Background

Prior to the Panama Canal, resources were transported from the East Coast of the Americas or Europe to the West Coast of the Americas by traveling around Cape Horn in South America. This trade route took two months to complete, was very expensive, and was very dangerous. This hindered trade.

​​​​​​​ In 1850, plans for a trans-isthmian canal that could shorten transportation time and cost were proposed, but no progress was made. In 1879, Ferdinand de Lesseps, the successful designer of the Suez Canal, led France's construction of the canal. Despite his success, the environment of Panama proved too challenging. Obstacles like climate, diseases, and ineffective equipment eventually led to bankruptcy and failure.