Nicaraguan assembly OKs $40 bln Chinese canal to rival Panama's

[Bacchus4.0]

11. A region wide road network would have more environmental impacts than the canal

Although the environmental costs in Nicaragua will be large. I assume they will connect through Lake Granada but I could be wrong.
Post Panamax vessels already take the long trip around Tierra de Fuego so if they design to accomodate the largest ships they'll have an advantage over the Panama canal which will still be used of course. Panama is currently widening the channel. Not sure if that work has been completed.

Its hard to argue against it from a development and economics standpoint for Nicaragua especially since China will fund.

Increased population and living standards in Latin America will mean more environmental destruction. Thats the downside.