Nicaragua's century-old dream of building its own cross-country canal may finally be within reach. HKND Group, 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 may delay the project and jeopardize the completion of the canal.
If the Grand Canal is completed, it would offer an alternative route for shipping traffic while also competing with existing routes, leaving the long-term economic viability of the canal uncertain. The project, led by Chinese investors and operators, aligns with Beijing's long-term interests of expanding control over sea-lanes and establishing alternative trade routes that are not controlled by the West.
The chosen route begins on the Pacific coast at the Brito River, crossing Lake Nicaragua before traversing the isthmus to the Caribbean coast at the Punta Gorda River. The planned canal will be a total of 278 kilometers (around 173 miles) long, 105 of which will run directly through Lake Nicaragua. The channel will be constructed to accommodate large ships, with a width of 230-520 meters and a depth of 27-30 meters. Plans also include two sets of locks, a dam and an artificial lake. River crossings along the route will require substantial dredging, both during the initial construction and for ongoing maintenance, a costly but necessary aspect of the operation.
Given Nicaragua's long history of false starts and subsequent failures, it is possible that the Grand Canal project will simply be the next in a long line of disappointments. And yet, signs of progress continue to be seen, raising the possibility that this project could be the attempt that is ultimately successful.
