Why the Nicarauga Canal?

Experts and shipping companies are quite skeptical about the need for the inter-oceanic canal that may be built in Nicaragua. Some of the skepticism:

“The canal would need to generate an annual income of about $5 billion…But the Panama Canal, with a transit of 13,482 ships, carrying 327 million tons, generates annual revenue of only about $2 billion, according to 2014 figures. Naturally, the lack of an apparent financial feasibility has raised questions about whether the Nicaragua Grand Canal is a commercial project for HKND—or a geopolitical project for the Chinese government…But if the Nicaragua canal has to adhere to what any other business has to, from an investment standpoint, I think the canal wouldn’t be much of an impact for the Panama Canal,” he said. “Based on investment requirements, the prices of the Nicaragua canal would be very high, and the Panama Canal would be able to maintain its profits and lower prices.”