Construction of the Corinth Canal: a gigantic worksite
Learn about the history of the Corinth Maritime Canal, a major infrastructure project linking the Adriatic Sea to the Aegean Sea by crossing the Isthmus of Corinth in Greece. Built at the end of the XIXth century, this canal required the involvement of many stakeholders, including the Comptoir d’Escompte de Paris, and posed major technical and financial challenges.
The history of the Corinth Canal
This idea of building a canal here dates back to ancient times, but it was not until the XIXth century that the project took shape.
The construction of this canal was prompted by the need to reduce navigation times.
It was against this backdrop that, in 1881, the Greek government entrusted the project to General Istvan Türr, a Hungarian born naturalised Italian engineer. General Türr and his team carried out a geological study and drew up a plan to create the canal. The project was an ambitious one, involving the creation of a canal 6.3 kilometres long and 24 metres wide, which would have to be dug through a mountain range.
Construction of the Corinth Canal
Construction of the Corinth Canal began in 1882 and took 9 years. The engineers and workers had to contend with major difficulties, such as geological problems and difficult climatic conditions. The construction work was carried out in various phases, including excavation of the canal, construction of the engineering structures and installation of the equipment.
General Istvan Türr and French engineers directed the construction work, while the workers were recruited in Greece and France. The materials and equipment used to build the canal were innovative for their time, such as excavators and winches.
An ambitious project completed in less than 10 years
Technical and financial challenges
The construction of the Corinth Canal faced many technical and financial challenges. Geological problems, such as hard rock and unstable soil, meant that innovative solutions had to be found for crossing difficult geological formations.
Hydraulic problems, such as the management of water flows and water levels, also represented a real challenge in terms of mitigating the loads exerted by the water.
This plan, prepared in 1883 by the engineers of the Société Internationale du Canal Maritime de Corinthe, describes how to cut through the Isthmus of Corinth and the different phases in the project.
Comprised of geological sections and topographical sketches, the document made it possible to locate the work and to visualise its duration.
There were also significant financial challenges. Construction costs were very high, due to technical challenges and geological problems. The financing problems meant that substantial funding had to be found, which was a challenge given the economic crisis at the time.
The role of the Comptoir d’Escompte de Paris
While the Comptoir d’Escompte was the French leader in financing this project, with the invaluable help of merchant bankers Edouard Kohn and Jacques de Reinach, other financial institutions such as the Italian Crédit Mobilier and the National Bank of Greece also contributed.
In 1882, Société Internationale du Canal de Corinthe, a French company, was founded to manage the construction of an artificial waterway through the Isthmus of Corinth in Greece. The Comptoir d’Escompte de Paris was one of the banks organising the company’s IPO and played a leading role in financing the project.
In April-May 1882, the bank launched a share issue campaign to raise the capital required for Société Internationale du Canal Maritime de Corinthe.
The public share issue campaign was a great success in France, where only 18% of pre-subscribers obtained more than 10 shares. In Greece too, the subscription was a great success: the National Bank of Greece found 331 investors.
The towns of Isthmia and Poseidonia in Greece
The towns of Isthmia and Poseidonia were created in 1884 to facilitate the construction of the canal.
Photo OF Isthmia
Town located at the mouth of the Corinth Canal on the Athens side.
Barracks can be seen in the background of the photograph. These were the administrative buildings of Société Internationale du Canal Maritime de Corinthe, in charge of the works. They also provided on-site accommodation for the workers and served as warehouses.
Photo OF Poseidonia
Town located at the mouth of the Corinth Canal on the Gulf side.
The town was created in 1884 to facilitate work on the canal. Barracks can be seen in the background of the photograph. These were the administrative buildings of Société Internationale du Canal Maritime de Corinthe, in charge of the works. They also provided on-site accommodation for the workers and served as warehouses.
Despite the technical and financial challenges, the canal was finally opened in 1893. It is an example of the ability of XIXth century engineers and entrepreneurs to carry out major infrastructure projects. Today, the Corinth Canal is still in operation and plays an important role in the region’s economy.
