The Panama Canal Authority is looking to double the container volume moving through its iconic waterway, according to canal chief Ricaurte Vasquez. Speaking at the Houston International Maritime Conference, Vasquez detailed the canal’s $8 billion investment plan, which includes a robust water conservation strategy after severe drought conditions led to route diversions for ships traveling between the U.S. and Asia.

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The authority is encouraging shippers to consolidate cargoes, reducing water use per vessel, particularly for container ships. Additionally, the canal plans to expand cargo transfer capacity on its west bank, facilitating container offloading and reloading via rail, truck, or ship. This expansion could boost the canal’s annual container traffic by 5 million units by 2045, up from the current 8.3 million.

Since its 2016 expansion added a third set of locks, the canal has prioritized container ships but now sees bulk carriers returning, and recent slot allocations have reserved about 40% of its largest locks’ capacity for 2024. Despite the easing of drought restrictions, LNG shipments through the canal remain below usual levels due to alternative route options. However, anticipated increases in Asia’s LNG demand next year may shift that trend.

The canal is also cautious about potential disruptions from a U.S.-China trade war, which could impact LNG traffic. Vasquez emphasized that energy products have become integral to the canal’s revenue, and it is actively exploring further collaboration with the Port of Houston, a major U.S. distribution hub.