Turkey moves ahead with $16 bln Istanbul canal project

Turkey is moving ahead with its plans to dig a 45-kilometres shipping canal running parallel to the Bosphorus, Reuters reported, citing environment and urban minister Murat Kurum.

Work is due to start this year on the $16 billion Kanal Istanbul, despite a government freeze on new investments as it reins in spending.

Kurum said the ministry was moving ahead to acquire land along the canal route, and develop plans with contractors.

The canal, which will link the Black Sea and the Sea of Marmara north and south of Istanbul, is aimed at easing traffic on the Bosphorus strait, a major global shipping lane.

The scheme will also redraw the map of one of Europe's biggest cities, turning Istanbul's western side into an island.