Panama Real Estate Blog

Since the days of the Spanish explorers, the Isthmus of Panama was recognized as a strategic trade route. It was only in the late 19th century that the first operations began to connect the Pacific and Atlantic Oceans.

In 1881, the construction began under concession of the Colombian government, by a privately owned French company named Compagnie Universelle du Canal Interocéanique. All financing was raised privately and the project was headed up by the developer of the Suez Canal, Ferdinand de Lesseps. Unfortunately, Lesseps attempted to utilize strategies and methods as applied in the Suez area to the Panama terrain and climate, which ultimately led to the demise of the lives of many workers and the project collapsed as a whole in 1889.

The United States attempted negotiating with the Colombian government for continuance on the project, which subsequently did not come to fruition – however, with the US backing Panama, then part of Colombia, the Republic of Panama was created in 1903, when they declared their independence from Colombia. Subsequent to the signing of the Hay-Bunau-Varilla Treaty and the formation of the Panama Canal Zone, the project was proclaimed in February of 1904.

Theodore Roosevelt, who enthusiastically supported and fought for the procession of the Panama Canal was often referred to as the ‘father’ of the Canal, although most of the actual work on the canal was conducted under the administration of William Howard Taft. There were differing schools of thought regarding the type of canal, but eventually the high level lock type canal was selected, and this led to what we know today as the Panama Canal.

The Canal was administered by the United States from 1914 until 1979, when there was dual control with the Panamanian authorities. In 1999, full control and administration was handed over to Panama, and the Panama Canal Zone was abolished. The control of the canal is under the responsibility of the Panama Canal Authority, who answers solely and directly to the government of Panama.

The Canal stretches 65km from shoreline to shoreline, and by utilizing the canal ships shorten their journey by 15000km, compared to sailing around the Cape Horn in South America. Contrary to general belief the canal does not run East to West, it does in fact run from North to South. The cities on either side are Panama City in the South on the Pacific side and Colon in the North on the Caribbean Sea.

The canal operates on a gravitation flow of water, eliminating the need for water to be pumped into the locks, this raises or lowers the ships passing through the canal, either up to the levels of the artificial lakes of Gatun and Miraflores, and then back down to sea level on either side. The locks are fitted with gates to stem the flow of water and are operated by control towers at the various sets of locks. The dimensions of the locks are 300m long, 33m wide and 12m deep; with the locks’ gates ranging from 14m to 25m high. In order to maintain and protect the locks and the lock mechanisms all vessels are required to be taken through the locks by electric towing locomotives, which operate on cog tracks on the lock walls. To avoid vessels going too quickly there are fender chains preceding the locks to bring a vessel to standstill if need be, and if the vessel is proceeding at the right pace and direction the chain is dropped down into the channel, these are operated hydraulically to withstand the sheer size and power of the various ships passing through.

Ships navigate through the channel under the care and instruction of one or more pilots on board the passing ship. This is necessary to guide the ships correctly, especially within areas like the Galliard cut, which can be difficult to navigate during dredging operations. The average time a ship takes to navigate through the channel is approximately 9 hours, but can take up to 20 hours. In order to correctly establish tolls for using the canal, the ships are boarded by measurers who inspect and tally the manifests and other ship documents.  The rates of the canal were based upon interior cargo and / or passenger capacity of each relevant ship and remained unchanged from 1914 to 1973, when the canal operated at a loss. Subsequent increases were necessary, as well as additional charges with respect to cargo carried above deck.

The canal serves the principal trade routes of the US East Coast to Hawaii and East Asia; US East Coast to South American West Coast; Europe to West Coast of North America; Europe to West coast of South America; the East Coast of North America to Oceania; the US East to the US West Coast and Europe to Australia.

The Panama Canal continues to prove its strategic importance and plans are underway for the enlargement of the canal to cater for super tankers, wanting to traverse the Isthmus of Panama. The experience of going through the Canal is a mind boggling adventure, traveling through the narrow cuts and locks, surrounded by the lush vegetation and beautiful scenery. One should visit the Canal Museum to obtain a full understanding of the history, construction and ongoing operation of this man made marvel.

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