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WORLD IN BRIEF : CENTRAL AMERICA : Railroad to Compete With Panama Canal

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From Times Staff and Wire Reports

El Salvador and Honduras have agreed to build a railroad that will compete with the Panama Canal for traffic across the Central American isthmus, the Honduran government said. The railroad--dubbed a “dry canal”--will run the 200 miles from the Atlantic Ocean port of Puerto Cortes, Honduras, to El Salvador’s Pacific port of Acajutla, said Mauro Membreno, Honduras’ minister for communications, public works and transport. Work on the railroad will begin next May and should be completed by February, 1994, Membreno said.

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