Panama Canal Railway
The Panama Railway also operated a significant shipping line, connecting its service with New York and San Francisco. It ran a Central American line of steamships linking Nicaragua, Costa Rica, San Salvador, and Guatemala to Panama City. The shipping service was greatly expanded when canal construction began. Ships included the SS "Salvador", SS "Guatemala", SS "Cristobel", and , which became the first of the ships to cross the completed canal in 1914.
In 1904 the United States took over the license to build and operate the canal. The choice to use locks and an artificial lake (Gatun) meant that the old railway route from 1855 had to be changed because it followed the Chagres River valley, which would be flooded by the lake. Also, the railway would be extended and altered continuously for the building process. The stock of the Panama Railway Company, vital in canal construction, was entirely controlled by the United States Secretary of War.
Canal
Large-scale ship canals such as the Panama Canal and Suez Canal continue to operate for cargo transportation, as do European barge canals. Due to globalization, they are becoming increasingly important, resulting in expansion projects such as the Panama Canal expansion project. The expanded canal began commercial operation on 26 June 2016. The new set of locks allow transit of larger, Post-Panamax and New Panamax ships.