Central America Goes Canal Crazy

Guatemala is not the first place that comes to mind when you think about a canal between the Pacific Ocean and the Caribbean Sea. Besides, the Panama Canal is already undergoing an expansion of its capacity to accommodate the latest class of super tankers through the isthmus. But everywhere you go in Central America today there is talk of new canals and of China’s willingness to pay for them. Three major projects are under study and development. In Daniel Ortega’s Nicaragua, the Chinese are planning to invest in excess of $40 billion on a new canal project. The amount is five times Nicaragua’s annual GDP and leaves little to chance. The canal will welcome ships of every size and tonnage, with a transoceanic railway system, highways and oil pipelines, shipping ports on both coasts, airports, and free trade zones along the way. All of this contracted by HK Nicaragua Canal Development, a Hong Kong-based company, owned by businessman Wang Ying.