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New canal to bring 'real benefits'

9 July 2014 Last updated at 02:15 BST

A new canal that would link the Atlantic and the Pacific is one step closer to becoming a reality after a group in Nicaragua approved the waterway's route.

The $40bn (£23bn) project aims to challenge the Panama Canal.

It still has to undergo a series of impact studies, but there are hopes that work on it will begin this year.

Shipping Australia's Chief Executive, Rod Nairn, told the BBC's Rico Hizon the new canal will bring "real benefits" to trade in Asia.

Watch more reports on Asia Business Report's website.

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