Nicaragua Canal 1

Nicaragua Canal

Proposed canal routes in red (2013). Blue: Panama Canal. The canal starting constructionin 2014, will follow the second route from the top, south of Bluefields.

The Nicaragua Canal (also referred toas the Nicaragua Grand Canal, or theNicaragua Interoceanic GrandCanal) is a proposed shipping routethrough Nicaragua to connect theCaribbean Sea (and therefore theAtlantic Ocean) with the PacificOcean. Construction of such a shippingroute - using the San Juan River as anaccess route to Lake Nicaragua - wasfirst proposed in the early colonial era.

Napoleon III wrote an article about itsfeasibility in the early 19th century.The United States abandoned plans toconstruct a waterway in Nicaragua inthe early 20th century after itpurchased the French interests in thePanama Canal.

Because the steady increase in world shipping may make it an economically viable project, speculation on a newshipping route has continued. In June 2013, Nicaragua's National Assembly approved a bill to grant a 50-yearconcession to the Hong Kong Nicaragua Canal Development Investment Company (HKND Group) to build thewaterway.

The concession can be extended for another 50 years once the waterway is operational. Construction of the canal,estimated to cost $40 billion, is to begin in December 2014 and would be completed within six years.

RouteMain article: EcocanalSeveral possible routes have been proposed for the Nicaragua Canal, all making use of Lake Nicaragua.[1][2][3] Thefollowing six routes have been discussed to carry traffic from the Caribbean Sea to Lake Nicaragua, which is at anelevation of 32m (105ft) above sea level:1. Route 1 goes from a point near Kukra Hill on the Caribbean coast of Regin Autnoma del Atlntico Sur

(RAAS) to the Escondido River and from there to Lake Nicaragua.2. Route 2 goes from a point near Roca Caiman on the Caribbean coast of RAAS to the Escondido River and from

there to Lake Nicaragua.3. Route 3 goes from the city of Bluefields on the Caribbean coast of RAAS to the Escondido River and from there

to Lake Nicaragua.4. Routes 4 and 5 go from a point near Barra de Punta Gorda on the Caribbean coast of RAAS to Lake Nicaragua.5. Route 6 (the Ecocanal route) goes from the town of San Juan de Nicaragua via the San Juan River to Lake

Nicaragua.All of the above proposed routes lead from port at or near Bluefields in the Caribbean Sea to Morrito, a small town located on the eastern shore of Lake Nicaragua. From Morrito, ships would continue westward across Lake Nicaragua to a port near the town of La Virgen in the Department of Rivas. At that point, ships would enter a

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manmade canal and navigate 18-24 kilometers across the isthmus of Rivas to reach Brito, a port on the Pacific Oceanin the Department of Rivas.The last route proposed (Route 6) would require deepening the shallow San Juan River and adding a series of locks.However, despite the lower cost compared to the other routes, HKND Group has stated it will not use this route.HKND Group has hired Environmental Resources Management, one of the worlds leading sustainabilityconsultancies, to independently assess the environmental and social impact of various routes under consideration.

HistoryThe idea of constructing a manmade waterway through Central America is old. The colonial administration of NewSpain conducted preliminary surveys. The routes suggested usually ran across Nicaragua, Panama, or the Isthmus ofTehuantepec in Mexico.

18251909

A 1895 cartoon advocating United States action to build theNicaragua Canal.

In 1825 the newly established Federal Republic ofCentral America (FRCA) considered the waterway.That year, FRCA government authorities hiredsurveyors to chart the route and contacted thegovernment of the United States to seek financing andthe engineering technology needed for building theshipping route, to the advantage of both nations. Asurvey from the 1830s stated that the waterway wouldbe 278km (172.7mi) in length and would generallyfollow the San Juan River from the Caribbean Sea toLake Nicaragua, then go through a series of locks andtunnels from the lake to the Pacific Ocean.

While officials in Washington, D.C., thought theproject had merit and Secretary of State Henry Clayformally presented it to the Congress of the UnitedStates in 1826, the plan was not approved. The UnitedStates was worried about the poverty and politicalinstability of Nicaragua, as well as the rival strategicand economic interests of the British government,which controlled both British Honduras (later Belize)and the Mosquito Coast.

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Proposed canal, circa 1899.

Proposal, 1902.

