Panama Canal facts for kids
Quick facts for kids Panama CanalCanal de Panamá |
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![]() A schematic of the Panama Canal, illustrating the sequence of locks and passages
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Specifications | |
Length | 82 km (51 miles) |
Maximum boat length | 366 m (1,200 ft 9 in) |
Maximum boat beam | 49 m (160 ft 9 in) (originally 28.5 m or 93 ft 6 in) |
Locks | 3 locks up, 3 down per transit; all three lanes (3 lanes of locks) |
Status | Open, expansion opened June 26, 2016 |
Navigation authority | Panama Canal Authority |
History | |
Original owner | Société internationale du Canal |
Principal engineer | Ferdinand de Lesseps, John Findley Wallace (1904–1905), John Frank Stevens (1905–1907), George Washington Goethals (1907–1914) |
Construction began | May 4, 1904 |
Date completed | August 15, 1914 |
Date extended | June 26, 2016 |
Geography | |
Start point | Atlantic Ocean |
End point | Pacific Ocean |
Connects to | Pacific Ocean from Atlantic Ocean and vice versa |

The Panama Canal (Spanish: Canal de Panamá) is a huge waterway in Panama that connects the Atlantic Ocean with the Pacific Ocean. It's like a shortcut for ships, cutting across the narrow Isthmus of Panama. This amazing canal helps ships avoid a very long and dangerous journey around the southern tip of South America. It's considered one of the biggest and toughest engineering projects ever built!
The canal uses special water elevators called locks. These locks lift ships up to Gatun Lake, a large artificial lake about 26 meters (85 ft) above sea level. Then, they lower the ships down to the other ocean. About 200,000,000 L (52,000,000 US gal) of fresh water are used each time a ship passes through.
France started building the canal in 1881, but they faced many problems, including diseases that killed thousands of workers. The United States took over the project in 1904 and finished it in 1914. The U.S. controlled the canal and the land around it until 1999, when it was handed over to the government of Panama. Today, the Panama Canal Authority manages and operates this vital waterway.
In 2016, the canal got even bigger! New, wider locks were opened, allowing much larger ships (called New Panamax ships) to pass through. This helps the canal handle more traffic and stay important for global trade.
Contents
History of the Panama Canal
Early Ideas for a Canal
People have dreamed of a canal across Panama for a very long time. The first idea came in 1534 from Charles V, the King of Spain. He wanted a route through the Americas to make travel easier between Spain and Peru. This would also give Spain a military edge over Portugal.
In 1668, an English thinker named Sir Thomas Browne suggested that the narrow strip of land in Panama would be perfect for a canal. He thought it would create a much shorter path to places like the East Indies and China.
Over the years, many other attempts were made to create trade links in the area. For example, Scotland tried to set up an overland trade route in 1698, but it failed due to harsh conditions. In the late 1700s, Americans also suggested that Spain should build the canal.
After the Erie Canal was built in the United States in the 1820s, Americans became very interested in building their own canal across the oceans. They tried to make deals with Gran Colombia (which included Panama at the time), but the leaders there were worried about being controlled by the powerful United States.
In 1846, the U.S. and New Granada (part of Gran Colombia) signed a treaty. This treaty gave the U.S. rights to travel through the area and even to use its military if needed. When gold was discovered in California in 1848, interest in a canal grew even more. People needed a faster way to get from the East Coast of the U.S. to California.
In 1850, the United States started building the Panama Railroad. This railway opened in 1855 and became a very important way to move goods and people across the narrow land. The later canal was built right next to this railway.
France's Attempt to Build the Canal (1881–1899)
The first serious attempt to build the Panama Canal began on January 1, 1881. This project was led by Ferdinand de Lesseps, a French diplomat who had successfully built the Suez Canal in Egypt. He was able to raise a lot of money in France because of his past success.
However, building the Panama Canal was much harder than the Suez Canal. Panama had thick tropical rainforests, a very difficult climate, and needed complex canal locks. Lesseps wanted a sea-level canal, like the Suez, but he didn't fully understand the challenges.
