APM Terminals: Interest Building in Nicaragua Canal Opportunities

Nielsen said the Nicaragua project has not yet secured financing

A number of parties are looking into potential projects tied to the planned Nicaragua Canal, Joe Nielsen, Latin America CEO for APM Terminals, told ShippingWatch.

Although APM Terminals is not involved in the canal project, Nielsen said it has been fielding inquiries about possible port development.

The $40 billion, 278-kilometer canal would be an alternative to the Panama Canal, with the capacity to handle larger ships, but the project is still in the early stages.

"Let's first get the canal, then we can look into whether it needs a port," Nielsen said.

He added that his company will be somewhat skeptical about the project at least until it gets its financing sorted out.

"So far it's difficult to tell how far along they are with the project, until the day someone actually puts some money on the table and says they're ready to finance it," he said.

"USD 40 billion for Nicaragua is incredibly dramatic."

Nielsen said APM Terminals would not feel any major effects from the project since it does not have any ports located close to either the Panama Canal or the proposed site of the new canal.

Meanwhile, Nielsen added, the Panama Canal is reportedly planning additional expansion to accommodate larger ships, on top of the project currently in progress.

"They're preparing for two things: The increasing competition, which could potentially arise," he said.

"But also the fact that the size of the ships going through the Panama Canal has grown faster than expected by most.

"It's very early, but talk around town in Panama is that they are not going to stand idle by and watch while someone takes away their national treasure."

The canal project won the support of a committee of Nicaraguan officials, businessmen, and academics earlier this summer.