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Nicaragua Gives Chinese Firm Contract To Build Alternative To Panama Canal

McGruber writes with this news from late last week: "The Guardian is reporting that Nicaragua has awarded a Chinese company a 100-year concession to build an alternative to the Panama Canal, in a step that looks set to have profound geopolitical ramifications. The new route will be a higher-capacity alternative to the 99-year-old Panama Canal, which is currently being widened at the cost of $5.2bn. Last year, the Nicaraguan government noted that the new canal should be able to allow passage for mega-container ships with a dead weight of up to 250,000 tonnes. This is more than double the size of the vessels that will be able to pass through the Panama Canal after its expansion, it said."

29 of 323 comments (clear)

  1. Short on details by Rob+the+Bold · · Score: 4, Interesting

    The story is short on details, the Spanish language op ed referred to in TFA indicates the canal would run through Lake Nicaragua. This route has been considered since before the US-dug canal through Panama. I could potentially be a sea-level canal, which would be a major plus, but which would radically alter the Lake. Either way, it'd be a big deal for shipping and save thousands of miles and tons of fuel for ships bigger than whatever they're calling the latest "Panamax." It seems to me the ports of New Orleans and Mobile in the US would benefit, perhaps also Atlantic ports in Europe.

    --
    I am not a crackpot.
    1. Re:Short on details by oodaloop · · Score: 3, Funny

      I could potentially be a sea-level canal

      So, lose some weight? I guess?

      --
      Tic-Tac-Toe, Global Thermonuclear War, and relationships all have the same winning move.
    2. Re:Short on details by ibwolf · · Score: 3, Informative

      ... could potentially be a sea-level canal...

      No it couldn't. the surface of Lake Nicaragua is 32.7 meters above sea level. Its maximum depth is 26 meters. If you connect it to the sea without locks, it will empty out entirely.

      The only way to make this work is to use locks, same as with the Panama canal.

      The advantage here is that you will not need to accommodate any traffic during construction.

    3. Re:Short on details by Grizzley9 · · Score: 4, Informative

      which would radically alter the Lake

      Indeed since it is a freshwater lake, the ecosystem would undergo quite a change but currently it's being "attacked" by tons of sewage pumped into it each day. Lake Nicaragua

    4. Re:Short on details by phantomfive · · Score: 5, Informative

      Rubbish. Melting all the ice in Greenland and Antarctica would raise the global sea level a few inches at best.

      Woah, that's definitely not true. Melting all the arctic ice would not change the global sea level, because it's all floating. But melting Greenland ice would change the sea levels by 20 feet, because the ice is all supported by land. Same with Antarctica (which holds 70% of the world's fresh water): it's supported by land, so if it all melted, ocean levels would rise 60 meters.

      The only reason no one worries about this scenario (they used to, see Waterworld), is because it's extremely unlikely Antarctica will melt completely. Same with Greenland, but if either one begins to melt due to global warming, you can be sure the remaining contrarian scientists will hop on board with a program to stop CO2 emissions. Lomborg will change his opinion quickly.

      --
      "First they came for the slanderers and i said nothing."
    5. Re:Short on details by Nutria · · Score: 3, Insightful

      currently it's being "attacked" by tons of sewage pumped into it each day.

      How can such a Friend Of The Workers, Friend Of Human Rights And Hater Of Capitalism like Daniel Ortega allow such a thing to happen?

      --
      "I don't know, therefore Aliens" Wafflebox1
    6. Re:Short on details by Dcnjoe60 · · Score: 4, Insightful

      The US rail infrastructure could not remotely handle the amount of cargo that has to move. We are dependent on big trucks for cross country shipping because of it. Getting a country like nicaragua to approve the canal is orders of magnitude easier than convincing every local govt in the US to let you run new rails through it (on the east coast lots of rail lines are being torn up for bike paths)

      Then we are in a world of hurt, because there are not enough highways and more importantly drivers for big trucks. To expand rail capacity does not require local govt approval. The railroads already own the right of away. Convincing them to spend billions of dollars without a taxpayer subsidy like trucking and shipping gets (who builds those highways and ports?), now that is a different story. Where local govt comes in is when cities expand to where the railroad is and they want the railroad to move. But that is a little bit like people who build housing near an airport and complain about the noise.

      Studies have shown that the most efficient land based cargo transport is rail for long distance with truck for the last 250 miles. That would mean the train stops only every 500 miles or so. If you notice what the railroads have been doing post-regulation, that is exactly what they have been working towards for the past 40 years. Modern railroading is not what our parents and grand parents grew up with.

    7. Re:Short on details by Wookact · · Score: 3, Informative

      They are not being torn up just for bike paths, they have been abandoned by the rail companies, who then allow local municipalities to use the rights of way for bike paths.

      Google rails to trails. It is a good project for rail lines that were not worth the upkeep to the railroads. This is not some sort of conspiracy to reduce rail capacity like your post implies.

