion from The Panama Canal Authority whose Board of Directors has approved the 2016 payment. The payment includes money for services rendered by the state, as well as the surplus revenue for the year.

The amount is virtually the same as the amount budgeted at the beginning of the year. The fiscal year, runs from October 1, 2015 to September 30, 2016.

Of the total, $630.7 million represents the economic surplus from operations, $380 million to the rights per ton of transit and $2.4 million to the payment for services rendered by the State, the Authority said.

There were 13,114 transits moving 330.7 million tons of cargo and generating tolls of $1.9 billion.

001 (10)With the expansion of the Canal now complete, it is estimated that the contribution to the state will triple in 10 years. For the 2017 fiscal year the contribution of the channel is expected to be $ 1.6 billion.

The expansion of the Canal with the new locks allows the passage of much larger ships with capacity to carry up to 13,000 containers and the new locks, which cost about $6 billion have already generated $5.45 billion dollars.

The main project of the project, the third set of locks, was built by the Grupo Unidos por el Canal (GUPC) consortium, led by the Spanish company Sacyr.

The canal which accounts for about 6 percent of world trade and was built by the US at the beginning of the last century, and links more than 140 sea routes and 1,700 ports in 160 different countries.

In 17 years of Panamanian administration, the Panama Canal has delivered a total of $11.6 billion direct contribution to Panama. During the 85 years of US administration the US paid Panama a total of only $1.8 billion.

Richard Detrich Panama CanalThe US ran the Canal as a service and not as a profitable business. Already realizing that the locks were too small, the US planned and in the 1930’s began a Canal expansion similar to the expansion completed by Panama.The US project was derailed by World War II and the US never found the money or the will to finish the expansion. Panama by direct vote of the entire nation decided to complete the expansion and opened the new locks in June 2016.