The Bioceanic Corridor- The Road to Development in South America
The Bioceanic Corridor is a multimodal transport and development corridor connecting the Pacific and Atlantic oceans envisaging development, trade and regional integration. The four participating countries, Chile, Argentina, Brazil and Paraguay seek to diversify their economic profile, improve logistics and create industrial hubs along the Bioceanic Corridor which is composed of railways, roads, airports and other amenities.
While it is speculated that the Bioceanic Corridor has more to do with trade and transit, it goes beyond that into evolving as an economic corridor replete with nerve centres of vibrant economic activity and people to people ties. Hence, such corridors have the potential to change the destiny of nations and its people.
The genesis of the Bioceanic Corridor can be traced to the Initiative for the Integration of Regional Infrastructure in South America (IIRSA)[i] which was established in Brasília in 2000. The IIRSA delineated ten Integration and Development Hubs and integrated its efforts into UNASUR's[ii] COSIPLAN[iii] (South American Council for Infrastructure and Planning) in 2009, bringing public-private partnerships with governmental oversight to enhance regional integration and develop economic zones. In 2015, Argentina, Brazil, Chile, and Paraguay collectively endorsed the Declaration of Asunción on Bioceanic Corridors[iv], which falls under the auspices of IIRSA and COSIPLAN.
Upon completion and full functionality by 2026, the Bioceanic Corridor is anticipated to strengthen regional integration, stimulate economic growth, incorporate smaller markets into the global financial ecosystem, and create job opportunities. This seems particularly appealing given the status of development in the Southern Cone that is characterised by historic financial gaps between sub-regions, over-dependence on primary products, institutional hurdles, political instability and vulnerability to external economic shocks.
Nonetheless, it is important to acknowledge that such ambitious projects may encounter challenges, including adherence to timelines, differing priorities among participating countries, and potential ecological impacts with the possibility of the Bioceanic Corridor being rendered as just a transit route. This paper seeks to observe the advocacy for the establishment of such corridors, especially focusing on the Bioceanic Corridor, while offering considerate insights into the prospects.
The Bioceanic Corridor in South America
The Bioceanic Corridor stands as a transformative mega-project[v] in Latin America, poised to reshape the dynamics of the Southern Cone[vi] which includes two overlapping economic zones, the ZICOSUR[vii][viii] and the Capricorn Hub[ix]. While the ZICOSUR is an initiative of the provinces or departments of participating countries, the Capricorn Hub is one of the 10 economic hubs created by the IIRSA. Spanning an impressive 2,400 kilometres[x], this Corridor aims at seamlessly connecting the Pacific and Atlantic Oceans through an integrated network of ports, roads, and railways. It encompasses key Chilean regions such as Antofagasta, Mejillones, Tarapacá, and Iquique, parts of northern Paraguay, and the provinces of Salta and Jujuy in Argentina, extending to southern Brazil, including Mato Grosso do Sul[xi].
The Corridor's objectives are clear- to enhance physical infrastructure, facilitate cross-border transit, and streamline customs procedures, thereby significantly improving the flow of people and goods between nations. There are five pivotal sectors driving the Bioceanic Corridor’s success: (a) Enabling National Security, ensuring that participating countries maintain robust control over this extensive infrastructure network. (b) Creating Infrastructure, where a suite of projects is designed to develop and sustain the vital highway and rail systems. (c) Logistics and Port Capacity, including the incorporation of dry ports. (d) Harmonizing Customs and Border Control, for smooth movement of people and goods. (e) Enabling Business and Opportunities for Private Players, in the spirit of public-private partnerships.
With a substantial investment of around US$ 10 billion, the Bioceanic Corridor is more than a transport route; it encompasses 22 infrastructure projects[xii] slated for completion by 2026. The Bioceanic Corridor is set to be a cornerstone in achieving the objectives of enhanced regional integration, people to people connectivity and cultural interface merely beyond trade, and also reduce reliance on the Panama Canal. While the Bioceanic Corridor will primarily benefit coastal countries, they will also significantly aid Bolivia and Paraguay, the only two landlocked nations in the Southern Cone. It will also be an addition to other such Corridors in Latin America, enabling a criss-cross network of infrastructure, economic hubs and transportation systems.
Upon completion, the Corridor is anticipated to significantly lower transportation costs and speed up economic development in the ZICOSUR and the Capricorn Hub. The Bioceanic Corridor will enable the export of critical minerals, industrial goods, and Agri-products from these zones. To fully harness the potential of high-value exports from Brazil and Paraguay[xiii], enhanced logistical facilities will be essential, as current ports are primarily geared towards mineral exports. This improved connectivity has the potential to elevate intraregional commerce and regional tourism, thus opening up new markets. Therefore, to fully capitalize on the promise of the Bioceanic Corridor, strategic investments are not just necessary, they are imperative. Caution must be exercised by participating countries in enhancing and diversifying the economic profile of the region. This entails focus towards manufacturing and industrial capacities, otherwise the Bioceanic Corridor may struggle to progress beyond a mere trade corridor, specialising in the export of primary products.
Strategic value of the Bioceanic Corridor for individual countries
The Bioceanic Corridor holds significant promise for enhancing the economic landscape of the Southern Cone. Its potential to foster increased trade and commercial collaboration is noteworthy, as it may pave the way for new markets and infrastructure developments, thereby stimulating job creation and fostering complementary industries. However, existing literature mostly highlight the preference of the participating countries towards external trade, whereas ideally the Corridor should vouch for regional integration and development of the economic hubs as a prior consideration.
Chile: For Chile, this initiative stands to reinforce its strategic role as a gateway to Asian markets, concurrently benefiting its vital lithium and copper sectors. The country’s sophisticated port and logistics infrastructure, combined with efficient border crossings and strong rail and road connections, will facilitate effective marine access to both Asia and the United States. Chilean ports offer a viable alternative to the congested Atlantic routes, with capacity to accommodate large vessels and expedite customs processes. To further bolster its logistics capabilities, Chile aims to promote its logistical service[xiv] providers among regional partners and attract international investment into logistics hubs[xv].
Enhancements to handling equipment, storage facilities, and cargo management systems will be essential, especially to accommodate a diverse range of cargo, including agricultural products and mining exports. Chile has successfully established several economic clusters, encompassing Valparaíso wines, Coquimbo’s fruit grapes and olive oil, and Antofagasta’s mining sector. This diversity contributes to a robust manufacturing landscape, a favourable business environment, modern infrastructure, and efficient logistics[xvi]. As such, there exists a supportive physical and institutional framework that encourages value aggregation and product processing. In this context, the Bioceanic Corridor could play a pivotal role in further advancing Chile’s economy, which is well-regarded for its openness and engagement in global trade.
Argentina: Argentina possesses significant quantities of essential minerals, including copper, gold, silver, and zinc, and recognizes its considerable potential in the mining sector, particularly with regard to lithium. The enhancement of the Bioceanic Corridor is expected to positively impact the value chain and strengthen Argentina's capacity to export these valuable resources to Asian markets[xvii], particularly as it traverses key mining regions in the northwest. A primary objective for Argentina is to improve access to Asian markets through Chilean ports, enhance northern infrastructure, facilitate smoother border crossings, embrace innovative technologies, and upgrade port facilities.
These efforts aim to bolster economic ties and expedite commerce. Moreover, the Bioceanic Corridor has the potential to streamline the transportation of general cargo from Brazil and Paraguay, as well as ore from Argentina via Chilean ports. This initiative may pave the way for the establishment of export routes for energy surpluses to other countries within the Corridor. Given the region's promise of affordable and abundant energy, Argentina's northern areas could import inputs, transform them into more valuable goods, and subsequently export these to Asia and neighboring Corridor nations. Additionally, there is the opportunity to explore the export of excess electricity to Eastern Brazil.
Paraguay: Given that Paraguay is a landlocked nation, the Bioceanic Corridor represents a significant opportunity for enhancing its status as a key logistical hub through anticipated direct access to both the Atlantic and Pacific Oceans. Improving air connectivity and establishing links to the Paraguay-Paraná canal are among Paraguay's primary objectives. A proposed bridge across the Paraguay River is set to create vital connections between the Bioceanic Corridor and the Paraná-Paraguay Waterway, fostering greater integration among Bolivia, Brazil, Paraguay, Argentina, and Uruguay[xviii].
