The Panama Canal is an international waterway that creates a link between the Pacific Ocean and the Atlantic Ocean. The Panama Canal construction began in 1904 by the United States of America. The purposes of the Panama Canal are commercial and military. The Canal was constructed to reduce the time taken to travel between the two oceans. The Panama Canal reduced the distance travelled to major towns in the USA. The USA government also wanted a passage for the naval ships that required movement between the two oceans.
The USA understands the challenges created because of the distance that ships had to take to cross the oceans. For example, if a ship wanted to connect with San Francisco with New York, the ship had to sail around Cape Horn, which is around 12,000 miles and during that period, it took around 67 days. Due to the challenge associated with the movement, the USA invested to reduce such costs and to have an advantage when it comes to military requirements.

The use of Panama Canal has not changed extensively since it inceptions. The Panama Canal has been used for transportation purposes and improves transportation efficiency. These roles are still played by the Panama Canal. Hence, no significant changes have occurred but improvements have been done over time. Moreover, Panama Canal has contributed to hospitality industry development in the region.

The demands for shipping including the requirements of globalization mean that the canal continues to play an important role. The Panama Canal will continue providing easiness of transportation between the oceans. It reduces the distance covered for both business and private requirements. To continue fulfilling the requirements of transport, the Panama Canal needs frequent upgrades. Moreover, competition from other investors, such as the Chinese means efficiency and upgrade are important to sustain the operations of the Panama Canal.