"The Panama Canal on Rails" – The "Two Oceans Railway" in South America Sees a Turning Point

German Media: Latin America is Experiencing a Railway Construction Boom, with Chinese Influence Everywhere

From Mexico to Colombia, from Brazil to Chile, many Latin American countries are now vigorously building railways, hoping to enhance their economic competitiveness. Among these, there are both transcontinental century projects and short-distance rail transit projects that improve regional transportation.

The Brazilian Minister of Planning, Tereza Cristina, compared the "Two Oceans Railway" project to another industrial revolution: "Once the project is completed, the entire economic landscape of Brazil will change." According to the plan, this railway will run from the port of Ilhéus on the Atlantic coast of Brazil through the inland areas rich in iron ore and soybean production, finally arriving at the port of Chancay on the Pacific coast of Peru. This century-long project is often called "another Panama Canal on rails," with a total length of more than 4,000 kilometers and an estimated cost of 3.4 billion US dollars.

Brazil hopes that the "Two Oceans Railway" will significantly reduce its economic dependence on the United States. This railway will strengthen Brazil's economic cooperation with China. In early July, Brazil and China signed a memorandum of cooperation to start the feasibility study of the "Two Oceans Railway." At the other end of the planned railway line, the Chancay Port, which started operation last autumn, is the first port fully owned by China, with China COSCO Shipping holding 60% of the shares of this super port.

Santoro, a Brazilian political scholar who has long studied Sino-Brazilian relations, stated in an interview with DW that Brazil does not have a coastline on the Pacific Ocean. "If Brazilian products want to be exported to Asia, they must take a long detour: either through the Panama Canal or around the Cape of Good Hope at the southern tip of Africa. If there is a land transport line connecting Brazil's mineral and agricultural regions directly to the Pacific coast, Brazil's economy will gain huge benefits."

According to relevant studies, this new route will shorten the time for transporting goods from Brazil to Asia from the current average of 40 days to 28 days. At the same time, transportation costs are expected to drop significantly. Brazilian Minister of Planning Tereza Cristina also pointed out that the "Two Oceans Railway" will greatly enhance Brazil's economic competitiveness, "This will bring great changes, and the inland areas of northern, central, southeastern, and northwestern Brazil will all be affected."

China intends to expand its influence in Latin America through this project. China is especially interested in raw materials and agricultural products from South America, and China is Brazil's largest trading partner. Brazil exports about 350 billion US dollars worth of goods to China each year, mainly including soybeans, iron ore, and meat. Therefore, expanding the railway freight network has important strategic significance for Brazil.

Other railway projects in Latin America also have Chinese involvement

Except for the "Two Oceans Railway," there are currently many other planned railway projects in Latin America. Latin American countries hope to upgrade their infrastructure. According to statistics from the Development Bank of Latin America (CAF), there are currently 55 railway projects in the region, requiring a total investment of 4,000 billion US dollars.

Recently, at the International Forum on Revitalizing Rail Transport held in the capital of Colombia, Bogotá, the president of the Development Bank of Latin America, Granados, called for "viewing railways as a driving force for sustainable development and regional integration." These railway projects include not only century projects like the "Two Oceans Railway" that change the economic pattern of the entire region, but also rail transit projects that improve urban area traffic conditions.

For example, the Chilean National Railway Company launched the "Chile on Rails" development plan, and recently completed the railway expansion projects between the capital Santiago and Meriapiña and Batuco. For this purpose, the Chilean National Railway Company has ordered a large number of train sets from CRRC, the Chinese manufacturer, making it the largest railway vehicle order in Chile's history. In Colombia, the rail transit projects between the capital Bogotá and surrounding towns are also being actively promoted, with Chinese construction companies and train manufacturers deeply involved.

Not Without Obstacles

Certainly, railway projects in Latin America are not without obstacles. For example, the "Maya Railway" project in Mexico, after the first phase of the project was put into operation at the end of 2023, has already incurred losses of 58,070 billion pesos (approximately 2,660 billion euros). However, this railway, which connects multiple tourist attractions in southern Mexico and serves freight, is seeing its passenger volume grow by 19% monthly. "Maya Railway" President Aquila emphasized that this railway is helping the entire region become a new economic center of the country and has high medium- and long-term potential.

Neighboring Guatemala is also actively considering connecting to the Maya Railway. Recently, Guatemalan President Arévalo said that friendly neighbors "have the obligation to strive to achieve common development goals in the entire border area."

Source: DW

Original: www.toutiao.com/article/1841964240228362/

Statement: The article represents the personal views of the author.