The Panama-David Train Project aims to become one of Panama’s most transformative infrastructure developments, significantly improving connectivity between Panama City and David, the capital of Chiriquí province. With a projected cost between $5 billion and $8 billion USD, this ambitious initiative, led by President José Raúl Mulino, promises to reduce travel time from six hours by car to just two hours by train. This high-speed railway will not only benefit passengers but also improve freight transportation, positioning Panama as a more efficient logistics hub.
Henry Faarup, a civil engineer experienced in urban development, now leads the Panama-David Train Project. With a background in economics from the University of Texas at Austin and a focus on large-scale infrastructure, Faarup brings valuable expertise to this significant national initiative. Roberto Roy and César Pinzón support him, providing the technical and strategic guidance needed to drive the project forward. The project will also rely on international partnerships, as feasibility studies and planning are essential for its success. The feasibility study, conducted by China Railway Design Corporation, has already offered key insights into the potential economic, social, and environmental impacts of the project.
Beyond faster travel times, the Panama-David Train holds the potential to enhance trade and economic activity between the two regions. David, a vital hub near the border with Costa Rica, would benefit from improved infrastructure, further connecting it to Panama City and strengthening the economic ties between the capital and the western provinces.
Train Route Extension and Funding Plans
Recently, President José Raúl Mulino announced that the project could extend beyond David, reaching Paso Canoas, at the border with Costa Rica. This extension would transform the train into a crucial link not only for Panama but also for cross-border trade and tourism with Costa Rica. The estimated cost of the project is now between $4 billion and $4.5 billion, with financing options under review.
In a recent statement, Mulino shared that the government is actively exploring funding alternatives, including partnerships with multilateral banks and the use of part of the £5,000 million ($6.5 billion) financing offer from the British government. This arrangement would include the condition that 20% of the products traded through the project would come from England.
Mulino also highlighted that several international companies, including firms from South Korea and Europe, have expressed interest in participating in the project. Engineer Henry Faarup actively engages in discussions with potential partners during his recent international tours. Additionally, a comprehensive study of the land through which the railway will pass is underway. This mapping process includes assessing the technical and economic viability of acquiring land needed for the railway, ensuring that the route aligns with both logistical and local considerations.
Train Stops and Route Overview
One of the most anticipated aspects of the Panama-David Train Project is its extensive route, designed to connect key regions across Panama. The train will include several strategically important stops, enhancing accessibility and boosting economic growth in these areas. The stops will begin in Panama City and end in David, Chiriquí, spanning over 350-400 kilometers.
Each of these stops plays a crucial role in connecting the capital with the provinces, reducing travel times, and facilitating both passenger and cargo transportation.
The project could serve not only as a means of transportation but also as a catalyst for the development of agro-industrial, electronic, and other industries in these regions. The train promises to accommodate 750 passengers per trip, with regular routes to Santiago and David, ensuring frequent and reliable service.
In terms of sustainability, economic evaluations suggest that while the initial investment may be substantial, the returns could be significant if passenger and cargo transport are optimized. The project still faces challenges, particularly in ensuring its financial viability without relying on government subsidies. Nevertheless, with proper planning and execution, the Panama-David Train could become a backbone of Panama’s logistics and infrastructure for decades to come.
Despite the excitement surrounding the project, several challenges remain. Securing sufficient funding, addressing environmental concerns, and finalizing the technical design are crucial next steps before construction can begin. The project symbolizes Panama’s forward-looking growth, poised to elevate both the nation’s infrastructure and economic standing.
Panama-Chiriquí Train could cost $4.5 billion; Mulino announces it will extend to Paso Canoas
Tren Panamá-Chiriquí podría costar $4,500 millones; Mulino anuncia que llegará hasta Paso Canoas
Excerpt: “El tren va caminando bien, a pesar de que a algunos no les guste. Es un proceso largo, armar la estructura económica y financiera armar ese proyecto”, dijo el Mulino al señalar que hay varias empresas especializadas en infraestructura de ferrocarriles, interesadas en participar de países como Corea del Sur y algunas de Europa que han tenido contacto con el ingeniero Henry Faarup que ha estado de gira internacional.
