Nicaragua Canal no competition for Panama Canal
Panama Canal Authority Administrator Jorge Quijano doesn’t think the Nicaragua Canal will pose any competition for the Panama Canal, as the canal will need to charge twice the amount of the Panama Canal in order to be successful.
Quijano doesn’t believe investors will achieve a return on the project.
In 2013, Nicaragua granted building rights to China’s telecommunications billionaire Wang Jing’s HK Nicaragua Canal Development Investment Co. The projected cost is $50 billion and the estimated time is six years. Quinjano feels the new waterway would be more likely to take 14 years to build and cost close to $70 billion. Work on access roads for the construction of the Nicaraguan waterway started in December 2014.
Wether or not the new canal is economically feasible, China may still see it as part of a strategy to expand business and world influence. The HKND concession includes the rights to develop two ports, a free-trade zone, holiday resorts and an international airport.