One of the largest and most difficult engineering projects ever undertaken, it had an enormous impact on shipping between the two oceans, replacing the long and treacherous route via the Drake Passage and Cape Horn at the southernmost tip of South America. A ship sailing from New York to San Francisco via the canal travels 9,500 km (6,000 miles), well under half the 22,500 km (14,000 miles) route around Cape Horn.
Although the concept of a canal near Panama dates back to the early 16th century, the first attempt to construct a canal began in 1880 under French leadership. After this attempt failed and saw 21,900 workers die, the project of building a canal was attempted and completed by the United States in the early 1900s, with the canal opening in 1914. The building of the 77 km (48 miles) canal was plagued by problems, including disease (particularly malaria and yellow fever) and landslides. By the time the canal was completed, a total of 27,500 workmen are estimated to have died in the French and American efforts.
The Panama Canal was constructed in two stages. The first between 1881 and 1888, being the work carried out by the French company headed by de Lessop and secondly the work by the Americans which eventually completed the canals construction between 1904 and 1914.
The contract for the canals construction was signed on March 12th, 1881, and it was agreed the work would be carried out for 512 million French francs, but the contract was conditional in the sense it was not to become binding until two years had elapsed.
During 1882 the excavation of the Culebra Cut was started, but due to the lack of organization there were no tracks available to remove the spoil that the excavators were producing. After the problems had been overcome, the highest peaks of the cut were attacked. As work proceeded, the worry of landslides and what slope should be adopted to avoid them became a major concern.
In 1883 it was realised there was a tidal range of 20 feet at the Pacific, whereas, the Atlantic range was only about 1 foot. It was concluded that this difference in levels would be a danger to navigation. It was proposed that a tidal lock should be constructed at Panama to preserve the level from there to Colon. This plan would save about 10 million cubic metres of excavation.
The French company started to run into financial difficulties during 1885 and even applied to the French government to issue lottery bonds, as this had been successful during the construction of the Suez canal when that project was at the point of failure through lack of money. Rumours of these difficulties caused increased interest within the American government.
A report made by the Americans in 1886 noted that housing for the workforce was under construction and a great deal of plant was available. Unfortunately the plant required to construct the canal was is in short supply, there were too few dredgers, the French excavators were too light and were stopped by large boulders and too much work was being done by hand. The turnover of the labour force was immense, as the men wanted to return home to spend the savings they had accumulated and because of the inadequate medical care that was available.
It was realised that the solution to all the problems encountered, was that the construction of a high-level lock canal would reduce an enormous volume of excavation and prevent the landslides.