Plans are currently underway in South America to build a transcontinental corridor. This corridor will connect Brazilian and Chilean ports via Paraguay and Argentina, with the goal of expanding access networks to the Pacific and Atlantic Oceans. In landlocked Paraguay, paving has begun on the section within its territory, and the first stage of a development plan for the sparsely populated Chaco Paraguayo region has been set in motion. In other words, the road that Paraguay will build as part of the South American Bioceanic Corridor, which spans four countries and connects two oceans, will run east–west through the Chaco Paraguayo. Work has started on the first stage, which consists of 20 sections. As a landlocked country, Paraguay appears to incur trade costs that are about one-third higher than those of coastal countries. The Paraguayan government therefore hopes that building this corridor will reduce excess trade costs and facilitate access to the oceans.

Trans-Chaco corridor (Photo: Cmasi / Wikimedia Commons [CC BY-SA 4.0])

Furthermore, through this project Paraguay also aims at the reconstruction of the Trans-Chaco corridor. The Trans-Chaco corridor runs north–south through the Chaco Paraguayo and connects directly to the South American Bioceanic Corridor. The government considers these plans indispensable for the development of this region. However, negative impacts on the environment and local residents are also anticipated.

This article therefore outlines the South American Bioceanic Corridor and the plan to rebuild the Trans-Chaco corridor, and discusses the impacts this project may have on Paraguay and the surrounding region.

The South American Bioceanic Corridor

In recent years, South American governments have sought to build a more integrated continent by planning and developing a transcontinental corridor that crosses South America and connects the Atlantic and Pacific Oceans. Railways, roads, and waterways are envisioned as components of a new infrastructure network intended to enhance economic and social cooperation within the region.

In April 2015, at the 49th MERCOSUR (Note 1) summit, the leaders of Argentina, Brazil, Chile, and Paraguay agreed to construct a new road called the “South American Bioceanic Corridor.” The goal is to promote trade and development through regional integration and more efficient customs procedures. It is also intended to make it easier to deliver South American products to European and Asian markets and to improve communication among the four countries. Bolivia was initially included in the road’s construction, but was excluded due to deteriorating relations between Bolivia and Chile, following a ruling by the International Court of Justice ordering Chile to negotiate with landlocked Bolivia over access to the Pacific Ocean. Nevertheless, it is also said that Bolivia is included in the development of the Central Bioceanic Railway Corridor connecting Brazil, Bolivia, Paraguay, and Peru by train.

The planned road linking Brazil and Chile via Paraguay and Argentina will span 2,945 km across four countries. Regular meetings are held to coordinate progress in each country’s section of the project, as financing and planning for key parts of the Bioceanic Corridor must advance jointly among the four countries. Examples include a bridge over the Paraguay River linking Brazil and Paraguay, and the still-planned 14 km Agua Negra Tunnel connecting Chile and Argentina. Although initial plans anticipated completion by 2023, delays remain possible.

Planned rail tunnel connecting Argentina and Chile (Photo: Benjamin Dumas / Flickr [CC BY-NC-SA 2.0])

The Bioceanic Corridor in Paraguay

Of the approximately 3,000 km length of the South American Bioceanic Corridor, about 574 km will pass through Paraguay via the Chaco Paraguayo. Although the Chaco Paraguayo is Paraguay’s largest region, it has the smallest population. The government therefore expects that building the east–west Bioceanic Corridor and reconstructing the north–south Trans-Chaco corridor will spur economic development in the area.

In March 2018, a contract for the first stage of the corridor in Paraguay was signed with a Brazil–Paraguay consortium for USD 421 million. Contracts for stages two and three have not yet been signed, but were scheduled to begin in the latter half of 2019.

Chaco Paraguayo (Photo: Ilosuna / Wikipedia [CC BY 1.0])

The first stage is divided into 20 sections. Of these, the first section, in Loma Plata in central Chaco Paraguayo, and the 20th section, in Capitán Carmelo Peralta on the border with Brazil, are being executed simultaneously. Together these two sections extend 24 km; grading and drainage systems have already been completed, and all work is scheduled to be finished by September 30. According to Paraguay’s Ministry of Public Works and Communications, the road is being built to a structural standard not previously seen in Paraguay to ensure it can withstand heavy-vehicle traffic. This marks the first paved road in Alto Chaco, a part of the Chaco Paraguayo, and is considered a historic development.

