Crossword Genius

It crosses Scotland or Canada, all on nice loco (10,5)

Ross

I believe the answer is:

caledonian canal

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'it crosses scotland' is the definition.
The definition suggests a singular noun which matches the answer.

'canada all on nice loco' is the wordplay.
'canada all on nice' anagrams to 'CALEDONIAN CANAL'.
But, I'm unsure how this is indicated.

'or' is the link.

Can you help me to learn more?

(Another definition for caledonian canal that I've seen is " Scottish waterway".)

I've seen this clue in The Independent.
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