$50B Nicaragua Canal project to be worlds largest

Global Business

In Nicaragua, a Chinese company is building what will become one of the world’s largest transoceanic canals. Engineers said it will surpass the nearby Panama Canal in size and capacity. CCTV’s Franc Contreras reported from Rivas state, Nicaragua.

$50B Nicaragua Canal project to be worlds largest

$50B Nicaragua Canal project to be worlds largest

In Nicaragua, a Chinese company is building what will become one of the world's largest transoceanic canals. Engineers said it will surpass the nearby Panama Canal in size and capacity. CCTV's Franc Contreras reported from Rivas state, Nicaragua.

Decades before the Panama Canal opened in 1914, American and British builders had had their sights set on creating a canal in Nicaragua, but their efforts — including military interventions — failed, and the Panama Canal has remained the most important canal in the hemisphere.

But that might all change with construction by the Hong Kong Nicaragua Development Group which is now building roads that will be used to bring even more digging machinery to the Nicaraguan state of Riva to build the $50 billion Grand Nicaragua Canal.

When completed, the canal will eventually open to the Pacific Ocean, making way for some of the world’s largest cargo ships to pass through Central America.

Many logistics experts said the canal will allow for even more cargo to be moved around the world. With the growing size of cargo ships, many will be too large to pass through the Panama Canal, said Bill Wild, the chief advisor for the Nicaragua Canal.


Satish Jindel of SJ Consulting discusses Nicaragua Canal

CCTV America interviewed Satish Jindel, president of SJ Consulting about the Nicaragua Canal and it’s $50 billion pricetag.

Satish Jindel of SJ Consulting discusses Nicaragua Canal

Satish Jindel of SJ Consulting discusses Nicaragua Canal

CCTV America interviewed Satish Jindel, president of SJ Consulting about the Nicaragua Canal and it's $50 billion pricetag.


Egypt hopes Suez Canal expansion will increase revenues, revive waterway

Egyptian president Abdel Fattah El Sisi said he hopes the Suez Canal expansion project will increase his country’s foreign cash reserves during his meetings while on an official visit to China earlier this week. Egypt expects the expanded canal will bring in more $100 billion annually. CCTV’s Adel EL Mahrouky reported this story from Cairo.

Egypt hopes Suez Canal expansion will increase revenues, revive waterway

Egypt hopes Suez Canal expansion will increase revenues, revive waterway

Egyptian president Abdel Fattah El Sisi said he hopes the Suez Canal expansion project will increase his country's foreign cash reserves during his meetings while on an official visit to China earlier this week. Egypt expects the expanded canal will bring in more $100 billion annually. CCTV’s Adel EL Mahrouky reported this story from Cairo.

As the sole link between the Red and Mediterranean seas, the canal currently brings in nearly $5.5 billion annually and sees bearkt 10 percent of world shipping trade.

The canal was hit hard when tourism revenues dropped after the 2011 January uprising. It’s also hampered by operation in just one direction at a time, causing waits of up to nine hours, editor in chief of Cash News Ahmed Zaghloul said.

To help revive the canal, Egypt started plans to expand and create a new Suez Canal, offering two directions of travel that will bring wait times to zero, Zaghloul said. A bigger canal will also allow more ships to pass; currently only 80-85 percent of ships can pass, he added.

“It’s expected that the revenue could climb to $10-12 billion at the best case,” Zaghloul said.

Officials said the canal revenues would increase by around 260 percent, and bring in an annual $100 billion, when completed.

Critics said the government’s estimations were exaggerated, but said it would boost Egypt’s economy.

The Suez Canal authority has already raised $9 billion for digging from investment certificates by citizens. The digging should be completed in August 2015, with the entire project scheduled to be completed before 2020.