The energy component of the corridor is particularly noteworthy for Paraguay, as it will facilitate the transportation of gas from Argentina to Brazil, thereby strengthening regional energy cooperation. The development of the Bioceanic Road corridor is expected to boost Paraguay's international trade engagement, generate high-quality job opportunities, diversify its productive sectors, and promote sustainable long-term growth. Enhanced dynamism in the foreign sector is likely to solidify its role as a central driving force in the national economy. Furthermore, the Bioceanic Road corridor may assist Paraguay in diversifying its commercial partnerships and expanding export opportunities to Asia. With the improvements in logistics and reduced transit times, Paraguayan exports are projected to experience substantial growth.
Brazil: For Brazil, the Bioceanic Corridor represents a transformative opportunity to enhance access to the Pacific coast and, by extension, Asia[xix]. The advancements in productivity across remote regions have been remarkable, driven by Brazil's strategic goals of decentralizing its economy[xx] and population, encouraging the movement of rural farmers, and leveraging improvements in agricultural technology. As a result, the economic landscape of several Brazilian states has been dramatically reshaped, with Mato Grosso and Mato Grosso do Sul emerging as key players in the nation’s expanding agricultural frontier. Brazil's ambition to boost connectivity from its eastern regions to the Pacific coast is further underscored by the rapid growth of demand in external markets over the last two decades.
This surge in global demand for food, raw materials, and commodities necessitates a robust response from Brazil. The Bioceanic Corridor, coupled with enhanced customs processes, promises to slash transport time and costs by 67% and 18%[xxi] respectively for road travel between the Atlantic and the Pacific. This strategic development means Brazil can confidently bypass reliance on the Panama Canal[xxii] and the perilous Strait of Magellan effectively reducing maritime transport by 4,000 nautical miles or nearly twelve days. In this context, the Bioceanic Corridor is not just an infrastructural improvement; it is a vital catalyst for Brazil’s economic growth and global competitiveness.
Some Considerations
The Bioceanic Corridor, an ambitious and transformative project, presents a formidable set of challenges that must be addressed. Firstly, while waterways remain the preferred mode of transportation for moving large volumes of cargo quickly, achieving similar efficiency through land transport is a difficult[xxiii]. It requires a greater number of carriers and careful consideration of diverse terrains, which may be unable to offset the cost and delays. Furthermore, establishing a uniform standard for roads and highways across all participating countries is vital, as is harmonizing customs and procedures. Infrastructure construction is merely the initial phase; true success lies in the complete integration of commerce, digital integration and routes, which undergo numerous development stages. There are issues related to slow harmonization, hidden costs and disputes over transit[xxiv]. The corridor's construction also raises pressing social and environmental concerns, especially in ecologically sensitive areas. Challenges such as road safety and environmental degradation could arise if expansion accelerates deforestation and threatens biodiversity particularly in regions like the Chaco and Amazon.
Striking a balance between safeguarding ecosystems and fostering economic growth is essential. Comprehensive environmental protections are imperative, alongside addressing socioeconomic issues impacting local and indigenous populations. The Ayoreo community in Paraguay, for example, faces dire consequences; around 150 individuals remain in voluntary seclusion[xxv], and the corridor jeopardizes their culture and traditional practices, such as hunting and foraging. Hence, careful considerations must be made to see that the financial and social costs do not outweigh the accrued benefit.
Policies focused on social equity must tackle economic marginalization, land displacement, and the erosion of traditional livelihoods. Complex regulations often hinder cross-border trade for small and micro businesses, underscoring the need for transparent information exchange, capacity-building initiatives, and policy frameworks promoting local engagement for inclusive and sustainable development. Hence, the Bioceanic Corridor must have a people-centric outlook, instead of only catering to only external demands. In doing so, the Corridor may fuel growth, tourism and prosperity in the region. Development corridors can sometimes embody overly ambitious ideals, neglecting inherent constraints, which can lead to execution failures. While the corridor relies on territorial rescaling at sub and supranational levels, the consolidation of power by national governments can impede cooperation.
