Nicaraguan Canal

A rival for the Panama Canal is being proposed by the HK Nicaragua Canal Development Investment Co. The H. K. stands for Hong Kong and the Chinese company’s previous experience is in telecommunications. They now have exclusive rights to studying the plan to build the canal if feasible in exchange for Nicaragua receiving a minority share of any eventual profits. Nicaragua’s President, Daniel Ortega hopes the Chinese will transform one of the regions poorest countries by bringing tens of thousands of jobs to the country and fueling an economic boom like the building of the Panama Canal did for neighboring Panama. Data points to a couple of things as far as feasibility. Maritime Transport is constantly growing, so global trade demands make a compelling commercial case for building the canal. There are concerns though about the actual route of the canal, something not yet decided. Most plans appear to have the canal crossing Lake Nicaragua, the country’s primary source of fresh water, which has activists and environmentalists on high alert. The canal would also be three times longer than the Panama Canal and through different types of terrain. Some think an advantage would be the Nicaraguan Canal’s projected ability to handle ships with far larger capacities than can currently go through the Panama Canal. Time will tell about this project but the Chinese track record on environmental issues and human rights for workers bear watching.