Economy Politics Country 2026-03-09T16:28:55+00:00

Panama-Paso Canoas Train Project Enters Technical Phase

The Panama-Paso Canoas train project, connecting the capital with the Costa Rican border, is actively developing. Technical studies, design of key infrastructure like the Campana Tunnel, and evaluation of eco-friendly fuel options are underway. The project is preparing for implementation, with construction possibly starting in 2027.


Panama-Paso Canoas Train Project Enters Technical Phase

The Panama-Paso Canoas (border with Costa Rica) train project is progressing in its technical phase with route definition, demand and feasibility studies, and the design of key infrastructure, such as the Campana Tunnel, one of the most complex points along the route. He added that they are also opting for eco-friendly fuels or biodiesel, since “they can give us that boost to secure financing and significantly reduce our carbon footprint.” Rolando Lay, Engineering Director of the National Railway Secretariat of Panama (SNFP), explained at Expo Máquina 2026 that one of the most relevant elements of the project is the Campana tunnel, located at a mandatory passage of the railway route. In this area, a tunnel of approximately 3.5 kilometers will be built, due to topographical restrictions and the maximum gradient allowed for freight trains, which cannot exceed 2%. It is estimated that the passenger train would operate at a maximum speed of 137 kilometers per hour, while the freight train would operate at 100 kilometers per hour, sharing a single track designed for future expansion to double track, depending on demand. Lay also explained that the first phase includes 37 kilometers of viaducts, nearly 20 kilometers of storm drains, and an estimated 9 million cubic meters of earthwork and up to 20 million cubic meters of fill. The railway platform will include various materials, such as subbase, sub-ballast, ballast and sleepers, with an estimated demand of more than three million sleepers, opening up opportunities for the installation of local production plants. Another aspect Lay highlighted is the evaluation of a hybrid or eco-friendly train. “We want an environmentally friendly train to access multilateral financing.” Among the options being considered are biodiesel, ethanol, or electricity generated via overhead lines. According to Lay, the tunnel construction method is still being evaluated between the use of a tunnel boring machine or the Austrian system (NATM), which combines drilling, controlled blasting and progressive support, depending on the terrain conditions and the cost-benefit analysis. The first phase of the railway includes 200 kilometers of track to Divisa, with 14 stations, including Chame, Río Hato, Penonomé, Aguadulce, and Divisa. With these documents, the Government will define the implementation model, which could be a Public-Private Partnership (PPP) or a concession, with a view to starting construction between the end of 2026 and the beginning of 2027. The National Railway Secretariat has opened a call for applications from professionals interested in working on this initiative and participate in the development of the railway project that aims to connect the capital with the border with Costa Rica. For this section, geotechnical studies, fault monitoring, high-precision surveys (16 points per square meter) and coordination with the Ministry of Public Works (MOP), which is building a viaduct in the same area, have already been carried out. “We are evaluating whether we can use some type of environmentally friendly fuel, such as biodiesel or ethanol. In addition, the excavation of approximately 500,000 cubic meters of rock is planned. “The pre-feasibility study should be ready this March, while the feasibility study will be delivered between June and July of this year to the Ministry of Economy and Finance,” Lay said. There is already an ethanol law, and we are analyzing that possibility,” said the SNFP official. Additionally, technical and strategic consulting services are being provided by AECOM USA, Inc. (AECOM Panama), whose contract amounts to $4,170,394.73.

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