The Panama Canal is an 82-kilometer (51-mile) artificial waterway in Panama that connects the Atlantic Ocean (via the Caribbean Sea) to the Pacific Ocean. It cuts across the Isthmus of Panama, a narrow land bridge connecting North and South America, and is a vital conduit for maritime trade. The canal uses a system of locks to raise ships 26 meters (85 feet) to Gatun Lake, an artificial freshwater lake, and then lower them on the other side. This allows ships to avoid the lengthy and hazardous route around the southern tip of South America, saving approximately 12,600 kilometers on a journey between New York and San Francisco.
Known for being one of the world's greatest engineering marvels, the Panama Canal significantly shortens maritime communication, boosts economic growth, and influences global trade patterns. Key features include the Gatun Locks, Gaillard Cut, and Miraflores Locks. Popular attractions include the Miraflores Visitor Center, Gatun Lake, and a scenic train ride along the Panama Canal Railway. The Panama Canal Authority (ACP) has outlined an ambitious investment plan for the next ten years to strengthen its strategic role in global trade and ensure its sustainability.
Recent developments include the expansion project completed in 2016, which added a new lane of traffic and allowed larger "Neopanamax" ships to transit the waterway. This expansion doubled the canal's capacity and included the construction of new locks and improvements to navigational channels. As of February 2026, the Panamanian government has ordered the Panama Maritime Authority to occupy two disputed ports at either entrance of the Panama Canal, due to a Supreme Court ruling that deemed the operator's contract unconstitutional. Investments in the canal will include water availability, an LPG pipeline, road infrastructure, and container shipping terminals.
