What significant infrastructure project provides revenue through tolls in Panama?

Enhance your knowledge of the Caribbean and Central America regions. Study with engaging flashcards and multiple choice questions, each offering detailed hints and answers. Prepare yourself to ace the exam!

The Panama Canal is a crucial infrastructure project that generates significant revenue for Panama through tolls charged to vessels passing through it. Completed in 1914, the Canal connects the Atlantic and Pacific Oceans, allowing ships to save time and distance by avoiding the lengthy and perilous route around the southern tip of South America.

The tolls collected from ships using the Canal are based on factors such as the type of vessel, cargo, and size, and these fees contribute a substantial portion of Panama's national income. The Canal's strategic location and economic importance have made it a vital trade passage for global shipping, further enhancing its role in generating revenue for the country.

The other options, while significant in their own right, do not primarily function as revenue-generating infrastructures through tolls in the same way. The Panama Railway was historically important for transportation but does not generate toll revenue at the scale of the Canal. The Transcontinental Highway connects various regions but operates under a different infrastructure model, primarily focused on road travel, and the Darien Gap is a challenging stretch of road that lacks established infrastructure, making it less relevant in the context of revenue generation through tolls.

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy