News sources around the world are reporting the Chinese company, HK Nicaragua Canal Development Investment Co. Ltd., is fast-tracking plans with the Nicaraguan government to build another canal to link the Atlantic and Pacific Oceans across the Latin American isthmus.
If this 11-year, $40 billion construction project is completed, implications could be tremendous for the global shipping trade, and for the newly constructed 2nd generation of the Panama Canal. Not only that, but this also gives China a significant foothold in the western hemisphere that will last for 100 years, which is about the same period of time that the United States had a significant influence over the Panama Canal.
Rumors of this agreement have been circulating in recent weeks, but the Nicaraguan congress has been officially presented the proposal and is likely to vote on this as early as Monday. Considering this project will literally double the country’s gross domestic product and create upwards of 40,000 new jobs, it’s quite likely the government will vote in favor.