El presidente adelantó que usarán parte de la línea de financiamiento que ofreció el gobierno británico a Panamá por £5,000 millones, el equivalente a $6,500 millones para el proyecto del tren. Sostuvo que esto sería a cambio de que se permita que 20% de los productos que se comercialicen sean de Inglaterra.”
Excerpt translation: “The train project is progressing well, despite some people’s disapproval. It’s a long process to set up the economic and financial structure for the project,” said Mulino, noting that several companies specializing in railway infrastructure from countries like South Korea and some from Europe have expressed interest in participating. These companies have been in contact with engineer Henry Faarup, who has been on an international tour.
The president also revealed that they will use part of the financing line offered by the British government to Panama for £5 billion, equivalent to $6.5 billion, for the train project. He stated that this would be in exchange for allowing 20% of the products traded to come from England.”
Read the full article to learn more about the latest updates on the Panama-Chiriquí Train and its estimated cost
Panama – David Train Project
September 23, 2024
Excerpt: ” President Mulino presented this $8 million USD project as one of the big legacies of his government during his campaign.
The Government of Panama has proposed a new railway project from Panama City to David, the capital of the Chiriquí province, and an important populated area south of the border with Costa Rica.
Here’s what we know so far:
- Goal: The project aims to create a high-speed passenger and freight train service. This would significantly reduce travel times between the two cities, reducing the travel time from six hours by car to potentially two hours in the train. The increase in connectivity is expected to boost the trade and economic activity of both regions. The planned length of the Panama/David train railway is approximately 391 kilometers. The projected cost of the project could reach $8 million USD.
- Current Status: While not out for tender or under construction yet, the project has already gained a lot of attention with the new President of Panama José Raúl Mulino, who assumed office July 5, 2024, and has made the train a campaign priority. Feasibility studies have been completed by China Railway Design Corporation, a company that has also expressed interest in participating in the project. Mr. Henry Faarup was appointed to lead the project as Project Coordinator.
- Potential Benefits: Proponents believe the train will improve transportation efficiency, reduce reliance on cars, and stimulate economic growth in Panama City and Chiriquí.
- Challenges: While financing, requirements, and construction details are still under discussion, there are questions about the project’s environmental impact and what route would be chosen.
Overall, the Panama to David train is a needed and promising infrastructure project. It has strong potential to transform transportation and trade within Panama, stimulate the economy, and add value to the citizens’ lives by connecting these important regions. However, there are still obstacles to overcome before Panama sees this large endeavor come to fruition.”
Find out more about the latest developments in the Panama-David Train Project and its potential benefits and challenges. read full article here
The Panama-David Train Project Advances with an International Agreement
Avanza en Proyecto del tren Panamá-David con un convenio internacional
August 16, 2024 – By Eric Conte
Excerpt: “José Ramón Icaza, ministro para Asuntos del Canal, anunció que el proyecto está bajo un análisis semanal por parte de la Secretaría Nacional del Ferrocarril, junto con el ingeniero Henry Faarup. Estos estudios son cruciales para asegurar que el proyecto sea factible y sostenible. Hasta la fecha, varios gobiernos han mostrado interés en apoyar a Panamá en esta etapa de estudio, lo que podría llevar a la firma de un “convenio gobierno a gobierno” en el futuro cercano para avanzar en la iniciativa.”
Excerpt translation: “José Ramón Icaza, Minister for Canal Affairs, announced that the project is under weekly review by the National Railway Secretariat, along with engineer Henry Faarup. These studies are crucial to ensure that the project is feasible and sustainable. To date, several governments have expressed interest in supporting Panama during this study phase, which could lead to a “government-to-government” agreement in the near future to advance the initiative.”
Learn how an The Panama-David Train Project Advances with an International Agreement
The Panama-David Train: Project Analysis
El tren David-Panamá: Análisis del proyecto
July 2, 2024 – Edgardo A. Villalobos Jaén – Ingeniero civil y MBA
Excerpt: “Es uno de los sueños generacionales de los panameños, un tren que una la capital con la provincia de Chiriquí, permitiendo una solución logística tanto para el transporte de personas como de mercancías.
