Panama Canal

The Panama Canal is an artificial waterway in Panama that connects the Caribbean Sea and the Pacific Ocean across the Isthmus of Panama.

The Panama Canal is an artificial waterway in Panama that connects the Caribbean Sea and the Pacific Ocean across the Isthmus of Panama. Completed in 1914 and under full Panamanian control since 1999, it is a major route for international shipping and a strategically important global trade corridor. The canal is also important to Canadian trade as a major shipping route between the Atlantic and Pacific oceans, affecting container traffic and other cargo to and from Canadian ports.

History

French construction attempts began in 1881 but failed in 1889. The United States took over the project after a 1903 treaty with Panama, and the canal opened on August 15, 1914. Control of the canal passed fully to Panama on December 31, 1999.

Route and design

The canal links the Caribbean Sea and the Pacific Ocean through the Isthmus of Panama. It is a lock canal, with locks and an artificial lake system that let ships cross the continental divide. The canal cuts across the narrowest point of the Isthmus of Panama and uses locks to raise and lower ships between ocean levels and Gatun Lake.

Economic importance

The canal is a major route for global maritime commerce because it shortens voyages between the Atlantic and Pacific oceans, allowing ships to avoid the long route around South America. It is one of the world’s most strategically important artificial waterways.

Administration

The Republic of Panama owns the canal, and day-to-day administration is handled by the Panama Canal Authority, which answers to the Panamanian government. The canal is treated as an international transit route open to ships under established toll and passage rules.