Panama Canal – Map, History, Treaty, Importance

Last Updated : 29 Feb, 2024

Panama Canal is located in the heart of Central America. This 82-kilometer waterway connects the Atlantic and Pacific Oceans. It provides an important link for international trade and travel.

In this article, we are going to learn about the Panama Canal, from its construction to its impact on the world today.

Panama Canal

The Panama Canal is a huge canal that connects the Atlantic and Pacific Oceans. It is super important for ships from all over the world because it’s a faster way to travel between these two oceans. It’s like a big shortcut that helps ships save time and money. It was built over 100 years ago and is a massive achievement in engineering.

Spanish explorers proposed a canal across the Panama Isthmus in the early 16th century.
The canal concept didn’t advance until the 19th century.
The Suez Canal’s success in 1869 inspired similar projects.
Ferdinand de Lesseps’ French company began the Panama Canal in 1880 but faced financial and health issues.
Diseases like yellow fever and malaria caused many worker deaths.
The project was abandoned after nine years due to these challenges.
The US took over the project in 1904, seeing its strategic value.
President Theodore Roosevelt famously initiated the US effort, saying, “I took the Canal zone and let Congress debate.”
The Panama Canal became one of history’s most significant engineering feats.

Map of Panama Canal

A map of the Panama Canal is essential to understand its geographical location and how it operates. The canal runs from Colon on the Atlantic side to Balboa on the Pacific side, passing through Gatun Lake and several locks along the way.

The Gatun Lake acts as a water reservoir, supplying water to operate the locks. The three sets of locks are: Miraflores Locks on the Pacific side, Pedro Miguel Locks in between, and Gatun Locks on the Atlantic side.

Panama Canal Map

Features of Panama Canal

Here are some key points about the features of Panama Canal:

The Lock System: The Panama Canal has three sets of locks – Gatun, Pedro Miguel, and Miraflores. They help ships move between different water levels by filling and emptying chambers with water. Each lock has two lanes, each about 110 feet wide and 1,000 feet long.
Man-made Lakes: The canal has big lakes made by people. The biggest one is Gatun Lake, created by blocking the Chagres River. It’s the largest man-made lake globally and provides water for the canal’s locks to work.
The Culebra Cut: This is a 7-mile-long part of the canal that goes through a mountain range. It was hard to build because of the rocky ground and landslides. They moved a huge amount of earth to make it, one of the biggest earth-moving projects ever.
The Bridge of the Americas: This bridge is important for the Pan-American Highway and goes over the Pacific entrance to the canal. It’s tall enough for ships to go under. It’s not just a road; it also gives a great view of ships passing through the canal.
Tolls System: The canal charges ships to use it, based on their size, type, and what they’re carrying. This brings in a lot of money for Panama, making up a big part of its economy. In 2019, the tolls made $2.9 billion.
Expansion Project: In 2016, they finished adding a third set of locks to let bigger ships, called New Panamax vessels, through. This made the canal handle twice as much and brought more money to Panama and other countries using it.

History of Panama Canal

The Panama Canal’s history is more than just building a waterway. It’s about politics, hard work, and changing the world.

Back in the 16th century, Spanish explorers dreamed of a canal in Panama connecting the Atlantic and Pacific. The idea took centuries to become a reality.
In the 1800s, with growing East-West trade, the French tried building a canal in Panama in 1881. Challenges like tough terrain and diseases slowed them down.
The U.S. took over in the early 1900s, facing similar challenges. Engineers like John Stevens and George Washington Goethals made progress.
The canal’s construction brought people from different countries, shaping a multicultural society in Panama.
The canal officially opened in 1914, cutting travel time between East and West coasts by 8,000 miles.
Throughout the 20th century, the canal played a crucial role in global trade, boosting economic growth worldwide and giving the U.S. a military advantage.
In 1977, control was handed over to Panama, marking the end of U.S. control and a step towards Panama’s sovereignty.
Today, the canal remains vital for international trade, with over 13,000 ships passing through each year. New locks, opened in 2016, allow larger cargo ships, increasing efficiency.

Treaty of Panama Canal

Some of the key treaties related to the Panama Canal and their significance in shaping the world’s economy.

1. The Clayton-Bulwer Treaty (1850)

The Clayton-Bulwer Treaty, signed in 1850 between the United States and Great Britain, was the first step toward building the Panama Canal. It was about working together to build a canal in Central America. The treaty said that neither country would have all the control over where the canal would go. They agreed to share and cooperate in finding the best route for the canal.

