The president of Nicaragua, Daniel Ortega, said that the canal that the HKND Chinese company intends to construct by 2020 won’t be a threat to Panama, but a complement to the demand of world maritime trade. “We have told the president of Panama that Nicaragua’s channel does not threaten Panama, that they are complementary efforts, other routes that demanded by the development of world trade,” said Ortega after receiving the new ambassador of Panama, Eddy Rodriguez.
On December 22, 2014 the Chinese company HK Nicaragua Development Invesment (HKND) inaugurated the ancillary works for the construction of a 278 km long canal that will go through Lake Nicaragua, the largest source of fresh water in Central America.
The Nicaraguan project, valued at US$50bn aims to capture 5% of world maritime trade (just like Panama) and become a major global logistics centre. Ortega said that Nicaragua will build its canal after several attempts made throughout its history and a century after Panama opened the first canal route in the region.