Nicaragua's Canal Dreams Are Still Alive

Nicaragua's century-old dream of building its own cross-country canal may finally be within reach. HKND, the Hong Kong-based firm responsible for building the canal, plans to start construction on the project in December. However, a number of obstacles, including a possible lack of funding and potential pushback from the Nicaraguan community call into question both the start date and the completion of the canal itself.

If construction does begin, it will likely encounter numerous delays and cost overruns that will almost certainly prevent the canal from coming online by 2020 as planners have announced. Yet, if the Grand Canal is completed, it would offer an alternative route for shipping traffic, but also be in competition with existing routes, leaving the long-term economic viability of the canal uncertain. The project, led by Chinese investors and operators, follows Beijing's long-term interests of expanding control over sea-lanes and establishing alternative, non-Western controlled trade routes.