# Nicaragua gives Chinese firm contract to build alternative to Panama Canal



## GAP (7 Jun 2013)

Nicaragua gives Chinese firm contract to build alternative to Panama Canal
Project will reinforce China's growing influence on global trade and weaken US dominance over a key shipping route
Jonathan Watts and agencies,  guardian.co.uk, Thursday 6 June 2013
http://www.guardian.co.uk/world/2013/jun/06/nicaragua-china-panama-canal

Nicaragua has awarded a Chinese company a 100-year concession to build an alternative to the Panama Canal, in a step that looks set to have profound geopolitical ramifications.

The president of the country's national assembly, Rene Nuñez, announced the $40bn (£26bn) project, which will reinforce Beijing's growing influence on global trade and weaken US dominance over the key shipping route between the Pacific and Atlantic oceans.

The name of the company and other details have yet to be released, but the opposition congressman Luis Callejas said the government planned to grant a 100-year lease to the Chinese operator.

The national assembly will debate two bills on the project, including an outline for an environmental impact assessment, on Friday.

Nicaragua's president, Daniel Ortega, said recently that the new channel would be built through the waters of Lake Nicaragua.

The new route will be a higher-capacity alternative to the 99-year-old Panama Canal, which is currently being widened at the cost of $5.2bn.

Last year, the Nicaraguan government noted that the new canal should be able to allow passage for mega-container ships with a dead weight of up to 250,000 tonnes. This is more than double the size of the vessels that will be able to pass through the Panama Canal after its expansion, it said.

According to a bill submitted to congress last year, Nicaragua's canal will be 22 metres deep and 286 km (178 miles) long - bigger than Panama and Suez in all dimensions.
more on link


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## Kat Stevens (7 Jun 2013)

Chinese troops posted to control the Canal Zone?  Nope, can't see any potential problems there


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## CougarKing (8 Jun 2013)

The question is: will there be enough shipping traffic taking that route to justify the building of the second canal? Remember that a couple of years ago a news story broke that the worldwide shipping glut was such that a huge ghost fleet of merchant ships with unemployed crews was said to be anchored just off Singapore.

Such a canal might prove attractive to the United States if the builders made it large enough to fit a US Navy supercarrier, since CVNs normally have to go around Cape Horn since they can't fit through the current Panama Canal. But if Beijing will control the new canal, they won't be so open to the idea of American carrier groups going through their new canal whenever tensions rise over flashpoints like the Taiwan Strait...


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## Edward Campbell (8 Jun 2013)

S.M.A. said:
			
		

> The question is: will there be enough shipping traffic taking that route to justify the building of the second canal? Remember that a couple of years ago a news story broke that the worldwide shipping glut was such that a huge ghost fleet of merchant ships with unemployed crews was said to be anchored just off Singapore.
> 
> Such a canal might prove attractive to the United States if the builders made it large enough to fit a US Navy supercarrier, since CVNs normally have to go around Cape Horn since they can't fit through the current Panama Canal. But if Beijing will control the new canal, they won't be so open to the idea of American carrier groups going through their new canal whenever tensions rise over flashpoints like the Taiwan Strait...




There _might_ be if the Nicaragua Canal can accommodate ships even larger than the New Panamax standard.

Some lines, including Maersk, are already operating container ships that will not fit in the New Panama Canal and many supertankers are in the same boat - forgive the pun.


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## GAP (8 Jun 2013)

Strategically, I can't see the US being happy with this.....it is a Chinese foothold in the Americas.

Economically, China can subsidize the hell out of the usage until it bleeds the Panama Canal into bankruptcy or the national equivalent....

 What could go wrong?


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## Edward Campbell (8 Jun 2013)

Remember what Ronald Reagan did to the Russians ...

By the 1970s the inherent strains in communism ~ and the exact same strains exist in ALL socialist systems ~ were becoming to great to go untreated. The Russian government wanted to retain its power as a global military superpower and the Russian people wanted what they knew others had: decent food and housing, for a start.

In 1983 President Reagan proposed the Strategic Defence Initiative ~ _Star Wars_. The Russians, if they were to keep up, would have to deny their people even more, "make then eat grass," as the saying went at the time - and a revolt was a very, very real, indeed very likely product of that course of action, or Russia could, tacitly but publicly admit that it was, as it is, a regional military power, at best, with a broken economy and a second rate political system.

