Panama has been transformed since 1999, with the upward trajectory of growth and foreign investment reflected in its glimmering skyscrapers and enhanced reputation as a tourist haven. The benefits of growth have been numerous, as the standard of living has shot up the rate of poverty has gone down, with many commentators heralding it as the beginning of a golden age for the Republic of Panama.
Yet, underpinning this corporate and social success have been a number of major programs and initiatives which have only been possible in this atmosphere of prosperity and success. We’re talking about Panama’s infrastructure improvements, an ongoing and occasionally prolonged process involving land, sea, and air transportation. These major improvements have been set in place to facilitate the potential for growth in the isthmus, as well as ensure the government’s ambitious aim to turn Panama into the “Hub of the Americas”.
How have these changes manifested themselves? We’ll take a look at the improvements in three categories: sea, air, and land, all of which are priorities for successive governments in the country. Let’s jump straight into category one and see how Panama is making a success of its road network.
Road and Public Transport Infrastructure Improvements in Panama
A much needed and occasionally torturous process, the upgrading of Panama’s road network has been somewhat controversial. While the general public, politicians, and business leaders agree that the old network of poorly maintained and inadequate roads, dangerous privately-owned buses, and lack of rail transport, were unacceptable, there have been many gripes over the length of the development process. Much of this is unavoidable and concerns are unfounded, with the Panama Metro launching in early 2014 (Central America’s first Metro System), the replacement of dangerous diablo rojos with high-quality public owned MetroBuses, and expansion of vital roads. Panama City road improvements consist of a complex series of roundabouts, over and underpasses, and the employment of a legion of newly drafted traffic cops.
The promised removal of toll booths on certain roads has unfortunately not been kept, with many voters expressing discontent with the situation and the government reluctant to remove the concessions. This has led to a particularly painful payment bottle neck of traffic on Corredor Sur, the road between Tocumen International Airport and downtown Panama City – certainly not the impression Panama is looking to establish with new visitors.
Outside of the city the improvements have been less concentrated although equally significant, including improvements to the Trans-American Highway along its entire length, a brand new highway stretching between Panama City and Colon, and a number of newly laid roads in every province. The Colon toll road has been a particular success and has facilitated the growth of the free trade zone by encouraging imports to the capital. Other newly minted roads to highlight include the stretch from David to Boquette, and from Divisa to Chitre.
Air Transport Infrastructure Upgrades
As an integral part of Panamanian tourism, the government hasn’t been slow to adopt the “hub and spoke” theory in its adoption of air transport. The building blocks of this progress began at Tocumen International Airport, which has been expanded and upgraded significantly since its construction. It is now the busiest airport in much of Latin America, offering flights to nearly every continent and serving as a vital transfer link between North and South America. With a new terminal in the pipeline, expect huge things to come from this international airport over the next 25 years.
Panama hasn’t put all of its eggs in one basket either, as the “spokes” of this arrangement are also progressing nicely. Regional airports in the west of the country are being expanded and carriers added to complement existing flight paths, with David International Airport receiving the lion’s share of budget in this region thanks to its comparatively mighty local economy. Closer to the city and more well-known developments, the Rio Hato International Airport serves as a portal to the country’s famous Pacific beachside resorts and private developments. Having opened in 2013, the Rio Hato airport will soon receive the bulk of tourist flights to that region, further augmenting the profitability of local resort towns such as Coronado.
Sea Transport Infrastructure Improvements
With vast ports such as Manzanillo and Colon to think about, Panama isn’t afraid to flex its sea power backed by the Panama Canal. Its commitment to expanding its economic proficiencies has led to deep water ports being aggressively enlarged on both sides of the canal, especially with the Panama Canal expansion project expected to be completed in 2014/15. The ability of the canal to carry ever larger “post-Panamax” ships is a step forward for trade through, into, and out of Panama – with exports and imports set to explode following completion of the mega-project.
Marinas and jetties are also being set up around Panama, as a burgeoning elite class seek to demonstrate their wealth more tangibly. This has been reflected in new marinas in all parts of the country, from the Caribbean in areas like Colon or Bocas del Toro, to the Pacific from the Islas Perlas and the capital itself.
