The Panama Canal: $5 Billion in Profits and 5% of Global Trade

There is no more profitable piece of infrastructure on Earth. The Panama Canal generates nearly $5 billion in annual revenue with a profit margin approaching 70%. And it controls 5% of all global maritime trade. This is the crown jewel of Gran Colombia's potential assets.

Why the Canal Matters

Before the Canal, ships traveling from New York to San Francisco had to round Cape Horn—an additional 8,000 miles. The Canal cuts through the isthmus, connecting Atlantic and Pacific, enabling global trade as we know it.

Today, the Canal handles:

• Container ships carrying consumer goods from Asia to the U.S. East Coast
• LNG tankers moving natural gas to global markets
• Bulk carriers transporting grain, minerals, and raw materials
• Vehicle carriers shipping automobiles between continents

The Colón Free Trade Zone

At the Canal's Atlantic entrance sits the Colón Free Trade Zone—the second-largest free trade zone in the world after Hong Kong. It handles $15+ billion in annual trade, serving as a transshipment hub for goods moving between the Americas, Europe, and Asia.

This logistics infrastructure amplifies the Canal's value. Panama isn't just a chokepoint—it's a commercial hub.

Integration Benefits

What would the Canal mean for a Gran Colombia confederation?

• Revenue sharing: Canal profits could fund confederation initiatives
• Trade facilitation: Preferential transit for confederation commerce
• Logistics hub: Colón could serve the entire bloc's import/export needs
• Diplomatic leverage: Control of 5% of global trade is significant bargaining power

The Sovereignty Question

Panama guards Canal sovereignty jealously—and for good reason. The waterway was controlled by the United States from 1903 to 1999, a legacy of American imperialism that Panamanians haven't forgotten.

Any integration proposal must respect this sensitivity. Petro's confederation model—"autonomous nations" cooperating on specific issues—addresses this concern. Panama would retain control of the Canal; it would simply coordinate with partners on how to leverage that control collectively.

Climate Vulnerability

The Canal faces a growing challenge: water. It operates using freshwater from Gatun Lake, and drought conditions have increasingly restricted capacity. Climate change threatens to worsen this problem.

A regional approach to water management—coordinating across Panama, Colombia, and beyond—could help address this vulnerability. Integration isn't just about economics; it's about resilience.