The re-establishment of official ties between Nicaragua and China also suggests that construction work on the Nicaraguan canal may resume in the not-too-distant future. And this will signify a change to the rules of the game in the region.
In 2013, a contract was signed for the construction of a shipping canal in Nicaragua, with the Chinese investor Wang Jing receiving a concession. At the time, it was seen as a possible alternative to the Panama Canal that would have the potential to change regional geopolitics. The project was called the Grand Interoceanic Canal of Nicaragua. However, HK Nicaragua Canal Development (HKND Group) went bankrupt, so the project has been on hold since 2018. Now, it seems that Beijing will seize this window of opportunity.
Wang Jing himself wrote a letter to Daniel Ortega, stating that his company, HKND Group, and he personally still believed in the Grand Canal project. China needs to carry on with the Belt and Road Initiative, where a new transit hub will help optimise logistics and make additional anchor points, since the infrastructure involves the construction of two ports, an airport, a power plant, and various roads.
In comparison with the Panama Canal, the canal in Nicaragua will be considerably more attractive: it will be wider and deeper, allowing more goods to pass through it. It is expected that container ships of up to 400,000 tons will be able to pass through the canal. (The Panama Canal can only handle ships of up to 150,000 tons.)
From the outset, it was assumed that Russia would ensure the security of the construction and the maintenance of the canal. Given the close ties between the Russian and Nicaraguan military and special services, Moscow’s inclusion in the project is entirely feasible. In fact, a larger Russian military presence in the region will now be justified (after all, terrorists could endanger shipping traffic, which must be prevented). Just a stone’s throw from the US
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