The Panama Canal is one of the most important waterways on Earth. Connecting two oceans, it shortens global shipping routes by thousands of kilometres and continues to influence economics, politics and technology to this day. For travellers, it offers a rare opportunity to experience an incomparable combination of engineering and nature. The lock complexes, the centuries-long struggle for passage and the canal’s growing importance in the face of modern generations of ships all make it a fascinating destination and global hub.
Quick facts & location
The Panama Canal is located in the narrowest part of the Central American isthmus. It is around 80 kilometres long and connects the Pacific Ocean with the Atlantic Ocean. Its location between the continents makes it a natural shortcut between the Western and Eastern worlds.
Notably, the canal does not run at sea level, but rather through an elaborate system of artificial waterways, reservoirs, and locks. At its centre is Lake Gatún, an artificial body of water which serves as both part of the waterway and an important source of freshwater for the locks. The surrounding tropical rainforests act as natural reservoirs and play a vital role in the operation of the entire system.
The canal’s geostrategic location is unique. For instance, it shortens the distance from the US East Coast to Asia by up to 13,000 kilometres, saving significant amounts of time, fuel and CO₂. This explains the canal’s enormous importance for global shipping. Large container ships, freighters, cruise ships and tankers use this passageway daily, affecting not only Panama, but also the entire global economy and world trade.
History – of visionaries, failures and a world-changing success
The idea of connecting the oceans dates back to the Spanish colonial era. However, it was not until the end of the 19th century that a French company began concrete construction. However, despite initial progress, the project ultimately failed due to technical difficulties, tropical diseases and financial problems.
After Panama gained independence in 1903, the United States took over the project, continuing construction of the canal with modernised methods, improved medical care, and efficient organisation. The Panama Canal was finally opened on 15 August 1914 – a milestone that permanently changed global shipping routes.
The canal remained under US administration until 31 December 1999, when it was fully handed over to Panama under the Torrijos–Carter Treaty. Today, it is operated by the state-owned Panama Canal Authority (ACP) and is one of the most efficient and economically important waterways on Earth.
How it works – locks, reservoirs and precision
The Panama Canal uses a sophisticated system of locks, reservoirs and artificial waterways to raise or lower ships between the Pacific Ocean, Gatún Lake and the Atlantic Ocean. Rather than simply passing through a waterway at sea level, ships are moved through multi-stage lock chambers. The Miraflores and Pedro Miguel locks are located on the Pacific side, while the Gatún locks are on the Atlantic side.
Each lock consists of large chambers with sliding gates. Water from adjacent reservoirs is fed into or drained from these chambers by gravity. Ships are manoeuvred with precision and assisted by small locomotives known as ‘mulas’, which keep them centred in the chamber. During the process of passing through the locks, a ship can be raised or lowered by up to 26 metres – an impressive difference in height that is necessary to overcome the natural topography of the isthmus.
Lake Gatún serves as both a ‘water reservoir’ and the main transport route between the lock systems. Lock operations follow a fixed schedule: the gates close; water flows into or out of the chambers; the ship is raised or lowered; and, a few minutes later, the gates open again to allow the ship to proceed to the next section. Each step is highly synchronised to ensure safety and efficiency.
2016 expansion – the era of NeoPanamax ships
In response to growing global demand for larger ships, Panama launched an expansion project in 2007, completing it in 2016. The new locks are called Agua Clara (Atlantic) and Cocolí (Pacific). These are significantly larger and allow modern NeoPanamax ships to pass through.
The new lock dimensions mean that ships with a capacity of over 14,000 TEU can now pass through the canal, which is a huge increase compared to before. The new chambers also have water recovery basins that make around 60% of the lock water reusable, thus significantly reducing water consumption.
Global significance and current challenges
The Panama Canal plays a crucial role in international supply chains. Connecting economic regions such as Asia, the US East Coast and Europe via a direct route, it influences transport costs, energy prices and freight movements worldwide.
In recent years, the focus has shifted towards climate change. Low water levels during dry seasons lead to restrictions on the number of daily transits or the maximum permissible draughts. Investments in water management and infrastructure are necessary to ensure the canal’s long-term operation.
Miraflores Visitor Centre – lock action, cinema experience and visitor attractions
Ships pass through the Miraflores Locks several times a day, usually from morning until late afternoon. The exact number and times vary depending on traffic volume. Canal traffic is organised into time slots, meaning transits often take place in quick succession. For visitors, the busiest times are usually in the morning and early afternoon. The Miraflores Visitor Centre is the most famous viewpoint on the Panama Canal, offering a combination of technical observation, multimedia learning, and modern visitor architecture. The terraces are located directly opposite the historic Miraflores Locks, allowing visitors to see transits – often every minute – at close range.
A central feature of the visitor centre is the IMAX cinema, which shows a large-format documentary about the canal’s history, construction and modern expansion. The film provides background information on the French failures, the US construction phase, advances in tropical medicine and the handover of the canal to Panama. High-quality aerial photographs and animations illustrate this engineering feat and explain how the lock systems work.
As well as terraces and a cinema, the centre has several exhibition areas containing models of lock mechanisms, historical tools, interactive displays and canal control scenarios. Visitors can learn about the management of the waterways, how Gatún Lake works, the ecological significance of the catchment area, and how modern NeoPanamax ships are integrated into the overall system.
At the end of the tour, there is a shop offering a wide selection of souvenirs, including miniature lock gates, historical replicas, books, posters, postcards, canal mugs and other travel items.
Thus, Miraflores combines an immediate experience of the locks with high-quality knowledge transfer and multimedia elements, as well as a well-organised visitor infrastructure. It is one of the essential stops on any trip to Panama and one of the best places in the world to observe a large canal in live operation.
The Panama Canal is much more than just an infrastructure artery; it is a technical, historical and ecological network of global importance, and a must-see for anyone interested in hydraulic engineering, shipping or global trade routes. It provides travellers with unique insights into the collaboration between humans and machines, and remains a critical factor in the global logistics industry.