The Gran Chaco and the Chaco Paraguayo

The Gran Chaco, also called the “Dry Chaco” or “Flat Chaco,” is a South American region covering an area of 1 million km². Twenty-five percent of that area lies in western Paraguay, with the remainder extending into Bolivia, Brazil, and Argentina. The Gran Chaco is the largest dry forest in South America and the second-largest forest after the Amazon. It is home to many animal and plant species and encompasses a wide range of ecosystems from savannas to wetlands.

The Gran Chaco was once protected partly due to its sparse population. Today, however, it is under threat from deforestation for timber and charcoal production, as well as grazing pressure from increased livestock. According to the World Wildlife Fund (WWF), native vegetation is disappearing at a rate of 0.004 km² per minute, and hundreds of square kilometers are expected to be lost by 2030 due to agriculture and livestock. Building better transport infrastructure such as the Bioceanic Corridor, which facilitates the transport of resources and products like timber, could pose further risks.

Paraguay can be divided into two major regions: the Chaco Paraguayo in the west, with about 230,000 residents, and the Paraneña Paraguaya in the east, with about 6.93 million. However, the more populous Paraneña Paraguaya accounts for only 39% of the national territory, underscoring the low population density of the Chaco Paraguayo.

The Bioceanic Corridor and the refurbished Trans-Chaco corridor are slated to run through the sparsely populated Chaco Paraguayo. As in other parts of the Gran Chaco, the region’s economy is supported by agriculture and livestock. Considering that Alto Chaco, part of the Chaco Paraguayo, remains largely untouched and underdeveloped, connecting the Atlantic and Pacific via the Bioceanic Corridor could broaden growth potential in tandem with regional development and population increases. Paraguay’s Minister of Public Works and Communications has called the new transport network in the Chaco Paraguayo an “unprecedented development,” expected to generate value of around USD 5 million—three times the goods currently transported on the country’s trunk roads.

At the same time, questions remain about how to protect the environment from deforestation and pollution arising from development. Issues have also surfaced in relation to Indigenous peoples. The Chaco Paraguayo is home to Indigenous groups such as the Ayoreo, Guaraní, and Ishir, who make their living from small-scale farming, hunting, and gathering. There is concern over how development in the area will affect them.

Toward Sustainable Development

In response to the question of whether to proceed with development plans in areas inhabited by Indigenous peoples despite these issues, the Minister of Public Works and Communications has said that improved transportation will enhance life in the Chaco Paraguayo. There are plans to build gravel roads connecting these Indigenous communities with the new Trans-Chaco corridor, making it easier to access education and health services.

The minister also argued that both the Trans-Chaco corridor and the Bioceanic Corridor include environmentally sustainable planning as part of their strategy. Specifically, both corridors are to include tunnels to allow wildlife to cross the roads safely—in other words, structures designed to prevent animals from being run over and to enable them to move through the Chaco Paraguayo in line with natural ecosystems. In addition, he mentioned a plan to reforest trees felled in the Chaco Paraguayo to carry out the development.

Central Chaco Paraguayo (Photo: Andrea Ferreira / Flickr [CC BY-NC-ND 2.0])

To demonstrate the government’s commitment to environmentally conscious development in the Chaco Paraguayo, the Minister of Public Works and Communications signed an agreement with the NGO SOS Paraguay. The agreement calls for implementing plans that grow the economy and society while addressing environmental protection and climate change. It also commits to limiting the environmental impact of new development with a view to achieving the United Nations’ Sustainable Development Goals (SDGs).

However, it remains unclear whether these measures will be sufficient to protect habitats that are already disappearing, and whether this new transport network will bring sustainable development to the Chaco Paraguayo or instead accelerate the destruction of the Gran Chaco, one of the largest forests on Earth.

Note 1 MERCOSUR: The Southern Common Market established in 1995. Member countries are Argentina, Brazil, Paraguay, Uruguay, and Venezuela. Associate members include Bolivia and Chile, among others. It is a customs union that aims, among other things, to eliminate intra-regional tariffs.

Writer: Elisabet Vergara Velasco

Translation: Saki Takeuchi

Graphics: Saki Takeuchi

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