Land Canal

Latin CEO: Executive Strategies for the Americas, Dec, 2001

Panama's new transcontinental railroad, which connects Latin America's largest container port in Colon (on the Gulf of Mexico) with the container port in Balboa (on the Pacific coast), has begun shipping cargo and passengers. US-based Kansas City Railway and Mi-Jack Products, along with the World Banks interna-tional Finance Corp., have invested US$80 million in the 54-mile long "land canal" in return for a 50-year lease.

While the railway is a fast way to transit cargo as an adjunct to the Panama Canal, it costs US$400 per cargo container to transit via the railway, versus US$50 via the canal. The benefit; flexible shipping schedules.