On August 26, 1849, the Nicaraguangovernment signed a contract with theUnited States businessman CorneliusVanderbilt. It granted his AccessoryTransit Company the exclusive right toconstruct a waterway within 12 yearsand gave the same company soleadministration of a temporary traderoute in which the overland crossingthrough the isthmus of Rivas was doneby train and stagecoach. Thetemporary route operated successfully,quickly becoming one of the mainavenues of trade between New YorkCity and San Francisco. Civil war inNicaragua and an invasion by filibusterWilliam Walker intervened to preventthe canal from being completed.

Continued interest in the route was animportant factor in the negotiation ofthe ClaytonBulwer Treaty of 1850.The canal idea was discussed seriouslyby businessmen and governmentsthroughout the 19th century. In 1888 abill was proposed it the US house ofRepresentatives to incorporate aNicaragua Canal company.[4]

In 1897, the United States Nicaraguan Canal Commission proposed this idea, as did the subsequent Isthmian CanalCommission in 1899. The commission also recommended that the French work on the Panama Canal be taken overif it could be purchased for no more than US$40 million. Since the French effort was in disarray, in 1904 the UnitedStates purchased the French concession, equipment, and excavations for US$40 million.The Nicaraguan Canal Commission carried out the most thorough hydrological survey yet of the San Juan River andits watershed, and in 1899 concluded that an interoceanic project was feasible at a total cost of US$138 million. Atthe same time, the Geological Society of America published the Physiography and Geology of Region Adjacent tothe Nicaragua Canal Route in its Bulletin in May 1899, which remains one of the most detailed geological surveysof the San Juan River region.In the late 19th century, the United States government negotiated with President Jos Santos Zelaya to lease the landto build a canal through Nicaragua. Luis Felipe Corea, the Nicaraguan minister in Washington, wrote to UnitedStates Secretary of State John Hay expressing the Zelaya government's support for such a canal. The United Statessigned the SnchezMerry Treaty with Nicaragua in case the negotiations for a canal through Colombia fell through,although the treaty was later rejected by John Hay.Before Corea completed a draft of the Nicaragua proposal, Congress was considering the Spooner Act to authorizethe Panama Canal. In addition to the promise of earlier completion of the Panama Canal, opponents of theNicaraguan canal cited the risk of volcanic activity at the Momotombo volcano. They favored construction of a canalthrough the Isthmus of Panama.

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In 1898, the chief of the French Canal Syndicate (a group that owned large swathes of land across Panama), PhilippeBunau Varilla, hired William Nelson Cromwell to lobby the United States Congress for the Panama Canal. In 1902,taking advantage of a year with increased volcanic activity in the Caribbean Sea, Cromwell planted a story in the TheNew York Sun reporting that the Momotombo volcano had erupted and caused a series of seismic shocks. Thiscaused concern about its possible effects on a Nicaraguan canal.Cromwell arranged for leaflets with stamps featuring Momotombo to be sent to every Senator as "proof" of thevolcanic activity in Nicaragua. An eruption in May 1902 on the island of Martinique resulted in 30,000 humanfatalities. This catastrophe persuaded most of the United States Congress to vote in favor of constructing the canal inPanama, leaving only eight votes in favor of Nicaragua. The decision to build the Panama Canal passed by fourvotes. Cromwell was paid US$800,000 for his lobbying efforts.Nicaraguan president Zelaya later tried to arrange for Germany and Japan to finance the building of a canal thatwould traverse Zelaya Department. Having settled on the Panama route, the United States opposed this proposal.

19101989Since the Panama Canal opened in 1914, the Nicaragua route has been reconsidered. Its construction would shortenthe water distance between New York and San Francisco by nearly 800 kilometers (500mi). Under theBryanChamorro Treaty of 1916, the United States paid Nicaragua US$3 million for an option in perpetuity and freeof taxation, including 99-year leases of the Corn Islands and a site for a naval base on the Gulf of Fonseca.In 1929, the United States Interocean Canal Board approved out a two-year detailed study for a ship canal route,known as the Sultan Report after its author, the United States Army engineer Colonel Daniel Sultan. From 1930 to1931 a United States Army Corps of Engineers survey team of 300 men surveyed the route of a future canal, calledthe Forty-Niners route because it followed closely the route that miners took in the 1840s California Gold Rush.Costa Rica protested that Costa Rican rights to the San Juan River had been infringed, and El Salvador maintainedthat the proposed naval base would affect both it and Honduras. Both protests were upheld by the Central AmericanCourt of Justice in rulings that were not recognized by either Nicaragua or the United States. Both nations repealedthe BryanChamorro Treaty on July 14, 1970.Between 1939 and 1940, with war in Europe underway, a new study was made for the construction of a barge canal.Three variants were considered, with minimum channel depths of six, ten, and twelve feet.The idea of a larger canal, with part of the excavating work to be done with atomic bombs, was revived in the 1960sas part of Operation Plowshare.[5]

