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.
History of the Panama Canal
The transfer of the canal came under heavy attack from conservatives, especially the American Conservative Union, the Conservative Caucus, the Committee for the Survival of a Free Congress, Citizens for the Republic, the American Security Council, the Young Republicans, the National Conservative Political Action Committee, the Council for National Defense, Young Americans for Freedom, the Council for Inter-American Security, and the Campus Republican Action Organization. The treaty narrowly passed with the required 2/3 vote in the Senate.
Although concerns existed in the US and the shipping industry about the canal after the transfer, Panama has exercised good stewardship. According to ACP figures, canal income increased from $769 million in 2000 (the first year under Panamanian control) to $1.4 billion in 2006. Traffic through the canal increased from 230 million tons in 2000 to nearly 300 million tons in 2006. The number of accidents has decreased from an average of 28 per year in the late 1990s to 12 in 2005. Transit time through the canal averages about 30 hours, about the same as during the late 1990s. Canal expenses have increased less than revenue, from $427 million in 2000 to $497 million in 2006. On October 22, 2006, Panamanian citizens approved a referendum to expand the canal.