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The Panama Canal is the system of man made channels, locks, dams, and artificial lakes that connect the Pacific Ocean to the Atlantic Ocean across the Isthmus of Panama. Since its completion in 1914 the Panama Canal has allowed shipping to cross the fifty mile wide isthmus at the narrowest part of the Americas. The Panama Canal locks allow ships to enter the system from either ocean and to be raised to the level of artificial Lake Gatun, 26 meters above sea level, to transit central Panama before being lowered to sea level on the other side.

Construction of the Panama Canal included damming the Chagras River (Gatun Dam) so that a central valley filled with runoff from Panama's tropical rains thus forming Lake Gatun. In addition a 7.8 mile long, manmade valley was blasted and dug through a ridge in the mountains of central Panama to connect Lake Gatun with the Pacific side of the canal system. This valley is known as the Gaillard Cut or Culebra Cut.

The Panama Canal allows ships to avoid the Drake Passage around Cape Horn at the tip of South America saving up to 8000 miles for shipping that originates north of the canal.

Current passage time is about 9 hours. In 2007, 312 million tons of commercial shipping passed through the Panama Canal in 13,223 ships or about 36 container ships a day.

The hydroelectric power to run the canal system comes from the Gatun Dam. The canal does not use all power generated and sells the unused portion.

Cost of Passage

Ships pay a toll for passage. For example, based on charges updated on May 1, 2007 container ships pay based on capacity to carry shipping containers measuring twenty feet by eight feet by 8 and a half feet. For each twenty-foot equivalent unit (TEU) a ship pays $54. For a large container ship with a capacity of 4,400 TEU's the toll would be 4,400 X $54 = $237,600. Smaller boats are assessed by length with boats less than fifty feet length paying $500 and those over 100 feet paying $1,500.

Administration

In 1903 the United States signed the Hay-Bunau-Varilla Treaty that guaranteed the independence of the new country of Panama and in return received the right to build and operate a canal across the Isthmus of Panama. After its construction was completed by the United States in 1914 the Panama Canal was operated by the United States exclusively until 1977. Two new treaties were signed in 1977 and from 1977 to 1997 the US and Panamanian Panama Canal Commission jointly managed the Panama Canal. In 1997 Panama took over sole management of the Panama Canal.

The Panama Canal is considered neutral and, in fact, the neutrality of the Panama Canal is guaranteed by the 1977 treaty that eventually returned sovereignty of the Panama Canal and adjacent lands to Panama. Current management is by the Panama Canal Authority (Autoridad del Canal de Panama, ACP), which is an autonomous agency of the government of Panama charged with managing, operating, and maintaining the Panama Canal.

In 2007 ACP began the Panama Canal Expansion Project which will take ten years and cost over five billion dollars. A second, larger set of channels and locks will be built to more than double the capacity of the Panama Canal system. The new, larger locks will allow newer, wider and longer ships to pass through the canal. Also navigation channels will be deepened and the Culebra Cut, an excavated channel, will be widened and deepened. Currently there is a name for the largest boat design than can pass through the canal. It is "Panamax." The new locks and other changes will accommodate much larger, "Post Panamax," vessels.

Panama has a great deal of rainfall. Thus the water used to raise or lower boats in the locks flows down from Lake Gatun without the aid of pumps. Deforestation over the years has increased runoff and decreased the holding capacity of the land around the canal. Thus a need arose for three more dams in addition to Gatun Dam on the Chagres River which forms Lake Gatun. These three extra dams provide reservoirs for water during Panama's dry season from mid December to late April each year.

Currently the maximum dimensions of a boat allowed through the canal are 32.3 meters across (beam), and 294.1 meters long with a draft (depth in the water) of 12 meters.

Current and New Panama Canal Lock Comparison

Shipping Volume and Tolls

According to the Panama Canal Authority's "Panama Canal Traffic" report oceangoing commercial transits, tolls, and tonnage were as follows for 2005, 2006 and 2007:

Panama Canal Traffic for Years 2005, 2006, and 2007

Not all canal traffic is commercial. A Panama Canal cruise is a popular tourist experience in Panama. The information for this updated article was checked against a number of sources some of which follow.

PanCanal.com

PanCanal-This is the Canal

Panama Canal-Wikipedia

Panama Canal Treaty

Panama Canal-Map

Encarta

Panama Canal-Global Security

Panama Canal-Maritime-Reports

Panama Canal-General

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