The Panama City to Chiriquí Railway project presents undeniable tourism potential. Located parallel to the City of Health, this project includes the operation of a freight transport line, allowing farmers and producers from central and western provinces to bring their harvests to market in less time, strengthening local economies through new transport and supply structures.
The railway is poised to boost regional development hubs across Central America. This trans-isthmian railway project involves significant public policy actions; a comprehensive prospective analysis of this megaproject is urgently needed. This would leverage the current moment to strengthen various pillars of the Panamanian tourism system, increase the participation of key institutions and companies in promoting the country, and enhance the academic and technical training of tourism professionals.
Each station will facilitate tourism to and from Panama, reshaping travel patterns that have traditionally been concentrated in Panama City. The establishment of development hubs around train stations will foster commercial activity and increase local passenger traffic, which will also help reduce internal migration to the capital.
Ahead of the construction start between Panama City and the Province of Chiriquí, positions for and against this ambitious project, which aims to interconnect a significant part of the national territory, have emerged. Cultural and alternative tourism presents enormous and undeniable potential for local development.
Local development will be based on the integration and institutional support for agricultural production, as well as on the promotion of Panama's tangible and intangible cultural heritage, the care of natural assets like coral reefs, forests, and beaches, and the conservation of watershed systems. Strengthening English, French, Mandarin, and other language communication skills for staff in the national tourism system will be essential for developing a solid and sustainable tourism dynamic in the medium and long term.
Considerations for tourism development in Panama involve revisiting the goals of the Panama Tourism Master Plan for 2007-2020, developed by the Panama Tourism Authority (2007). The geographical distribution of the planned stations will allow for interconnection between various regions of the country and Panama City.
A project of this nature stems from the goal of perfecting and modernizing the country's transportation system in a transformative way, setting a turning point from the hegemonic socio-economic model known as "transitism." The project itself will integrate populations, producers, merchants, logistics operators, and tourism professionals.
The National Railway Secretariat will be responsible for planning, managing, and administering the design, construction, and operation of this ambitious undertaking. The inclusion of the City of Health Station will facilitate travel for people across the country seeking healthcare services. There is even potential to offer international healthcare services, laying the groundwork for medical tourism in Panama.
While the Panamanian economy is currently growing due to increased canal traffic, the Colón Free Zone, the International Banking Center, and rising exports, a significant portion of this growth does not translate into human development. This has led to vastly different social strata and makes Panama a country with high inequality in wealth distribution.
Despite the advantages, skepticism and distrust of the initiative exist. Economists and business leaders question the project's feasibility at a cost of approximately $5 billion. Various political and citizen sectors are skeptical of the price, which is directly related to trust in institutions. Environmental groups and local communities have also expressed disagreement with the railway project, as have some affected transport and landowners.
The reasons for opposition are rooted in Panama's historical economic organization model, which has been based on the interaction between the terminal cities of Panama and Colón, creating unequal development in other regions—a dynamic known as the "transit model."
The reduced travel time between Panama and Costa Rica will allow thousands of travelers from Central America to visit for shopping, a practice known as shopping tourism. The Panama Railway also offers opportunities for visitors who resell clothing, appliances, and electronics. Certain territories must develop and articulate a cultural proposal that integrates local attractions to create festivals and structures that attract both national and international visitors.
The author is a Social Researcher at the Institute of Human Rights, Justice and Peace and a Professor at the University of Panama. The project currently includes 14 planned stations along the Inter-American Highway, with a projected length of 475 kilometers from Albrook Station to Paso Canoas in Chiriquí, on the Panama-Costa Rica border.
Furthermore, the railway will provide an ideal platform for integrating and modernizing the logistics system along the canal corridor and the Tocumen Airport hub. The train project will be built in several phases. However, to make value judgments on a project of this magnitude, it is crucial to investigate its political, social, and economic implications. This paper serves as a preliminary approach, offering a heuristic analysis of the project's positive and negative aspects using various sources.
