New Panamanian President-Elect Plans to Boost Canal Resilience and Tourism

---

Panama's incoming president, Jose Raul Mulino, intends to tackle the challenges facing the Panama Canal, which is grappling with an unprecedented drought. He aims to pass a law that would allow the canal to build much-needed water reservoirs, ensuring it can sustain operations. Mulino recognizes that adverse climate conditions are leading to lost revenue for this vital waterway.

In addition to supporting the canal, Mulino has ambitious plans for a new tourist train project, which would boost the country's tourism sector and follow the model of Mexico's Mayan Train. He will establish a national railway secretariat to get the project rolling.

Economically, Mulino promises to maintain investment and pro-business policies while curbing excessive public spending. He remains optimistic about Panama retaining its investment-grade rating, despite recent fiscal challenges. Mulino will focus on effective tax collection instead of raising taxes and has pledged to honor Panama's debts.

He plans to create a team to streamline U.S. investment and explore Panama's potential membership in the Mercosur trade bloc. Additionally, Mulino is enlisting experts to find solutions to Panama's state pension fund issues.

Mulino begins his five-year term on July 1st, determined to strengthen Panama's logistics and geographic advantages.

Read more at Reuters

Why This Matters:

This matters because the Panama Canal is a major global shipping hub. Any changes there can ripple across the supply chain. If President-Elect Mulino’s reservoir project helps the canal maintain water levels during droughts, that's good news for reliable shipping. It means fewer delays, smoother passage, and predictable transit times for your goods.

Our Take:

Mulino's plan to build reservoirs is a proactive move to keep the canal flowing and keep those container ships moving. But don't ignore his tourism train project—improved transport could unlock new shipping routes and boost overall logistics efficiency in the region. Investing in the canal's resilience and connectivity can only strengthen Panama's role as a logistics powerhouse.

---