Posted on May 30, 2025
As drought conditions persist, impacting operations at the Panama Canal, the U.S. Army Corps of Engineers (USACE) is expanding its support through critical infrastructure and technical assistance for the waterway’s continued functionality, building on a longstanding partnership that dates back more than a century. From water management consulting to the recent refurbishment of Pier 3 at the Port of Balboa, USACE’s role highlights a deepening partnership between the United States and Panama in safeguarding the Canal’s operations and global trade flows.
Strategic support
With the Panama Canal facing mounting pressure from increased operational activity, greater municipal and industrial water use, and challenges from climate variability, the partnership between USACE and the Panama Canal Authority’s (ACP) has become ever more critical. In 2023 and 2024, low rainfall forced the Canal to impose strict transit restrictions, limiting the number and size of ships allowed to pass through the waterway and impacting global trade flows.
The ACP’s ongoing partnership with USACE — recognized worldwide for its engineering expertise — is aimed at securing a sustainable water supply to ensure the Canal’s continued operation well into the future.
Boosting operational readiness
As part of this broader effort, USACE recently completed the refurbishment of Pier 3 at the Port of Balboa, a strategic docking site used by both the ACP and Panama’s National Air and Naval Service (SENAN). The upgraded facility will enhance the operational readiness of vessels supporting canal maintenance, maritime security, and emergency response.
The project, coordinated with the support of U.S. Southern Command (SOUTHCOM), with over $5 million in support from USACE, reflects a continued focus on improving critical logistics infrastructure across Latin America.
Historic ties
The connection between the Panama Canal and USACE is rooted in history. USACE engineers were instrumental in designing and constructing the original Canal between 1904 and 1914, overcoming immense logistical and environmental obstacles. Their work was credited not only with building the canal itself but also with implementing health and sanitation programs that saved countless lives. Their legacy continues today, as Panama seeks to address the complex demands of modern shipping and climate resilience.
Today, the challenge is water. According to ACP data, rainfall during the 2023 rainy season was about 30 percent below normal in the Canal watershed. This led the ACP to reduce daily ship transits from a normal level of 36-38 to as low as 22 in late 2023. Vessel draft limits were also tightened, forcing some ships to carry lighter loads or seek alternative routes.
USACE has been advising the ACP on potential solutions, including building new water reservoirs, optimizing watershed management practices, and exploring innovative technologies for water conservation and reuse.
“The Neo-Panamax locks have been critical to meet the growing needs of seaborn commerce but have increased the burden on freshwater resources in the watershed. Both the ACP and USACE have learned a lot on how to develop more effective operational strategies to conserve water while maintaining healthy environmental conditions of the lake,” Adriel McConnell, USACE senior project manager, Water Resources in Latin America, said. “These operational improvements coupled with new projects to improve water availability will significantly improve The Canal’s resilience to provide reliable navigation as well as municipal and industrial water for the people of Panama.”
Seeking sustainable solutions
In 2021, the ACP awarded a technical assistance contract to USACE to support the design of a comprehensive water management system for the Canal. Under the contract, USACE has been providing essential support in hydrological modeling, water resource planning, infrastructure design, and environmental assessment. This technical assistance has helped the ACP narrow down dozens of initial options into a set of feasible, sustainable projects that are now in advanced stages of evaluation.
The ACP credits USACE’s modeling and planning work with helping them manage these challenges more effectively and with preparing the Canal to adapt to long-term hydrological stress.
“The [U.S. Army] Corps of Engineers was selected because it has prior knowledge of the infrastructure, hydrology, geology, and operation of the Panama Canal; has participated in analysis, maintenance, and improvements of the waterway in the past; and has knowledge and experience in water analysis, planning, risk analysis, modeling capabilities, design, construction, operation, and maintenance of infrastructure similar to that of the Canal,” the ACP said.
Commitment to the future
In early 2025, water levels began to recover modestly, but ACP officials have emphasized that proactive investment in water infrastructure remains urgent. USACE continues to assist in refining final project designs and preparing for future construction phases.
As the Canal commemorates its 111th year of operation, leaders from both organizations reaffirm the value of their historic partnership.
“International cooperation is fundamental to the sustainability of the Canal,” Ricaurte Vásquez Morales, ACP administrator, said during a 2023 conference, highlighting the importance of knowledge exchange on hydrology and infrastructure from long-time partners, such as the United States, to help prepare Panama for the future.
