The history of the Panama Canal goes back to 16th century. After realizing the riches of Peru, Ecuador, and Asia, and counting the time it took the gold to reach the ports of Spain, it was suggested c.1524 to Charles V, that by cutting out a piece of land somewhere in Panama, the trips would be made shorter and the risk of taking the treasures through the isthmus would justify such an enterprise. A survey of the isthmus was ordered and subsequently a working plan for a canal was drawn up in 1529. The wars in Europe and the thirsts for the control of kingdoms in the Mediterranean Sea simply put the project on permanent hold.

Along the route of the canal there is a series of 3 sets of locks, the Gatun, Pedro Miguel and the Miraflores locks. Many engineering aspects of the Panama Canal point out the concern for the protection of the environment and natural resources.

The ships for which the canal was designed are now long gone. Modern shipping has increased the size of ships. The increase in the tonnage in which can be carried has thus caused problems for the canal. The canal can only accommodate ships carrying up to 65,000 tons of cargo, but recently ships which are able to carry 300,000 tons have been introduced.

The problem of the ever-increasing size in ships has caused discussion into the construction of a new canal joining the Pacific and Atlantic oceans. There have been discussions on three alternative routes for a new canal, through; Columbia, Mexico and Nicaragua. The Columbian and Mexican routes would allow for the construction of a sea level canal, whereas the Nicaraguan route would require a lock system.