News

A long-discussed plan to build a rail line from Panama City to David and the Chiriqui district is once again gaining momentum.

In recent discussions, an official of the National Secretariat of the Panama Railway said there are new discussions about expanding the rail system to Central America. The group is ready to promote an interconnected system that will include Guatemala, Honduras, and Costa Rica, Manuel Arias, undersecretary of the group, recently told a meeting of the Development Bank of Latin America (CAF).

This is the latest twist in the plan to develop a railroad route to the west, which has been in development for years. The idea could open up a new trade and passenger route through the west, and help spark more commerce and travel through the region. A high-speed train could travel from Panama City to David in two hours.

The $4 billion project has been working through the system with stops and starts for years. But new Panama President José Raúl Mulino has promised to make the train route a top priority for his administration, and there has been an uptick in activity.

President Mulino has previously discussed the idea of extending the route into Costa Rica, linking to a broader network. That would require coordination and agreements at the beginning of the construction phase. Panama could help drive the adoption of a common infrastructure, including track widths and signaling systems, which would be essential for an effective regional system.

President Mulino has reportedly already discussed extending the line into Costa Rica with his Costa Rican President Rodrigo Chaves.

“We are looking to formalize commitments, hold bilateral meetings with Central American countries to see if we can create a framework and share the ideas that each of these countries have and see if we can establish a comprehensive project,” Arias told CAF.

The rail group is reportedly considering formalizing a regional commitment to develop an inter-connected system.