The rainy season in Panama was terrible. The Chagres River would flood, rising up to 10 m (33 ft). The jungle was full of dangerous animals, but the worst problem was diseases like yellow fever and malaria. These diseases killed thousands of workers. By 1884, over 200 workers were dying each month. People in France didn't know how bad it was, but the high death rate made it hard to keep experienced workers.
Workers also had to dig through a mountain at a place called Culebra. This was very difficult, and landslides often filled the canal. The equipment they had was not strong enough for the job, and steel tools rusted quickly in the wet climate.
Eventually, the French company ran out of money and went bankrupt in 1889. They had spent a lot of money, and about 22,000 men had died from disease and accidents. This led to a big scandal in France.
In 1894, a new French company took over. They mostly kept the project going just enough to sell it. Philippe Bunau-Varilla, the manager, realized that a canal with locks and lakes would be more realistic than a sea-level canal. This idea was similar to what the Americans would later build.
The United States Takes Over (1904)
Around this time, the United States also wanted to build a canal. Some people wanted it in Nicaragua, while others preferred Panama. The French company offered to sell their equipment and rights in Panama for $40 million. In 1902, the U.S. Senate decided to go with the Panama option.
The U.S. tried to make a deal with Colombia (which still controlled Panama). A treaty was signed, offering Colombia $10 million and yearly payments for the land. However, Colombia's government did not approve the treaty.
At this point, Philippe Bunau-Varilla told U.S. President Theodore Roosevelt that rebels in Panama wanted to break away from Colombia. He hoped the U.S. would help them. Roosevelt decided to support the Panamanian rebels.
On November 2, 1903, U.S. warships stopped Colombian troops from reaching Panama to stop the rebellion. Panama declared independence on November 3, 1903, and the United States quickly recognized the new country.
Just a few days later, on November 6, 1903, Bunau-Varilla, acting as Panama's ambassador, signed a treaty with the U.S. This treaty gave the United States the right to build and control the Panama Canal Zone. Many Panamanians were unhappy with this treaty, feeling it took away their new country's power.
In 1904, the United States bought the French equipment and excavations, including the Panama Railroad, for $40 million. The U.S. also paid the new country of Panama $10 million and $250,000 every year after that.
Building the Canal: The American Way (1904–1914)

The U.S. officially took control of the canal project on May 4, 1904. They inherited a lot of old, broken equipment and a workforce weakened by disease. The Isthmian Canal Commission (ICC) was set up to manage the huge project.
John Findley Wallace was the first chief engineer, but he quickly resigned because of the diseases and problems. Then, John Frank Stevens, a self-taught engineer, took over. Stevens focused on building good housing, food services, and hospitals for the thousands of workers coming in. He also improved the railway, which was crucial for moving millions of tons of dirt.

A very important person was Colonel William C. Gorgas, the chief sanitation officer. He put in place many measures to stop the spread of deadly diseases like yellow fever and malaria. They learned that mosquitoes carried these diseases. Gorgas's team worked hard to clean up cities, spray insect breeding areas, install mosquito nets, and get rid of standing water. Even though some people on the commission didn't believe him, Gorgas kept going, and Stevens supported him. After two years, mosquito-spread diseases were almost gone. Still, about 5,600 workers died from diseases and accidents during the U.S. construction.
In 1906, Stevens convinced President Roosevelt that a canal with locks was the best way to go. This plan involved building the huge Gatun Dam to create Gatun Lake, which would be the largest human-made lake at the time. Water from this lake would fill and empty the locks.
The Americans brought in new, powerful equipment, including 102 large, railroad-mounted steam shovels, giant cranes, and rock crushers. The railway was also greatly improved to handle the heavy loads.
In 1907, Stevens resigned, and Major George Washington Goethals took over as chief engineer. Goethals was a strong leader and civil engineer. He divided the work into three main sections:
- The Atlantic Division built the breakwater, the Gatun locks, and the huge Gatun Dam.
- The Pacific Division built the Pacific breakwater and the Miraflores and Pedro Miguel locks.
- The Central Division, led by Major David du Bose Gaillard, had the toughest job: digging the Culebra Cut (also called Gaillard Cut) through the continental divide.