19902009In 1999, Nicaragua's National Assembly unanimously approved an exploration concession, Law 319, for theconstruction of a shallow-draft waterway along the San Juan River, known as the Ecocanal. This would connectLake Nicaragua to the Caribbean Sea, but would lack the inter-oceanic link to the Pacific Ocean. This project isloosely based on the 193940 study.In 2000, the Nicaraguan government granted a concession to Canal Interocenico de Nicaragua SA (CINN), acompany formed and led by New York attorney Don Mario Bosco, to build a railway "dry canal" connectingNicaragua's coasts. However, CINN was unable to obtain financing to begin construction.It is possible that these schemes could exist in parallel to the proposed inter-ocean canal.In 2004, the Nicaraguan government again proposed a canal through the countrylarge enough to handle post-Panamax ships of up to 250,000 tons, as compared to the approximately 65,000 tons that the Panama Canal can accommodate. The estimated cost of this scheme may be as much as US$25 billion, 25 times Nicaragua's annual budget. Former president Enrique Bolaos sought foreign investors to support the project. The scheme met with strong opposition from environmentalists, who protested the damage that would be done to the rivers and jungle. The

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project was similar to the original plans, except that the United States government would buy the land for investorsto begin construction on the project.In addition to the governmental waterway proposal, private proposals have been based on a land bridge acrossNicaragua. The Intermodal System for Global Transport (SIT Global), involving Nicaraguan and Canadian andAmerican investors, proposed a combined railway, oil pipeline, and fiberoptic cable; a competing group, theInter-Ocean Canal of Nicaragua, proposes building a railway linking ports on either coast.On October 2, 2006, President Enrique Bolaos, at a summit for defense ministers of the Western Hemisphere,officially announced that Nicaragua intended to proceed with the project. Bolaos said that there was sufficientdemand for two canals within the Central American isthmus. He proclaimed that the project would cost an estimatedUS$18 billion and would take approximately 12 years to construct. It would take one of six possible routes atapproximately 280km, reduce the transit time from New York to California by one day and 800km, considerablyreduce transit costs from Europe to China and Japan, and have capacity for ships of up to 250,000 tons.The construction of the canal alone would more than double Nicaragua's GDP (excluding other investments as aresult of the canal's construction). Some sources suggest that construction of the canal would enable Nicaragua tobecome one of the wealthiest countries in Central America, and one of the wealthiest countries in Latin America inper capita terms. The government has been studying proposals for such a development. Supporters believe that all ofCentral America would benefit from the construction of the canal. If a Nicaraguan canal were built, "it would bringan economic effervescence never seen before in Central America," Bolaos said.In 2009, Russian President Dimitry Medvedev suggested that Russia would be interested in pursuing theconstruction of the interoceanic waterway. However, no progress has been made to date and the construction of theThird Set of Locks for the Panama Canal has apparently dampened Russian enthusiasm for the project. Khalifa binZayed bin Sultan Al Nahyan of the United Arab Emirates has also expressed interest in sponsoring an interoceaniccanal project.

2010sIn 2010, Nicaragua signed a contract with two Korean developers, Dongmyeong Engineering & ArchitectureConsultants (DMEC) and Ox Investment, to construct a deepwater port and facilities at Monkey Point on theCaribbean coast to improve capacity there.On July 27, 2012, engineering services provider Royal HaskoningDHV announced that the Nicaraguan governmentcommissioned a feasibility study to be completed in early 2013 at a cost of US$720,000. The contract has beenawarded to a consortium made up of Royal HaskoningDHV and Ecorys.On September 26, 2012, the Nicaraguan government and a newly formed Hong Kongbased company signed amemorandum of understanding that committed HKND Group to financing and building the Nicaraguan Canal andDevelopment Project. HKND Group is a private enterprise. HKND Group has now entered the study phase ofdevelopment to assess the technological and economic feasibility of constructing a canal in Nicaragua, as well as thepotential environmental, social, and regional implications of various routes. The canal and other associated projectswould be financed by investors throughout the world and would generate jobs for Nicaragua and other CentralAmerican countries.Initial findings of the commercial analysis conducted by HKND Group indicate that the combined impact of growthin eastwest trade and in ship sizes could provide a compelling argument for the construction of a second canal,substantially larger than the expanded Panama Canal, across Central America. Within 1015 years, growth in globalmaritime trade is expected to cause congestion and delays in transit through the Panama Canal without acomplementary route through the isthmus. Additionally, by 2030, the volume of trade that a Nicaragua Canal couldserve will have grown by 240% from today.[6]

