The Panama Canal is an artificial 77 km (48 mi) waterway in Panama that connects the Atlantic Ocean with the Pacific Ocean. The canal cuts across the Isthmus of Panama and is a conduit for maritime trade. Cana locks are at each end to lift ships up to Gatun Lake, an artificial lake created to reduce the amount of excavation work required for the canal, 26 m (85 ft) above sea level, and then lower the ships at the other end. The original locks are 34 m (110 ft) wide.
The project was inspired by the diplomat Ferdinand de Lesseps, who was able to raise considerable finance in France as a result of the huge profits generated by his successful construction of the Suez Canal. France began work on the canal in 1881, but stopped due to engineering problems and a high worker mortality rate. De Lesseps wanted a sea-level canal (like Suez Canal), but only visited the site a few times, during the dry season which lasts only four months of the year. His men were totally unprepared for the rainy season.The dense jungle was alive with venomous snakes, insects, and spiders, but the worst aspect was the yellow fever and malaria (and other tropical diseases) which killed thousands of workers. By 1884, the death rate was over 200 per month.
The United States took over the project in 1904 and opened the canal on August 15, 1914. The United States continued to control the canal and surrounding Panama Canal Zone until the 1977 Torrijos-Carter Treaties provided for handover to Panama. After a period of joint American–Panamanian control, in 1999, the canal was taken over by the Panamanian government and is now managed and operated by the government-owned Panama Canal Authority.
The Panama Canal expansion project, also called the Third Set of Locks Project, doubled the capacity of the Panama Canal by adding a new lane of traffic allowing for a larger number of ships, and increasing the width and depth of the lanes and locks allowing larger ships to pass. The new ships, called New Panamax, are about one and a half times the previous Panamax size and can carry over twice as much cargo. The expanded canal began commercial operation on 26 June 2016.
Despite having enjoyed a privileged position for many years, the canal is increasingly facing competition from other quarters. Because canal tolls have risen as ships have become larger, some critics have suggested that the Suez Canal is now a viable alternative for cargo en route from Asia to the U.S. East Coast. On June 15, 2013, Nicaragua awarded the Hong Kong-based HKND Group a 50-year concession to develop a canal through the country. The increasing rate of melting of ice in the Arctic Ocean has led to speculation that the Northwest Passage or Arctic Bridge may become viable for commercial shipping at some point in the future. This route would save 9,300 km (5,800 mi) on the route from Asia to Europe compared with the Panama Canal, possibly leading to a diversion of some traffic to that route. However, such a route is beset by unresolved territorial issues.
