Ricardo to lead study of green-shipping corridor between Panama, Spain

The environmental, energy and engineering consultancy Ricardo announced Dec. 23 that it has been appointed to conduct a green-shipping corridor feasibility study between Panama and Algeciras, Spain, aiming to decarbonize maritime trade and modernize global connectivity. 

Funded by the European Union delegation in Panama and Costa Rica, the study will deliver an understanding of the technical, financial and policy conditions required to make the Panama-Algeciras corridor a practical green-shipping route.  

Ricardo will lead the study, in collaboration with the Algeciras Bay Port Authority, the Panama Canal Authority, the Panama Maritime Authority and subcontractor with Maritime & Logistics Consulting Group S.A. 

As part of the study, Ricardo will: 

• Confirm feasible fuel options and operational implications to define realistic pathways for transitioning transoceanic container shipping to zero- or near-zero-emission energy sources. 

• Evaluate the business case for the corridor. This will consider capital costs of alternative-fuel vessels compared to conventional ships, the fuel-price differential between zero-, near-zero and fossil fuels and operating costs linked to compliance with regulatory schemes such as the International Maritime Organization’s net-zero framework, FuelEU maritime and the EU Emissions Trading System. 

• Identify enabling policy and financial interventions and initiatives that could help bridge cost gaps and accelerate deployment, and measures to strengthen the emerging zero-emission fuel supply chain. 

Green-shipping corridors are specific routes where vessels use low-emission propulsion.  

Ricardo, which has led a number of such studies to date, welcomed the study and the significance that this could have on global shipping. 

“The Panama-Algeciras green-shipping corridor is not only significant because of its transoceanic distance, but also because it connects two major global bunker hubs with strong potential to become green hubs,” said Alexi Pons, Ricardo’s associate director for transport policy.  

“Developing green-shipping infrastructure along this route could deliver transformative benefits for both regions,” Pons added. “We’re very excited to be working with the Algeciras Bay Port Authority, the Panama Canal Authority, the Panama Maritime Authority and the EU on this project.” 

The results of the study are expected to be delivered by April.