 Over the years the railway played a key role in the construction and the subsequent operation of the Panama Canal, due to its proximity to the canal.Currently, the railway operates under the private administration of the Panama Canal Railroad Company, and its upgraded capacity complements the cargo traffic through the Panama Canal.A second Central American inter-oceanic railroad began operation in 1908 as a connection between Puerto San José and Puerto Barrios in Guatemala, but ceased passenger service to Puerto San José in 1989.