Puerto Cortés, originally known as Puerto de Caballos, is a port city and municipality on the north Caribbean coast of Honduras, right on the Laguna de Alvarado, north of San Pedro Sula and east of Omoa, with a natural bay. The present city was founded in the early colonial period. It grew rapidly in the twentieth century, thanks to the then railroad, and banana production. In terms of volume of traffic the seaport is the largest in Central America and the 36th largest in the world.