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
Goethals divided the project into three divisions: Atlantic, Central and Pacific. The Atlantic Division, under Major William L. Sibert, was responsible for construction of the breakwater at the entrance to Limon Bay, the Gatún locks and their approach channel, and the Gatun Dam. The Pacific Division (under Sydney B. Williamson, the only civilian division head) was responsible for the Pacific entrance to the canal, including a breakwater in Panama Bay, the approach channel, and the Miraflores and Pedro Miguel locks and their associated dams. The Central Division, under Major David du Bose Gaillard, was responsible for everything in between. It had arguably the project's greatest challenge: excavating the Culebra Cut (known as the Gaillard Cut from 1915 to 2000), which involved cutting through the continental divide down to 12 meters (40 ft) above sea level.