A Transformational Rail Project

Panama is moving ahead with one of the most ambitious infrastructure projects in its history: a 475-kilometer railway connecting Panama City to David in the province of Chiriquí, with an eventual extension to Paso Canoas on the Costa Rica border. The project, estimated at $4.5 billion, aims to fundamentally reshape how people and goods move across the country.

The Route

The railway will originate at Panamá Pacífico and pass through 14 stations, including Albrook, La Chorrera, Coronado, Río Hato, Penonomé, Divisa, Santiago, Soná, San Félix, David, and Bugaba before reaching the border. The route between Panama City and Penonomé was finalized in early 2025, with the western section to David and Paso Canoas completed by September 2025.

Speed and Capacity

Express passenger trains are expected to reach speeds of up to 180 km/h, cutting the Panama City to David journey to approximately three hours — a trip that currently takes six to seven hours by car. Cargo trains will operate at up to 100 km/h, opening up significant freight capacity that could reduce pressure on the Pan-American Highway and lower logistics costs nationwide.

International Collaboration

In September 2025, Panama and France signed a declaration of intent to cooperate on the development of the railway. French expertise in high-speed rail is expected to play a key role in the technical design and construction phases. The first phase of construction, covering the stretch from Panamá Pacífico to Divisa, is scheduled to begin in January 2026.

What This Means for Real Estate

The implications for property markets along the route are enormous. Towns like Penonomé, Coronado, and Santiago — already popular with retirees and weekend buyers — stand to see significant appreciation as rail connectivity makes them viable for daily commuters. La Chorrera and Arraiján, already booming, will benefit from another layer of transit infrastructure on top of existing highway and metro projects.

David and the Chiriquí highlands, long considered remote despite their popularity with expats, will suddenly be just three hours from the capital by train. For investors, the station locations are essentially a roadmap of where the next wave of development is headed. This is a generational project — and the time to pay attention is now.