Canals have been a terrain improvement missing from day one (CIV I). I suspect that the actual implementation would be tricky - I am not a game designer by profession so I can only speculate. I think simplicity in the initial implementation is the key to success with this.
My general ideas:
Canals, bridges and tunnels all have potential, but the scale of CIV is at the city level, so these new improvements should represent larger than one city tile mega-projects (e.g.: Golden Gate bridge, causeway bridges to Key West, St. Lawrence Seaway, Suez and Panama Canals) and not smaller more localized projects (Holland tunnel in NY city, London Bridge, canals around a city like Amsterdam). It's all about a practical playable scale for CIV IV.
1) In order to discourage oversized continent spanning canal networks, there should be a high cost/build time, and a maximum number of tiles improved with a canal feature based upon game map size... Say, Duel maps are zero as they be too small for practical reasons, while for huge maps we set the limit to a total of 20 squares (the game designers probably have a better handle on the numbers). Economics should be a big limiting factor if not the only factor!
2) Canals should be costly for naval units to use: something like a move cost of 4?
3) No canals through mountains or hills (hills in CIV are actually huge and not just lumps of land!).
4) Canals should be built by workers and are connected to body of salt water by a build protocol similar to how irrigation is built from touching fresh water or rivers.
5) Canals could be available with Engineering, and halve the construction time with Gunpowder.
6) The presence of a canal (regardless of length) in a city "fat cross" could bestow upon that city +1 Trade route.
The next regard tunnel and bridge mega-projects:
7) With a special "build to" button, a worker could be made to build a road tunnel through a mountain and hill tiles. This would be the only instance a unit passes through a mountain tile until the tunnel is finished. Later a similar button could exist for building a railroad through said tunnel. The time to build should realistically reflect the difficulty of the terrain. Probably even more costly in time compared to canal building!
8) Tunnels should have a maximum length too, to avoid the unrealistic/ridiculous, scaled to game map size.
9) Tunnel construction should effectively require Gunpowder - I can't think of any major tunnel building possible before then.
10) Workboats could have a "build bridge" function so as to be able to span 1+ coastal tiles (only) from one city to another. Must start adjacent to a city (at least one city at one end). Again maximum scaled to game map size.
11) Such coastal bridge building shouldn't be available until Industrialization (or later).
12) Bridges could accomodate railroad improvement as a later step? (Otherwise they function as just a road over water.)
13) Canals, tunnels and bridges should be pillagable! And while all three affect unit movement in some way, only canals should have the trade benefit - if any benefit at all.
The "chunnel" concept is a special case I think. Maybe that should be National Wonder for a coastal city somehow?
Cheers
