Thread: The New Colon-Panama City Highway: A Game Changer

The New Colon-Panama City Highway: A Game Changer | Eye On Panama

The new highway from Panama City to Colon will change Panama’s Caribbean Coast. Both the upper and lower coast, Costa Arriba and Costa Abajo, of Colon Province have been undeveloped. The new highway completion makes the Caribbean coast only 45 minutes away which is than the Pacific beach destinations such as Coronado, Gorgona, and Playa Blanca. The Caribbean coast is now in the game.

One of the primary reasons the Caribbean coast has been underdeveloped, was contributable to the area’s lack of accessibility. The infrastructure was porous, with only a meager two lane road connecting the coast lines. A typical drive would undoubtedly include the passing of 18-wheelers and other large machinery traversing to and from Colon’s Free Trade Zone. The commute was difficult to say the least.

For the first time, this region is starting to see large scale investment. The new road has opened the gates for eco-adventure tourism, ex-pat settlements, cruise liner home port, and business development. Some of the most notable companies and developments occurring along the Caribbean include:

Eco/Adventure Tourism companies like Panama Outdoor Adventures have begun expanding their operations. The company is currently expanding their zip line tour, which is already one of the longest in Panama. Also, the company is adding horseback riding, river kayaking, indigenous Indian tours, eco-trail walks, and other tourist activities.

Real estate developments such as Bala Beach and San Marino have built, or are currently building, residential communities. Their prices are more realistic running normally 15-30% less than Pacific Coast developments.

Lands Panama, a real estate firm, has opened offices in Costa Arriba. They are the only agency in the area that has boots on the ground. Lands Panama offers everything from large scale farms to small buildable lots.

Cruise lines like Royal Caribbean Cruise Line have designated two of their signature ships to depart from Colon. By installing two of their “Enchantment of the Sea” luxury liners, the company has plans to capitalize on the emerging Latin American market. It also helps that the company will save millions on taxes.

But not all is rosy for the Panama’s Caribbean coast. The Colon Province, especially the city of Colon, has a rotten reputation. The city is dingy, decrepit, and decaying. Like many other port cities around the world, Colon has higher than average crime rates. The city, however, is not the coastline. Indeed the underdeveloped coastline is the total opposite direction of the city. Moreover, this coastline area is practically just as close to Panama City as it is to Colon. There are two reasons that Colon Province has a bad reputation:

First, Panamanians are highly racist. The lighter skinned Spanish, Jewish, Mestizo and Caucasian Panamanian populations are often times discriminatory towards Afro-Caribbean Panamanians. If you were to ask a light skinned, middle to upper class Panamanian if they have been to the Caribbean Coast, chances are they have not. If you were to investigate a little deeper into the reason why they have not traveled there, it would likely have racist undertones.


Secondly, people confuse the city of Colon with Colon Province. Colon is the capitol, but it is not the entire Province. Colon Province has long stretches of coastline called Costa Arriba and Costa Abajo. These areas undergoing development are at least 30 minutes away from the city of Colon and are now only a mere 45 minutes from Panama City.

I like to remind people that I live in El Cangrejo in Panama City. I’m less than 5 minutes by cab from Panama City’s largest ghetto, Chorrillo. Yet, I have never been robbed. I walk home alone from the bar late at night, and feel safer than I do in most U.S. and European cities.

Colon Province is witnessing a spur of development. The new four lane major highway has changed the game for both Coast Arriba and Coast Abajo. It is now a legitimate option for retirees, investors, and travelers. Real estate developers and tourism operators will continue to combat Colon’s negative reputation. Anyone interested in Panama should give the Caribbean coast a look. It is one of the most affordable opportunities to own a piece of paradise.

Thanks for the insight and update.

My wife and I were very pleased with the road in January when we drove up for a few days to Colon. At that time as I posted here in Panama Forum there were only about 12 km which was yet under construction.

We went to meet some friends at the Cristobal Pier in Colon as they were traversing the Canal on a cruise ship. Had a nice visit with them at the Cristobal Pier which has been very nicely renovated and has an enormous tourist facility including restaurants and shops and live entertainment for the "cruisers"

We stayed at the Washington Hotel which was a bit worn out and showed glimpses of its former grandeur but were warned by some about the danger to gringos walking around. We did anyway but did not feel uncomfortable. One taxi driver told us that the reports of crime were greatly exaggerated and were often gang related and not directed at gringos anyway.

We went up to Portobello which was a very nice and scenic drive. There is at least one residential development on that road and we stopped in and looked at it and spoke to the developer. They have about 30 inhabited homes on the site already and more under construction. The site looked quite well established.

The Caribbean side does appear to have a lot going for it!

The Caribbean side should be of great interest to anyone interested in Panama, especially now that the highway has made it so easy to get there. My wife and I were there in 2007, and the highway was still under construction. We could not get a room in the hotel Melia ( I think that is what it is called ) and like Gordon and Randy ended up in the Washington. The Mrs. was not nervous but I was. The steel doors at the main entrance with a peep hole, An underground parkade for only six cars, a room card offering services like bodyguards etc. was making me nervous.
However the morning brought a new perspective on the scene. This city reminded me of my young days in Africa. It has the atmosphere of old colonial cities. The hustle, bustle of the main street with a large variety of open stores ( shops in the colonial days ) lining the street. People dressed in gay colourful clothes going about their Saturday visit to the Downtown, was certainly exciting to experience.
We drove around Portobello and along the coast towards Palenge. This area has a huge potential. After Portobello the road gets a bit rough but the beach further is very good. The sand is white here. Some surfing facilities in this area, but since I am not a surfer I cannot comment on the surf itself. We are from the heartland of Canada and someday soon hope to live in Panama for at least the cold months here. I will certainly look at the Caribbean side.

I have experienced this Panamanian racism many times. I am as white as they come, and when I am out in the city with my friends I am treated like a king by waiters, hostesses etc...compared to black friends who are almost ignored. But then, I will see my black friends be just as racist to the Kuna and Embera Indians. It is amazing that a country so diverse is so segmented by class and color.