Panama establishes committee for rail road project with China

A high-level committee has been established in Panama to work on a rail road project with China, reports China Central Television, citing a report on Panama's national television.

Panamanian President Juan Carlos Valera told the Summit of the Americas in Lima, Peru earlier this month that the two countries are exploring the feasibility of the $5 billion project.

The proposed rail route for cargo and passenger trains would link Panama City with the northwestern province of Chiriqui.

It would be a cooperation project between China and Panama through the Belt and Road Initiative.

Chinese Commerce Minister Zhong Shan, Panamanian President Juan Carlos Valera, and Panamanian Deputy Foreign Affairs Minister Luis Miguel Hincapie at the signing ceremony of a rail road project between China and Panama in Panama City, December 7, 2017. [File Photo: Xinhua]

China and Panama established diplomatic ties in June, 2017. President Juan Carlos Valera paid a historical state visit to China in November.

Air China opened a direct flight between Beijing and Panama City in early April.