Panama Week: Railway Plans, Court Rulings, Tocumen Growth

By The Rio Times | Created at 2026-08-18 09:42:34 | Updated at 2026-08-18 12:17:15 3 hours ago

Panama · POLITICS

Key Facts

—:Cabinet approved US$4,170,394.73 AECOM contract for railway engineering, January 2026.

—:Beijing’s Mulino said Canal enemy is drug trafficking at coalicion forum, August 13.

—:Poverty rate fell from 14.7% to 12.4% between 2022 and 2025.

—:Lava Jato acquittals confirmed on appeal; cassation before Sala Penal remains.

—:Panama Papers acquittals also confirmed; 28 acquitted, one case ended by death.

—:Tocumen airport handled 13,719,707 passengers from January to July 2026.

A look at Panama’s week for investors and residents, from the planned David railway to confirmed court acquittals and booming airport traffic.

Panama’s week revealed new railway engineering plans, confirmed court acquittals in two major cases, and showed strong airport growth. Here is what happened, with exact figures and legal labels.

Panama City skyline with Tocumen airport activity

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Mulino meets US officials, warns on drugs

President José Raúl Mulino met US Secretary of War Pete Hegseth in Panama on August 12 for regional security and counter-narcotics talks. Senator Bernie Moreno of Ohio also attended, according to his office; the Presidency readout named only Hegseth.

At a separate forum on August 13, the Coalicion de las Americas Contra los Carteles in Panama City, Mulino said: “El enemigo del Canal es el narcotrafico, no mas nadie.” He added drug trafficking represents a clear threat to national sovereignty.

Hegseth called Panama an “important ally” of the United States, according to official statements.

Poverty falls in Panama, 83,949 people affected

The Ministry of Economy and Finance, using INEC’s Encuesta Continua de Hogares, reported on August 18 that 83,949 people left multidimensional poverty between 2022 and 2025. The national rate fell from 14.7% to 12.4%.

This measure looks at deprivations across health, education, and living standards, not just income. The figure is a level, not a rate, covering the whole country over three years.

Railway project takes shape with AECOM contract

The Tren Panama-David-Frontera, promoted by the Secretaria Nacional del Ferrocarril de Panama under the Ministry of the Presidency, has published details. In January 2026, the Cabinet approved a US$4,170,394.73 contract with AECOM USA for 20 percent engineering of the Albrook-Sajalices section.

Fourteen stations are planned, from Ciudad de la Salud to Paso Canoas-Frontera. A 2019 China Railway Design Corporation study estimated near US$4.1 billion, but the government states “no hay cifra final aprobada.” As of July 7, 2026, US$9.77 million was committed in studies; construction possibly starts in 2027, but Mulino says it will not finish before 2029.

Fourteen stations are planned, including Ciudad de la Salud, Albrook, La Chorrera, and David. A 2019 China Railway Design Corporation study estimated near US$4.1 billion, but “no hay cifra final aprobada.”

Court confirms acquittals; Odebrecht prosecution still pending

On August 10, the Tribunal Superior de Liquidacion confirmed acquittals in Lava Jato and Panama Papers money-laundering files. The 118-page ruling by magistrates Mata, Hoo, and Juarez cited insufficient evidence and “falencias en el manejo de la cadena de custodia.”

In Lava Jato, 31 were acquitted; in Panama Papers, 28, plus one extinguished by death (Fonseca Mora). The ruling is final in the second instance, but cassation before the Sala Penal remains available.

This does not affect the separate Caso Odebrecht bribery prosecution against 21 defendants, including two former presidents. Hearings closed in March 2026; verdict was still pending in mid-August 2026.

Tocumen passenger traffic surges 15%

On August 17, Tocumen reported 13,719,707 passengers from January to July 2026, up 15% from 2025. Including under-twos counted since January, the total is 13,808,023, up 16%.

General manager Jose Ruiz Blanco released the figures. This is a passenger throughput level, not a rate, covering seven months.

Vibra’s Lubrax seeks partners at Panama expo

Brazil’s Vibra Energia, via Lubrax, first participated in the Latin Tyre & Auto Parts Expo 2026 in Panama City, held August 12-14. The company seeks distributors and partners, not direct market entry.

Lubrax CEO Marcelo Braganca said: “Centroamerica es una region estrategica para el crecimiento de Vibra en el segmento de lubricantes.” Vibra’s recent market entry was Argentina in July 2026, not Panama.

Frequently Asked Questions

Are the Lava Jato and Panama Papers cases closed?

The Superior Court confirmed acquittals on appeal in both money-laundering cases, but cassation before the Supreme Court’s Sala Penal remains available. This does not affect the separate Odebrecht bribery prosecution, still awaiting verdict.

What is the status of the Panama City to David railway?

The project, Tren Panama-David-Frontera, has a US$4,170,394.73 AECOM contract for engineering of the Albrook-Sajalices section. A 2019 study estimated near US$4.1 billion, but no final cost is approved; construction possibly in 2027.

How many passengers used Tocumen airport this year?

Tocumen handled 13,719,707 passengers from January to July 2026, up 15 percent from 2025. Including children under two, the total is 13,808,023, up 16 percent.

What did Mulino say at the counter-cartels forum?

On August 13, Mulino said the Canal’s enemy is drug trafficking, not anyone else, and drug trafficking represents a clear threat to national sovereignty. He spoke at the Coalicion de las Americas Contra los Carteles in Panama City.