Panama Canal

This historic project got off to a spectacular start with thousands of Panamanians gathered at Paraiso, north of Panama City,  to watch a controlled explosion marking the beginning of works that will double the capacity of the canal.

Panama Canal expansion was launched by Panama's president at a colorful ceremony featuring explosions and the release of thousands of balloons.
The former US President, Jimmy Carter, who signed an agreement in 1977 giving Panama the total control of the waterway, said he was "proud" of the expansion plans.

The Panama government has said the scheme will be financed by raising tolls on the waterway as well as through foreign credit.

It will involve adding a third set of locks that will enable modern ships to use the canal.

Before a crowd of leading businessmen and foreign dignitaries, Panama's President Martin Torrijos said it was a historic day for the Panamanian people. "We are witnesses to an exceptional and unique act," he said."In 30 years, Panamanians will remember this day and about the right decision this generation made."

Work has begun on a $5.2 billion expansion of the Panama canal, the largest-ever overhaul of the short cut between the Pacific and Atlantic oceans. The widening is due to be completed by 2014, in time for the Panama Canal centenary.

The Panama Canal handles five per cent of world trade and its expansion will generate over 7,000 new jobs.

See in the video how Panama Canal Works