Will any of the two proposed rail options or the new proposed canal option compete with the Panama Canal ?

An article in Bloombergbusinessweek (July 1,2013) described a proposed Chinese-led plan to build a $40 billion canal in Nicaragua, linking the Atlantic and Pacific oceans. But two other rail options have been proposed too. A $10 billion Taiwanese proposal to build an interoceanic rail link in Guatemala, and a $20 billion interoceanic Chinese proposal for an interoceanic rail link in Honduras. All of these options are set to potentially compete with the newly expanded Panana Canal. Given the difficulties in bringing these projects to fruition, and the intense dependence on Chinese and Taiwanese companies in Latin America, what is the likelihood of these projects succeeding ? How should companies shipping through the Panama Canal use these possible options to leverage their rates and project plans ? Given the planned expansion of ship sizes to become larger than the Panama Canal capacity, how should shipbuilders incorporate these rail options into their calculations ?

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About aviyer2010

Professor
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