Since 2008, there was only one functioningrailroad inPanama, a number that increased to two in 2014 with the opening of the Panama Metro. The first one was thePanama Canal Railway, operated by thePanama Canal Railway Company, successor ofPanama Railway, which provides passenger and freight service betweenPanama City (on the Pacific coast) andColón (on the Atlantic coast). In 2014,Panama Metro started operation. Historically, there were also narrow gauge railroads inChiriquí Province (Ferrocarril de Chiriquí), which were abandoned in the late 20th century.[1]
During the first half of the 19th century, travel across theIsthmus of Panama was difficult and dangerous. The need for a more reliable interoceanic communication grew stronger after the acquisition ofCalifornia by theUnited States. The construction of a transcontinental railroad started in 1850 and the first train from coast to coast passed on January 28, 1855. However, more than twelve thousand workers probably died during the construction.
The railway greatly assisted in the building ofPanama Canal, which closely paralleled and in some places took over the rail line. Parts of the rail route were moved during the building of the canal, and considerable additions were made to the rail system. The rebuilt and improved Panama Railway beside the canal was completed in 1912.
In 1979, the United States government handed over control of the Canal Zone and railway to the government of Panama. On 19 June 1998, the government of Panama turned over control to the private Panama Canal Railway Company ("PCRC"). The Panama Railway was originally1,524 mm (5 ft) broad gauge, but when it was rebuilt in 2000, the gauge was changed to1,435 mm (4 ft 8+1⁄2 in)standard gauge. The route is 47.6 miles (76.6 km) long across the Isthmus of Panama fromColón (Atlantic) toBalboa (Pacific, nearPanama City).[2]
As of 2015, Panama Canal Railway Company runs both passenger and freight trains betweenPanama City andColón. Passenger service consists of one service in each direction Monday-Friday and the regular one way fare is US$25.

At the end of the nineteenth century, the government of Panama studied the feasibility of additional railroads. In 1910, Panama Railway was commissioned to estimate cost of a railroad fromPanama City toDavid, Chiriquí with branches toAntón (Coclé Province) andLos Santos. The costs were however too high and the government decided to construct additional network in Chiriquí Province only. In 1914, a contract was signed for construction of a railroad David -Boquete -Concepción with a branchDolega -Potrerillos and another short one to PuertoPedregal. The railroad was inaugurated on April 23, 1916, with the first train from David to Boquete.[3]
Edwards Rail Car company reports an undated acknowledgment of their three railcars,[4] which were delivered to Ferrocarril de Chiriquí probably in the 1920s.
After 1974, the infrastructure of Chiriquí Railroads was transferred to Ministry of Public Works (Ministerio de Obras Públicas) and operations were stopped around 1990.[5] At the beginning of the twenty-first century, the tracks of the defunct railroads were being dismantled and reused for construction of bridges in rural areas.[6]
In David, the depot is now a public library, while a steam locomotive, No. 1, is on display at the city's fairgrounds.[7] Rehabilitation of the depot and the rolling stock located atLa Concepción for a new museum began in January 2021.[8] The museum had its ribbon cutting ceremony in August 2024.[9]

The Chiriquí Land Company was aUnited Fruit company involved in banana growing and real estate management in Panama. It also operated railroads that at their peak totaled about 300 km, more than the Panama Railroad and FNC put together.[5] Their primary traffic was bananas, but it also ran public passenger and freight trains.
These were divided into two systems of similar size, both entirely914 mm (3 ft)narrow gauge. The southern, inChiriquí Province, was closed by 1988.[5] The northern, inBocas del Toro Province, coveredAlmirante,Changuinola,Guabito and parts ofSixaola. The last-mentioned section closed in 1999, leaving only the bridge overChanguinola River. The remainder was closed between 2005 and 2008.[5] The railroad usedGeneral Electric engines.[10]
Two separate and distincttram orstreetcar systems operated inPanama City. The first started service on October 1, 1893, and ended during theThousand Days' War. The second started in 1913 and operated, with reorganizations and company transferrals, until May 31, 1941.[11] Some streets in the old town still have rails in the pavement. There have been proposals for a tramway system to supplement the Panama City Metro, but as of 2022 no construction has taken place.
Contracts were awarded in 2010 for line 1 of thePanama Metro inPanama City, with 14 stations. Service began in April 2014, and the first phase of line two began service in 2019, bringing the total number of stations to 29.
The government of Panama and China Tiesiju Civil Engineering Group had collaborated to construct a newhigh-speed railway between Panama City and David, following the formalization of Panamanian-Chinese relations in June 2017.[12] The project, favored by presidentJuan Carlos Varela, was cancelled by September 2019 by his successorLaurentino Cortizo.[13]
The project was highlighted by president-electJosé Raúl Mulino in 2024.[14]