Too Many Inter Oceanic Canals

If it is not even clear whether there is a need for another canal in Central America, then obviously some or all of the routes currently being planned are not going to work.

Tuesday, August 6, 2013

Andres Oppenheimer, in his article in Elnuevoherald.com, notes the incongruity of having so many projects, making so much effort and so much investment in order to transversely divide up Central America, rather than applying those resources to uniting their countries throughout the isthmus.

Nicaragua recently announced the signing of a contract with a Chinese company to build a canal for $40 billion, and Guatemala has made public its intention of having its own dry canal for more than $12 billion.

Andres Oppenheimer from Elnuevoherald.com, consulted Guatemala's ambassador in Washington, Francisco Villagran, on whether the government of that country supported the project and the diplomat said yes. "The government wants to provide every facility so that the project will be viable, because it is in the government's interest as well as municipal governments and the communities which this corridor would pass through," he added.

"If the projects in Nicaragua and Guatemala materialize, they would be competing with the Panama Canal as a means for transporting containers from the U.S. and Latin America to Asia, and vice versa," noted an article in Elnuevoherald.com. However, according to the former director of the Panama Canal, Alberto Aleman, this does not make much sense.

In his view, "it will be much more expensive and complicated to transport products through Guatemala and Nicaragua than through Panama, because while the Panama Canal is only 80 kilometers long, and Panama already has a highway and a transoceanic railroad, while the Guatemalan corridor would be 372 kilometers long and the Nicaraguan canal 290 kilometers long. "



More on this topic

Canal Expansion: $75 Million in Loses

May 2014

While the canal expansion is not finished the Maersk and Evergreen shipping lines are transporting goods in post Panamax ships through the Suez Canal.

The Panama Canal Authority (ACP) estimated that the temporary transfer of some of the services of Evergreen and Maersk Line shipping means they will lose out on $44 and $30 million respectively.

Panama Canal's Options For Facing Off Competition

August 2013

The Panamanian response, in the event of any of the inter-oceanic canal projects materialising, would be to create another expansion of the Canal.

This was the announcement by Jorge Quijano, chief administrator of the Panama Canal Authority (ACP), after hearing about the intentions of Guatemala and Nicaragua to build two oceanic canals, on land or water.

Panama Canal Expansion to be Awarded in July

May 2009

Experts are reviewing technical aspects of the largest contract worth $5.25 billion, and contract adjudication is expected by July.

The president of the Panama Canal Authority (ACP), Alberto Alemán, made the announcement at the Reuters Investment Forum on Latin America.

Panama: Excavation project to be tendered at the end of the month

August 2008

At the end of August the bidding process for the third phase of the dry excavation of the navigation channel on the Pacific.

8 million cubic meters of materials will have to be excavated for this project which will be the continuation of phase 1 which is currently underway and is 57% completed.

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