2. The Hay-Pauncefote Treaty (1901)

In the early 1900s, the United States wanted to become more powerful in global trade. They decided to build a canal in Panama to make trading easier. The Hay-Pauncefote Treaty replaced an old treaty and gave the United States special permission to build, run, and protect the canal in Central America.

3. The Hay-Bunau-Varilla Treaty (1903)

The Hay-Bunau-Varilla Treaty made the United States in charge of the Panama Canal. It gave the US a piece of land called the Panama Canal Zone forever. This treaty let the US have full control over that area, so they could build and keep military bases there to protect the canal.

4. The Thomson-Urrutia Treaty (1914)

After Panama declared independence from Colombia in 1903, there was a dispute between the United States and Colombia over the Panama Canal. To settle the disagreement, they signed the Thomson-Urrutia Treaty. This treaty gave Colombia $25 million as compensation and an annual rental fee for the Panama Canal Zone, which helped resolve the conflict.

5. The Torrijos-Carter Treaties (1977)

In 1977, the leader of Panama, General Omar Torrijos, and the President of the United States, Jimmy Carter, signed the Torrijos-Carter Treaties. These treaties gave control of the Panama Canal from the United States to Panama. They agreed that by December 31, 1999, Panama would have full control over the canal, meaning it would be Panama’s own and not controlled by the United States anymore.

6. The Neutrality Treaty (1977)

When Panama took control of the canal, they also made a treaty with the United States to keep it neutral. This means that nobody can mess with the canal, and everyone can use it peacefully. The goal was to make sure there were no fights over the canal’s important location and to keep trade running smoothly.

7. The Panama Canal Treaties (1979)

In 1979, Panama and the United States signed two more agreements. One was about how the Panama Canal would be run in the future, and the other was about keeping the canal neutral and making sure it stayed that way. These treaties made sure Panama was in charge of the canal’s operation and made it clear that it would stay neutral, meaning everyone could use it without any problems.

8. The Expansion Treaty (2006)

As more trade and bigger ships came along, the Panama Canal needed to get bigger too. In 2006, Panama made a deal with Spain to pay for, plan, build, and run new locks for the canal. These new locks finished in 2016, making room for bigger ships to pass through. Now, the canal can handle more ships, making it work better.

Importance of Panama Canal

Here are some key points to understand the impact of the Panama Canal:

Quick Path between Oceans: The Panama Canal was built to make it faster and easier for ships to go between the Atlantic and Pacific Oceans. Before it, ships had to take a long trip around South America, which was slow and expensive. With the canal, ships can save time, fuel, and money by going through Panama.
Lower Shipping Costs: The canal has made shipping cheaper for many countries. By cutting travel time and distance, it costs less to transport goods. This helps businesses and customers because products can be sold at lower prices. It also means more competition in the world market, which keeps prices down.
Boost for Trade: The canal has made a big difference in world trade. It makes it easier for countries in Asia, Europe, and North America to trade goods. Big ships can go through it, making it easier to move large amounts of things like oil, coal, and grains. This has helped economies grow faster.
Good for Panama’s Economy: Building and running the canal has brought a lot of money to Panama. It’s a major source of income and has created jobs for people there. It’s also led to new businesses, like shipping and transportation companies, which helps Panama’s economy grow even more.
Better Connections around the World: The canal connects the Atlantic and Pacific Oceans, which has made it easier for ships to travel and trade goods between different parts of the world. It’s opened up new markets for countries to sell to and helps them reach more customers globally.
Less Pollution: The canal has also helped reduce pollution. Before it, ships had to travel longer distances, burning more fuel and putting out more greenhouse gases. Now, with the shorter route through the canal, ships emit less pollution, which is good for the environment.

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FAQs on Panama Canal

What is the Panama Canal?

The Atlantic and Pacific Oceans are connected by the Panama Canal, a canal. Ships can save time and distance by passing through Panama’s short isthmus rather than around South America.

Which country is Panama Canal located in?

The Panama Canal is located in the country of Panama.

What is the length of Panama Canal?

The length of the Panama Canal is roughly 48 miles (77 km).

When was the Panama Canal built?

Panama Canal construction started in 1904 and was finished in 1914.

Who built the Panama Canal?

After assuming control from the French in 1902, the United States embarked on the construction of the Panama Canal.

Why was the Panama Canal built?

The purpose of the Panama Canal was to provide a ship’s shortcut between the Pacific and Atlantic oceans. Ships had to circumnavigate South America before the canal was built, which was hazardous and time-consuming.

How many ships pass through the Panama Canal each year?

Every year, more than 14,000 ships go through the Panama Canal.

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