Jeffrey A. Newman
The speedy growth of transpacific shipping and size of the newest shipping vessels are causing investors to consider the creation of another canal from the Pacific to the Atlantic in Nicaragua as well as a separate project by Mexico. There have been plans considered and one Chinese Company from Hong Kong, (HKND Group) was retained to help develop plans. IUndeed, in late 2014, a route was officially retained, which is divided into two segments connecting Lake Nicaragua. The West Canal from the Pacific crosses the Isthmus of Rivas at Brito, a segment of about 26 km. One lock system is expected to be built midway along this segment. Then, Lake Nicaragua is used for 107 km. The East Canal connects Lake Nicaragua to the Caribbean Sea over 127 km and will also require the construction of a lock. On both sides of the expected canals, new ports were planned. This canal could easily accommodate all existing and planned container ships, 320,000 DWT VLCC (very large crude oil carriers), 400,000 DWT bulk carriers, and other mega vessels with these water depth conditions. The Nicaragua Canal would thus surpass by far the capacities of both the Panama Canal and the Suez Canal in terms of nautical characteristics.
However, recently the U.S. and some of its major companies have started to focus on helping the U.S. retain control over shipping from Asia through to the Atlantic to our ports. The project considered ten years ago was set aside due to costs, however the economics of the world has been changing and many U.S. companies in concert could create this alternative that would enhance trade and create substantial potential for the U.S.
Another project that will have implications for global trade, is a project being developed by Mexico. which has decided to accelerate efforts to build the Interoceanic Corridor of the Isthmus of Tehuantepec (CIIT). This high-speed railway passage, stretching approximately 300 kilometers, is set to receive a $7.5 billion investment from the Mexican government to establish itself as a key player in global trade. The project has received $6 billion in funding from the Mexican government, with an additional $2 billion from international institutions. However, this funding is already insufficient to develop a high-speed rail and road connection and, most importantly, to modernize and make the two exit ports truly competitive. This too has gotten the attention of U.S. companies to take over the venture or partner witht he Mexican Government.
Jeff Newman JD MBA, represents whistleblowers in tariff fraud cases concerning imported Chinese goods as well as Medicare and Medicaid fraud cases under the False Claims Act (Qui Tam), and SEC, IRS and FINCEN whistleblower programs. He can be reached at Jeff@JeffNewmanLaw.com or at 617-823-3217
