Nicaragua mulls new plan to build inter-oceanic canal

May 25, 2012 12:00 AM

Nicaragua has decided to construct an inter-oceanic canal which will link the Atlantic and the Pacific oceans and greatly facilitate the intercontinental cargo traffic.
The Nicaraguan government’s decision to build the canal is aimed to cope with the sustained increase in the seaborne trade through Panama Canal which makes it difficult for big trading ships to cross the canal.

“In this precise moment, the global cargo traffic is increasing [by] 3 % annually. Driven by development of economies such as India, China -- especially China -- and other developing countries like the BRICs, there is also eventual global economic recovery on the horizon.”
“All of these create a strategic opportunity for Nicaragua to construct an inter-oceanic canal,” said Nicaragua’s Secretary to President for National Policy Paul Oquist.

The move, experts say, is expected to be hailed by Russia and China as two emerging economic powerhouses. The geographic position of the Latin American country has made it capable of becoming the world’s new trading route as it enjoys the lowest elevation across the Americas in the south region of the country.
The United States and the European countries have long been intervening in Nicaragua’s affairs to reap the benefits that such a strategic canal could bring.

“The markets are actually behind them. They are facing Europe which is going down; no one can argue about that, it is true that Europe is going through a very difficult period.”
“There is no possibility of Europe becoming more than it actually is. So, it is very, very important for the United States to find a better and improved way of going from the east coast to the west coast and toward the Asia-Pacific [region],” said Manuel Coronel Kautz from the Great Inter-Oceanic Authority.

Analysts says the economic benefits of such a landmark plan can promote the country’s financial position and turn it from one of the poorest countries in the region to a strategically important and rich state.

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