Panama - David Train Project
President Mulino presented this $8 million USD project as one of the big legacies of his government during his campaign.
The Government of Panama has proposed a new railway project from Panama City to David, the capital of the Chiriquà province, and an important populated area south of the border with Costa Rica.
Here’s what we know so far:
- Goal: The project aims to create a high-speed passenger and freight train service. This would significantly reduce travel times between the two cities, reducing the travel time from six hours by car to potentially two hours in the train. The increase in connectivity is expected to boost the trade and economic activity of both regions. The planned length of the Panama/David train railway is approximately 391 kilometers. The projected cost of the project could reach $8 million USD.
- Current Status: While not out for tender or under construction yet, the project has already gained a lot of attention with the new President of Panama José Raúl Mulino, who assumed office July 5, 2024, and has made the train a campaign priority. Feasibility studies have been completed by China Railway Design Corporation, a company that has also expressed interest in participating in the project. Mr. Henry Faarup was appointed to lead the project as Project Coordinator.
- Potential Benefits: Proponents believe the train will improve transportation efficiency, reduce reliance on cars, and stimulate economic growth in Panama City and ChiriquÃ.
- Challenges: While financing, requirements, and construction details are still under discussion, there are questions about the project’s environmental impact and what route would be chosen.
Overall, the Panama to David train is a needed and promising infrastructure project. It has strong potential to transform transportation and trade within Panama, stimulate the economy, and add value to the citizens’ lives by connecting these important regions. However, there are still obstacles to overcome before Panama sees this large endeavor come to fruition.
If you are interested in the Infrastructure sector in Panama, contact your local U.S. Export Assistance Center office or Jeane Zuniga, Senior Commercial Specialist in Panama by email at Jeane.Zuniga@trade.gov.