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- Silk Road: A new trade route in South America appears to be an opportunity for the region’s development.
- What is the ambitious project, and which four countries will benefit?
Intercontinental trade awaits the inauguration of a new route that will pass through northern South America and carry goods from the Atlantic to the Pacific, or vice versa.
While this connection, using ships, has been possible thanks to the Panama Canal for more than a century, this alternative will have a significant economic impact on several countries.
For this reason, many people are already calling it the new Silk Road, the network of roads linking the Far East with Europe. This network peaked in the Middle Ages and lost importance from the 16th century onwards.
Now, the transcontinental route appears as an opportunity to promote the region’s development.
The new route in South America will connect the Pacific with the Atlantic, but only four countries will benefit initially
According to Reporte Asia , “the ambitious project of the new Amazonian route will connect the port of Chancay in Peru with Brazil, crossing several South American countries until reaching the Atlantic Ocean.”
The construction of this route has involved a significant investment, which will profoundly impact the economies of Peru, Brazil, Ecuador, and Colombia.
The Pacific port of Chancay is the starting point. Still under construction, the port is set to become a major logistics hub. From there, ships will travel via an improved road and rail network to the Brazilian border. Along the way, the route will link key ports in Colombia and Ecuador.
“The project’s main objective is to reduce the time taken to transport goods, which will significantly boost the competitiveness of products from these countries in international markets,” adds Reporte Asia.
The port of Chancay has reported significant progress in its construction, which is 92% complete. Those responsible for the project emphasize that Chancay has the necessary characteristics to transform the country’s economy by positioning it as a large-scale logistics hub.
Manaus, in the Brazilian Amazon, will be another strategic point. Manaus will allow goods to continue their journey to Atlantic ports as they are connected via Amazonian rivers. “This will considerably reduce transport times, which will benefit all industries involved in trade between South America and Asia,” says Reporte Asia .
One of the project’s objectives is to attract foreign investment and improve the competitiveness of the automotive sector since Chancay could play a leading role in importing and exporting vehicles and automotive parts.
Of course, a megaproject like this one represents several challenges. For example, it requires the development of an efficient road network that connects Chancay with the rest of Peru and neighbouring countries, the responsible management of natural resources, and the minimization of environmental impact.
The new route will pass through the ports of Tumaco, Colombia, and Manta, Ecuador, and will become a very interesting alternative to promote trade. The investment has been US$10 billion so far, and the inauguration date is scheduled for 2025.
Source: the Clarin
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