The comparisons are not exact but:

     1. America is badly overspent, if it wants to retain its _strategic_ military power it must either -

        a. deny the American people _entitlements_ to which they are very, very attached, or

        b. raise taxes, a lot, to compensate for the increased borrowing;

     2. China is sitting on a small ocean of US dollars that it wants to spend.

The foothold in the Americas is a bonus.


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## GAP (8 Jun 2013)

agreed.

American can't outspend China when China is using America's money.


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## Retired AF Guy (8 Jun 2013)

GAP said:
			
		

> What could go wrong?



Ecological/environmental disaster waiting to happen. I can't the eco-weenies being in favour of this.


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## CougarKing (8 Jun 2013)

I find it ironic that mainland China is courting Nicaragua, one of the few remaining countries which recognize Taiwan as the "One China", instead of the mainland. Interestingly, Panama does not recognize mainland China as the "One China" either.

wiki reference:
Foreign relations of Taiwan: countries that recognize the Republic of China/Taiwan

Furthermore, according to this article below, Colombia and Costa Rica (2 nations which DO recognize mainland China as the "One China") have a pending territorial dispute with Nicaragua over the area where part of the canal will be built. So what happens if the International Court rules in favour of Colombia and Costa Rica against Nicaragua? No canal for China's COSCO shipping company and the PLA-N?



> Nicaragua has accused Colombia and Costa Rica, which has a claim on territory likely to be used by the new canal, of trying to prevent the project going ahead.
> 
> Guardian link


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## Old Sweat (8 Jun 2013)

And to go waaaay out on a limb, could the Monroe Doctrine be applied in the case of China establishing a naval base in Central America? While China is not an European power, and the world has changed since 1823, Chinese expansion into the Americas might just upset Washington.

http://en.wikipedia.org/wiki/Monroe_Doctrine


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## Retired AF Guy (8 Jun 2013)

S.M.A. said:
			
		

> Furthermore, according to this article below, Colombia and Costa Rica (2 nations which DO recognize mainland China as the "One China") have a pending territorial dispute with Nicaragua over the area where part of the canal will be built. So what happens if the International Court rules in favour of Colombia and Costa Rica against Nicaragua? No canal for China's COSCO shipping company and the PLA-N?



Funny you should mention that. I was reading an article this morning that just after the above was signed, a Chinese ruled in favour of Nicaragua. Nothing suspicious there. 

Sorry couldn't find the link.


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## Edward Campbell (8 Jun 2013)

Old Sweat said:
			
		

> And to go waaaay out on a limb, could the Monroe Doctrine be applied in the case of China establishing a naval base in Central America? While China is not an European power, and the world has changed since 1823, Chinese expansion into the Americas might just upset Washington.
> 
> http://en.wikipedia.org/wiki/Monroe_Doctrine




This is China's response to the _Asian pivot_: you put troops in Australia, we'll befriend Nicaragua.


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## CougarKing (9 Jun 2013)

Mr. Campbell,

Wouldn't another consequence of a Nicaragua Canal also mean the diversion of increasing traffic from the Northwest Passage? The implications of a Northwest Passage made navigable year-round by the retreating Arctic ice cap, as mentioned by academics like Michael Byers in books such as Who Owns the Artic?, would also have effects on Canada`s Arctic sovereignty interests. 

For shipping companies that originate in Europe, the Northwest Passage is 7,000 km shorter than the current Panama canal route to Asia. The same goes for Asian companies that ship to Europe.  From Europe, travelling east through the Suez Canal is also longer at 21,000 kilometres.

Do you think that the lack of maritime traffic in the passage, partially caused by a Nicaragua Canal opening, might force Ottawa to reconsider the construction of its planned "Diefenbreaker"?


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## Edward Campbell (9 Jun 2013)

All good points and a good question, S.M.A..

If the Northwest passage becomes reliably navigable then I expect it to be used, for the vital economic reason - lower cost - you cite.

I suspect the _Diefenbaker_ can survive on the  _jobs! Jobs!! JOBS!!!"_ front, alone.


