Site Meter
Send Us An Email
Panama Guide

Welcome to Panama Guide
Wednesday, June 26 2019 @ 02:02 PM UTC

Lawmakers in Nicaragua Vote To Build Their Own Canal

Canal Daily OperationLawmakers in Nicaragua have approved a law aimed at creating an alternative to the Panama Canal. President Daniel Ortega says the $30 billion dollar project would lift the country out of poverty. "We can make this dream a reality," said Edwin Castro, legislative leader of the majority Sandinista party. "I don't know if they will find the funding for this canal, but it is hopeful," said opposition legislator Wilfredo Navarro.

The initiative, approved by 85 of 91 lawmakers, establishes a legal system for the proposed 200 kilometer (124 mile) long canal that would link the Atlantic and Pacific oceans. Plans to build a canal across Nicaragua date back centuries, but were overtaken by the construction of the Panama Canal which opened in 1914. In recent years successive Nicaraguan governments have revived the concept as a way to promote development in the second poorest country in the Americas.

Feasibility studies are expected to cost $350 million dollars, while the actual construction of the new canal could hit $30 billion dollars. The government is proposing to raise the funds through a public/private partnership, with the state maintaining a 51% stake.

Project leader Eden Pastora said Nicaragua's canal, to be built along one of six proposed routes, would be larger and deeper than the Panama Canal. That vital waterway is currently undergoing a major $5.25 billion project to expand capacity. The upgrade, set to be completed in 2014, will allow some of the world's largest ships to pass through. The Panama Canal generated a record $1 billion for the government during fiscal year 2010-2011 and a total of $6.6 billion since the United States handed over control more than a decade ago.

Editor's Comment: First of all, Nicaragua is broke. They don't have either the money or the capacity to borrow money to build this $30 billion dollar project. Secondly, they want to keep a 51% stake. So what they are saying to potential investors is - come here, spend $30 billion dollars to build us a new canal in Nicaragua, and for your money you will get 49% of what you spent. This project is more than just a little risky for any potential investor. First of all, you're dealing with the government of Daniel Ortega and a bunch of left wing socialists. Secondly, the canal once finished would be more than twice as long as the Panama Canal, and any ships wanting to use it would have a choice - do we use the Panama Canal or the Nicaraguan canal. Panama would be in a very strong position to compete because by the time the proposed Nicaraguan canal opens (in ten years or more) the newly expanded Panama Canal would be open and operating. If there was a competing canal, Panama could simply drop their toll rates down to a point where every ship would first choose Panama, and then only use Nicaragua if there were no spots left in Panama. In short, the Panama Canal is already bought and paid for and there would be no need or pressure to have to charge enough money to pay for new construction - only to operate and maintain. Anyway, whatever. This plan is most likely nothing more than a Nicaraguan pipe dream. Smart guys with big calculators and a lot of money won't take the risk - because it's a loser on the math.

Copyright 2012 by Don Winner for Go ahead and use whatever you like as long as you credit the source. Salud.

  • Facebook
  • Google Bookmarks

Story Options

Lawmakers in Nicaragua Vote To Build Their Own Canal | 3 comments | Create New Account
The following comments are owned by whomever posted them. This site is not responsible for what they say.
Lawmakers in Nicaragua Vote To Build Their Own Canal
Authored by: Anonymous on Wednesday, July 04 2012 @ 06:38 PM UTC

ROFLMAO!! The points made in the article are fatal to the Nicaraguan project. Panama could easily bankrupt the Nicaraguans, like a poker player with more chips has the advantage. Secondly, Nicaragua is a squalid Progressives/Liberals/Democrats/Marxists/Communists/Socialists Workers' Paradise. Any project will be run into the ground a la Chistine Kirchner, Chavez, Castro, Morales, and other incompetent Peronista-like slobs. Investors can expect Nicaragua will "nationalize" the share of the private investors and give them pennies on the dollar, like Christina the Mentally Disordered Delusional Evita channeler. I can see it now: Through corruption and incompetence, the Nicaraguan canal demotes into a shambles and wreck due mismanagement and misappropriation of funds.

Another kleptocracy of clowns and fascist filth.

Lawmakers in Nicaragua Vote To Build Their Own Canal
Authored by: Anonymous on Wednesday, July 04 2012 @ 08:56 PM UTC

One wild card is that China may do it, if Nicaragua agrees to their terms.
They are seeking large construction projects in Africa and the Americas for exports and an economic zone of influence.
Under their usual terms, they will export not only the equipment but also the labor. It will have zero or minus economic benefit for impoverished Nicaragua, except for the politicos who will be handsomely compensated.
On the other hand, it's no threat to Panama because the resulting project will be seriously flawed if it is ever completed. See the Chinese built National Stadium in San Jose, Costa Rica for a model of this approach. It is already badly in need of repair.

Lawmakers in Nicaragua Vote To Build Their Own Canal
Authored by: Anonymous on Thursday, July 05 2012 @ 04:28 PM UTC

Gentlemen, Gentlemen ! If you haven't heard by now ...the future is as I see it as soon as the Diesel Locomotives are converted or the new C.N.G. - L.P. Locomotives are distributed and running throughout the Railroad Tracks of the U.S. ..then you will see the most efficient , environmentally friendly ,politically stable and economical Intermodal System that will resolve most of our Shipping Container transportation problems... Not only will it increase U.S. jobs It will lower the cost of Goods not to mention " Oil Independence " and it will save the Port of Los Angeles and etc. etc.. There will be no need for another Interoceanic Canal. ...Why do you think that " volumes " of " Investsments " are going into the 500 + railroads companies . ......Just keep in mind that a shipment from Shanghai to New York might be an average of 26 days by way of a " Canal " but it's also 17 days using rail..... I would suggest to the Nicaraguans to buy U.S. Railroad Stock Funds and stick to assisting to the " SURVIVOR " Television Productions which I enjoy.................... and with that ...... " the Tribe has Spoken ".........