    8. Re:Short on details by HiThere · · Score: 3, Informative

      Sorry, but Greenland IS melting, and lots of people haven't changed their ideas. Of course, it's a long way from a complete melt, and perhaps it won't. Similarly, Antartica is melting, as in losing tons of water every year. But there are a lot of tons to go through, and parts of it probably won't melt within the next few centuries. (IIRC, there are parts of Antartica where the ice is getting thicker, but those are a minority, and the average is less ice with each succeeding year.)

      But note that these effects aren't ones that people can see directly, so they tend to discount them. Also, people have a hard time thinking about processes, so they tend not to.

      --

      I think we've pushed this "anyone can grow up to be president" thing too far.
  2. Finally by wcrowe · · Score: 5, Informative

    I've been waiting to hear about this for years. It should be quite a project. Wikipedia has a map for those interested.

    --
    Proverbs 21:19
    1. Re:Finally by alexander_686 · · Score: 3, Insightful

      Replying to my own post – I copied OP link, not Operation Plowshare’s link. Here it is.

      http://en.wikipedia.org/wiki/Operation_Plowshare

    2. Re:Finally by telchine · · Score: 3, Informative

      I think the USSR did something similar. Made a really pretty lake, if I recall, but they could never keep it stocked with fish. But I can’t find a link so it might be my imagination.

      http://en.wikipedia.org/wiki/Lake_Chagan

  3. Re:Competition by alen · · Score: 3, Interesting

    China is already losing manufacturing jobs

    Africa and the middle east is going to be the new frontier for low cost manufacturing

  4. Re:it's too wide by oodaloop · · Score: 4, Funny

    It's a shame China didn't consult with you first then. You could have saved them a lot of trouble by telling them it was stupid. So in order to allow super tankers, which are too big for the Panama Canal, where would have built an additional, wider canal?

    --
    Tic-Tac-Toe, Global Thermonuclear War, and relationships all have the same winning move.
  5. Re:it's too wide by Rich0 · · Score: 4, Insightful

    not to mention how stupid it is to completely cut your country in half.

    Yeah, that MIssisippi river forces people to ride thousands of miles further to take their horses from Mississippi to Texas. Oh wait, they've been building bridges and fording rivers since before the colonial era?

    Sure, it is a longer route than Panama, but I suspect the shipping volumes are large enough that it might be profitable. China is likely viewing this strategically - they've been taking the long view far more than the US in recent years, with the exceptions of their environmental policy and the US willingness to invest in blowing things up.

  6. Re:it's too wide by Rob+the+Bold · · Score: 4, Insightful

    Look at a map of Nicaragua. It's at least twice if not 3x as wide as Panama at its thinnest point. What an unbelievably stupid idea, not to mention how stupid it is to completely cut your country in half.

    In the US, our country is "completely cut in half" by a naturally occurring canal, if you will. We've used a technologies known as the "bridge" and "ferry" to deal with that. Nicaragua could probably do the same.

    Also note that part of that distance through Nicaragua is already water: Lake Nicaragua. Every plan ever for a canal through that region -- going back to the 19th century -- has included the lake in the route.

    --
    I am not a crackpot.
  7. Good luck with that by Russ1642 · · Score: 5, Funny

    If it only takes them a hundred years and a trillion dollars it'll be a miracle. And here's a tip: bring in the French first. After they fail everyone will want to help you out because apparently nothing's more satisfying than beating the French at something.

  8. Re:it's too wide by TWX · · Score: 3, Interesting

    You know, it's a hell of a lot easier to carve a relatively flat channel over a long distance than it is to build lock after lock and to maintain all those pumps...

    And as for cutting one's country in half, that's what bridges and tunnels are for.

    I don't think that the Chinese will succeed for the same reasons why the French and other European nations didn't succeed initially in Panama. The Panama canal took a national interest to construct, not a corporate interest, and was driven in large part by our nation having two coasts with a whole lot of distance in between, and by our "Manifest Destiny" doctrine. Simple economic interests operated by a corporation may not be able to pull it off, especially if that corporation is there only for that purpose, as problems along the way will make it very hard to raise capital when investors don't think that their investment will pay off.

    If they do manage to pull it off, great! There will be uses for the Panama Canal even if it receives less traffic than the new one, decades from now when it's finished.

    --
    Do not look into laser with remaining eye.
  9. Costa Rica by edxwelch · · Score: 5, Funny

    You realise if the pull this off technically Costa Rica will become an island.

  10. This could be good news by voss · · Score: 4, Interesting

    A china that is committed to trading with the world is not waging war. This is about shipping routes from China to Europe bypassing unstable africa and an even more unstable middle east. Its also about ships such as the maersk Triple E class 165,000 tons which is too big for any US port to handle but can be easily handled by ports in china and europe. This would shock americans but the Chinese of 700 years had ships bigger than any in Europe that could travel farther and were more advanced with magnetic compasses and watertight compartments.

  11. Re:it's too wide by cdrudge · · Score: 3, Interesting

    Nicaragua apparently doesn't even have a paved road that stretches from one coast to the other. I'm not sure how much of an issue it would be to build a $40b canal that has a few tall bridges, or those new fangled draw bridges every so often to handle what must be a huge amount of traffic in the area.