Locally, better transportation systems can help boost the economic growth of rural and regional areas that now have limited access to major domestic and international markets like the Norte Grande and Chaco. Despite the Southern Cone's relative development, multiple regions still lack adequate infrastructure and have high rates of poverty. Levels of development also vary across the countries which means some countries may lag behind and have to deal with higher costs, and if combined with the issue of revenue, loss of earnings due to harmonization of tariffs and other disputes which may arise, it may altogether defeat the purpose of the Bioceanic Corridor.
The Bioceanic Corridor falls into a scenario of becoming another route for extractivism and export of raw resources, which in a shorter term appears enticing, considering the initial investment cost. Hence, it should not fall into the trap of serving external markets where the demand is mostly for primary goods. Rather it ought to encourage growth and wealth in the region, improve people to people interaction, tourism, and constructing infrastructure that would lead to expanded intra-regional commerce. The objective should be to create an economic corridor with manufacturing, agricultural, and industrial clusters that encourage self-sufficiency and independence from foreign markets. The region should not succumb to the errors of resource curse. This will guarantee that the Southern Cone strengthens its global competitiveness, financial autonomy and positions itself as an indispensable centre in Latin America and the world.
Conclusion
The Bioceanic Corridor has the potential to transform the economic landscape of the Southern Cone but there are certain parameters requiring adherence. Primarily, the political and business class and analysts should avoid the trap of stressing overly on external trade and dependence on external markets which replicates former patterns of resource exploitation. Even though it is understandable that trade in primary commodities via the corridor is lucrative in the shorter period, it may lead to a situation, where the complete potential of the Bioceanic Corridor emerging as an economic hub remains elusive. It is imperative that the Corridor serves the interests of the region and in this regard, improvisation, regional trade, focus on small-businesses, tourism, diversification of the economy and greater people to people connection are important axes for the Bioceanic Corridor.
The thrust of the Bioceanic Corridor should be on promoting regional integration, development of the ZICOSUR and the Capricorn Hub in alignment with the policies of the IIRSA and greater well-being of the people of the Southern Cone. This would also enable other similar corridors to simulate and further the regional, financial and infrastructural integration across Latin America. It should be an engine for wealth and job creation, leading to inter-dependence among the participating countries and asserting financial and regional integration. Given the newly emerging world order, the Bioceanic Corridor should enable the Southern Cone to become a financial pole, a hub for investment, economic growth and an example of autonomous economic and people-centric growth sans dependence on external markets.
*Dr. Arnab Chakrabarty, Research Fellow, Indian Council of World Affairs, New Delhi.
Disclaimer: The views expressed are personal.
Endnotes
[i] The Initiative for the Integration of the Regional Infrastructure of South America (IIRSA) represents a significant development strategy aimed at fostering interconnectedness among South American economies through the establishment of transportation, energy, and telecommunications projects. The investments under IIRSA are anticipated to enhance the integration of highway networks, waterways, hydroelectric facilities, and telecommunications infrastructure across the continent, with particular emphasis on reaching remote and isolated areas. This endeavour seeks to promote greater trade and cultivate a cohesive South American community of nations. Launched in late 2000 with the collaborative participation of the 12 member countries of the Union of South American Nations (UNASUR), IIRSA is supported by institutional partners including the CAF – Development Bank of Latin America and the Caribbean, the Inter-American Development Bank (IDB), and the River Plate Basin Financial Development Fund (FONPLATA). These three organizations collaboratively constitute the Technical Coordination Committee (CCT), which plays a vital role in providing both technical and financial support for the activities associated with IIRSA.
[ii] Union of South American Nations (UNASUR), an intergovernmental organization established in 2008 by twelve South American nations, is dedicated to fostering regional integration and development. Its primary objective is to enhance collaboration in cultural, social, economic, and political spheres. UNASUR is committed to addressing critical issues such as health, education, infrastructure, and the environment, while striving to mitigate socioeconomic disparities and reinforce democratic values throughout the region.
