Panama City is making a bold move to secure a tunnel beneath the Panama Canal from Elon Musk‘s Boring Company. The city has become one of 16 finalists in the company’s Tunnel Vision challenge, a competition aimed at identifying innovative projects for a free tunnel. Mayer Mizrachi, the mayor of Panama City, envisions a 0.6-mile pedestrian tunnel that would not only provide a unique passage for residents and tourists but also serve as a public space celebrating the canal’s historical significance.
The announcement of Panama City as a finalist comes at a time when the Panama Canal has been at the center of geopolitical tensions. Concerns have arisen regarding its management and influence, particularly following Panama’s withdrawal from China’s Belt and Road Initiative in February 2025.
In an interview with POLITICO, Mizrachi shared insight into how the tunnel proposal evolved. He explained that the idea originated from a social media post by the Boring Company in January, which highlighted the Tunnel Vision challenge. After visiting an existing subway project in Panama City, he proposed the pedestrian tunnel that would allow citizens to experience the canal’s rich history and the biodiversity of the region.
Mizrachi’s vision includes creating a space with educational features, such as screens displaying historical information and statistics related to the canal’s impact on international trade. The proposal was developed in collaboration with city planners, who refined the initial concept before submission.
The winner of the challenge will be announced on March 23, 2025. Mizrachi believes Panama City has a unique advantage in competing against American cities, as it would be the first to have a tunnel crossing a canal. The Boring Company has yet to undertake underwater tunneling, which adds to the project’s innovative appeal. Mizrachi emphasized the tunnel’s potential significance, framing it as a modern engineering marvel that would commemorate the canal’s centenary.
Mizrachi, who became the youngest mayor in Panama City’s history, has adopted a governance style reminiscent of tech entrepreneurship. He has prioritized cost-cutting measures and efficiency in local government, reducing the size of City Hall personnel by 50% and achieving a 32% budget reduction. This approach aligns with his vision of making Panama City a more dynamic and responsive municipality.
The Boring Company’s innovative tunneling techniques, including the reuse of their tunneling machines, promise to make such projects more feasible and cost-effective. Mizrachi expressed excitement about the potential collaboration, seeing it as an opportunity to enhance local pride in the canal while providing a functional and educational infrastructure.
As Panama City waits for the announcement of the challenge winner, the prospect of an underground tunnel connecting the city to its historic canal has captured the imagination of both residents and tourists alike. This initiative could redefine how locals and visitors interact with one of the world’s most significant maritime trade routes, blending history with modern engineering.
