A new highway traversing the continent could be the next tool to further unlock Asian markets, reducing logistical costs by as much as 12%
It may have passed through various incarnations over the years, but a new vision for the Bi-Oceanic Highway is in progress that would link Mato Grosso do Sul with Argentina and ultimately the vast Chinese market via Chile’s Pacific ports.
With the bridging of the river frontier with Paraguay promised through the Itaipu project and further public and private sector involvement already in place, this dynamic initiative is finally coming to fruition.
Brazil already stands behind only USA and Germany as China’s most important non-Asiatic or Oceanic trading partners. Reaching the Chinese market faster and more cheaply will boost competitive power. Studies suggest that a corridor integrating the Pacific and Atlantic coasts has the potential to reduce costs by as much as 12%.
“The corridor makes production more profitable,” says Reinaldo Azambuja, Governor of Mato Grosso do Sul. “If producers can reduce shipping costs, they’ll be able to retain that difference. This is what turns the economic wheel. It’s about being competitive.”