Panama was once a part of Colombia. Its canal, a monumental engineering achievement of its era, paved the way for its independence. Fast-forward more than a century later, under the government of Gustavo Petro, and a new plan emerges: competition.
The left-wing leader, who took office in 2022, is breathing new life into a long-abandoned project in Colombia. This ambitious endeavor involves the construction of an extensive railway network spanning the country’s coasts, linking the Atlantic and Pacific oceans and offering a potential alternative for international trade amid challenges faced by the Panama Canal.
Since its inception, the project has been dogged by concerns regarding its cost. Envisioned for completion by 2050, it would require substantial investment, estimated broadly at COP 25 trillion (roughly USD 6.5 billion) for the rail line alone. The plan comes at a time where thousands of Colombians recently took to the streets to protest economic reforms and in which Mr. Petro´s administration is struggling to get legislation passed by Congress, raising doubts about the feasibility of garnering the necessary consensus for such a monumental undertaking.
Nevertheless, the government is doubling down on its ambitious project, viewing it as a potential solution and alternative avenue for trade. This initiative gains significance amidst concerns surrounding the Panama Canal, which is experiencing historically low water levels, prompting questions about its long-term capability to cope with growing demand.
According to reports from the Colombian press, the project has entered the pre-feasibility phase, with government agencies actively exploring its potential. Spearheaded by Mr. Petro since assuming office, the initiative entails constructing a 200-kilometer intermodal double railway line connecting the Atlantic port...
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