A New Trade Route Emerges: Connecting the Atlantic and Pacific

Amidst growing global trade tensions and concerns over existing routes, South America is forging ahead with an aspiring infrastructure project: the Biocean Corridor. This 2,400-kilometer route aims to connect ports in northern Chile, traverse northern Argentina and Paraguay, and reach southern Brazil, effectively linking the Atlantic and Pacific oceans. The project promises to slash shipping times by over ten days compared to the Panama Canal route, offering a potentially transformative alternative for global trade.

Chilean President Gabriel Boric has been a vocal advocate, recently engaging with Brazilian entrepreneurs and government officials in Brasília to explore investment opportunities. Boric emphasized the strategic importance of the Pacific Ocean, stating that the future of the world is in the south and especially in the Pacific Ocean, offering Chile and Brazil privileged access with enormous advantages.

Political and Economic impetus: A Response to Global Uncertainty

The biocean Corridor gains further importance considering recent geopolitical developments. Threats concerning the Panama Canal have highlighted the need for diverse and reliable trade routes. The project is viewed by some as a strategic response to potential instability affecting established maritime chokepoints.

Brazilian planning Minister Simone tebet, a key proponent of the corridor, asserts that South America will not achieve real economic progress without physical integration. She also pointed out that the corridor offers Brazil closer access to Asian markets compared to customary Atlantic routes. the Brazilian government has already completed a significant portion (90%) of the necessary infrastructure within its borders, focusing now on integrating existing sections and completing missing links in Paraguay, Argentina, and Chile, with an estimated completion date of 2026 or 2027.

Economic Benefits and Regional Integration

Proponents highlight the potential for increased trade and reduced transport costs. Tebet estimates that the corridor could cut transport expenses by up to 24%, facilitating the export of key products like Brazilian meat and Chilean fish. Moreover, regions like the Manaus Free Trade Zone are expected to benefit from enhanced logistics and access to global markets. Carlos Henrique Sobral, State Secretary for Infrastructure in the Brazilian Ministry of Tourism, also anticipates a boost in regional tourism, providing access to destinations like the Pantanal, Patagonia, and the Andes.

The project envisions a total of 190 construction projects by 2028,encompassing 65 roads,40 waterways,and improvements to ports,railway lines,and airports.This ambitious undertaking aims to create a comprehensive transportation network across the continent.

Environmental and social Concerns: Voices of Dissent

Despite the potential economic benefits, the Biocean Corridor faces significant criticism, particularly regarding its environmental and social impact. Concerns are growing, especially in the Paraguayan Chaco, where the indigenous Ayoreo community fears disruption to their traditional way of life and emphasizes the need to respect their rights and territories.

Environmentalists also warn of potential negative consequences in northern Chile, a region already grappling with high CO2 pollution and water scarcity.The increased traffic and development associated with the corridor could exacerbate these existing environmental challenges.

Dependency and Unequal Benefits: A Critical Perspective

Critics argue that the Biocean Corridor perpetuates an economic model that keeps Latin America reliant on foreign capital. Instead of fostering genuine regional integration, they claim that large corporations, such as the Chilean Luksic Group, stand to gain the most, while local populations bear the brunt of the negative consequences. This raises questions about the equitable distribution of benefits and the long-term sustainability of the project.