Panama has made significant strides in transportation infrastructure and access over the past 4-5 years. The most prominent projects have been the Metro (Subway), Metro Bus, and the expansion and modernization of the Pan American Highway. Now, President Juan Carlos Varela has appointed a team to study the feasibility of a cross-country, high-speed rail line. The two anchor stops would be Panama City in the east, and David in the western province of Chiriqui. Both cities are Panama’s two main business centers, with an increasing amount of investment and tourism making Chiriqui a hot destination going into 2016 and beyond.
How the Paris climate change talks influenced this decision
Earlier this month, President Varela and a Panamanian delegation attended the Paris COP21 conference with many of the world’s leaders and heads of state. During the conference, Varela made it clear that one of Panama’s main goals for improving its carbon output would be to improve clean, sustainable, public transportation. One of the projects he says is at the top of his list is a train that will connect dozens of principal cities throughout the country. The idea, if put into action, would be to reduce emissions from the already busy Pan American Highway by reducing the amount of cars and buses that use it.
Where a high-speed train would fit into Panama’s plan for economic, and environmental stability
Aside from the clear environmental benefits of a high-speed rail service, the train would also offer major economic benefits. Principally, it would connect smaller cities and suburbs to major economic areas, and secondly, could help drive new business investment to those smaller markets. One of Panama’s biggest economic issues is geographic disparity. This means that most business is centered in only a few cities, making suburbs and smaller urban areas feeder markets, rather than viable business centers. One of the big reasons for this is access. Many cities in the interior are cut off from efficient transportation, and therefore are inopportune for new investment.
On the contrary, places like Panama City are logistically beneficial for business access, which tips the scales heavily in the capital’s favor when it comes to economic growth and investment.
How the project will unfold if Panama goes ahead with the initiative
Due to the size and scale of this project, Varela estimates that a high-speed rail from Panama City to David won’t be ready until 2030 (if they go ahead with it). He has already contracted a group from Alstom Transport to investigate the feasibility of the project, and create a timetable for execution. Alstom is the company that provided the trains for Panama’s Metro, and would be the principle provider for the high-speed rail. If built, the railway would be built in three stages. It would start between Panama City and nearby Chorerra, and move west to Santiago, eventually ending in David.
Making Panama cleaner, and more efficient is important when it comes to modernizing Panama for the future; a future in which we are likely to see much more of these types of projects.
