1. Home
  2. / Economy
  3. / This is Brazil's INSANE plan to transform South America
AISP-GEDOC MS, MT reading time 4 min read Comments 0 comments

This is Brazil's INSANE plan to transform South America

Written by Alisson Ficher
Published 23/07/2024 às 07:12
Map of the Bioceanic Route. (Image: MOPC/Disclosure)
Map of the Bioceanic Route. (Image: MOPC/Disclosure)

An ambitious project from Brazil promises to revolutionize the South American economy and shorten commercial distances, connecting the Atlantic to the Pacific. The so-called Bioceanic Route is an initiative that aims to integrate Brazil, Paraguay, Argentina and Chile, offering a new export and import route that promises significant economic benefits for the region.

Brazil, the largest economy in Latin America, faces significant logistical challenges due to its geographic position. Currently, Brazilian products need to travel long distances to reach Asian markets, especially China, which is one of the largest buyers in Brazil.

To give you an idea, while a ship takes 23 days to get from the Port of Santos to France, the same ship needs 45 days to reach China. This extra time represents a high cost and a competitive disadvantage for Brazil.

The Bioceanic Route aims to solve this problem by creating a direct connection between the Atlantic Ocean and the Pacific Ocean, facilitating access to Asian markets and significantly reducing transport times. According to experts, this route could transform the economy not only in Brazil, but throughout South America.

The structure of the Bioceanic Route

The Bioceanic Route project is divided into two main phases. The first phase connects the Port of Santos, in Brazil, to Paraguay, passing through São Paulo and Mato Grosso do Sul. The second phase involves the connection between the South American countries, crossing Paraguay and Argentina until reaching Chile, finishing at the Port of Antofagasta.

According to information from the Brazilian government, The project is being financed by a combination of international investments, including the La Plata Basin Financial Fund, the Andean Development Corporation and the Inter-American Development Bank. Furthermore, both the Brazilian and Paraguayan governments are directly involved in financing and executing the project.

Economic and commercial benefits

The Bioceanic Route promises to bring numerous economic benefits. For Brazil, this means an increase in exports, mainly of agricultural and livestock products, such as soy and meat. Mato Grosso do Sul, for example, will be one of the most benefiting states, as it will become a crucial point for the flow of products.

Paraguay will also benefit significantly, with new highways and greater export capacity. Currently, Paraguay depends almost exclusively on the Paraná River for its exports. Argentina, one of China's main trading partners, will have a new access route to the Asian market, while Chile will be able to access the Atlantic, strengthening its bilateral trade relations.

Environmental and social impacts

Although the economic benefits are promising, some environmental and social groups express concerns about the project's negative impacts. According to researchers, the construction of highways and bridges, such as the one that will connect Porto Murtinho to Carmelo Peralta, could increase pollution and negatively affect the local ecosystem. Fauna, especially wild animals, may suffer from increased traffic and the urbanization of areas around the route.

Additionally, we bring there are concerns about the social impact on local communities. In Porto Murtinho, which relies heavily on fishing tourism, the construction of the route could harm the local economy. Social organizations also warn of the risk of increased exploitation, urban violence and precarious basic sanitation in the affected regions.

Project feasibility and challenges

The Bioceanic Route project still faces significant challenges. Although financing is partially secured, the full setup of financiers is not yet finalized. Additionally, we bring The construction and maintenance of such a vast infrastructure requires a coordinated effort between the countries involved and efficient management to minimize negative impacts.

Despite the controversies, the Brazilian government stated that the road is capable of positively developing the entire economy of the surrounding regions, facilitating access to goods and services and encouraging tourism. In 2021, Mato Grosso it raised around 86 million from tourism alone, and the tendency is for a new road to increase this movement even further.

A new era for South America?

The Bioceanic Route represents a bold step for Brazil and its South American partners, offering a potential solution to many of the logistical and economic challenges the region currently faces. Although the project brings promises of economic growth and strengthening trade relations, it is It is crucial to balance these benefits with environmental and social concerns.

Will the Bioceanic Route be able to transform South America without causing irreparable damage to the environment and local communities?

Be the first to react!
React to article
Register
Notify
guest
0 Comments
Older
Last Most voted
Feedbacks
View all comments
Alisson Ficher

Journalist graduated in 2017 and working in the field since 2015, with six years of experience in print magazines and over 12 thousand online publications. Specialist in politics, jobs, economics, courses, among other topics. If you have any questions, want to report an error or suggest a topic on the topics covered on the site, please contact us by email: alisson.hficher@outlook.com. We do not accept resumes!

Share across apps
2
0
We would love your opinion on this subject, comment!x