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## tomahawk6 (9 Jun 2013)

GAP said:
			
		

> Strategically, I can't see the US being happy with this.....it is a Chinese foothold in the Americas.
> 
> Economically, China can subsidize the hell out of the usage until it bleeds the Panama Canal into bankruptcy or the national equivalent....
> 
> What could go wrong?



The Chinese have long had a foothold in the Americas - Chinese restaurants. ;D
Seriously though, a second canal has long been a consideration but the cost may be prohibitive.


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## Oldgateboatdriver (9 Jun 2013)

You are asking Mr. Campbell, but I can answer that one.

The Nicaragua canal being considered here would have little to no noticeable impact on the distance between Asia and Europe when compared to the Panama canal. Its real impact is in the size of vessels it can accommodate.

Therefore, the savings in distances  (and time and money) that would result from the North-West passage being opened part of or all year long would be the same with regards to either the Nicaragua or the Panama canal and this would have no effect on the use of the NW passage.



			
				E.R. Campbell said:
			
		

> This is China's response to the _Asian pivot_: you put troops in Australia, we'll befriend Nicaragua.



I do not think so. Closer collaboration between Washington and Australia is no surprise to Beijing and is of a military nature. This canal to be built by China is more indicative, to me anyway, of Beijing's view that the North-West or the North-East passages will not be available for year round traffic for quite a while and they need a further route to accommodate their always increasing volume of raw material intake.

I am absolutely certain that the Munroe doctrine will be explained to China on this one, in direct and no uncertain terms that would go like this: " You want to build this canal? Go ahead, but if we find a Chinese finger in the internal affairs of Nicaragua, we will cut it off at the elbow, or any military foothold? We'll cut it off at the knee. Are we clear on this?"


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## Edward Campbell (9 Jun 2013)

Oldgateboatdriver said:
			
		

> You are asking Mr. Campbell, but I can answer that one.
> 
> The Nicaragua canal being considered here would have little to no noticeable impact on the distance between Asia and Europe when compared to the Panama canal. Its real impact is in the size of vessels it can accommodate. ✔ agree
> 
> ...


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## GAP (9 Jun 2013)

Oldgateboatdriver said:
			
		

> I am absolutely certain that the Munroe doctrine will be explained to China on this one, in direct and no uncertain terms that would go like this: " You want to build this canal? Go ahead, but if we find a Chinese finger in the internal affairs of Nicaragua, we will cut it off at the elbow, or any military foothold? We'll cut it off at the knee. Are we clear on this?"



Easy peasy.....simply build your basic infrastructure so that it is dual purpose and large enough to accommodate, at any future date, placement of Chinese "defensive" forces/equipment. 

Of course the US will see through it, but they operate on a "prove it" basis. They won't do a thing. They no longer have the "UMPH"


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## muskrat89 (9 Jun 2013)

I think this is related to your discussion?

http://www.washingtontimes.com/news/2013/jun/7/china-encircles-us-arming-western-hemisphere-state/



> China has been quietly taking steps to encircle the United States by arming western hemisphere states, seeking closer military, economic, and diplomatic ties to U.S. neighbors, and sailing warships into U.S. maritime zones.
> The strategy is a Chinese version of what Beijing has charged is a U.S. strategy designed to encircle and “contain” China. It is also directed at countering the Obama administration’s new strategy called the pivot to Asia. The pivot calls for closer economic, diplomatic, and military ties to Asian states that are increasingly concerned about Chinese encroachment throughout that region.
> 
> 
> ...


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## Edward Campbell (9 Jun 2013)

muskrat89 said:
			
		

> I think this is related to your discussion?
> 
> http://www.washingtontimes.com/news/2013/jun/7/china-encircles-us-arming-western-hemisphere-state/




Yes, indeed. Good catch.


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## Edward Campbell (9 Jun 2013)

muskrat89 said:
			
		

> I think this is related to your discussion?
> 
> http://www.washingtontimes.com/news/2013/jun/7/china-encircles-us-arming-western-hemisphere-state/



An extract from that _Washington Times_ article that relates, specifically, to Canada:

     "North of the U.S. border, Canada this week concluded a military cooperation agreement with China during the visit to Beijing by Canadian Defense Minister Peter G. Mackay. The agreement calls for
      closer cooperation between the two militaries, including bilateral military exchanges.

