The nation of Panama currently operates one of the world's busiest and most familiar waterways, the Panama Canal. This canal cuts through the isthmus of panama, connecting the Atlantic and Pacific Oceans, shaving off more than for ships, instead of having them travel around the tip of Cape Horn in South America. A ship travelling from New York City to San Francisco would be roughly in distance, while a trip around Cape Horn would be in length. The Canal functions similarly to the Suez Canal in Egypt.