Colón is the Caribbean face of the Panama Canal: the city guarding the Atlantic entrance to the great interoceanic waterway, at the opposite end from the capital. Born in the mid-19th century as the terminus of the railway crossing the isthmus, it grew on the back of the train and the Canal, and today holds the enormous Colón Free Zone, one of the world's largest duty-free zones, along with the modern Agua Clara Locks and a cruise terminal.
It's a city with a strong Afro-Caribbean identity, heir to the thousands of West Indian workers who came to build the railway and the Canal, with their music, their food and their culture. It's worth saying honestly: Colón has sharp contrasts and areas with social and safety problems, so many travelers use it more as a logistical base and gateway to the wonders around it - the Canal on the Caribbean side, the historic fort of San Lorenzo, nearby Portobelo and the coast - than as a place to wander on foot.
This guide helps you make the most of Colón and its surroundings with good judgment: the Agua Clara Locks, the fort of San Lorenzo (a Unesco World Heritage Site), the panoramic train beside the Canal, shopping at the Free Zone, the nature of Gatun Lake and the combination with Portobelo. An area loaded with Canal history and Caribbean flavor, in Panama's Atlantic heart.
The city of Colón is relatively young: it was founded in 1850 as the Caribbean terminus of the Panama Railroad, the trans-isthmian railway built to serve the flow of travelers unleashed by the California gold rush. It rose on the island of Manzanillo, in Limón bay, and for a time the Americans called it 'Aspinwall' (after one of the railway's promoters), while Panamanians and Colombians called it 'Colón' in honor of Christopher Columbus; in the end the name Colón prevailed. The railway, opened in 1855, made the city grow as a great transit port. The second great push came with the Canal: both the failed French attempt (from 1881) and the successful American construction (1904-1914) had their Atlantic terminus at Colón, drawing an enormous number of workers, many of them Afro-Antilleans arriving from the Caribbean islands, who left a deep cultural mark. Through the 20th century, Colón lived periods of prosperity tied to the Canal and to trade (the Colón Free Zone was created in 1948, today one of the largest free zones in the world), but also severe social and urban decline across many of its neighborhoods. Today, Colón province is crucial to Panama because of the Canal (with the Agua Clara Locks of the expanded Canal), the Free Zone, the ports and the cruise ships, and it keeps its rich historic heritage (the fort of San Lorenzo, a Unesco World Heritage Site) and its Afro-Caribbean identity. The full story is on our history page.
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Origins, formation and what the sources say.
The city of Colón is relatively young compared with other Panamanian cities: it was born in the middle of the 19th century, directly linked to one of the great events of the era. The California gold rush, from 1848, had filled the isthmus of Panama with travelers crossing from Caribbean to Pacific on their way to the American west, looking for a faster route than crossing the whole continent or rounding Cape Horn.
To capitalize on that enormous traffic, an American company set about building the Panama Railroad, which would link both oceans across the isthmus. As the Caribbean terminus of that railway, a new city was founded in 1850 on the island of Manzanillo, in Limón bay. So Colón was born, almost from nothing, as a port and railway city serving interoceanic transit.
In its early years the city had two competing names: the Americans tied to the railway called it 'Aspinwall', after William Aspinwall, one of the company's promoters, while Panamanians and the Colombian authorities (Panama was then part of Colombia) called it 'Colón', after Christopher Columbus. After years of tug of war, the name Colón prevailed. The railway, opened in 1855, was one of the first in the world to link two oceans and established the young city as a crucial transit port.
The second great push in Colón's history came with the Panama Canal, of which the city would always be the Atlantic terminus. Both the ambitious and doomed French attempt to build the Canal, begun in 1881 under Ferdinand de Lesseps, and the later successful American construction, between 1904 and 1914, had their Caribbean gateway at Colón.
During those decades of construction, the city and the region filled with activity and with people. Building the Canal demanded a gigantic amount of labor, largely met by Afro-Antillean workers arriving from the Caribbean islands, above all Jamaica, Barbados and the other Antilles. These workers, who had already taken part in the railway, endured brutal conditions and paid a very high price in lives, especially during the French attempt, from tropical diseases such as malaria and yellow fever.
