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.
Panama Canal Railway
In May 1850, the first preparations were begun on Manzanillo Island, and the start of the roadway was partially cleared of trees and jungle on the mainland. Very quickly, the difficulty of the scheme became apparent. The initial of the proposed route passed through a jungle of gelatinous swamps infested with alligators, the heat was stifling, mosquitoes and sandflies were everywhere, and deluges of up to of rain for almost half the year required some workers to work in swamp water up to four feet deep. When they tried to build a railroad near Aspinwall, the swamps were apparently endlessly deep, often requiring over 200 feet (60 m) of gravel backfill to secure a roadbed. Fortunately, they had found a quarry near Porto Bello, Panama, so they could load sandstone onto barges and tow it to Aspinwall to get the backfill needed to build the roadbed.