On October 10, 1913, President Woodrow Wilson sent a telegraph signal from the White House that triggered an explosion, destroying the Gamboa Dike. This flooded the Culebra Cut, finally connecting the Atlantic and Pacific oceans!
The construction of the canal was finished in 1914, much earlier than planned. The United States spent almost $500 million, which was a huge amount of money back then. It was the biggest American engineering project ever. The canal officially opened on August 15, 1914, with the ship SS Ancon making the first full trip.
Later Changes and Handover to Panama

By the 1930s, there wasn't enough water for the canal, so the Madden Dam was built. This created Madden Lake (now Alajuela Lake), which stores extra water.
After World War II, many Panamanians felt that the Canal Zone should belong to Panama. There were protests and tensions between Panama and the United States. In 1977, President Jimmy Carter of the U.S. and General Omar Torrijos, the leader of Panama, signed a treaty. This treaty said that Panama would gradually take control of the canal.
On December 31, 1999, Panama officially took full control of the canal. The Panama Canal Authority (ACP) now manages and operates it. The Panama Canal is a major source of income for Panama.
How the Canal Works
Canal Layout
Even though the Atlantic Ocean is generally east of Panama and the Pacific is west, the canal actually runs from the northwest to the southeast! This is because of the unique shape of the land. When ships go through, they use the terms "southbound" and "northbound."
The canal is made up of:
- Artificial lakes: Like Gatun Lake and Alajuela Lake, which store water.
- Channels: Improved and artificial waterways that connect the lakes and locks.
- Locks: Three sets of giant water elevators that raise and lower ships.
Here's how a ship travels from the Atlantic to the Pacific:
- It enters Limon Bay from the Atlantic Ocean.
- It goes through a channel to the Gatun Locks. These three locks lift ships up to the level of Gatun Lake, about 27 m (87 ft) above sea level.
- The ship then crosses Gatun Lake, a large artificial lake, for about 24 km (15 mi).
- It travels along the improved Chagres River.
- It passes through the Culebra Cut, a deep channel dug through the mountains.
- At the Pedro Miguel Lock, the ship begins its descent, dropping about 9.4 m (31 ft).
- It crosses the artificial Miraflores Lake.
- Finally, it goes through the two-stage Miraflores Locks, which lower the ship the rest of the way to the Pacific Ocean.
- From there, a channel leads out to the Gulf of Panama in the Pacific Ocean.
The total length of the canal is about 80 km (50 mi).
Gatun Lake: The Canal's Engine

Gatun Lake was created in 1913 by building a dam across the Chagres River. It's a super important part of the Panama Canal because it provides all the millions of liters of water needed to operate the locks. When it was built, Gatun Lake was the largest human-made lake in the world! Water flows by gravity from the lake into the locks to raise and lower ships.
Ship Sizes and Locks
Because the canal is so important for world trade, many ships are built to be just the right size to fit through it. Ships that fit the original locks are called Panamax vessels. These ships can be up to 320 m (1,050 ft) long and 33.53 m (110.0 ft) wide.
In 2016, a huge expansion project finished, adding larger locks. These new locks allow much bigger ships, called New Panamax vessels, to pass through. These ships can be up to 366 m (1,200 ft) long, 49 m (160 ft) wide, and 15 m (49 ft) deep. This means the canal can handle more and larger cargo ships, like those carrying around 12,000 containers!
Paying to Pass: Canal Tolls
Just like a toll road, ships have to pay a fee to use the Panama Canal. These fees, called tolls, are set by the Panama Canal Authority. The amount depends on the type of ship, its size, and what kind of cargo it's carrying.
For big container ships, the toll is based on how many containers (TEUs) they can hold. For example, a Panamax container ship can carry up to 4,400 containers. Passenger ships pay based on the number of beds they have.
The lowest toll ever paid was 36 cents! This was paid by an American named Richard Halliburton who actually swam through the Panama Canal in 1928. The most expensive regular toll ever paid was US$375,600 by the cruise ship Norwegian Pearl in 2010.
