News

Government officials have confirmed that the third leg of the Panama City metro will be a monorail that will extend over the Panama Canal and connect the city to the western communities.

The government of Panama and Japan have reached an agreement to supply technology for the $2 billion monorail project, which will serve as Line 3 of the Panama metro. The 27-kilometer route, which is scheduled for completion in 2022, is expected to include 14 stations, and connect from Albrook to the west in less than 45 minutes. The first phase would be the eastern section, connecting Albrook with Nuevo Chorrillo via Arraiján, according to news reports. The second section would connect Nuevo Chorrillo and Ciudad del Futuro.

As we reported recently, the Panama metro is expanding quickly and details of the deal suggest that the metro is also serving as an important driver for Panama City’s business sector. The deal will also strengthen Panama’s business ties to Japan. A consortium of Japanese firms, including Hitachi Ltd. and Mitsubishi Corp., are expected to be involved in the project.

Japan might also provide loans to support the monorail development, according to news reports. Panama appears to be capitalizing on Japan’s interest in actively promoting its technology around the world. Japan monorail systems are already

“This is the start of a new era of cooperation with Japan, and is very important for Panama,” Panama vice minister of foreign affairs Luis Miguel Hincapie told reporters.

On one level, this is simply cool. Monorails involve images of futuristic cities and it’s great that Panama City will be on the cutting edge. Panama will be the first country in the region to build a monorail system.

As Panama continues to grow as international business power, it is also good news for the property market. Maybe the next wave of buyers and renters will be from Japan.