[iii] The South American Council of Infrastructure and Planning (COSIPLAN) serves as a vital forum dedicated to fostering political and strategic dialogue aimed at advancing the integration of infrastructure across South America. This initiative is rooted in a collective commitment to promote comprehensive social, economic, and environmental development. COSIPLAN was established during the Third Meeting of the UNASUR Heads of State on January 28, 2009, in the esteemed city of Quito, Ecuador. As one of the twelve Ministerial and Sectoral Councils within the Union of South American Nations (UNASUR), it actively encourages citizen engagement by creating effective channels for communication, consultation, and collaborative dialogue among its various stakeholders.
[iv] Declaración de Asunción sobre Corredores Bioceánicos or the Declaration of Asunción was signed by the President of Argentina, Mauricio Macri, President of Brazil Dilma Rousseff, President of Chile Michelle Bachelet and President of Paraguay Horacio Cartes. The declaration led to the creation of a Working Group to initiate feasibility studies in constructing the Bioceanic Corridor.
[v] The 2400-kilometre long Bioceanic Corridor traverses through the entire stretch of the Southern Cone ( Source: https://vivirenparaguay.com/en/economy/The-bioceanic-corridor-and-its-impact-on-Paraguay-and-South-America/.
[vi] For emphasis, the Southern Cone is mentioned here which comprises of countries such as Chile, Argentina, Paraguay, Uruguay and the southern part of Brazil. Additionally South America would entail the entire region below Panama. Hence, the Southern Cone can be seen as a sub-region within South America.
[vii] Zona de Integración del Centro Oeste de América del Sur or Zone of Integration of Centre-West of South America is a sub-regional grouping founded in 1997 and comprises of the various provinces and departments of participating countries such as Argentina, Chile, Bolivia, Paraguay, Chile and Peru. This picture highlights the participating provinces of various countries within the ZICOSUR. Source: https://noticias.unju.edu.ar/noticia.php?id=86.
[viii] MAPFRE Global Risks (2025). Bioceanic Corridor- a transportation artery across Latin America. Accessed 29th April 2025. https://www.mapfreglobalrisks.com/en/risks-insurance-management/article/bi-oceanic-corridor-a-transportation-artery-across-latin-america/.
[ix] Under the IIRSA, 10 major hubs are identified across South America which are also known as Ejes de Integración y Desarrollo or Integration and Development hubs. One of these is the Capricorn Hub which comprises of provinces of participating countries. The purpose of creating such hubs is to maximise the impact of development projects and accrue benefits to the region keeping in mind the uniqueness of the hub. Note: The Bioceanic Corridor does not pass through Bolivia, however it is estimated that owing to the Capricorn Hub and the ZICOSUR, certain areas of Bolivia will benefit from the project. Source: https://www.iirsa.org/admin_iirsa_web/Uploads/Documents/lb09_seccion3_eje_capricornio_eng.pdf.
[x] PEMP (2023). Main Routing Alternatives between the Pacific and Atlantic. Port Economics, Management and Policy. Accessed 29th April 2025. https://porteconomicsmanagement.org/pemp/contents/part1/interoceanic-passages/routing-alternatives-pacific-atlantic/.
[xi] Miguel Atlenza. et.al. (2021). Entender el Corredor Bioceánico Vial: Los relatos de los expertos la Región de Antofagasta. Corredor Bioceánico. Accessed 25th April 2025. https://www.researchgate.net/publication/352681737_ENTENDER_EL_CORREDOR_BIOCEANICO_VIAL_Los_relatos_de_los_expertos_y_de_la_Region_de_Antofagasta.
[xii] The projects include several road section improvements: 5 replacements, 12 enhancements, 1 maintenance, and 1 expansion. Key objectives are to enhance the connection between Route 1 and Iquique, improve the Pampino roundabout and its connections, upgrade northern access to the Port of Mejillones, and create a new access to the Port of Iquique. Additionally, the initiatives will facilitate access to port facilities through the construction of dry ports.
