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History of the Panama Canal

A route to join the two oceans across the American continent, had been a goal since the days of the earliest explorers. Some important timelines up to today

•1513 : Vasco Balboa💡

The Spanish explorer, Vasco Nunez de Balboa led an expedition from the Atlantic across the Isthmus of Darien in 1513 and discovered a ‘another great ocean’.  He named it the ‘Sea of the South’. We know it better as the Pacific Ocean.

•1671 : Henry Morgan the pirate

In 1671 the famous Welsh pirate Henry Morgan ransacked Panama City. He arrived at  the fort of San Lorenzo (Atlantic side) with around 2000 pirates. Sailed up the Chagres River with 1200 men. Hacked their way through the jungle to reach Panama on the Pacific side. The Spanish were waiting, but the hungry pirates fought and captured the city. It was subsequently destroyed by fire.  Most treasures were buried in the blaze or melted. however, Morgan recouped his money by ransoming the Spanish population back to their loved ones. The destroyed city with its churches and cathedral were never rebuilt and the new Panama sprang up 6 miles to the west.

•1698 : The Scottish Darien scheme

Between 1698-1700 Scotland tried to establish a colony in the Darien Gap. William Patterson (founder of the Bank of England) was one of the major figures involved. The disaster that unfolded indirectly led to the act of union with England in 1707.

•1849 : The West Coast Gold Rush

Gold was discovered in California in 1848. The USA did not get a cross-continent railway route till 1869, so other ways to cross East >West were needed. From 1849 large amounts of Prospectors (the old 49’ers) used the Isthmus of Panama for travelling to the Pacific from all points East heading for San Francisco They travelled by ship to Colon and trekked by mule, canoe and foot to Panama city for onward travel to San Francisco. 

•1855 : A railway is built across the Isthmus

The sudden surge in need to cross the Isthmus led to a railway (47.5 miles long) being built by American William Aspinwall’s company. Work started in 1850. It was finally finished in 1855, costing between 5000 – 10000 lives.

•1800's : Ideas on a Canal

From the 1800’s  there were several expeditions/surveys to gauge the best route to bridge the oceans. (American visits being the most thorough).19 different routes were considered. These then were then reduced as the century progressed to three strong candidates.

  1. Isthmus of Tehuantepec in southern Mexico (around 134 miles ocean to ocean)
  2. Nicaragua using Lake Nicaragua as part of the route (around 150 miles ocean to ocean)
  3. Isthmus of the province of Panama in New Granada (Columbia).around 50 miles ocean to ocean

1875 : The French attempt to build a Canal

•1875  : Ferdinand De Lesseps (Hero Of Suez Canal creation)  proposes a canal linking Atlantic and Pacific oceans

•1876 : 1st  French Expedition to Darien. Suggest canal follows the Panama railway including a 9-mile tunnel

•1877 : 2nd  French Expedition (Reclus/Wyse) undertakes short survey and decides on a Sea Level Canal in Panama

•1878  : Columbian President signs concession  with Lucien Bonaparte Wyse (the Wyse concession) to build the canal

•1879 : Congress held in Paris with worldwide delegations to agree route. Panama wins by a majority.

Universelle du Canal Interocéanique’ is formed to build a canal in Columbia across the isthmus of Panama province. Stock/Share issues raised to fund building the canal. Majority of funding is French individuals and institutions . Charles de Lessup, Ferdinand's son takes a senior role in the company

•1880 : De Lesseps aged 75, arrives on the Isthmus. Ceremonial first turf dug by his 7-year-old daughter Ferdinande

•1881 : Work starts with multiple contractors (French/Belgian/Dutch/American) and variety of kit. They buy the railroad

•1881-84 : Work starts slowly. 1884 a good year, but problems mount. Multiple issues. Earthquake damages railroad

•1885-87 :  Chief engineer Dingler resigns in 1885. Only survivor of his family of four. 1885 worst year for disease deaths (Yellow fever/Malaria), average 200 per month. Fire destroys Colon. Panama separatists clash. De Lesseps (aged 80) arrives in 1886 for a 2-week visit.  Experts Estimate canal route only ¼ completed. The project is in trouble

•1887-88 : Company finally admit sea level canal won’t work. Locks proposed. Gustav Eiffel’s company designs and begins fabrication. More Funds requested by Bond/Lottery offer. Bond subscription fails to meet target

•1889 : Feb 4th Universelle du Canal Interocéanique company is liquidated

•1892-93 : Scandal in France of company payments. Charles De Lessups and others jailed

The Canal building equipment is abandoned and the Jungle starts to reclaim it

Abandoned French kit

Reasons the French effort failed

  1. Sticking to trying to build a Sea Level canal (similar to Suez), till realising it was never feasible
  2. The infrastructure and equipment used couldn't cope with the task and the climate
  3. Deaths and illness caused by Yellow fever and Malaria could not be controlled
  4. A private French venture that eventually lost the confidence of investors when more money was needed

The Next Steps

  • The liquidator agrees extension of  Napoleon Wyse concession with Columbia till a new company can continue
  • 1894 Compagnie Nouvelle du Canal Panama is created. Former canal contractors pushed to assist
  • American interests buy the Railroad back
  • Workers gone, but most machinery left.
  • Project still runs with small workforce on a Care & Maintenance Basis
  • Sea Level Canal gone. Plans now contain option to build a dam for the Chagres at Gamboa  and locks at each end
  • 1901: The USA is interested in building a canal but their preference is through Nicaragua
  • Panama Lobbyists in the form of ex-French chief engineer Philipe Bunau Varilla and prominent US attorney William Nelson Cromwell plan to change minds
  • A series of events some connected/some unconnected create a change of mind for the USA

TBC