Canal in Greece for 40 years.

The contract was awarded by the Societe Anonyme of the Corinth Canal -- an undertaking of the Greek government.

The 6.3-kilometre-long canal cuts through the narrow piece of land between mainland Greece and the Peloponnisos (southern Greece), providing a water route between the Adriatic Sea and the Eastern Mediterranean.

Two hundred and fifty foot sheer walls rise dramatically above the 24.6 metres wide canal, which has a water depth of 7.5 metres. It is an important tourism attraction in Greece, drawing visitors from all over the world.

Around 12,000 vessels pass through the canal annually. The canal company has never actively sought traffic for the canal and has never varied its tariffs by offering volume discounts or other incentives for ships and boats. But traffic is expected to increase in the light of rising fuel costs and a reduction of the tensions in the Balkans.

Sea Containers will pay an annual rent linked to estimated European Union inflation. The company will employ half of the existing canal staff, with the rest being redeployed by the Greek government. It will pay $1 million to acquire the concession and has agreed to invest $3 million in the first five years.

Sea Containers president James Sherwood said both Sea Containers' ferry and ports division and its subsidiary, Orient-Express Hotels, will participate in the development and operation of the canal.

The company expects to develop a ferry terminal and yacht marina at the western end of the canal and a major tourist centre on the 130 acre site at the eastern end, which is closest to Athens. The main north/south Greek motorway crosses the canal with convenient exit points and about 3.5 million people cross in vehicles annually. The Greek government is building a new ring road around Athens which links the motorway and a light railway from Athens to the canal.

Where is it? The above is a map of Greece with an arrow pointing at the canal's location.

BUSINESS BUC