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

  • EU regions urge adequate funding for sustainable transport
    April 21, 2015
    The European Committee of the Regions (CoR) is concerned by the lack of investment by the EU in the transport sector. According to regions and cities, very little progress has been made also in integrating the European transport market in the last four years. These concerns were debated by CoR members at the 16 April plenary session, which saw the adoption of the opinion on the implementation of the 2011 European Commission White Paper on Transport, aiming to create a single European transport area. The
    Read More
  • Improve and increase mass transit systems to minimise congestion
    January 24, 2012
    Rather looking to solve congestion by spreading the load, perhaps we need to look at concentrating it. Michael L. Sena writes. We humans were made to walk and run at embarrassingly slow speeds by comparison with other, more fleet-footed organisms. The sea is not our natural habitat and we were definitely not designed to fly unaided. Nevertheless, humankind has evolved a method of living during the past century that is dependent on transporting its members over very long distances during relatively short per
    Read More
  • Private investment in Latin American infrastructure on the rise
    January 23, 2015
    Private investment in infrastructure projects has grown significantly over the past decade in Latin America's six largest economies, with the exception of Mexico and Argentina, according to a Standard & Poor's report. In Mexico the retraction in private investment is explained by poor planning and execution of projects on the part of the government. Meanwhile in Argentina, the dip is explained by government intervention, according to the report. Outside the two regional powerhouses, private sector par
    Read More
  • Carbon finance delivers critical support to mass transit schemes
    February 2, 2012
    David Crawford investigates carbon finance in transport. World Bank carbon finance grants are delivering critical support to major mass transit deployments in emerging and developing economies. Only recently operative in the transport sector, the Clean Development Mechanism (CDM, see panel) is designed to generate additional income streams and improve internal rates of return on projects funded from public- and private-sector sources.
    Read More

Highlighted Content