Located just 132 miles north of Panama, Nicaragua has long considered its own possible canal routes.
Nicaragua has decided to construct an inter-oceanic canal which will link the Atlantic and the Pacific oceans and greatly facilitate the intercontinental cargo traffic, Press TV reports.
The Nicaraguan government’s decision to build the canal is aimed to cope with the sustained increase in the seaborne trade through Panama Canal which makes it difficult for big trading ships to cross the canal.
The move, experts say, is expected to be hailed by Russia and China as two emerging economic powerhouses.