Paraguay’s Ruta Bioceánica
Paraguay is building a bioceanic corridor that will redefine the rules of global logistics. The economic impact for Paraguay, mainly for the Chaco region, will allow Paraguay to reach levels of development and growth like never before, as detailed by Presidencia Paraguay.
The regions and countries of the center-west of South America such as Paraguay, Bolivia, northern Argentina and southwest of Brazil, have historically depended on the ports of the Atlantic Ocean. Today, its production has increasing demands in the Pacific markets. One of the objectives of integrating these areas with the Pacific coast is to facilitate commercial exchanges to contribute to its development. The bioceanic corridor intends to facilitate production and add value through the creation of regional production chains between the regions of its layout.
Goals
- Contribute to developing the economic and social opportunities promoted by the interoceanic connection that extends from the coast of Brazil, crossing through the territories of Paraguay and Argentina, until reaching the ports of northern Chile.
- Achieve the substantial improvement of physical infrastructure, facilitation of cross -border traffic and the streamlining of customs procedures, destined to make the circulation of people and goods more expeditious among their respective countries.
- Attain high logistics efficiency, greater economic competitiveness and a more effective regional integration.
The National Route PY15 corresponds to the bioceanic corridor on Paraguayan soil. Its objective is to specify the bi-oceanic corridor network between Carmelo Peralta – Loma Plata – Mariscal Estigarribia and Pozo Hondo, prioritized in the South American Council for Infrastructure and Planning (COSIPLAN) between the Federative Republic of Brazil, the Republic of Paraguay, the Republic of Argentina and the Republic of Chile in the Capricorn Axis of Integration and Development.
Currently, to get production destined for Asia, Paraguay must navigate to the Panama Canal with the operating cost that this implies; but now, with the Bioceánica producers will save 2 weeks of travel.
In terms of navigability, 6 days are saved to reach the Asian markets starting from the deep-water ports on the Pacific Ocean (Chile), states the government of Paraguay.
The lower expense in the transfer of cargo means a saving of between USD 800 to USD 1,000 for each container.
With the Bioceánica, more opportunities are opened for Paraguay, from new alliances, new markets, investments, knowledge and technology transfers, through new production chains, storage areas, free zones, among others.
Con presencia del presidente @MaritoAbdo se procedió a la firma de contratos de adjudicación para la construcción del tramo 3 de la ruta Bioceánica, que abarca desde Mcal. Estigarribia hasta Pozo Hondo. Las obras de la ruta PY15 redefinen las reglas de la logística mundial. pic.twitter.com/2R9cFbQqnc
— Presidencia Paraguay (@PresidenciaPy) March 2, 2023
Contracts, Resolutions and Improvements
The Vice Minister of Public Works of Paraguay, Rubén Andino, estimated that between January and February the processes for the Bi-Oceanic route would be finalized and work would start during the first half of 2023.
The third section of the corridor runs from Mariscal Estigarribia to Pozo Hondo, including its access, in the department of Boquerón.
Andino referred to the processes that must be followed to start the construction of the third section of the Bioceanic route, whose lots were recently awarded.
There are about 220 km where road improvements are planned along its entire route. It includes the city of Mariscal Estigarribia, its roundabout, the PY09 collector route, the accesses to the airport, and the air terminal itself.
Improvements are also included in Pozo Hondo and its airport, in addition to toll booths and heavy vehicle weighing, a border control center in Pozo Hondo, plus compensation for expropriation of land. All these projects are accompanied by an Environmental Management Plan.
Uniting Seaports & Generating Jobs
Once the route is completed in its entirety, from Carmelo Peralta (border with Brazil) to Pozo Hondo (border with Argentina), it will unite the important seaports of the Pacific and Atlantic Oceans. Likewise, it will generate another 2,500 additional jobs, as well as endless opportunities for the towns of the Paraguayan Chaco.
Road Sections will have Animal Crossing Bridges
The road sections have a total of 14 pass-faunas, which consist of structures placed at different points of the corridor so that the various species of mammals, small, medium and large vertebrates can cross from one fragment of the forest to another safely, without being affected by the productive passage and traffic in the area, reported the Ministry of Public Works and Communications.
The business publication DFSud states the bioceanic corridor seeks to compete with the Panama Canal and transform Paraguay into a logistics nexus in the center of the continent.
DFSud states that the Mato Grosso do Sul is key to the project. With a population close to three million inhabitants in the center of Brazil, its economic activities are related to agribusiness, wood pulp is one of its main exports, followed by soybeans, corn and meats; 40% of it goes to China, states the business publication.
These products today are sent to Asia by the Atlantic, where they have to make a long journey from the sea ports. As an example, if a ship from Brazil takes from the order of 62 days to Japan, from the Chileans the time is reduced by half, states DFSud.
Bioceanic Corridor-Objectives
The bioceanic corridor is a route with the intention of connecting the Atlantic Ocean with the Pacific Ocean, which passes through countries such as Brazil, Paraguay, Argentina and Chile. Such a route will facilitate the access of Brazil to the markets of the east and of Chile and from Argentina to Western Europe, in addition to allowing an exit to the coast for Paraguay.
Among the objectives of the route are the reduction of traffic time, cost of transportation, storage and inventory service, as well as the promotion of a more efficient, safer and more predictable load movement; Stimulus to the training of associations, use of more than one modal and project development, productive integration and aggregation of value in countries of origin and destination, or as in transit countries.
According to Scielo, Brasil, the corridor related to the Latin American Integration Route (Rila) has an extension of 2,396 kilometers with specific planning in each country where it passes:
In Brazil, to provide the agricultural sector with a departure to the Pacific, allowing the destination of production for the direct importation of inputs at more competitive prices.
In Paraguay, to improve infrastructure and integrate the Chaco region into the rest of the country.
In Argentina, to fortify the implementation of the Belgrano Plan, which provides investments in the infrastructure of the order of US $15 billion to the extent where the provinces of Salta and Jujuy cross.
In Chile, to develop trade with the countries of the region, and for the country to consolidate as an important logistics platform.
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