Shipping on water is still the most economical means of getting large amounts of goods from one place to another. And if a dam is in the way, this may be the best way to get around it. And as far as the Panama Canal goes, there is currently a project starting to basically double the size at the cost of about $5 billlion.
http://news.independent.co.uk/busine...cle3157803.ece
It was the smaller canals that were not able to successfully compete against the railroads


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