It's cheaper, safer, and faster than sailing around the tip of South America. Panama is the narrowest place, so it required the least digging. It made sense to put it there.

Plus, from a military perspective, you really only need one fleet, rather than two (one for the Pacific and one for the Atlantic).

• Why did america want to build a canal across panama?
• What steps did the United States take to build the Panama Canal?
• How much does it cost to go through the panama canal?
• What if the Panama Canal was never built?
• Help: What is the direction of the Panama Canal?
• Who built the Panama Canal?
• How does the panama canal work?....detail please.?
• Reasons that the panamanians did not like the U.S.controling the panama canal?
• Has anyone on here been to PANAMA?..in central america?
• Is Panama in North or South America?