Panama Railway becomes first railroad linking Atlantic and Pacific

Background. The United States sought a safe, reliable, and speedy link between the Atlantic and Pacific oceans, and in 1846 signed a treaty with Colombia (then the Republic of New Granada) guaranteeing Colombian sovereignty over Panama and authorizing the United States to build a railroad or canal at the isthmus. The discovery of gold in California in January 1848 created a rush of emigrants wanting to cross the Isthmus of Panama. The Panama Rail Road Company, a publicly traded corporation based in New York City, was chartered by the State of New York on April 7, 1849, and construction began in 1850. The work, undertaken under difficult physical conditions and with the day's limited technology, cost US$8 million and an estimated 5,000 to 10,000 workers' lives.

Construction. Work started in May 1850 on Manzanillo Island, later known as Colón. The first rolling stock arrived in February 1851. By July 1852, 23 miles of track were completed. Excavation at the Culebra Cut began in January 1854. The road over the continental divide was completed from the Atlantic side in January 1855, with 37 miles of track laid from Aspinwall.

Completion. The final rail was set on January 27, 1855, during a rainy midnight. The first revenue train ran over the full length of the grade on January 28, 1855. This event marked the completion of the first railroad connecting the two oceans, a feat hailed as an international engineering achievement despite the high human and financial costs.