A recent drought has disrupted operations at the Panama Canal, leading to delays for over 200 ships and sparking debates about potential alternative routes between the Atlantic and Pacific oceans. The drought has impacted water levels in reservoirs supplying the canal, thereby limiting the number and size of ships that can use its lock system. The situation is prompting a reevaluation of old plans like the Nicaraguan Canal, though such projects present significant financial and engineering challenges.
  

Key Points: 

1. The Panama Canal, vital to global shipping, faces operational challenges due to a significant drought that has affected its reservoirs’ water levels.
2. The current situation has led to a reemergence of historical proposals, particularly the idea of constructing a canal in Nicaragua, a plan with over 150 years of history.
3. Costs for building a Nicaraguan Canal could exceed $40bn, and it presents potential environmental challenges, such as rainforest destruction and freshwater contamination.
4. Alternative solutions include Mexico’s plan for a land bridge consisting of railways, highways, and pipelines, and Colombia’s proposal for an underground maglev railway for container transfers.
5. Despite the current challenges at the Panama Canal, experts like Jean-Paul Rodrigue at Hofstra University believe that once normal conditions return, the idea of an alternative canal might fade from prominence again.

Source: https://www.bbc.com/future/article/20230825-the-rival-to-the-panama-canal-that-was-never-built