The Panama Canal has shaped an interesting historical relationship between Panama and the United States, greatly affecting Panamanian politics and history since the beginning of the 20th century.


Construction of the canal began by France. However, when the French encountered financial ruin and serious loss of workers due to disease – at some points losing up to 200 workers per month – they had to abandon the project at the end of the 19th century.


In the early 1900s, the United States bought the partially completed project from the French and spent a few years reorganizing, changing the engineering of the project from a sea-level canal to a series of locks that slowly adjust the water level as boats pass between the Caribbean and the Pacific Ocean. When Colombia refused to authorize building on their portion of the land tagged for the canal, the United States helped Panamanians kick out Colombians and gain complete control of the territory they now have today.


The United States controlled the Panama Canal and surrounding territory until US President Jimmy Carter negotiated a change-over effective 1999. Several historical intrusions, like the overthrow of Dictator Manuel Noriega throughout the time of American occupation in this area are contributed to the strong American influence in the canal.

Today, the Panama Canal is run completely by Panamanians and is a great source of support to the economy. As many as 14,000 ships cross the 80 km (50 mi) -long canal every year, paying fees based on their weight; average fees are $30,000 one-way. The most ever paid to traverse the canal was $184,114.80 by a US container ship and the least was paid by adventurer Richard Halliburton who swam the canal in the 1920s and paid $0.36 based on his weight of 140 pounds.

To learn more about the canal and its history, visit the Panama Interoceanic Canal Museum in the Casco Viejo in Panama city.

The Miraflores Lock on the Panama Canal is one of the main tourist centers for viewing boats slowly make their way through the canal. Complete with grandstands, exhibits and a running loudspeaker explanation, stay for an hour or two. It doesn’t hurt to call ahead and ask when a boat will be coming through; otherwise, you’ll find yourself staring at a lock filled with brown water.

Orange buses leave from Panama City regularly from the massive intersection in front of the Legislative Palace near the Plaza 5 de Mayo. You can visit the Miraflores Lock, which is most suited for tourism, or Balboa, Paraíso or Kobbe. Buses from this spot run to all areas.