Key Stats
Panama Canal FY2025 revenue reached $5.71 billion, up 14.4% from FY2024
Total vessel transits hit 13,404 ships in FY2025, a 19.3% year-over-year increase
Cargo tonnage handled 489.1 million PC/UMS tons, a 15.6% jump from the prior year
Panama treasury contributions totaled $2.965 billion in FY2025
The Republic of Panama owns the Panama Canal. Full sovereign control passed to Panama on December 31, 1999, after a phased transfer under the Torrijos-Carter Treaties signed in 1977.
The Panama Canal Authority (ACP) runs the waterway as an autonomous government agency. It connects the Atlantic and Pacific Oceans across 82 kilometers of Panamanian territory, processing between 33 and 36 ships per day through two parallel lock systems. In early 2025, the authority announced an $8.5 billion modernization plan extending through 2035. That plan includes new container terminals at Corozal and Telfers Island, which will add 5.5 million TEUs of capacity, along with a $1.6 billion Rio Indio reservoir project targeted for completion by 2031.
Who Owns the Panama Canal?
Panama owns the canal outright. Title XIV of the Panamanian constitution designates it as national patrimony, making any sale or transfer to a foreign entity illegal.
Constitutional Protection and Operational Autonomy
The Panama Canal Authority operates with full administrative and financial autonomy. It reinvests in infrastructure without needing legislative approval and directs surplus revenues to Panama’s national treasury. The framework guarantees open, peaceful transit for all nations while keeping revenue exclusively within Panama.
Distinction Between the Canal and Nearby Ports
While Panama owns and operates the canal itself, the ports on either side of it have separate ownership. In March 2025, Hong Kong-based CK Hutchison Holdings agreed to sell 80% of its global ports business—including Panama’s Balboa and Cristóbal ports—to a U.S.-led consortium of BlackRock and Terminal Investment Limited for $22.8 billion. These ports handle about 40% of the canal’s total traffic but carry no authority over canal management.
Who Is on the Board of Directors for Panama Canal?
The Panama Canal Authority board has 11 directors who set operational policies and guide long-term strategy. Each director serves a staggered nine-year term, designed to maintain continuity across different presidential administrations.
Administrator and Deputy Administrator
Dr. Ricaurte Vásquez Morales has served as Administrator since September 2019. Before leading the ACP, he was Panama’s first non-American Chief Financial Officer for the canal and later held the position of Minister of Economy and Finance.
Ilya Espino de Marotta is the Deputy Administrator. She previously directed the $5.25 billion expansion project completed in 2016, which added the Neopanamax locks and doubled the canal’s capacity for larger vessels.
Board Appointments and Structure
The president of Panama designates one director as board chairman, granting that individual Minister of State rank for Canal Affairs. The Legislative Branch appoints one director directly. Nine additional directors receive presidential appointments that require ratification from both the Cabinet Council and the Legislative Assembly.
International Advisory Board
A separate international Advisory Board provides non-binding strategic recommendations. Admiral William J. Flanagan chairs this consultative group, which focuses on competitiveness and sustainability challenges, including climate adaptation and water resource management.
History of Panama Canal Founders and Construction
French diplomat and engineer Ferdinand de Lesseps launched construction of the Panama Canal in 1881. He had completed the Suez Canal in 1869 and believed the same sea-level approach would work in Central America.
The French Failure
The project collapsed by 1889. Yellow fever and malaria killed more than 25,000 workers. Engineering difficulties and financial scandals in France compounded the disaster, bankrupting the original venture.
American Completion
The United States acquired construction rights in 1903 after supporting Panama’s independence from Colombia. Chief Engineer John Stevens abandoned the sea-level design and adopted a lock-based system instead. Colonel George Goethals finished the work, and the canal opened on August 15, 1914. Early commerce through the waterway included Ford Motor car parts shipped along the first liner routes. The Torrijos-Carter Treaties, signed by President Jimmy Carter in 1977, initiated the gradual handover. Panama assumed full control on the last day of 1999.
Panama Canal Transit Volume (FY2024 vs FY2025)
+19.3% year-over-year growth in vessel transits
Largest Stakeholders of the Panama Canal
The Panama Canal is government-owned infrastructure, not a publicly traded company. The Republic of Panama holds 100% ownership through constitutional mandate, and the Panamanian people are the ultimate stakeholders. No government administration can sell or transfer control, regardless of political pressure.
International Shipping Lines
Global container carriers are the canal’s primary economic stakeholders, though they hold no ownership rights. Major users include A.P. Moller-Maersk, MSC, CMA CGM, and Evergreen Marine. These lines pay tolls based on vessel size, cargo type, and demand-driven dynamic pricing. Container ships, bulk carriers, tankers, and passenger vessels each face differentiated rate structures.
U.S. Strategic Interest
The United States maintains a strategic stake through the Permanent Neutrality Treaty, which guarantees equal access for all nations. About two-thirds of goods transiting the canal are bound to or from the U.S. That said, the treaty provides no ownership stake or operational control over the waterway.
Port Operators Near the Canal
Four major ports sit near the canal. On the Atlantic side, SSA Marine operates the Manzanillo Internal Terminal, while the Port of Colon is under Taiwanese ownership. On the Pacific side, Balboa is the most commercially significant port, serving the busy Asia-to-U.S. East Coast route and connecting to the Panama Canal Railway. Once the BlackRock-led deal closes, three of the four ports near the canal will be operated by U.S.-based companies.
Revenue Distribution
Nearly a quarter of Panama’s annual income comes from the canal and related services, according to IDB Invest. The ACP contributed $2.965 billion to Panama’s treasury in FY2025 alone. Infrastructure replacement value exceeds $50 billion by engineering estimates, and the former Hutchison Whampoa concession—now being transferred—had been in place since 1997.
Panama Canal Revenue Breakdown FY2025
FAQs
Who owns the Panama Canal today?
The Republic of Panama owns the Panama Canal exclusively. The Panama Canal Authority operates it as an autonomous government agency under constitutional protection since December 31, 1999.
Did the United States ever own the Panama Canal?
Yes. The U.S. built and operated the canal from 1914 until 1999, when it transferred full control to Panama under the 1977 Torrijos-Carter Treaties signed by President Jimmy Carter.
Does China control the Panama Canal?
No. Chinese companies operated nearby ports through CK Hutchison, but those ports are now being transferred to a U.S.-led consortium. China holds no ownership or operational control over the canal.
How much revenue does the Panama Canal generate?
The Panama Canal generated $5.71 billion in revenue during FY2025. Of that, $2.965 billion went directly to Panama’s national treasury.
Can Panama sell the Panama Canal?
No. The Panamanian constitution designates the canal as inalienable national patrimony. No government can legally sell or transfer ownership to any foreign entity.
