Nicaragua to Build $30 Billion Waterway to Rival Panama Canal

[Judi Lynn]

Nicaragua to Build $30 Billion Waterway to Rival Panama Canal
By James Burgess | Thu, 07 June 2012 23:00

The 51 mile Panama Canal was built back in 1914 to offer ships a faster route between the Atlantic and Pacific Oceans. Five percent of the annual world trade passes through the canal, more than one million ships since 1914, which last year helped generate $1 billion for Panama in 2011.

Nicaragua was considering the construction of its own canal, until Panama beat them to it, however once again the rumours of a Nicaraguan Canal are surfacing, with countries such as China, Russia, Brazil, and Japan, willing to invest $30 billion in order to develop another route between the Atlantic and Pacific. The Nicaraguan government hopes that the waterway will promote foreign investment and development in the country, which is the second poorest in the Americas, after Haiti.

Eden Pastor, the leader of the project, has said that his team has “had talks with Japan, China, Russia, Venezuela, Brazil and South Korea and everyone is interested” in contributing to the $30 billion plan.

On Tuesday the Nicaraguan President, Daniel Ortega, submitted a draft bill for consideration which detailed six potential routes for the new canal, one of which would pass through the San Juan river on the border of Costa Rica.

More:
http://oilprice.com/Latest-Energy-News/World-News/Nicaragua-to-Build-30-Billion-Waterway-to-Rival-Panama-Canal.html

[lostnote12]

1. Does China still pay for the maintenance costs of the Panama Canal?...

...........Poor ole Pres Carter took a beating on that issue many yrs ago......if I recall correctly, the upkeep costs were way too high at the time......."Energy Independence".......forboding slogan for a national Presidential campaign......Thanks again Mr President!!!!....you still are the best!!!!

[HooptieWagon]

2. As far as I know China isnt paying maintanence costs.

Perhaps China bought the bonds funding the recent expansion?
Maintanence costs should be low. The locks operate by gravity, the lock gates are counterweighted and only need small motors to open and close. Probably the only regular maintanence is dredging the land cut... the banks would slide into the edges of the canal... but they were made less steep many years ago so should be lesser problem now.

Edit: The expansion is being funded by loans from banks in the US, Japan, Europe, and Venezuela. The canal fees are supposed to pay the loans off in 10 years.

[naaman fletcher]

3. I've never heard oc China paying the maintenance costs

The Canal charges fees for transit. Although the Chinese have been buying up property and port facilities on both ends of the canal.

Little known fact: There is a signed agreement that let's the US take the canal back whenever it feels like it.

[Judi Lynn]

6. Found a short reference to maintenance costs:

~snip~
Expanding the Panama Canal

Some of the largest cruise ships (i.e. the QE2), some of the newer aircraft carriers and the mega-tankers cannot fit in the Panama Canal locks. Panama recently announced plans to create new, wider lock channels at a cost of over four billion dollars, a project that will not be completed until 2022. The canal widening is a risky proposition since the existing Panama Canal barely makes a profit after subtracting the half-billion a year in maintenance costs. There is also the threat of a China-sponsored plan for another trans-oceanic canal in Nicaragua, one that would further impact the traffic levels.

More:
http://www.rampant-books.com/south_america_travel_tips/t_panama_canal.htm

[Judi Lynn]

4. Nicaragua looks to one-up Panama with $30-bln canal

Nicaragua looks to one-up Panama with $30-bln canal

(AFP) – 2 days ago

MANAGUA — Nicaragua is pressing ahead with plans for a new $30-billion Panama-style canal linking the Atlantic to the Pacific, with China, Japan and South Korea reportedly expressing interest in the project.

Nicaraguan President Daniel Ortega submitted a draft bill on Tuesday that details six possible routes for the proposed waterway, one of which would pass through the San Juan River that forms part of the border with Costa Rica.

"We've had talks with Japan, China, Russia, Venezuela, Brazil and South Korea and everyone is interested" in contributing to the $30 billion mega-project, project director Eden Pastora told local television.

He added that Nicaragua's conduit would be "larger and deeper" than the Panama Canal, currently the only man-made shortcut between the two oceans.

More:
http://www.google.com/hostednews/afp/article/ALeqM5jquamWMsG_d240FteIURESXaJeyw?docId=CNG.1b3a198fac6c581c48e42da92f8b0395.f61

[Judi Lynn]

5. Nicaragua Plans to Construct Interoceanic Canal Within 10 Years

Nicaragua Plans to Construct Interoceanic Canal Within 10 Years
Published at 12:04 am EST, June 8, 2012

Nicaragua’s government plans to build a $30 billion interoceanic canal within the next 10 years, calling that project a “priority” and an addition to the country’s “national heritage.”

A bill for the canal’s construction, which President Daniel Ortega sent Tuesday to the unicameral National Assembly and to which Efe gained access, states that the project would complement and not compete with the Panama Canal. The waterway, according to the bill, would be built over a period of no more than 10 years once it has been approved by lawmakers and could be completed by 2019.

The Nicaraguan canal would have the capacity to handle 416 million metric tons of cargo by 2019, or 3.9 percent of the global total, and 573 million metric tons by 2025, or 4.5 percent of the global total, the bill said.

Nicaragua plans to own 51 percent of the shares and profits of the mixed public-private venture and offer the remaining 49 percent to a range of possible investors, from countries and international organizations to individuals and corporations,

More:
http://www.hispanicallyspeakingnews.com/notitas-de-noticias/details/nicaragua-plans-to-construct-interoceanic-canal-within-10-years/16393/