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Next to Brazil, a neighboring country is evaluating a 3.7 km underwater tunnel in one of the most extreme regions of America, a project initially estimated at US$ 1.5 billion that could end the dependency on ferries to reach Tierra del Fuego.

Published on 02/06/2026 at 19:50
Updated on 02/06/2026 at 19:51
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Project included in the Chilean plan for 2025–2035 envisions a 3.7 km underwater tunnel in the Strait of Magellan, in a project initially estimated at US$ 1.5 billion, to reduce ferry dependency, tackle delays caused by extreme weather, and improve connection with Tierra del Fuego

The far south of South America is once again discussing a project capable of changing the land connection with the Isla Grande of Tierra del Fuego. The Regional Government of Magallanes and the Chilean Antarctic has included in its Extreme Zones Development Plan 2025–2035 the goal of constructing a tunnel in the Primera Angostura sector, the narrowest stretch of the Strait of Magellan, between the continent and the island.

The proposal appears in an official document approved by the Regional Council of Magallanes on June 30, 2025. In the investment annex of the plan, the initiative is identified as “Construcción alternativa conectividad sector Primera Angostura – Bahía Azul, Provincia de Magallanes y Tierra del Fuego”. The same document sets the goal of constructing a tunnel in Primera Angostura by 2035.

Although it has a direct impact on Argentina, especially for traffic heading towards Argentine Tierra del Fuego, the most concrete proposal recorded so far is Chilean. The route mentioned in verified sources is in the Punta Delgada sector, on the Chilean mainland, and Bahía Azul, on the Isla Grande of Tierra del Fuego, also in Chilean territory. Therefore, the project cannot be described as a tunnel built directly between Santa Cruz and Argentine Tierra del Fuego, although it benefits this route.

Current crossing depends on ferries and extreme weather

Today, those traveling by land to Tierra del Fuego depend on the ferry system that crosses the Strait of Magellan at Primera Angostura. The crossing is short, about 30 minutes, but is subject to the weather conditions of the region, marked by strong winds, intense cold, and storms.

Cancellations, queues, and delays affect both passengers and trucks transporting goods to supply the island. This is one of the main arguments used to advocate for a fixed link in the far south of Chile.

The diagnosis appears in the Chilean regional plan itself. In the section dedicated to the commune of Primavera, the document states that the locality has “poor land connectivity” because it depends on the crossing at Punta Delgada, a service offered by a company, with its own schedules and frequencies. The indicated solution is the construction of an underground tunnel to facilitate connectivity with the mainland.

Project gained momentum with 3.7 km estimate

The proposal gained new attention in 2026 after a report by the Chilean newspaper Diario Financiero, published on June 1st, stated that the project would be 3.7 kilometers long. The report quoted the regional governor of Magallanes, Jorge Flies, as saying that the feasibility of the construction increased as cost estimates fell and economic and social arguments in favor of the fixed link grew.

Previous estimates placed the necessary investment at around US$ 1.5 billion, a figure repeated in Argentine and Chilean reports since 2024. However, the Diario Financiero report stated that recent analyses by international experts would have reduced the potential cost to about US$ 500 million, one-third of the initial estimate.

This possible cost reduction would open the way to study private financing models through concession. Even so, this value should still be treated as a preliminary estimate, as there is no executive budget or open bidding.

European experts analyzed technical feasibility

The project also started to be compared, in regional reports, to underwater tunnels built in Norway. In August 2025, media from Argentine Patagonia reported that Norwegian experts evaluated the feasibility of an underground solution in the Punta Delgada and Bahía Azul sector, precisely because it is the narrowest passage of the Strait of Magellan.

Norway is often cited as a reference because it has experience in underwater road tunnels in cold areas and complex geography. This comparison, however, does not mean that the Chilean project already has an approved final design. It only indicates that there is an international technical basis being observed to assess whether a structure of this type could work in southern Patagonia.

Project still has no bidding, financing, or formal agreement

Despite the political enthusiasm, the project is still far from being realized. The Extreme Zones Development Plan itself indicates that the prefeasibility study should evaluate different alternatives to solve connectivity problems. Another observation recorded in the document mentions that the tunnel could also be evaluated at the Second Narrow, a hypothesis that would bring it closer to Porvenir, another relevant locality on the island.

The fact-checking published by the Argentine newspaper Crítica Sur on May 22, 2026, reinforces this point. The outlet reported that there is currently no open bidding, approved financing, construction schedule, or formal binational agreement between Argentina and Chile to execute the tunnel.

The proposal exists, is recorded in Chilean regional planning, and has returned to public debate, but should not be treated as a confirmed project. The current stage is one of study, political articulation, and evaluation of technical alternatives.

Fixed link would have strategic impact for Tierra del Fuego

The fixed link is considered strategic for logistical, economic, and social reasons. A tunnel would reduce dependence on ferries, provide predictability for freight transport, and could improve the supply of essential products in Tierra del Fuego.

It would also facilitate the movement of residents, tourists, and workers who currently need to organize their trips according to the ferry schedules and weather conditions. In a region with low population density, large distances, and severe climate, predictability in transport is a decisive factor for services, commerce, and the movement of people.

For Argentina, the interest is evident. Road access to the Argentine sector of Tierra del Fuego, including Ushuaia and Río Grande, passes through Chilean territory. A permanent crossing at Primera Angostura could reduce logistical uncertainties on a route used by trucks, buses, and private vehicles.

Even so, any strategic use by Argentina would depend on bilateral coordination, border rules, customs, maintenance, and potential financial participation. So far, verified sources point to a project led by the Chilean side, with regional impact on Argentine connectivity.

Proposal could become one of the largest works in southern Patagonia

The project is at an intermediate stage between the historical idea and the executable work. It is recorded in an official Chilean plan in effect between 2025 and 2035, there is a long-term goal, technical estimates are being debated, and there is regional political interest.

What is still missing is transforming this proposal into definitive studies, detailed engineering, licensing, institutional agreement, and financing model. Without these steps, it cannot be stated that the tunnel will be built, nor when the works could begin.

Until this process advances, the tunnel under the Strait of Magellan should be treated as an infrastructure proposal under evaluation, not as an already approved construction. If it comes to fruition, it could become one of the most important works for southern connectivity, replacing the ferry crossing with a permanent link between the continent and Tierra del Fuego.

Sources

This article was prepared based on the Magallanes Extreme Zones Development Plan 2025–2035, approved by the Magallanes Regional Council on June 30, 2025; in a report by Diario Financiero published on June 1, 2026; in a fact-check by the Argentine newspaper Crítica Sur published on May 22, 2026; and in regional records on the technical evaluation by European experts for the crossing at Primera Angostura.

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Fabio Lucas Carvalho

Journalist specializing in a wide variety of topics, such as cars, technology, politics, naval industry, geopolitics, renewable energy, and economics. Active since 2015, with prominent publications on major news portals. My background in Information Technology Management from Faculdade de Petrolina (Facape) adds a unique technical perspective to my analyses and reports. With over 10,000 articles published in renowned outlets, I always aim to provide detailed information and relevant insights for the reader.

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