[xiii] Mercopress (2023). Bioceanic project linking Brazil with the Pacific and crossing Paraguay is rapidly advancing. Accessed 29th April 2025. https://en.mercopress.com/2023/08/16/bi-oceanic-project-linking-brazil-with-the-pacific-and-crossing-paraguay-is-rapidly-advancing.
[xiv] Aduana News (2025). Chile promotes the Bioceanic Corridor to connect the Atlantic with the Pacific. Accessed 1st May 2025. https://aduananews.com/en/chile-impulsa-el-corredor-bioceanico-para-conectar-el-atlantico-con-el-pacifico/.
[xv] CEPAL (2022). A South American interoceanic network: Bioceanic corridors and the role of connecting states. Accessed 1st May 2025. https://repositorio.cepal.org/server/api/core/bitstreams/5c39913b-e67b-423f-9cd9-8888a2edcbdc/content.
[xvi] Diario Concepción (2024). Corredor Bioceánico que también benéfica a Biobío. Accessed 3rd May 2025. https://www.diarioconcepcion.cl/editorial/2024/07/21/corredor-bioceanico-que-tambien-beneficia-a-biobio.html.
[xvii] Carolina Jorquera Vásquez (2020). Corredores bioceánicos: un paso de integración. Biblioteca del Congreso Nacional de Chile. Accessed 1st May 2025. https://obtienearchivo.bcn.cl/obtienearchivo?id=repositorio/10221/29347/1/N_88_20_Corredores_bioceanicos_CHILE.pdf.
[xviii] TV BRICS (2025). Bioceanic corridor set to double trade between Brazil and Chile. Accessed 3rd May 2025. https://tvbrics.com/en/news/bioceanic-corridor-set-to-double-trade-between-brazil-and-chile/.
[xix] Yessica Peña Ríos et.al. (2018). Importancia geopolítica del Corredor Ferroviario Bioceánico Central Para Brasil. Dialnet. Accessed 30th April 2025. https://dialnet.unirioja.es/servlet/articulo?codigo=8063256.
[xx] Aduana News (2025). The President of Chile begins a state visit to Brazil to strengthen integration and trade. Accessed 1st May 2025. https://aduananews.com/en/el-presidente-de-chile-inicia-visita-de-estado-en-brasil-para-fortalecer-la-integracion-y-el-comercio/.
[xxi] CPI (2024). Corredor Bioceánico y la importancia para el desarrollo económico del Cono Sur. Consejo Políticas de Infraestructura. Accessed 2nd May 2025. https://www.infraestructurapublica.cl/corredor-bioceanico-y-la-importancia-para-el-desarrollo-economico-del-cono-sur/.
[xxii] PEMP (2023). Central American Interoceanic Canal Routes Considered. Port Economics, Management and Policy. Accessed 29th April 2025. https://porteconomicsmanagement.org/pemp/contents/part1/interoceanic-passages/interoceanic-central-american-canal-routes-considered/.
[xxiii] Álvaro Álvarez (2019). Corredores bioceánicos y reordenamiento del
Territorio en la argentina. VII Congreso Nacional de Geografía de Universidades Públicas y XXI Jornadas de Geografía de la UNLP. Accessed 2nd May 2025. https://ri.conicet.gov.ar/bitstream/handle/11336/134717/CONICET_Digital_Nro.bd08b9ef-6890-4144-b721-2cc7e7224342_A.pdf?sequence=2.
[xxiv] Soren Scholvin & Ledys Franco (2024). ¿El Corredor Bioceánico como motor del desarrollo?: Desafíos enfrentados por los proveedores de servicios de transporte en Antofagasta, Chile. Revista de Geografia Norte Grande. Accessed 30th April 2025. https://www.researchgate.net/publication/385508682_El_Corredor_Bioceanico_como_motor_del_desarrollo_desafios_enfrentados_por_los_proveedores_de_servicios_de_transporte_en_Antofagasta_Chile.
[xxv] João Carlos Parkinson de Castro (2021). Estudios analíticos acerca del Corredor Bioceánico. Scielo Brazil. Accessed 3rd May 2025.
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