The Panama Canal's new set of locks will be operational by the January 2016 deadline, the canal's chief said on Tuesday, after fears that a recent labor strike could have further delayed the project.

By Sonya Dowsett MADRID, March 14 (Reuters) – A construction industry consortium led by Spain’s Sacyr said in a statement on Friday it had signed a deal late on Thursday...

Feb. 28 (Bloomberg) — The Panama Canal Authority agreed with a group of builders led by Sacyr SA on a deal to end a two- month dispute over expansion of...

A deal to resume work on the multibillion-dollar Panama Canal appeared in doubt on Thursday, just hours after an apparent breakthrough, in the latest twist in a protracted dispute over massive cost overruns.

The Panama Canal Authority said that it has reached a deal with the construction consortium that would allow for work to resume on the third set of locks in the Panama Canal expansion project.

The Panama Canal and a Spanish-led construction consortium expanding the major global waterway discussed options on Tuesday to keep the multibillion-dollar project afloat amid a dispute over costs, but any deal seemed unlikely ahead of a looming deadline.

The Panama Canal Authority said it reached a partial agreement with builders led by Sacyr SA to end a dispute, even as it continues to seek alternatives to finish the waterway’s expansion. Sacyr rose as much as 8 percent.

The companies working to widen the Panama Canal and the waterway's administrator on Friday each made new proposals aimed at reviving the multibillion dollar project, after talks broke down this week amid a cost spat and work ground to a halt.

Delays to the $5.25 billion Panama Canal expansion may prolong a surge in rates for ships hauling liquefied petroleum gas between the U.S. and Asia, according to Arctic Securities ASA.

The $5.25 billion expansion of the Panama Canal was suspended today as negotiations between a construction group led by Spain’s Sacyr SA and the waterway’s authority broke down, threatening to delay work beyond 2015.

The Panama Canal Authority broke off talks about a $1.6 billion cost overrun with the Sacyr SA-led group working to expand the waterway, Sacyr said, pushing its shares as much as 8.4 percent lower.

The Panama Canal Authority said on Tuesday it was in talks over a new financing proposal with the Spanish-led consortium in charge of expanding the waterway and its insurer aimed at ensuring work continues on the project, which faces huge cost overruns.

The Panama Canal Authority (PCA) has turned down an offer by the European Commission to mediate in a multi-billion dollar dispute with a Spanish-led construction consortium which threatens to halt work on widening the century-old waterway.

A bitter dispute between the Panama Canal and a Spanish-led consortium of construction companies over the spiraling cost of expanding one of the world's busiest waterways was years in the making.

Sacyr SA pledged to complete its contract to expand the Panama Canal, edging back from a threat to suspend the project if the waterway’s authority didn’t offer compensation for unexpected costs.