In 1889, the French canal project was abandoned, and the United States acquired its assets in 1904. Colombia rejected America’s offer for the land however, so the U.S. supported a revolution there. Panama declared its independence from Colombia and agreed to allow the U.S. to build the canal.

America’s engineers took on a different approach to building it. Instead of a sea-level canal, a lock-and-lake system was implemented.

An artificial freshwater lake was created by damming up the Chagres River and Lake Alajuela. Locks at each end lift ships up to Gatun Lake and then lower the ships at the other end. Construction of the Panama Canal was completed, and it officially opened in 1914.

The Panama Canal’s location and impact on global trade makes it an essential component of modern commerce and transportation. The canal reduced travel distances for ships traveling between the Atlantic and Pacific Oceans by thousands of miles. It also allowed for more efficient trade and faster delivery of goods, significantly impacting the global economy.

The construction of the Panama Canal also had an environmental impact on the area. The creation of Gatun Lake submerged large areas of rainforests and wetlands and drastically changed local ecosystems.

The canal has been open for over a century, and over time, some ecosystems have adapted to these changed conditions. Furthermore, environmental conservation efforts in this region have sought to mitigate past, present, and future ecological disturbances.

Societal Impact

The Panama Canal’s influence extends beyond its geography. It has had massive social, political, and economic consequences.

The canal has been a catalyst for economic growth in Panama, generating revenue through tolls and boosting related industries. Almost 15,000 ships pass through it each year. It has also helped to facilitate trade for countries around the world.

In fact, because of America’s involvement with the canal, Panama adopted the US Dollar as its official currency along with the Panamanian Balboa. Panama no longer prints paper money but does use Panamanian Balboa coins in addition to US paper currency.

Control of the Panama Canal has also been a source of contention and diplomatic negotiations between the United States and Panama. After a period of joint American-Panamanian control, the canal was taken over by Panama's government in 1999.

In 2016, the canal was expanded to allow wider ships, now known as Neopanamax ships, to pass through.

The canal’s construction brought a diverse workforce to the region, leading to cultural exchanges and a more multicultural society that has continued to today.

The Panama Canal remains a symbol of technological achievement and has reshaped the world’s geography and society. As the canal continues to adapt to the demands of the modern world, its impact on the region and the world remains forever undiminished.