It has been almost a century since the Panama Canal opened to shipping traffic, and it is still the only route ships can take to cut across the Central American isthmus. Even before the Panama Canal began construction, Nicaragua dreamed of building a similar shipping lane connecting the Pacific and Caribbean. Yesterday the Nicaraguan government approved legislation giving a little-known Chinese company exclusive rights to build that canal. The Great Nicaraguan Canal will be one of the most incredible engineering undertakings in history.

The project is estimated to cost upwards of $40 billion, and could balloon considerably as construction proceeds. The legislation, pushed through by the Nicaraguan president, permits HK Nicaragua Canal Development Investment (HKND Group) to plan and build the canal, but also a new rail line, an oil pipeline, two deep water ports, two international airports, and a series of free-trade zones along the canal.

The Panama Canal was undertaken late in the 19th century mainly because it was the less imposing engineering problem. There were forces pushing for a Nicaraguan alternative, but it would have been nearly three times as long as the Panama Canal. Even then, the Panama project was nearly abandoned after various issues. The new Great Nicaraguan Canal will still be three times as long as the Panama Canal, but technology has improved massively — it’s a matter of funding now.

This new project is going to dwarf the Panama Canal in every way. HKND Group will be permitted to choose any route it likes, but even utilizing the large Lake Nicaragua on the Pacific side will mean cutting through about 178 miles of earth to reach the Caribbean. It will also be 22 meters deep at its shallowest points.

The Panama Canal was completed long before supertankers existed, and that continues to cause headaches for shipping. Many of today’s largest vessels are unable to fit in the canal, leaving them with little choice but to take the Cape Horn route around the tip of South America. The Great Nicaraguan Canal would be wide and deep enough to accommodate such ships.

Advanced global positioning technology and super-precise surveying will make the design of this canal much easier than it would have been over a century ago. The building process will also be completely mechanized, whereas the Panama Canal relied on huge numbers of laborers who could contract diseases or become injured. Satellite imagery could also play a crucial role in planning and monitoring the construction process. The world will be able to watch from space as the canal is carved out over the course of 10 years.

If a route is decided on soon, construction on the Great Nicaraguan Canal could begin as early as 2015. If it completes the canal as agreed, HKND Group will be granted a 100-year concession to operate the canal.

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