History of the Panama Canal

In 1513 the Spanish conquistador Vasco Núñez de Balboa first crossed the Isthmus of Panama. When the narrow nature of the Isthmus became generally known, European powers noticed the possibility to dig a water passage between the Atlantic and Pacific Oceans.

A number of proposals for a ship canal across Central America were made between the sixteenth and nineteenth centuries. The chief rival to Panama was a canal through Nicaragua.

By the late nineteenth century, technological advances and commercial pressure allowed construction to begin in earnest. French entrepreneur Ferdinand de Lesseps led the initial attempt (1880–1889) to build a sea-level canal, as he had previously achieved in the building of the Suez Canal (1859–1869). A concession to build the canal was obtained from the Colombian government, at that time the possessor of the Panama Isthmus. The canal was only partly completed, as a result of the severe underestimation of the difficulties in excavating the rugged terrain, heavy personnel losses to tropical diseases, and increasing difficulties in raising finances. The collapse of the French canal company (1889) was followed by a political scandal surrounding alleged corruption in the French government. In 1894, a second French company (the Compagnie Nouvelle du Canal de Panama) was formed to take over the assets of the original French company, with the intention of finding a prospective buyer.

Interest in a U.S.-led canal effort developed in the late 1890s, and was considered a priority by President Theodore Roosevelt (1901–1909). Roosevelt gained Congressional support to buy the French canal concession and equipment, despite a longstanding preference amongst political leaders and the public for the Nicaragua route. After encountering resistance from the Colombian government to what they considered unfair terms, Roosevelt gave his support to a group of Panamanians seeking to secede from Colombia. He then signed a treaty with the new Panamanian government enabling the project. The critical decisions by which the U.S. took over construction of the canal were heavily influenced by the lobbyists William Nelson Cromwell and Philippe Bunau-Varilla, acting on behalf of the Compagnie Nouvelle du Canal de Panama. The terms of the treaty between the U.S. and Panama heavily favored American interests, and remained a source of tension between Panama and the United States until the signing of the Torrijos–Carter Treaties in 1977.

The Americans' success in constructing the canal hinged on two factors. First was converting the original French sea-level plan to a more realistic lock-controlled canal. The second was controlling the diseases which had decimated workers and management alike under the original French attempt. The Americans' chief engineer John Frank Stevens (the second Chief Engineer of the American-led project) built much of the infrastructure necessary for later construction. Following his resignation, the new chief engineer was George Washington Goethals, whose tenure saw the completion and opening of the canal. Goethals divided the workload into three divisions: Atlantic, Central, and Pacific. The Central division, overseen by Major David du Bose Gaillard, was responsible for the most daunting task, the excavation of the Culebra Cut through the roughest terrain on the route. Almost as important as the engineering advances were the healthcare advances made during the construction, led by William C. Gorgas, an expert in controlling tropical diseases such as yellow fever and malaria. Gorgas was one of the first to recognize the role of mosquitoes in the spread of these diseases and, by focusing on controlling the mosquitoes, greatly improved worker conditions.

On 7 January 1914, the French crane boat Alexandre La Valley became the first to traverse the entire length of the canal, and on 1 April 1914 the construction was officially completed with the hand-over of the project from the construction company to the Panama Canal Zone government. The outbreak of World War I caused the cancellation of any official "grand opening" celebration, but the canal officially opened to commercial traffic on 15 August 1914 with the transit of the SS Ancon.

During World War II, the canal proved vital to American military strategy, allowing ships to transfer easily between the Atlantic and Pacific. Politically, the canal remained a territory of the United States until 1977, when the Torrijos–Carter Treaties began the process of transferring territorial control of the Panama Canal Zone to Panama, a process which was finally completed on 31 December 1999.

The Panama Canal continues to be a viable commercial venture and a vital link in world shipping, and is periodically upgraded. A Panama Canal expansion project started construction in 2007 and began commercial operation on 26 June 2016. The new locks allow the transit of larger Post-Panamax and New Panamax ships, which have greater cargo capacity than the original locks could accommodate.