Panama and Costa Rica to Link their Railway network

Panama and Costa Rica have joined hands to develop a cross-border railway network across Central America—a project analysts believe could reshape regional logistics and unlock new economic efficiencies.

The proposed corridor will stretch roughly 475 km, linking Panama City to Paso Canoas on the Costa Rican border. Plans include 14 stations along the route, covering key urban and commercial centers such as Albrook, La Chorrera, Santiago, David, Bugaba, and Paso Canoas.

The initial phase will prioritize the Panamá Pacífico — Divisa segment, with estimated costs ranging between $4 billion and $5 billion.

Designed to handle both passenger and freight traffic, the railway aims to provide a faster, more reliable alternative to road transport. Travel time between Panama City and the Costa Rican border could drop to about three hours — less than half the current 7–8 hour journey by road.

The project’s master plan and feasibility studies are expected to be completed between March and July 2026. Subject to approvals and financing, construction on the first phase could begin by late 2026 or early 2027.

As a result of the deal, Costa Rica has become Panama’s first strategic partner in a broader regional rail vision, even as San José advances its own corridor extending toward Nicaragua.