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On June 10, 2013, The Associated Press reported that the National Assembly's Infrastructure Committeeunanimously voted in favor of the project, with four members abstaining. On June 13, 2013, Nicaragua's legislaturepassed the legislation granting the concession.[7] On June 15, Nicaraguan President Daniel Ortega and the chairmanof HKND Group, Wang Jing, signed the concession agreement giving HKND Group the rights to construct andmanage the canal and associated projects for 50 years.[8] An HKND Group press release read, "HKND GroupSuccessfully Obtains Exclusive Right to Develop and Manage Nicaragua Grand Canal for 100 Years".[9] Under theexclusive contract, Wang can skip building the canal (and making any payments to Nicaragua) and instead simplyoperate lucrative tax-free side projects.Wang Jing, a Chinese billionaire who leads and wholly owns HKND Group, announced at a press briefing in June2013 that he had successfully attracted global investors to the $40 billion project. In January 2014 Wang Jing andPresident Ortega issued a statement that construction of the project would begin in December 2014, and that it willbe completed in 2019.On July 7, 2014, a 278 km (172.7 mi) route for the Nicaragua Canal was approved. The route starts from the mouthof the Brito river on the Pacific side, passes through Lake Nicaragua, and ends in the Punta Gorda river on theCaribbean. The proposed canal would be between 230 meters and 520 meters (754.6 feet and 1,706 feet) wide and27.6 meters (90.6 feet) deep. The Toronto Star noted that Chinese engineer Dong Yung Song said the canal's designcalled for the creation of a 400 square kilometres (150sqmi) artificial lake. The water to fill the canal's giant lockswould come from the artificial lake, not from Lake Nicaragua.The Moscow Times has reported that Russia will take part in the building of the Nicaragua Canal, viewing theproject in part as an opportunity to pursue strategic interests in the region.

References[1] Main routes map (http:/ / www. rumormillnews. com/ cgi-bin/ archive. cgi/ noframes/ read/ 187242)[2] Nicaragua canal routes reference 2 (http:/ / e360. yale. edu/ slideshow/ nicaragua_approves_canal_linking_atlantic_and_pacific/ 200/ 1/ )[3] Nicaragua canal routes reference 3 (http:/ / www. nicaraguadispatch. com/ news/ 2012/ 06/ ortega-revives-nicaragua-canal-fantasy/ 4200)[4][4] Galveston Daily News, December 26, 1888, p 8[5][5] 70 years of schemes to enlarge the Panama Canal, by J David Rogers, Missouri University of Science and Technology[6] http:/ / hknd-group. com/ trends-in-global-shipping-trade-demand-a-new-canal/[7] http:/ / hknd-group. com/[8] http:/ / www. startribune. com/ business/ 211655041. html[9] HKND Group Successfully Obtains Exclusive Right to Develop and Manage Nicaragua Grand Canal for 100 Years http:/ / hknd-group. com/

hknd-group-exclusive-right/

Further reading Brodhead, Michael J. (January 2012), "'A Wet, Nasty Job': Army Engineers and the Nicaragua Canal Survey of

19291931" (http:/ / shfg. org/ shfg/ wp-content/ uploads/ 2010/ 07/ 8-Brodhead1. pdf), Federal History (4):11130

Mellander, GA (1971), The United States in Panamanian Politics: The Intriguing Formative Years, Daville, IL:Interstate Publishers, OCLC 138568 (http:/ / www. worldcat. org/ oclc/ 138568)

Mellander, GA; Mellander, Nelly Maldonado (1999), Charles Edward Magoon: The Panama Years, Ro Piedras,Puerto Rico: Plaza Mayor, ISBN1-56328-155-4, OCLC 42970390 (http:/ / www. worldcat. org/ oclc/ 42970390)

