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Nicaragua Canal project steps up to rival Panama
Alexey Pilko
Jun 15, 2012 13:41 Moscow Time
A new canal in Central America would probably become a rival for the Panama Canal.
An alternative waterway is expected to relieve the busy traffic between the Atlantic and the Pacific oceans. The new transoceanic transit route would pass through the territory of Nicaragua and allegedly an international consortium is said to have been awarded a multi billion contract to construct it.
The idea of building a channel across Nicaragua dates back hundreds of years. In the 16th century, a Nicaraguan canal project appeared for the first time. At the end of the 18th century it was proposed to cut a channel through Lake Nicaragua and the San Juan River. Later, in the 19th century, the project started to take shape. In 1830 there was the first attempt to study the topographic structures on the site of building the canal, and in 1837 came a second. In 1889, the Nicaraguan Canal Company – after signing an agreement with Nicaragua and Costa Rica – got down to work. But it did not manage to raise enough money for the construction as investors did not want to fund the project. The Panama Canal became the successful alternative.
Now times have changed. It is obvious that the construction of the "second Panama Canal" is long overdue and there are several reasons for this, of which the economy is the most predominant. The Panama Canal that was inaugurated in 1920 is now unable to cope with the constantly growing amount of traffic. Its turnover capacity does not handle the number of vessels that want to use the shortest route between the oceans. Thus, from an economic point of view, a new Nicaraguan canal would be in high demand. In addition, its construction is not too expensive due to natural reasons. The area is favorable for construction; there are no highlands and there is an opportunity to take advantage of Lake Nicaragua. It should be noted that the implementation of such an ambitious project will finally put on the agenda of the international community, exhausted by sorting out numerous conflicts and crises throughout the world, a truly creative project that the world economy will benefit from. Clearly, Nicaragua itself would not be able to manage the construction of such a canal in financial terms. So, if the project gets a nod, international investors will fork over money.
Crystal Cruise in Panama
For Russia it is important to take part in an international consortium of investors for the construction of the Nicaraguan Canal. This will strengthen Russian-Nicaraguan relations and enhance the expansion of the Russian economic presence in Latin America. Moreover, Moscow and Managua have friendly relations as Nicaragua is among the countries that have recognized the independence of South Ossetia and Abkhazia. In addition, a new transoceanic waterway will become truly international and neutral. In contrast, the Panama Canal remained under the direct control of the United States until 1999.
Panama Canal Locks
It should be emphasized that participation in major economic projects in Latin America, expansion of trade relations with South American countries as well as development of military cooperation with said states fully meets Russia's national interests. Importantly, the majority of Latin America's states have a very positive attitude to Russia. It is perceived as a country with peaceful aspirations, on which the strategic balance and maintenance of world peace largely depends. Therefore, relations between Russia and Latin America have a great future.
Alexey Pilko
Associate Professor at the Moscow Lomonosov State University
Faculty of World Politics
Alexey Pilko
Jun 15, 2012 13:41 Moscow Time
A new canal in Central America would probably become a rival for the Panama Canal.
An alternative waterway is expected to relieve the busy traffic between the Atlantic and the Pacific oceans. The new transoceanic transit route would pass through the territory of Nicaragua and allegedly an international consortium is said to have been awarded a multi billion contract to construct it.
The idea of building a channel across Nicaragua dates back hundreds of years. In the 16th century, a Nicaraguan canal project appeared for the first time. At the end of the 18th century it was proposed to cut a channel through Lake Nicaragua and the San Juan River. Later, in the 19th century, the project started to take shape. In 1830 there was the first attempt to study the topographic structures on the site of building the canal, and in 1837 came a second. In 1889, the Nicaraguan Canal Company – after signing an agreement with Nicaragua and Costa Rica – got down to work. But it did not manage to raise enough money for the construction as investors did not want to fund the project. The Panama Canal became the successful alternative.
Now times have changed. It is obvious that the construction of the "second Panama Canal" is long overdue and there are several reasons for this, of which the economy is the most predominant. The Panama Canal that was inaugurated in 1920 is now unable to cope with the constantly growing amount of traffic. Its turnover capacity does not handle the number of vessels that want to use the shortest route between the oceans. Thus, from an economic point of view, a new Nicaraguan canal would be in high demand. In addition, its construction is not too expensive due to natural reasons. The area is favorable for construction; there are no highlands and there is an opportunity to take advantage of Lake Nicaragua. It should be noted that the implementation of such an ambitious project will finally put on the agenda of the international community, exhausted by sorting out numerous conflicts and crises throughout the world, a truly creative project that the world economy will benefit from. Clearly, Nicaragua itself would not be able to manage the construction of such a canal in financial terms. So, if the project gets a nod, international investors will fork over money.
Crystal Cruise in Panama
For Russia it is important to take part in an international consortium of investors for the construction of the Nicaraguan Canal. This will strengthen Russian-Nicaraguan relations and enhance the expansion of the Russian economic presence in Latin America. Moreover, Moscow and Managua have friendly relations as Nicaragua is among the countries that have recognized the independence of South Ossetia and Abkhazia. In addition, a new transoceanic waterway will become truly international and neutral. In contrast, the Panama Canal remained under the direct control of the United States until 1999.
Panama Canal Locks
It should be emphasized that participation in major economic projects in Latin America, expansion of trade relations with South American countries as well as development of military cooperation with said states fully meets Russia's national interests. Importantly, the majority of Latin America's states have a very positive attitude to Russia. It is perceived as a country with peaceful aspirations, on which the strategic balance and maintenance of world peace largely depends. Therefore, relations between Russia and Latin America have a great future.
Alexey Pilko
Associate Professor at the Moscow Lomonosov State University
Faculty of World Politics
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