Why ocean cargo carriers may dig Nicaragua

The construction of the Interoceanic Canal of Nicaragua – or more commonly known as the “Nicaragua Grand Canal” – will get underway in December. 

According to Telémaco Talavera, a member of the Grand Canal Commission, ground breaking will be the first part of meeting the canal’s completion date in 2019.

The integrated Nicaragua Grand Canal project will include the following 6 sub projects: Canal (including locks), 2 Ports, a Free Trade Zone, Holiday Resorts, an International Airport and several roads. In addition, there will be construction of a power station, cement factory, steel factory and other related facilities to ensure the successful completion of the canal within 5 years.

The Nicaragua Canal will be three times the length of the Panama Canal, crossing the major Lago de Nicaragua, one of the largest freshwater reservoirs in the region. There is considerable speculation, however, that regulatory and environmental concerns have yet to be addressed.

Meanwhile, Maersk has endorsed the development, and the other leading ocean cargo carriers may also welcome the idea. If the canal is more than just a dream, perhaps their collective nightmare of excess fleet capacity will finally fade away.

Bring on the mega-vessels.