Howard, Brian Clark, National Geographic, February 20, 2014 "A planned rival to the Panama Canal carriesenvironmental consequences." (http:/ / news. nationalgeographic. com/ news/ 2014/ 02/140220-nicaraguan-canal-environment-conservation/ ?google_editors_picks=true)

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External links Gran canal [The grand Canal] (http:/ / www. grancanal. gob. ni/ ) (official webpage) (in Castilan), Nicaragua:

GovernmentWikipedia:Link rot The HKND Group (http:/ / hknd-group. com/ ) (official webpage)Coordinates: 11.5N 85.0W (http:/ / tools. wmflabs. org/ geohack/ geohack. php?pagename=Nicaragua_Canal&params=11. 5_N_-85. 0_E_scale:3000000)

Article Sources and Contributors 8

Article Sources and ContributorsNicaragua Canal Source: http://en.wikipedia.org/w/index.php?oldid=624060124 Contributors: Abelour1, Ablebakerus, Adam Bishop, Adumoul, Agrofe, Aldis90, Amikeco, Amniarix,AndreasJS, AnnaFrance, Asketix, AxelBoldt, Axeman89, Bemoeial, Big Bob the Finder, Bobblewik, Brian1975, Bryan Derksen, Burglekutt, CalJW, Choster, Chris 73, Chris.Bristol,ChrisGualtieri, Chuunen Baka, CieloEstrellado, CityTech127, Civil Engineer III, Cnwilliams, Colonies Chris, Conversion script, DJ Silverfish, Davidcannon, Declangi, Delirium, Dhartung,DiverDave, Dockingman, Dtvjho, Earth, Eastlaw, Eb.hoop, Egghead06, Ekem, Elryacko, Emijrp, Gaius Cornelius, Geo Swan, Gidonb, Grubbybest, Guanako512, Hadden, HaeB, Hcobb, HermanDowns, Hmains, Hugo999, Indian rediff, Infrogmation, Instruisto, JCRules, Jackehammond, Jason Quinn, JaunR12, Jiang, Jim.henderson, Jim10701, Jinian, Jmorrison230582, Johantheghost,John, JohnCD, Jonadab, Joy, Juanra, KVDP, Kanags, Khazar2, Koperud, Kwamikagami, L0b0t, LaNicoya, Laneways, Lgfcd, LibertyHiller, Ligulem, Llywrch, LorenzoB, Lovelac7, Magic119,Magioladitis, Magnus Manske, Materialscientist, Mbhskid520, Mikkelanjelo, Mild Bill Hiccup, Miracle Pen, Monedula, Monstermike99, Narayansg, Ng.j, Nick Number, Nojoking, Nrpf22pr,Nyth83, Oknazevad, Oliquez85, Operator link, Opus33, Oreo Priest, Owen, Parkwells, PassPort, Peter Buch, Peter Horn, PigFlu Oink, Pissant, Poltruth, Prairieplant, Racerx11, Realbrvhrt, RichFarmbrough, Rijkbenik, Robertb-dc, Rotamundo, Rui Silva, SDC, Secretlondon, Seldo, Shanes, Sietse Snel, Soerfm, Svick, TFTD, Tcoonenic, Thue, Tim1357, Troutsneeze, TruckCard,Vicreazco, Wehwalt, Woohookitty, Worldtraveller, Yuje, Zanetu, 91 anonymous edits

Image Sources, Licenses and ContributorsFile:Nicaragua canal proposals 2013.png Source: http://en.wikipedia.org/w/index.php?title=File:Nicaragua_canal_proposals_2013.png License: Creative Commons Attribution-Sharealike 3.0Contributors: User:SoerfmImage:1895NicaraguaCanalCartoon.jpg Source: http://en.wikipedia.org/w/index.php?title=File:1895NicaraguaCanalCartoon.jpg License: Public Domain Contributors: Cartoonist signaturenot readable.Image:NicaraguaCanalPanorama.jpg Source: http://en.wikipedia.org/w/index.php?title=File:NicaraguaCanalPanorama.jpg License: Public Domain Contributors: Unknown. Irrelevant due toage Original uploader was Infrogmation at en.wikipediaImage:Nicaraguacanal.png Source: http://en.wikipedia.org/w/index.php?title=File:Nicaraguacanal.png License: Public Domain Contributors: Henry Isaac Sheldon

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Nicaragua CanalRouteHistory1825190919101989199020092010s

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