What Happened
On March 18, 2026, Panama and Costa Rica signed a Memorandum of Understanding (MOU) to collaborate on rail development, with the Panama–David train as the flagship project. The agreement aims to foster technical and institutional cooperation to share specialized knowledge, align operational standards, coordinate engineering studies and move toward unprecedented regional logistics integration.
Project Details
Panama has already launched the Panama–David project in Chiriquí, which will extend to Paso Canoas on the Costa Rica border. Officials described a preliminary alignment of roughly 475 kilometers from Panama City to Paso Canoas, with 14 projected stations. The initial construction phase is slated to focus on the Panama Pacífico–Divisa section.
Present at the signing were Panama’s foreign minister Javier Martínez Acha; Henry Faarup, head of Panama’s National Railway Secretariat; and Álvaro Bermúdez, president of Costa Rica’s Institute of Railways. The Presidency of the Republic of Panama said the MOU establishes the basis for sharing technical expertise and coordinating studies and standards between the two countries.
Background
Panama has positioned the Panama–David line as a major national infrastructure project intended to reshape internal connectivity and extend to the Costa Rican border. Authorities have emphasized that the rail line is part of a broader effort to modernize logistics around the Panama Canal and the country’s trade corridors.
What This Means
Officials framed the agreement as more than a transport project. “We have the opportunity to write our own transformative rail chapter for Panama, because it redefines our economic geography that will reduce logistics costs and increase the competitiveness of the Panama Canal,” said Javier Martínez Acha. Henry Faarup described the effort as building “the infrastructure of the next generation of Panama’s economy and a new economic geography for Central America.”
Álvaro Bermúdez stressed the potential for joint initiatives with significant economic and social impact, including enhanced logistics, tourism and new ways of moving the economy. He urged continued interaction and the adoption of modern technologies to develop systems and promote innovative approaches in both countries.
Next Steps
The MOU sets the stage for coordinated engineering studies, standard alignment and technical collaboration, but it does not by itself commit to construction timelines or financing. Further technical work and institutional coordination will be required before construction advances beyond the preliminary planning and first-phase scope described by officials.