      Chinese ambassador to Canada Zhang Junsai said China is deepening ties to Canada for infrastructure development, in Calgary last month. Chinese state-run companies have spent $30 billion for
      Canadian oil sands and natural gas, he said."

One can see that between then _encirclement_ of America and the Chinese "naval incursions into the 200-mile U.S. Economic Exclusion Zone around U.S. territory," the US has good reason to be concerned about China's _probes_.


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## Brad Sallows (9 Jun 2013)

>American can't outspend China when China is using America's money. 

Ultimately, it is China that can not afford a spending war with the US, irrespective of the US's promises to itself.


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## Oldgateboatdriver (9 Jun 2013)

Could not agree more Brad.

Ultimately the US could simply "forgive" itself for its own debt to China, if they found it to be in their interest.

I know it is a terrible thing to say but ultimately, the US will always do what is best for itself and its citizen (read its rich 0.1 percent) rather than take the road that is best for the world.

Just MHO.


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## CougarKing (13 Jun 2013)

An update: here we go. Btw, isn't there an active volcano (Concepion Volcano) in the proposed Nicaragua Canal route?  :blotto:

link



> *Nicaraguan assembly OKs $40 billion Chinese canal to rival Panama's*
> 
> By Ivan Castro
> 
> ...


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## cupper (13 Jun 2013)

I was discussing this with a coworker today, and he had mentioned that there was a proposal to build a canal in Nicaragua in competition to the proposal to build the Panama Canal.

http://en.wikipedia.org/wiki/Nicaragua_Canal

He recalled from David McCullough's "The Path Between the Seas" that the advantage of the Nicaraguan route was that excavation was much less as the change in elevation between east and west was much less than the Panama route. The route was also to follow the San Juan River for the majority of teh land crossing between Lake Nicaragua and the Atlantic, with a short canal run to the Atlantic.

The Pacific Lowlands has several young active volcanoes, including one in the middle of Lake Nicaragua. That portion of the country also sits on a rift.


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## Edward Campbell (25 Jun 2013)

More, this time about the Chinese tycoon fronting the project, in this article which is reproduced under the Fair Dealing provisions of the Copyright Act from the _Straits Times_:

http://www.straitstimes.com/breaking-news/asia/story/chinese-businessman-behind-51b-nicaragua-canal-denies-special-ties-20130625


> Chinese businessman behind $51b Nicaragua canal denies special ties
> 
> Published on Jun 25, 2013
> 
> ...




A bit more about Mr Wang:






Reuters/Reuters - Wang Jing, HKND Group chairman, listens to a
question at a news conference in Beijing, June 25, 2013.
REUTERS/Jason Lee

His bio, from the HKND Group web site:

     Mr. Wang Jing was born in December 1972 in Beijing, China. An eminent businessman, Mr. Wang Jing founded or invested in businesses across major infrastructure, mining, aviation and telecommunications sectors.
     Currently, Mr. Wang Jing controls and serves as board chairman of more than 20 enterprises which operate businesses in 35 countries around the world, including Xinwei Telecom Enterprise Group in China.

     Under Mr. Wang Jing’s leadership during the past three years, Xinwei Telecom Enterprise Group has become one of the fastest growing telecommunications companies in the world, owning three international and
     Chinese telecommunications industry standards. The company spirit of “Optimism, Diligence, Pragmatism and Innovation” initiated by Mr. Wang Jing has been widely acknowledged and praised in the industry.

     Mr. Wang Jing is the sponsor of the Nicaragua Canal and Development Project, the founder and owner of HKND Group and serves as its Chairman and Chief Executive Officer. HKND Group is a super scale
     international infrastructure development company which engages in the design, construction and operation of a new interoceanic canal and transportation hub in Nicaragua.

     Mr. Wang Jing and his team will be fully devoted to the Nicaragua Canal and Development Project and work tirelessly towards its timely and successful completion.


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## Kat Stevens (25 Jun 2013)

See?  Communism does work, ".... to each according to his needs...".  He must be one needy comrade.


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## CougarKing (25 Jun 2013)

S.M.A. said:
			
		

> The question is: will there be enough shipping traffic taking that route to justify the building of the second canal?



It seems I just found the answer to the question above:



> *Grupo Mariana link*
> 
> Ships currently must reserve passage through the Panama Canal up to several months in advance. Those lacking a reservation can be forced to wait as long as four days for an open slot to cross from the Pacific to the Caribbean.
> 
> ...


