Railways and Sovereignty: The Panama Railroad, 1850-1903

Abstract

This article analyzes the construction and operation of the Panama Railroad. This was a pioneer project in the Colombian railway development in the nineteenth century, which helped to define some of the basic characteristics on the railway concession contracts in this country, as well as the mechanism to attract foreign investment. However, despite the benefits to the global trade and fiscal benefits obtained from Colombia, the railroad became a central element of challenge to national sovereignty, and one of the key elements in the process that led to the secession of Panama in 1903.