Nicaragua Canal: A New Corridor to Far East Asia

Connections between the Atlantic and Pacific Oceans are important for the international trade. Since 1914, the Panama Canal has provided ships a direct corridor to cross the Atlantic and Pacific Oceans. The geographical advantage of the Panama Canal enables it to enjoy an exclusive position in the international seaborne trade. The vessel tonnage passing through the Panama Canal represents approximately 5% of the world trade and the passage demand grows continuously. However, the Panama Canal’s monopoly over inter-oceanic corridor may soon come to an end. In 2012, a memorandum of understanding was signed to construct the Nicaragua Canal which is close to the Panama Canal. It is expected that the canal should be operational by 2020. The proposed Nicaragua Canal as inter-oceanic corridor not only provides an alternative route for vessels to pass between the Atlantic and Pacific Oceans, but also triggers dynamic changes of the seaborne trade pattern. To assess the long-term benefits of the proposed Canal, the scenario planning method will be used in this study to provide a framework for sketching several future scenarios in 2030, 10 years after the proposed Canal is built. The scenario planning enables the authors to explore novel insights about the future which demonstrate the causal relationships between factors. In this scenario planning, three forces, namely politics, economics and environment, will be taken into consideration. A pair of forces will be combined to generate a dominant scenario in order to foresee the roles of the Nicaragua Canal in the future international trade. The analysis of this study will benefit policy makers and other stakeholders to incorporate alternative mindsets into future strategy formulation and development.


  • English

Media Info

  • Media Type: Digital/other
  • Features: Figures; Maps; References; Tables;
  • Pagination: pp 369-381
  • Monograph Title: Proceedings of the International Forum on Shipping, Ports and Airports (IFSPA) 2013: Trade, Supply Chain Activities and Transport: Contemporary Logistics and Maritime Issues

Subject/Index Terms

Filing Info

  • Accession Number: 01496563
  • Record Type: Publication
  • ISBN: 9789623677677
  • Files: TRIS
  • Created Date: Oct 23 2013 6:16PM