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## tomahawk6 (25 Jun 2013)

They will use chinese labor to build the canal.It wont be much of a boon to Nicaragua.


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## UnwiseCritic (26 Jun 2013)

tomahawk6 said:
			
		

> They will use chinese labor to build the canal.It wont be much of a boon to Nicaragua.



Well, they want to get it done


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## Edward Campbell (31 Jul 2013)

More on the Nicaragua canal project in this article which is reproduced under the Fair Dealing provisions of the Copyright Act from the _National Post_, reprinted from the _Telegraph_:

http://news.nationalpost.com/2013/07/30/proposed-tanker-route-across-volatile-nicaragua-could-rival-panama-canals-shipping-monopoly/


> Proposed tanker route across volatile Nicaragua could rival Panama Canal’s shipping monopoly
> 
> Malcolm Moore, The Telegraph
> 
> ...




My assumption is that Mr Wang has the _active_ support of the Chinese government so the project is financially feasible and he will be able to secure financing. As mentioned, America will not be thrilled, but there is a market - there are already ships which are, I think, bigger then the new, larger _Panamax_ standard and a new canal will create markets for more of them.


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## Colin Parkinson (31 Jul 2013)

By the time the Chinese and Nicaraguans business and political types skim this project I expect it to fizzle with millions unaccounted for.


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## Edward Campbell (31 Jul 2013)

Colin P said:
			
		

> By the time the Chinese and Nicaraguans business and political types skim this project I expect it to fizzle with millions unaccounted for.



Oh, there'll be plenty of graft. but most of it will be paid TO Mr Wang's company and TO Nicaraguan officials by those wishing to build the canal - which I expect to include some giant American firms. Mr Wang will, of course, have to keep the denizens of the _Zhongnanhai_, the central HQ of the CCP, happy - that will cost him some millions, I expect. I think that, despite American and Canadian laws, most _global_ firms regard bribery as a cost of doing business and that's why they all have _overseas_ offices - in places where the laws are less strict. Of course, companies, like _SNC Lavelin_ get caught, now and again despite their best efforts. But you can bet that companies like _SNC Lavelin_ are interested and they are all willing to break bend and stretch our laws to win the contracts.


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## GR66 (31 Jul 2013)

Five years to complete a 274km canal crossing an entire country.  The 13km Highway 404 extension here in Ontario will have taken longer (if) when it's finally completed in 2014.


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## Edward Campbell (31 Jul 2013)

GR66 said:
			
		

> Five years to complete a 274km canal crossing an entire country.  The 13km Highway 404 extension here in Ontario will have taken longer (if) when it's finally completed in 2014.




Lax to non-existent labour laws and construction standards explain the ambitious schedule ... things can happen fast in the 3rd world, and Nicaragua is in the 3rd world.

Of course after something is built it needs to be maintained - which gives local officials and the canal's managers (Mr Wang's people) more opportunities to collect bribes.


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## Rifleman62 (31 Jul 2013)

Productivity old boy, productivity!

I have observed neighborhood highway/road and bypass construction in San Antonio TX, Phoenix AZ, Wpg MB and Kelowna BC. There is absolutely no comparison.

E.G.  reconstruction of a 100 meter stretch of road (without having to do the foundation) at the end of my complex driveway took three weeks. They paved, added a curb, and connected a water line in the middle of the road. A  beautification, major face lift nearby, consisting of  1 km of improved roadway including street lamps, landscaping, parking took 6 1/2 months. On both projects the workers would park their pickups, Timmies in hand around 0800. Sun up here in the summer is around 0500. 

Winnipeg road construction is infamous for 8 to 5, Mon to Fri Summer and Fall construction, with traffic tickets Sat and Sun in construction zones.

Comparing that with the massive San Antonio 1604/281 interchange  six month progress which was probably 75% complete, and the 303 perimeter extension in Phoenix with overpasses ever mile. Six day week, dawn to dusk, night work with cranes and work lights. All the above was right outside my window except the San Antonio project which was a couple of miles away.

Cannot remember _any _news reports of accidents or injuries.


