Nicaragua forges ahead on canal that would remake world trade

[Judi Lynn]

Nicaragua forges ahead on canal that would remake world trade
By Tim Johnson
McClatchy Foreign Staff January 17, 2014

BRITO, Nicaragua — Fisherman Pedro Luis Gutierrez gazed from his porch on the Pacific Ocean and conjured up a vision: Some day, mammoth oceangoing vessels will sail in from afar and vanish into a canal piercing the jungle.

“The ships will cross over there in the middle of the beach,” Gutierrez said with the cocky assurance of someone who’d heard a lot about a plan to build a rival to the Panama Canal in Nicaragua.

For now, it’s a mirage. But while few outside Nicaragua took seriously the announcement last year that a Chinese company had won a 50-year renewable concession to build a canal, the plan is moving quickly. Scores of Chinese engineers have mapped the topography here, and deal-makers are scouring the globe for investors from an office in faraway Hong Kong.

Sometime later this year, President Daniel Ortega and Chinese telecom tycoon Wang Jing will decide whether to give the project a green light, possibly unleashing earthmovers on one of the largest engineering challenges the world has ever seen, comparable even to China’s enormous Three Gorges Dam.

More:
http://www.adn.com/2014/01/17/3276796/nicaragua-forges-ahead-on-canal.html#storylink=cpy

[on point]

1. Foolish unneeded wasted investment the world doesn't need

Billions squandered on something stupid that could better spent on something the area actually needs that benefits the world, say rail road or internet connections

Just brain dead stupid

[Travis_0004]

2. Why is it stupid?

It would allow larger ships to pass through than the panama canal.

It would save about 2 days travel time, and I'm sure it cost a ton to operate a huge ship. Plus there are fuel savings. It will also allow larger ships to go through that will not fit through the panama canal.

It cost about 200k dollars to have a large ship go through the panama canal. It will cost even more for larger ships when the panama canal is expanded. I'm sure this has the potential to turn a profit and help the country out.

Now there are lot of downsides, and its a very ambitious project, but it has the potential to do a lot of good.

[delrem]

3. Nothing even close to Iraq/Afghan ME war stupidity.

A stupidity which landed the US trillions in debt. China could pay for this canal with the interest from that debt borrowings alone.
cost of US war:
http://nationalpriorities.org/cost-of/

Estimated cost of Nicaraguan canal - approx. 40 Billion.

Now compare by cost/benefits and write the result in a bottom line.

[on point]

4. Weak irrelevant economic analysis

Yes, Iraq war squandered trillions of dollars, but squandering another 40 billion on an unneeded duplicate capability doesn't make that wasted 40 billion better spent. It is just an ADDITIONAL 40 billion wasted

The world doesn't need bigger ships. The panama canel will accommodate them anyway. Besides doing the systems accounting and only including costs to ship owners misses lots of other costs - especially opportunity costs if that suggested 40 billion was spent on something that expanded world capabilities instead of duplicating an existing capability that is NOT At max capacity

Again a complete and utter waste of scarce world capital

[delrem]

5. Actually no.

From the Chinese and Nicaraguan perspective it looks like a winner that'll add enormously to both their economies and their spheres of influence. And it comes at the expense of the US - for a win/win/win situation. And that's not just for China and Nicaragua, but also for the benefit of Central and South America in general.

The world is moving on and leaving the US, with its trillions in war debt, behind.

[on point]

6. Continues to miss the point. Useless, duplicate capability. World doesn't need it. A complete waste

[bemildred]

8. It will be very profitable. Probably reduce rates through competition. It's all good. nt

[Bacchus4.0]

9. the environmental impact won't be good but economically it probably will be n/t

[bemildred]

14. Well yeah, that's a pretty unique lake there too. Muck it up good they will.

But loot wins.

[Socialistlemur]

10. If it reduces transit rates = no profits = no canal

If its built rates will go down. This will reduce profits. Notice they are seeking investors? So who's going to invest? The only countries which really benefit are the USA, China, Venezuela, Colombia, and possibly Peru. Maybe China will invest but the other countries won't. This isn't the 1980's when the Soviet Union did country to country deals. I notice some of you are living in the past and don't realize the USSR is gone and China practices savage capitalism. If this deal won't serve corporate interests, it won't be done. So lets see which corporations are going to line up to back it. Other than Chinese, nobody gives a canal.

[delrem]

16. China will do it with pocket change.

I think the USA should take its collective mind off war, off an idea that some kind of simplistic and hair-brained "carrot and stick" approach to foreign relations will work in the 21st C. It's already been proven that approach DOESN'T WORK, and it was proven in a world that is accelerating exponentially into the future

North America can't afford to get lost in a scramble after red-herrings, after the totally refuted imaginings of neocon/neoliberal propagandists. North America can't afford to become so fat and complacent that it delivers itself to the butcher without any external prodding.

The very recent USA-backed military coup in Honduras was categorically the WRONG thing for the USA to do. It showed that the USA hasn't learned even the least little thing since the days when Reagan and Kissinger laid waste to "The USA's back yard". It reinforced an already strong and immanent

[Judi Lynn]

7. Little known info: the Nicaragua route cuts 500 miles between New York to San Francisco.

Just learned this a few moments ago looking at the history of Nicaragua plans in a Wikipedia. It also indicates the U.S. seemed to prefer the Nicaragua plan before it ever considered Panama.

Interesting!

Here's the Wiki link:

http://en.wikipedia.org/wiki/Nicaragua_Canal

[Socialistlemur]

11. 500 miles is meaningless

The canal would make sense because it allows bigger ships to cross. The sailing distance doesn't make much difference.

[Travis_0004]

12. It would take 2 days off a trip.

For a ship that cost around 50,000 a day to operate that is not trivial. Fuel savings are good for the environment, and larger ships are more fuel efficient. If I was a ship owner, I would love to be able to save 2 days on a trip, drop off the cargo a bit sooner, and pick up another load a bit sooner.

[bemildred]

15. It's sort of like flying, getting started and stopped is the expensive part.

But time matters, I have read (somewhere, some time back) that saving time was one of the things the Chinese wanted, that two days.

And I assume another reason would be to have it NOT under US-friendly control.

[CFLDem]

13. We built the Panama Canal during the beginning of our century

now the Chinese want to build a Nicaraguan canal in the beginning of their century.