In 2014, Panama made big strides in development of public transportation as they inaugurated the nation’s (and Central America’s) first subway (metro) system. The Metro, as it’s called in Panama, was a huge engineering feat as it required constructing above ground and underground tracks and tunnels that cut through some of Panama City’s busiest streets and neighborhoods. It was also completed in just 3 years, which by any country’s standards is very efficient. Though the Metro currently only has one operating line, the master plan includes three more, in the hopes of building a light rail network that spans the urban centers into the suburbs of the capital.
This week, after much competition and preparation, the government of Panama selected the consortium that will build the country’s second Metro line, solving the final piece of the puzzle before construction can begin.
Brazilian-Spanish Consortium Will Lead Construction
After months of competing bids from international and local developer groups, Panama selected a consortium made up of Brazil’s “Constructora Norberto Odebrecht”, and Spain’s “FCC Construcciones.” This is a huge win for both companies, who have done major work in Panama in the past, including Panama’s Metro line 1, and phase 3 of the Cinta Costera (coastal belt). The name of the consortium is “Consorcio Linea 2”, and although they had the most costly bid, it was also the one that had the best plan and fit for the project at hand. The project will come at a cost of $1.86 billion dollars, and should take about the same amount of time to complete (3-4 years) as the previous Metro line.
What Metro Line 2 Brings to the Table
The importance of a clean, safe, and efficient Metro in Panama cannot be understated. Panama has major traffic issues, and a workforce that largely commutes a few hours each day to get from the outlying city neighborhoods and suburbs into downtown. Metro Line 2 will further extend the reach of the current rail system, connecting the far east suburbs and the airport to the current Line 1, which then connects to the major commercial hubs of the city center. The idea is not only to alleviate traffic, but also save commuters time and money, which is critical in Panama’s service-based economy. The cost of a ride will be less than 50 cents, and help ease commuters dependency on taxis or “pirate” buses.
The Financial Impact
Due to the layout of Panama City, there are many areas that don’t have convenient access to busses, meaning that many commuters find themselves spending $3-$5 dollars a day on taxis, which then take them to bussed areas. While this may not seem like a high price, in Panama’s labor market this represents about an hour’s wage. Also, by cutting down travel time, it reduces the amount of workday hours commuters spend away from home. This is not only a financial benefit, but also a quality of life benefit. Expanding the Metro will reduce pollution, increase travel efficiency, and reduce costs for middle class and low-income workers. These are all big bonuses for Panamanians, and will help keep the country modern and competitive with its neighbors.
The new Metro Line 2 will comprise of 16 stations, stretching over nearly 15 miles of land. This is an increase over Line 1. Line 2 will start at San Miguelito on one end, and Tocumen at the other. Tocumen is home to Panama’s biggest international airport, as well as a popular area for middle class and low-income workers.
