The Panama Canal Authority has outlined a US$8 billion investment strategy spanning the next decade, targeting upgrades in water management, road infrastructure, container terminals, and the construction of a liquefied petroleum gas (LPG) pipeline to support growing trade demands and climate resilience.

It outlined two priorities in its long-term plan: improving water availability through expanded storage for both public use and canal operations, and supporting growth by broadening business activities and boosting transport capacity without raising water consumption.

"With these measures, the canal seeks to capture maximum value from its route and to remain the preferred option for global customers," the announcement said, adding that this vision will also transform the Panama Canal beyond an interoceanic passage and become a logistics hub, strengthening Panama's competitive edge in world commerce.

Panama Canal Administrator Ricaurte Vásquez said the authority plans to allocate over US$8 billion toward key infrastructure projects, including efforts to secure water resources, build a liquefied petroleum gas pipeline, and develop a cross-isthmus roadway. The investment also covers new terminals on both coasts, designed to handle containerized and roll-on/roll-off cargo.

The construction of the Río Indio Reservoir, for example, will secure water for Panamanians and enhance the reliability of canal transits. Dam construction is scheduled to start in 2027 and finish by 2032, with an estimated budget of US$1.6 billion.

The Interoceanic Energy Corridor will include a 76-kilometer pipeline and two maritime terminals with provisions for the movement of up to 2.5 million barrels of energy products per day and linking the Atlantic and Pacific coasts without crossing the locks.

The Panama Canal Authority is also advancing plans for the Corozal Port, a proposed container terminal on the east bank of the canal. The project is currently in the contracting phase of its pre-feasibility study, with findings expected by early 2026. If approved, construction is slated to begin in 2028. The port would be integrated into a broader land-based logistics platform, linking road and rail infrastructure to support expanded cargo movement.

The Panama Canal Authority said it will follow a structured process to select a concessionaire for the planned energy corridor. The ACP Board has approved the initial steps, which include stakeholder outreach, company prequalification, and technical consultations before finalizing bidding terms. The tender is expected in the second quarter of 2026, with international firms likely to participate.