Panama Canal
France began work on the canal in 1881, but stopped due to engineering problems and a high worker mortality rate. The United States took over the project in 1904 and opened the canal on August 15, 1914. One of the largest and most difficult engineering projects ever undertaken, the Panama Canal shortcut greatly reduced the time for ships to travel between the Atlantic and Pacific Oceans, enabling them to avoid the lengthy, hazardous Cape Horn route around the southernmost tip of South America via the Drake Passage or Strait of Magellan.
Inter-American Highway
By 1940, the United States had a strong presence in Central America, especially in Panama. The American-owned and operated both the Panama Canal and the Panama Railroad, but with the looming war in Europe, the United States felt it necessary to establish a more direct connection with Panama. Therefore, the American and Panamanian governments agreed to begin the construction of a trans-isthmian highway located outside of the Canal Zone. Thus, the construction of the actual Inter-American Highway was instigated by the United States as a safety precaution at the beginning of World War II.