Why the Canal Needed to Grow
Keeping Things Running Smoothly
Some people worried that the canal wouldn't be managed well after Panama took control, but that hasn't been the case. The canal's operations have actually improved! The time it takes for a ship to pass through the canal, including waiting, is a key measure of how well it's run. This time has stayed good, usually between 20 and 30 hours. The number of accidents has also remained low.
More and more ships are using the canal, especially larger ones. The total amount of cargo carried through the canal has steadily increased over the years.
The Panama Canal Authority has invested nearly US$1 billion to make the canal wider and more modern. They've widened the Culebra Cut, deepened the channels in Gatun Lake, and improved the entrances to the canal. They've also bought new equipment like tugboats and improved the railway and lock machinery. All these changes help the canal handle more traffic.
Canal Capacity and Challenges
The canal handles much more ship traffic than its original builders ever imagined. To keep up, many improvements have been made to use the lock system as efficiently as possible. These include better lighting, new tie-up stations, and improved tugboat fleets.
However, the canal faces challenges. During dry seasons, there can be a shortage of water in Gatun Lake, which is needed for the locks. Also, the increasing number of very large ships (larger than Panamax) meant the original canal couldn't handle them all.
Competition for the Canal
The Panama Canal also faces competition from other routes. Some people suggest that the Suez Canal in Egypt could be an alternative for ships traveling from Asia to the U.S. East Coast.
There have also been ideas for other canals or rail links across Central America:
- Nicaragua Canal: A plan for a canal through Nicaragua was proposed, but it hasn't made much progress.
- Northwest Passage: As the Arctic ice melts due to climate change, some think a route through the Northwest Passage (north of Canada) might become possible for commercial shipping. This would save a lot of distance for ships traveling from Asia to Europe. However, it still has many challenges due to ice and other issues.
- Mexico's Interoceanic Corridor: Mexico is building a "dry canal" using a railway to transport cargo and passengers across the Isthmus of Tehuantepec. This route is expected to be very fast and closer to the United States. Panama sees this as a "complement" to its canal, not a direct competitor.
The Big Expansion Project (2007–2016)
Because more and more ships were becoming too big for the original canal, Panama decided to expand it. In 2006, the government proposed a huge expansion plan that would cost about US$5.25 billion. This plan was approved by the people of Panama in a vote. The expansion was built between 2007 and 2016.
The expansion added two new sets of locks, built next to the old ones. These new locks are much bigger: 427 m (1,400 ft) long, 55 m (180 ft) wide, and 18.3 m (60 ft) deep. This allows the huge New Panamax ships to pass through.
A cool feature of the new locks is that they have nine special water reuse basins. These basins allow 60 percent of the water used in each transit to be recycled! This means the new locks use 7 percent less water per ship than the old ones, helping to save fresh water.
The project was designed to handle a huge increase in ship traffic. The expanded canal can now handle about 600 million tons of cargo per year.

On September 3, 2007, the expansion project officially began with a big explosion at Paraíso Hill. The first step was digging a new trench to connect the Gaillard Cut to the Pacific coast.
The new locks officially opened for commercial traffic on June 26, 2016. The very first ship to cross using the new locks was a Chinese container ship called Cosco Shipping Panama. The original locks, which are now over 100 years old, are still used and are kept in good condition.
Environmental Impact
The Panama Canal's environment faces challenges. In the past, clearing forests in the area around the canal caused problems like erosion. This erosion can make the lakes shallower, reducing how much water they can hold.
Ship traffic can also cause water pollution. For example, an oil spill in 1986 harmed plants and animals near the Caribbean entrance. With the 2016 expansion, there's also a concern that invasive species (plants or animals not native to the area) could travel faster on ships' hulls or in their ballast water.
The canal relies on rainwater to fill Gatun Lake. During dry seasons, there can be low water levels, which can limit how many ships can pass through. Climate change, with rising temperatures, also causes more evaporation from the lake.
The Panama Canal Authority is working to protect the environment. The new locks use water-saving basins to reuse water, which helps save freshwater resources.
Images for kids
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A Marion steam shovel excavating the Panama Canal in 1908
See also
In Spanish: Canal de Panamá para niños