That mass migration left a deep and lasting cultural mark on Colón and the whole province, which became predominantly Afro-Caribbean. Caribbean English, the Protestant churches, the music, the celebrations and, most notably, the cooking (with dishes like rice and beans in coconut milk) are part of Colón's identity to this day. The city grew and prospered to the rhythm of the Canal, which opened in 1914 with Colón as its great Atlantic port.
Across the 20th century, Colón lived a history of contrasts, with periods of prosperity tied to the Canal and to trade, but also severe social and urban decline. The city benefited from its strategic position at the Atlantic entrance to the Canal and from its role as a great port, which made it a first-order commercial and transit center.
A key milestone of that commercial vocation was the creation, in 1948, of the Colón Free Zone, a duty-free trade area that would use the city's location to become, in time, one of the largest in the world. The Free Zone works as an enormous center for importing, warehousing and re-exporting goods across Latin America, and became a pillar of Panama's economy. For decades the city also hosted part of the infrastructure tied to the American presence in the Canal Zone.
That economic activity coexisted, however, with mounting problems. Many of Colón's neighborhoods, with their characteristic wooden buildings and balconies, entered a process of decay and impoverishment, aggravated by the loss of traditional port activity, unemployment and social hardship. The city was left marked by a sharp contrast between the wealth passing through the Free Zone and the Canal and the poverty of much of its population, a tension that persists as one of Colón's great challenges.
Although the city of Colón dates from the 19th century, its province holds a far older and more valuable historic heritage, tied to the colonial era and to the system with which Spain defended its Caribbean trade. The most important testimony is Fort San Lorenzo, a fortress raised above the mouth of the Chagres river to protect that strategic route across the isthmus from attacks by pirates and enemies.
The Chagres river was a key way inland and a route for transporting riches, which is why its mouth was fortified. San Lorenzo, like the fortifications of Portobelo, suffered attacks throughout its history - the pirate Henry Morgan passed through on the campaign that ended with the sacking of Panama City in 1671 - and was rebuilt at various times, leaving the complex of walls, bastions and cannon preserved today in a natural setting of jungle and sea.
In 1980 Unesco inscribed on its World Heritage List the 'Fortifications on the Caribbean Side of Panama: Portobelo-San Lorenzo' (site No. 135), recognizing the exceptional value of these works as examples of 17th- and 18th-century Spanish military architecture and of the defensive system protecting transatlantic trade. In this way Colón province shares with Portobelo one of Panama's great heritage treasures, alongside its more recent history of the railway and the Canal.
In the 21st century, Colón and its province remain strategic for Panama, above all for their role in the Canal and in trade. The great Canal expansion, opened in 2016, added the modern Agua Clara Locks on the Caribbean side, able to receive the gigantic neopanamax ships, reaffirming the Colón area as the Atlantic gateway to one of the most important commercial arteries in the world. The Free Zone, the container ports and the logistics business keep the province at the center of Panama's economy.
The city has also developed a tourist vocation tied to the Caribbean and to the Canal. The cruise port (with terminals such as Colón 2000) receives ships touring the Caribbean, and the area offers visitors a set of first-rate attractions: the Agua Clara Locks, the fort of San Lorenzo (a Unesco World Heritage Site), the panoramic train running beside the Canal, Gatun Lake with its nature and wildlife, and nearby, charming Portobelo, with its history and its Congo culture.
Colón still carries, however, the challenge of its contrasts: the enormous wealth moved by the Canal and the Free Zone set against the social hardship of much of its population and the decay of many of its neighborhoods. For travelers, the key is to make the most of the province's extraordinary surroundings - colonial history, the Canal, nature and Afro-Caribbean culture - using the city as a base or gateway to the Panamanian Caribbean, with awareness of its reality. Colón is, above all, Panama's other face: the Atlantic one, the Caribbean one, the one of the Canal and the African inheritance.