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## Edward Campbell (31 Jul 2013)

Rifleman62 said:
			
		

> Productivity old boy, productivity!
> 
> I have observed neighborhood highway/road and bypass construction in San Antonio TX, Phoenix AZ, Wpg MB and Kelowna BC. There is absolutely no comparison.
> 
> ...




Yes, that too ... I remain impressed with the reconstruction/expansion of Interstate 635 in Dallas, but I am equally impressed with the "overnight" bridge replacement projects we have had done, year after year, on Highway 417 here in Ottawa - the problem is that it takes so very long to plan and approve anything in Canada.


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## Kirkhill (31 Jul 2013)

E.R. Campbell said:
			
		

> ....the problem is that it takes so very long to plan and approve anything in Canada.



So many information workers.  Not enough projects/dollars/decision-makers.


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## PanaEng (31 Jul 2013)

This project so far smells of a lot a vaporware... "the feasibility studies are not complete yet but I'm 100% confident we will complete it on time..." (or something to that effect) does not give me much confidence.
What does a company of wireless/telecom installers know about projects of this magnitude. This would rival the excavation volume for the Syncrude tailings dams but in a much more difficult environment; add the seismic activity and water issues affecting the lake and this is a damn complex project.

Have a look a this for reference:   http://en.wikipedia.org/wiki/History_of_the_Panama_Canal


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## Colin Parkinson (31 Jul 2013)

I reviewed a project here, design build, the contractor decided (without any consultation) to push a dirt berm across the river (rather productive and busy river) both ourselves and Fisheries said: "No" to that. The mayor of the town was on TV jumping up and down blaming us by name as the impediments to the project. Upon receiving a plan for a workbridge they were allowed to proceed. Driving the piles for the bridge quickly informed them that all their geotech data was wrong..... That required a full redesign of the project, costing them at least a year. Guess who was still being blamed for holding up the project? The fact that we had queried their rather light work on geotech made the irony even more interesting.

Just heard another project, contractor bought $5 million worth of bolts and steel foundation rods from India. Upon installation, it was found none of it was up to spec and was useless, it needed to be replaced, supplier took back the substandard stuff to resell to some other sucker buyer, likely outside of North America (as no one in the industry here will deal with them now).

 Oh the joy of know what the MSM will never talk about.


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## dapaterson (31 Jul 2013)

There are also some differences between construction requirements in Arizona and Manitoba; while it's true that fewer illegal migrants try to enter Winnipeg, it's also true that frost heave is much less a concern in Phoenix.


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## GAP (31 Jul 2013)

> add the seismic activity and water issues affecting the lake and this is a damn complex project.



Whatever bio is in the water of the lake will be completely open to change with the locks dumping gazillions of gallons from one ocean or the other.


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## Rifleman62 (31 Jul 2013)

Of course David, but if you show up _around_ 0800 with Timmies in hand, go home at 1600 or so five days a week, stop work @ 30 degrees C, instead of starting work in the cooler morning ........

If there is a short construction season use it productively.


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## PanaEng (1 Aug 2013)

GAP said:
			
		

> Whatever bio is in the water of the lake will be completely open to change with the locks dumping gazillions of gallons from one ocean or the other.



That is one thing but I was inferring about the need for water to operate locks. That area does not get as much rain as Panama and the water required to operate the bigger locks will quickly deplete the lake.
That's assuming they are not going with a level crossing - that will multiply the volume of the excavation and pretty much drain the lake. A level crossing was an option in Panama but it would have destroyed the  ecosystem on the Caribbean coast of Panama and reshape the landscape around the canal (the Pacific is about 9" higher on average and can reach to about 25' difference at high tide on the Pacific - the Caribbean tides are negligible - this can cause a current of 1 to 4.5kn from the murky Pacific to the Caribbean)

It is still possible but not sure if financially feasible. 

This is pretty good reading actually:
http://en.wikipedia.org/wiki/Panama_Canal
http://en.wikipedia.org/wiki/Nicaragua_Canal


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## CougarKing (8 Jul 2014)

The route has been approved:



> *Nicaragua approves route for $40 billion canal linking oceans*
> Reuters
> 3 hours ago
> 
> ...


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## methionine (4 Nov 2014)

Hey,


I actually lived in Nicaragua for nearly 3 years. The canal through Nicaragua has been proposed numerous times in the last 50 years. A number of issues exist with its creation and I, along with the majority of Nicaraguans, believe that it will _not _happen.

