International trade faces increasing challenges. Geopolitical conflicts, modern piracy and climate change are pressuring some of the most important sea routes in the world. One of the lightest examples is the Panama Canal, where drought has limited the circulation of ships. In addition, this waterway recently became the target of Donald Trump’s attention, which expressed interest in his management. The solution to this problem goes through a work that would be the largest engineering level in history, and has been “drawn” for almost 500 years. Do you know what this is?
Given these difficulties, seeking alternatives has become essential. China may have a solution based on a project announced in 2012: the construction of an interceon in Nicaragua, which would be three times larger than Panama. Although this work has never left the role, the Nicaraguan government guarantees that “it is still very alive.”
The proposal emerged over a decade ago and promised an investment of $ 50 billion, turning Nicaragua into one of the major maritime trade centers in Latin America. However, despite studies and promises, the project was being postponed and was nicknamed “the greatest Chinese tale in history.”
An idea that came up almost 500 years ago
The idea of a channel in Nicaragua is not new. Since the Spanish colonial period that has been discussed this possibility, taking advantage of the course of the San Juan River. Already in 1551, the first feasibility studies were conducted, supervised by the Spanish explorer Gormara.
During the eighteenth and nineteenth centuries, Spanish, French and Americans also explored this possibility, but the lack of funding prevented its realization.
In the twentieth century, the United States tried, on several occasions, to advance with the project. However, with the construction of the Panama Canal, the idea was set aside. Even Napoleon III even analyzed the viability of the channel, but its plan was never taken later.
If one day is built, this channel, the largest engineering work in history, would connect the Caribbean Sea to the Pacific Ocean, crossing southern Nicaragua over 278 kilometers. The project also provided for the construction of two airports, two deepwater ports, two locks, artificial lakes, a free trade zone and tourist complexes. The Chinese HKND received the concession of the work for 50 years, with the possibility of extension for another half century. However, the company’s dissolution in 2018 left the project virtually no progress.
For Amaru Ruiz, environmentalist at Fundación del Río, “it is a failed project from the beginning, due to the lack of transparency and corruption implemented by the Nicaragua regime.” According to it, quoted by the local resistance and concern of the international community as to the possibility of being used for illicit activities prevented its progress.
Despite the impasse, the project of the largest engineering work in history has not yet been officially discarded. The existence of the Great Channel National Authority, which continues to receive Chinese financing, indicates that interest may not be fully lost. In recent months, due to the growing crisis in the Panama Canal, the idea has gain attention, with rumors that Russia could also support its construction.
According to Jamestown Foundation experts, “the project has not materialized due to HKND’s financial problems, the failure to conduct environmental studies and the opposition of farmers and environmentalists.”
However, they point out that the recent diplomatic approach between China and Nicaragua may revive the plan. “Chinese companies are looking for new agreements and the Ortega regime has consolidated their power and can now repress any protests against the work,” they explain.
In November 2023, during the China-América Latin and Caribbean business summit, held in Managua, Daniel Ortega again defended the construction of the channel. President Nicaragunse suggested a new route, passing through Lake Managua, in order to minimize environmental impacts. From its perspective, the Panama channel has reached its limit and an alternative is essential – and this alternative may be in Nicaragua.
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