Panama City is the capital city or República de Panamá Capital. Panama is a transcontinental country in Central America linking the Pacific ocean with the Atlantic ocean via the Panama Canal.
The Panama Canal (Spanish: Canal de Panamá) is a 51 mile waterway that cuts across the Isthmus of Panama and is a conduit for maritime trade. The Panama Canal shortcut greatly reduces the time for ships to travel between the Atlantic and Pacific oceans, enabling them to avoid going around the southernmost tip of South America.