I recall a group of German investors who came to Nicaragua to talk, see, and mull over all things "canal". They arrived to the disappointment that the Nicaraguan government had yet to conduct any kind of Pre-feas study on the canal. In fact, they have nothing, just a general route and a lot of rhetoric. The initial Chinese backer was a mystery as well. His past business experience is shrouded in uncertainty and even his identity is unknown.

Many, myself included, see it as just another political tactic by Daniel Ortega and his Sandinista party to rile their supporters. It is very difficult to explain the paradigm of thinking that this government portrays to its people unless you have lived there, or in a country in a similar position, for some time. This is impoverished country where a very small few hold lots of power in both business and politics and employ tactics with geo-political and internal agendas depending upon what ever they see as a threat to their staying power at the time. In short, lots of lies, bluffs, and strange strategies but all without any ethical concern as long as their power is preserved.

A friend of mine down there, a man from Germany, did a set of calculations based on the proposed route, depth, and width and the amount of soil that would have to be moved. Neither the government nor the investors (or supposed investors) have even addressed the fact that to make the canal the amount of soil to be dug, moved, and deposited somewhere else is astronomical. This is a very basic aspect of the canal, one could hardly converse over a condition so necessary to the creation of a Canal as digging it and removing the unwanted soil that it speaks volumes about the other aspects of a canal which require much more sophisticated solutions.

In short, I believe it is more of a political move then a matter of international logistics and business. They are still very sour about the U.S backing of the Contra forces during their revolution that saw Somoza lose power and the Sandinista comandantes gain control over the country. Lots of paranoia, mis-trust, and fear from the people in power in regards to western powers, even though in reality the geo-political actions of Nicaragua is, at this time at least, of very low interest to the rest of the world, although they don't necessarily see it that way. In short, I think that the canal is a more a rallying point for their idea of solidarity, which they constantly preach to the Nicaraguan people, then anything else. Of course, why not call in China and spice things up a little, and give it a bit more backing at the same time.

Not sure if I made myself clear, but that is the way I see it. Any other questions about Nicaragua I would be happy to discuss, as it is a topic I enjoy discussing.


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## Colin Parkinson (4 Nov 2014)

Plus there is not complete support for the project as well in country, hard to gauge how much there is really is.


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## methionine (4 Nov 2014)

Many are opposed to it because they feel it will be an ecological disaster to their lake, which is somewhat odd as they have been polluting it for decades and have never raised an issue.


As well, a point which has been touched upon in this thread, the contract stipulates that Chinese workers will build the canal, not Nicaraguans. Access to employment is a big thing there, as there is not enough,and what there is often does not pay enough.

Support is mainly from those officials who want to believe in it because they think they will receive massive bribes when it comes time to do the licenses and permits, a process which involves a lot of paper work down there.


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## CougarKing (30 Nov 2014)

Major updates:



> *Nicaragua Canal Construction to Begin in December, Committee Says*
> BY REUTERS ON NOVEMBER 20, 2014
> 
> 
> ...





> *China’s Nicaragua Canal Could Spark a New Central America Revolution*
> 
> _Many critics thought construction of a canal across Nicaragua never would begin. Now that it’s about to, they ask how it will end—and some are asking for guns to stop it_
> 
> ...


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## CougarKing (26 Dec 2014)

Somehow I am little skeptical of this canal's ability to break even given competition from the current Panama Canal, which reportedly will now be able to handle larger ships in the future after some scheduled upgrades.

Reuters



> *Doubts deepen over Chinese-backed Nicaragua canal as work starts*
> Reuters
> 
> By Gabriel Stargardte
> ...


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## CougarKing (23 Jan 2015)

A project doomed from the start?

*South China Morning Post*



> *Doubts raised over Nicaraguan canal project as trade patterns shift*
> PUBLISHED : Sunday, 18 January, 2015
> Jing Yang and Toh Han Shih
> 
> ...


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## George Wallace (23 Jan 2015)

Equal distances is one thing.  Equal Security Concerns is a completely different story.  The Suez Canal has been closed in the past.  Recent events in that part of the world could close the canal, pirates could attack shipping prior to it reaching the canal, military blockades of the Region, and a number of other events may make the Suez Canal unfeasible for shipping to safely traverse.


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