  12. Re:it's too wide by WuphonsReach · · Score: 3, Informative

    Newer lock systems that are designed to reuse water are going to need pumps to move water in/out of the storage basins. Without the water re-use, the Panama canal would not have enough annual rainfall to move those post-Panamax ships. With the water re-use concept, moving a post-Panamax ship through the locks takes about the same amount of water as the current locks do with Panamax ships.

    --
    Wolde you bothe eate your cake, and have your cake?
  13. Re:Competition by Stephan+Schulz · · Score: 4, Informative

    So who's going to go ballistic over the loss of a monopoly?

    Let's wait and see how long it takes them to actually build the damn thing, and at what cost. Go look at a map.

    If you take that look, be sure to look closely. The plan is to utilize Lake Nicaragua and the San Juan River, which connects it to the Caribbean. That leaves only 10 km of completely new canal (from Lake Nicaragua to the Pacific), although the San Juan River also needs upgrades to make it navigable for larger ships. This is not a new idea, nor an implausible one - see the Wikipedia article.

    --

    Stephan

  14. Re:but but but.... by Will.Woodhull · · Score: 4, Interesting

    Since the lake is more than 100 feet above today's sea level, if it ever floods with salt water, there are not going to be many people left to worry about its ecology.

    Now hitchhiker organisms riding on the bottoms of the ships or in their ballast tanks are a reasonable concern. We can assume that inspection and cleaning facilities will be set up on both sides of the Nicaragua canal, since this kind of contamination is a well known problem. I expect that the Panama Canal has been retrofitted by now-- although maybe it is being treated as a lost cause.

    --
    Will
  15. Re:Competition by ShanghaiBill · · Score: 5, Interesting

    What's to stop Costa Rica or Columbia joining in?

    1. Mountains
    2. Water to operate the locks to get over those mountains.
    Panama and Nicaragua both have relatively low hills/mountains, and large lakes at sufficient altitude to supply water for the locks.
    Costa Rica and Colombia do not.

    A little over three decades ago, I was a young Marine, and spent several months in Panama. We provided security for the Gatun dam and locks. It was very interesting to watch the ships step up and down through the locks. We conducted patrols in the surrounding rainforest. It was the most beautiful forest I have ever seen. There were trees almost as big as sequoias, and spots where the canopy were so dense that it was almost dark on the forest floor. The birds, butterflies and flowers all had dazzling colors. But it seemed like everything had thorns or some goo that would blister skin, and there were lots of mosquitoes, leeches, and other bloodsucking bugs.

  16. Re:it's too wide by Dunbal · · Score: 5, Interesting

    Of course China is being strategic. I live in Costa Rica, where Xi Jinping just visited before going to the US, and right next to Nicaragua. China has been very generous to these small latin countries, donating stadiums, highways and bridges. Like the US used to do back in the bad old days. The US nowadays though only threatens. Threatens will sanctions, threatens with cutting aid programs, etc. Guess who is popular and who isn't in latin America now? China has pretty much bought Africa and S. America. I wonder where the US seeks to expand its economy in the future - oh yeah, they don't make anything anymore anyway.

    --
    Seven puppies were harmed during the making of this post.
  17. What really happened.... by Anonymous Coward · · Score: 3, Funny

    From the Wiki: ... Project Chariot, which would have used several hydrogen bombs to create an artificial harbor at Cape Thompson, Alaska. It was never carried out due to concerns for the native populations and the fact that there was little potential use for the harbor to justify its risk and expense....

    Government Man: "We're going to build a new harbor for you!"
    Inuit: "No want harbor. Want seals"
    GM: "Look, this harbor will be really neat. It will be a big hole in the ground next to the sea where ships can park..."
    I: "No want harbor. Want seals"
    GM: "...and at night it will glow faintly, so that the ships can find their way in...."
    I: "Any seals in harbor?"
    GM: "No, no seals. But there will be lots of sailors. And bars..."
    I: "No want harbor. Want seals"
    GM: " If you don't stop saying that, we won't give you anything at all!"
    I: "No want anything. Except seals. You got seals?"
    GM: "Oh, for God's sake! Come on, Martin, lets go and blow up an island in the Pacific instead. The weather's better there, anyway..."

  18. Re:Competition by Antipater · · Score: 3, Interesting

    Africa and the Middle East won't be taking many manufacturing jobs until they can stop being in a state of constant war. If your factory gets blown up, it really doesn't matter how cheap the labor is.

    --
    Everything is better with chainsaws.
  19. I hope it materialises by ArgonautThief · · Score: 5, Interesting

    I work for a ship owner and order my vessels to transit via Panama quite often. To transit one of our smaller vessels (~30,000 DWT) it costs ~USD$90,000.00 and is one of the major costs calculated on our voyages, especially on a bad economic market. Despite the fact that ship owners are faced with a bad market, the PCA (Panama Canal Administration) keeps needlessly inflating the costs to transit at least once or twice per year. Our larger vessels can easily cost ~USD$200,000.00 and more to transit. The industry has long been awaiting some competition to mitigate these over-inflated costs and it is high time it materialised.

    --
    The difference between stupidity and genius is that genius has its limits. - Albert Einstein