South America is the fourth largest of the world´s continents. It has a total surface of around 18 million square kilometers, or roughly one-eighth of the land surface of the earth [1] and its population counts approximately 430 million (2020). The South American region has more than 3 million km of roadways. [2]

Increasing trade relations between South America and East Asia & Pacific

Brazil, the 8th largest economy in the world, is the most powerful nation in South America in terms of territory, population, trade and economic development, followed by Argentina, Peru, Colombia, Chile, Uruguay and Paraguay. Other countries are counted as lower and upper-middle income countries, such as Bolivia, Ecuador and Venezuela. Integration between the territories and trade has been, for many years, the objective of the continent’s nation states to enhance social and economic development. This integration encompasses relevant improvements in infrastructure, in international commerce, and in the well-being of people.

The main export products of South American countries are from mining (iron, lithium, copper, and other minerals) and agricultural activities (meat, soya beans, maize, cellulose, fruits and others). The fast economic growth in the Asia Pacific territories in recent decades, particularly in China, has generated a relevant impact in the world and in the international trade and connectivity. For example, Brazil’s main export partners in 2019 were East Asia & Pacific (39%), including China with a share of 28%. [3] The integration concept in South America has gained momentum with its governments, because of the geographic location of the continent facing China and the Asia Pacific directly, with the Pacific Ocean in between.

Rethinking transport routes and the relevance of Bi-Oceanic corridors

Currently, the principal international maritime traffic routes for exports, particularly from Brazil to China, run from the Atlantic ports in Brazil and Argentina. The distance and cost incurred in these maritime routes to reach China and Asia Pacific could be significantly reduced by creating bi-oceanic corridors that permit the use of the Pacific maritime routes. Chile and Peru are facing the Pacific Ocean, but their ports have been more focused on regional trade between the countries and domestic exports to China and Asia Pacific (this is, for example, the case for copper in Chile), rather than to provide port services to neighboring countries like Brazil or Argentina.

The use of Pacific ports and developments of inland transportation to connect the Atlantic zones to the Pacific coast have been evaluated in terms of feasibility by different international cooperation institutions, such as the Southern Common Market (MERCOSUR), the Zona de Integración del Centro Oeste de América del Sur (ZICOSUR) and the Entidad Bi-Nacional del Túnel de Agua Negra (EBITAN). Their conclusions point to increased economic benefits by the development of Bi-Oceanic Corridors, involving inland transportation improvements in terms of connectivity, and leading to important savings in shipping costs by using Pacific maritime routes.

Some particular areas in Brazil, Argentina, Bolivia, Chile and Paraguay would also benefit from the economic and social development, not only emanating from new construction and improvements in road networks, but also for other modes of inland transport, such as the developments in multi-modal connections between the road, rail and inland waterway routes.

For example, the Bi-Oceanic corridor that connects the Mato Grosso province in mid-western Brazil with the Chilean Antofagasta port at the Pacific coast, through the Chaco province in Argentina, would enable an important economic development in these regions and neighboring territories, including the Parana fluvial waterway in Paraguay, which connects the maritime route with Argentina´s ports at the Atlantic coast. 

This Bi-Oceanic corridor is also complemented with other connectivity projects, such as the corridor that connect the Coquimbo region in Chile with the Porto Alegre region in Brazil, through the San Juan and Mendoza provinces in Argentina.

Relevant ongoing progress in the development of road infrastructure exists in these South American countries, but this mainly focuses on specific regions that have been selected by their respective state/regional governments, and sometimes with a different and more locally oriented perspective than the national government. In recent years, however, the Bi-Oceanic corridors are attracting more interest of national governments in South America. Several round tables and conferences for information and discussion have been held with the countries involved. Examples of recent events include:

• The Challenge of the South American Bi-Oceanic Corridors for the Regional Integration, December 2020 (in Spanish: https://www.youtube.com/watch?v=nfGPSko6yl8&t=9833s
• Logistics Developments of the Port of Coquimbo, April 2021 – virtual conference (in Spanish): https://www.corecoquimbo.cl/destacan-desarrollo-logistico-del-puerto-de-coquimbo-y-las-proyecciones/corecoquimbo/2021-04-22/182404.html
• Capacity Building for the Bi-Oceanic Corridor in the Antofagasta Region, June 2021 (in Spanish): https://www.youtube.com/watch?v=SZ4xZCa-tkU

The main collaboration questions and issues that were at the table at these meetings concerned integration, economic development, logistics, legislation and regulation, and the implementation of improvements in the infrastructure and border-customs centers. This type of projects, involving the development politics of various countries, are by definition large scale and long term.

Global Road Links’ expertise in transport corridor development

Global Road Links’ expertise and participation in these activities and at governmental levels, in particular of its Regional Associate Christian Vine, are considered an important contributor and coordinator to achieve convergence of these national interests and integration into transport corridor concepts that make economic sense, that are implementable and sustainable.

Deep knowledge of particular aspects, such as regulation, coordination, innovation & new technologies and project feasibility evaluation, have supported the discussions on trade facilitation, transportation issues, mobility trends and improvements in construction, operation, maintenance and safety of the road infrastructure.

Want to know more?

Global Road Links has the relevant expertise on offer to support companies and institutions wanting to explore opportunities in the Bi-oceanic corridors development and seeking participation in public infrastructure development on the South American continent.

Please contact us at [email protected] for further information. We would be interested to hear about your questions regarding the development of transport corridors, and present you the most suitable solutions and relevant steps to reach efficiency and sustainability in transport and road infrastructure for your country.