The years between 1852 and 1861 were turbulent both diplomatically and financially. The opening of the Panama Railroad in 1854 provided competition for the Tehuantepec route, but also gave warning that the TRNCO's cost estimates were wildly optimistic. The Panic of 1857 made raising capital for transportation projects more difficult. There were disputes over the concession with the Mexican Government. In spite of this, the company managed to construct a wagon trail (not a railroad) along the route, and offer a service for passengers and mail from New Orleans to San Francisco, starting in 1858. It was too little too late, however, and the company became insolvent in 1860. The outbreak of the American Civil War and the French intervention in Mexico the following year ended any immediate hope of reviving the project.