MercoPress. South Atlantic News Agency

Proposed trans-Andes tunnel, crucial link for Pacific-Atlantic highway

The 14 kilometres tunnel could take ten years to build

A proposed 916 million US dollars road tunnel linking Chile and Argentina was endorsed last week by the Coquimbo (Region IV) regional government. The approval gives a green light to the proposed 14-km tunnel linking Chile’s Coquimbo province with the Argentine province of San Juan.

The tunnel will replace the existing Agua Negra pass, which crosses the Andes at an average altitude of 4,780 meters above sea level and is impassable because of snow during winter months. The tunnel will shave 44 km off the existing route and has been widely supported by road-freight companies.

The tunnel project was endorsed earlier this year by President Bachelet and her Argentine counterpart, Christina Fernandez de Kirchner. It will be fifth longest road tunnel in the world and will take 10 years to build. Contractors begin submitting bids early next year. Nearly three-quarters of the project is to be financed by Argentina, as only 4 kilometres of the road will be constructed on the Chilean side of the border.

The tunnel will bring considerable economic benefits to Chile. Tourist authorities in the Coquimbo region reported earlier this year that over 2,500 Argentine tourists use the overland pass every week during the summer season. This number is expected to increase once the new tunnel is completed.

The new route will also bring more trade to the Chilean port of Coquimbo, which currently handles 120,000 tons of Argentine soy exports annually.

The tunnel will form part of a trans-continental highway linking the Pacific Ocean to southern Brazil’s Atlantic port of Porto Alegre. This is seen as an important economic venture for the Mercosur trade association, of which Brazil, Argentina, Paraguay and Uruguay are founders and Chile an associate member, as it will ensure better access to global markets for South American exports.

In 2004 former Argentine President Nestor Kirchner secured Chinese funding for the proposed tunnel. The Asian country was keen to invest as the tunnel would reduce transport costs for its trade with Argentina.

But Chilean authorities refused to ratify the proposal until a feasibility study was concluded. It is not clear whether the Chinese investment offer is still on the table.

By James Fowler – Santiago Times