Tomando los principios muy básicos de Ingeniería Económica, la evaluación de todo proyecto se realiza desde dos conceptos: La factibilidad, si es posible realizarlo materialmente; y la viabilidad, si hay recursos para financiarlo. Entonces partimos de que es factible y viable. Tomamos la cifra que se estima sería el costo de construirlo, donde públicamente se ha establecido un valor entre $5,000 millones y $6,000 millones. Tomaremos el mayor: $6,000 millones. Luego tenemos la estimación que se establece para el retorno de esa inversión, que se ha indicado sean 30 años. Tampoco se ha indicado sobre que tasa de retorno se espera funcione este proyecto. “
Excerpt translation: “It is one of the generational dreams of Panamanians—a train that connects the capital with the province of Chiriquí, providing a logistical solution for both passenger and freight transportation.
Using the very basic principles of Economic Engineering, the evaluation of any project is based on two concepts: feasibility, whether it can be physically realized, and viability, whether there are resources to finance it. So, we start with the assumption that it is both feasible and viable. The estimated cost for construction has been publicly set between $5 billion and $6 billion. We will use the higher figure: $6 billion. Then, we consider the estimated return on that investment, which has been projected over 30 years. However, no specific return rate has been mentioned for this project.”
Dive deeper into this comprehensive analysis to explore the feasibility and economic viability of the Panama-David Train, as well as what it means for Panama’s infrastructure development
Project Leader Appointed for Railway Connecting Panama and Chiriquí, with an Estimated Cost of US$5 Billion
Designan encargado del Proyecto Ferroviario que unirá a Panamá y Chiriquí, cuyo costo se estima en US$5,000 millones
June 20, 2024 – By Nicomedes Frías G.
Excerpt: “En conferencia de prensa, Mulino aseguró que Faarup Maud, tendrá la asesoría del ingeniero Roberto Roy, quien ostenta el cargo de Consultor en Materia de Ingeniería y Construcción del nuevo Gobierno y de César Pinzón, este último recientemente ratificado como nuevo director del metro de Panamá.
Durante sus primeras palabras Faarub, un reconocido ingeniero civil panameño, señaló que la construcción del proyecto Tren Panamá-David se tiene por el momento pensado hacer una Asociación Público Privada (APP).
El proyecto ferroviario que tendrá una extensión entre 350 y 400 kilómetros y que unirá a la capital del país y la provincia fronteriza de Chiriquí, es una de las promesas de campaña del presidente electo José Raúl Mulino.”
Excerpt translation: “In a press conference, Mulino confirmed that Faarup Maud will receive advice from engineer Roberto Roy, who holds the position of Consultant on Engineering and Construction for the new government, and from César Pinzón, who was recently confirmed as the new director of the Panama Metro.
In his initial remarks, Faarup, a well-known Panamanian civil engineer, mentioned that the construction of the Panama-David Train project is currently planned to be carried out through a Public-Private Partnership (PPP).
The railway project, which will span between 350 and 400 kilometers and connect the country’s capital with the border province of Chiriquí, is one of the campaign promises of president-elect José Raúl Mulino.”
Read about the appointment of the project leader for the Panama-David Railway and key insights on the project’s progress.
Construction of the Panama-David Train is a Priority
Construcción del tren Panamá-David es una prioridad
May 16, 2024
Excerpt: “Icaza confirmó a Ensegundos, el interés de Mulino en cumplir con esa promesa electoral, por lo que retomarán los estudios realizados para iniciarlo.
“En la Secretaría de Metas vamos a estar coordinando con los ministerios e instituciones los proyectos de Estado y uno de ellos va a ser la construcción del tren Panamá-David”, destacó Icaza minutos después de que el presidente electo lo presentara formalmente como miembro de su gabinete.”
Excerpt translation: “Icaza confirmed to Ensegundos Mulino’s interest in fulfilling that campaign promise, which is why they will resume the studies conducted to begin the project.
‘At the Secretariat of Goals, we will be coordinating with ministries and institutions on state projects, and one of them will be the construction of the Panama-David train,’ Icaza emphasized, just minutes after the president-elect formally introduced him as a member of his cabinet.”
Discover why the Panama-David Train construction has become a top priority for the new government
