London-based environmental, energy and engineering consulting company Ricardo is leading a study that investigates the feasibility of a green shipping corridor between Panama and Algeciras, Spain, aiming to decarbonize maritime trade and modernize global connectivity.
The study is funded by EU delegations in Panama and Costa Rica and aims to 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.
The company will work towards confirming feasible fuel options and operational implications to define realistic pathways for transitioning trans-oceanic container shipping to zero- or near-zero-emission energy sources, as well as evaluating the business case for the corridor.
This implies considering 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 IMO Net-Zero Framework, FuelEU Maritime, and the EU ETS.
Furthermore, the study aims to 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.
Results are expected to be delivered by April 2026.
“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,” said Ricardo’s Associate Director for Transport Policy Alexi Pons .
“Developing green shipping infrastructure along this route could deliver transformative benefits for both regions. 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.”