Evaluation of Sustainability and its Impact on Business and Maritime Law in the Panama Canal

Abstract

"The Panama Canal”, one of the most crucial navigational routes in the world, has undergone a significant transformation in recent decades. This artificial waterway that connects the Atlantic Ocean to the Pacific Ocean has been a fundamental axis for international trade and has played a crucial role in Panama's regional economy and the world. The expansion of the canal, inaugurated in 2016 with the opening of the Cocolí and Agua Clara locks, has increased its capacity and allowed larger vessels to pass through, boosting global trade and having a direct impact on Panama's economy. However, this expansion has also raised environmental concerns that deserve a detailed assessment. The increase in ship traffic and the expansion of port facilities have led to a higher risk of oil spills and the alteration of surrounding marine ecosystems. Furthermore, the intensive use of water in the locks and the consequent alteration of natural water flows have raised concerns about the availability of water resources in the region. This article aims to evaluate the current state of sustainability in the operations of the Panama Canal, addressing its impacts in three key areas: the environment, the economy, and society. Regarding the environment, it is essential to assess and mitigate the negative impacts generated by the canal's expansion. This includes measures to protect marine and terrestrial biodiversity in the surrounding areas, as well as the implementation of sustainable technologies and practices in water resource management and oil spill prevention. Additionally, close monitoring of water quality in the locks is necessary to ensure that adverse effects on aquatic ecosystems are not occurring. In terms of the economy, there is no doubt that the Panama Canal plays a vital role in global trade and the regional economy. However, it is necessary to evaluate whether economic benefits are distributed equitably and whether there are opportunities to strengthen the participation of local communities in the canal's value chain. Furthermore, strategies to diversify Panama's economy and reduce its dependence on the canal as a primary source of income should be considered. Concerning society, it is important to assess how canal operations impact local communities in terms of employment, infrastructure, and quality of life. Opportunities to improve infrastructure and services in areas near the canal must be identified, ensuring that local communities receive tangible benefits from its presence. The evaluation of sustainability in the operations of the Panama Canal is essential to address emerging challenges and ensure its long-term viability. This involves identifying best practices and implementing concrete recommendations to improve sustainability in the environmental, economic, and social areas. Furthermore, it underscores the importance of cooperation among various stakeholders, including the government of Panama, international organizations, businesses, and civil society, as well as the need for continuous innovation to address the challenges and opportunities presented by this crucial waterway for global trade.