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.
Virginia Port Authority
In 2014, the Panama Canal expansion project is due to be completed. A 15-year-long project, it will double the canal's capacity and allow it to carry the bigger container vessels and bulk ships which have become favored by the shipping lines since the canal first opened in 1914. Such larger craft currently cannot use the port. Instead, much of the shipping container traffic currently uses West Coast ports such as Los Angeles and Long Beach, California. The containers then travel overland via either railroad or by trucking. By coming through the widened Panama Canal to the Gulf of Mexico and sailing on to East Coast ports, these vessels will be able to reduce shipping time and expense to reach major U.S. markets along the Mississippi River basin and the points east of there. Much of such rail traffic now changes at "gateway" railhead cities such as Chicago and St. Louis, from western class 1 railroads such as Union Pacific and Burlington Northern Sante Fe Railway (BNSF) to other railroads.