Contradictory reports on Nicaragua Canal start-up

While cost over runs for the Panama Canal expansion dominated shipping news headlines during last week, contradictory reports are circulating about plans to build an even larger canal across Nicaragua.

A BBC report last week found that the head of the Nicaragua canal authority, Manuel Coronel Kautz, indicated more time is needed to carry out feasibility studies and choose a route and that construction would probably not begin until next year. It reported President Daniel Ortega had said Nicaragua planned to begin construction in May 2014. But an Associated Press article last Monday reported that a statement from Kraus said all the studies needed to start building the canal are being carried out in a timely manner and that construction will begin this year.

Nicaraguan legislators in June of 2013 approved granting Beijing-based telecommunications Chief Executive Officer Wang Jing a concession to build and operate the canal.

BBC said the estimated cost of the Nicaragua waterway is $40 billion, 7.6 times more than original $5.25 billion estimated cost of the Panama Canal.

Source: American Shipper