Nicaragua’s alternative Panama canal plans

Plans for an inter-oceanic canal in Nicaragua have been announced by Hong Kong-based HK Nicaragua Canal Development Investment and its local arm HKND. The US$40 billion project involves the construction of an alternative to the Panama Canal. The proposed 280 kilometre, which aims to compete with the Panama canal, would connect Nicaragua's Caribbean and Pacific coasts. It includes the development of a deepwater port at each end of the canal, an oil pipeline running alongside it a dry canal for the transpo
July 24, 2014 Read time: 2 mins

Plans for an inter-oceanic canal in Nicaragua have been announced by Hong Kong-based HK Nicaragua Canal Development Investment and its local arm HKND.

The US$40 billion project involves the construction of an alternative to the Panama Canal. The proposed 280 kilometre, which aims to compete with the Panama canal, would connect Nicaragua's Caribbean and Pacific coasts. It includes the development of a deepwater port at each end of the canal, an oil pipeline running alongside it a dry canal for the transportation of cargo via freight rail lines, a new airport, highways, free trade zones, and a tourist complex.

Once under way, construction would take at least ten years and could generate 40,000 jobs and double the country's GDP per capita.

However, the plans have raised concerns from several environmental organisations. HKND has yet to carry out an environmental impact study and environmental reports say the route calls for the removal of 400,000 hectares of forests and wetlands, encroachment into indigenous communities and the contamination of Nicaragua's largest freshwater source, Lake Nicaragua.

Related Content

  • Funding for São Paulo, Rio de Janeiro urban mobility
    January 26, 2015
    Brazil's national development bank BNDES has earmarked US$15.2bn for urban mobility works in the metropolitan regions of São Paulo and Rio de Janeiro from 2015-18. The works include the construction of metro, monorail, bus rapid transit (BRT) and light rail transit (LRT) systems. The investments are part of urban mobility projects planned by the federal government under its growth acceleration plan, many of which will be carried out through public-private partnerships. Approximately US$10 billion is e
    Read More
  • Mexico developing highway projects
    August 29, 2014
    Mexico's transport and communications ministry, SCT, is developing 46 highway projects, worth US$12.3 billion, to be completed by 2018. "We have 28 highways under construction, eight were recently finished, and construction on an additional seven highways will start before the end of the year, said SCT minister Gerardo Ruiz, during the launch of construction of the Cardel-Poza Rica highway. A consortium led by Mota-Engil won a 30-year concession for the 129 kilometre Cardel-Poza Rica highway concessi
    Read More
  • CPS calls for greater competition in UK rail competition
    December 21, 2016
    A report from the UK Centre for Policy Studies (CPS) has called for greater on track competition on long distance rail routes. It says the UK’s transport authorities have been resistant to open access competition on passenger routes. Open access operators are train companies that run services over similar routes and are not subject to franchising agreements. The UK’s Competition and Markets Authority (CMA) has reported that where open access operates in the UK, such as the East Coast Mainline, passen
    Read More
  • C40 Cities report: 'Nearly every' city has too much air pollution
    April 10, 2023
    Traffic initiatives such as low-emission zones will be vital in reaching climate targets, report says
    Read More

Highlighted Content