Ricardo, an environmental, energy, and engineering consultancy, has been selected to undertake a feasibility study for establishing a green shipping corridor between Panama and Algeciras, Spain. This project aims at decarbonising maritime trade while modernising global logistics connectivity.
The initiative is financed by the European Union’s delegations in Panama and Costa Rica. The study intends to elucidate the technical, financial, and policy conditions necessary to make the Panama-Algeciras corridor a viable green shipping route. Ricardo will spearhead the project, collaborating closely with the Algeciras Bay Port Authority, the Panama Canal Authority, the Panama Maritime Authority, and a subcontractor from Maritime & Logistics Consulting Group, S.A.
Study components and objectives
Within the scope of the study, Ricardo will investigate feasible fuel alternatives and their operational implications
Within the scope of the study, Ricardo will investigate feasible fuel alternatives and their operational implications, helping to define realistic pathways for transitioning international container shipping to zero- or near-zero-emission energy sources.
The business case for such a corridor will be evaluated by comparing the capital costs of alternative-fuel vessels to conventional ships, understanding the fuel price differential between zero/near-zero and fossil fuels, and examining operating costs in relation to regulatory compliance, including the IMO Net-Zero Framework and EU initiatives like FuelEU Maritime and the EU ETS.
Policy and financial enablers
Ricardo will also identify policy and financial strategies that could mitigate cost discrepancies and expedite implementation, alongside measures to bolster the burgeoning zero-emission fuel supply chain. Green shipping corridors specifically designate routes where ships operate on low-emission propulsion; Ricardo, who has previously overseen similar studies, recognises the potential impact on global shipping.
Ricardo’s Associate Director for Transport Policy, Alexi Pons, remarked, “The Panama–Algeciras green shipping corridor is not only significant because of its trans-oceanic distance, but also because it connects two major global bunker hubs with strong potential to become green hubs. Developing green shipping infrastructure along this route could deliver transformative benefits for both regions.”
Project timeline
The study outcomes are expected to be completed by April 2026, marking a significant step toward enhancing sustainable practices in the maritime shipping industry.
