Panama and Costa Rica Sign Railway Agreement

Panama and Costa Rica have signed a memorandum of understanding to develop a railway logistics corridor connecting the two countries and promoting regional integration. The project involves a high-speed line of over 200 kilometers, expected to boost economic growth and strengthen sectors like logistics and tourism.


Panama and Costa Rica Sign Railway Agreement

Panama and Costa Rica signed a memorandum of understanding that lays the foundation for the development of a Central American Railway Logistics Corridor. The agreement was signed between the National Railway Secretariat of Panama and the Costa Rican Railway Institute in a ceremony led by Foreign Minister Javier Martínez Acha. "We are charting a new future and a commitment to the progress and integration of the region," the foreign minister emphasized. The Panama–David–Border Train is a regional project. The memorandum establishes a framework for technical and institutional cooperation that will allow: sharing specialized knowledge, aligning operating standards, coordinating engineering studies, moving towards regional logistics integration. The secretary of the SNDF, Henry Faarup, detailed that the project contemplates a preliminary route of 475 kilometers from Panama City to Paso Canoas, with 14 stations planned. The president of INCOFER, Álvaro Bermúdez, highlighted that this alliance will boost the economy and strengthen sectors such as logistics and tourism. The train will reach Paso Canoas, the border between Panama and Costa Rica. After the signing of a railway agreement, the Panama–David–Border Train will reach Costa Rica. Panama and Costa Rica took a historic step towards regional integration with the signing of a memorandum of understanding that lays the foundation for the development of a Central American Railway Logistics Corridor. According to information from the National Railway Secretariat of Panama, the results of the first phase of the project's feasibility study are expected by March 31. "The project could cost up to $4 billion, with a length of over 200 kilometers, and a passenger train that will reach a speed of 180 kilometers per hour. The first phase will focus on the Panama Pacific–Divisa section, while key studies such as the following are already underway: technical feasibility (by AECOM USA Inc.), environmental impact, socioeconomic census, conceptual design of the railway bridge over the Panama Canal. Economic and Logistical Impact. The project aims to go beyond a railway system, integrating: optical fiber, electrical transmission, dry ports, free trade zones, port interconnection. Each station will be conceived as a development hub that promotes employment, trade, and tourism. Unprecedented Integration. With this agreement, Costa Rica becomes Panama's first regional partner in this initiative, which could be extended to other countries such as Nicaragua. The next few days will be crucial for the future of the Panama–David train project. Meanwhile, the freight train will travel at 100 kilometers per hour.