CNS INTERTRANS - The Freight Forwarder Service Expert of Latin America and Caribbean Lines
This "Two-Ocean Railway" in South America, spanning the Atlantic Ocean and the Pacific Ocean, is an important railway project connecting several resource-rich regions in South America. It is of great significance for improving the local economy and trade level.
What is the "Two Oceans Railway"?
Generally speaking, this railway starts from Rio de Janeiro State in Brazil in the east and passes through Minas Gerais State (Brazil), Goias state (Brazil), Mato Grosso State (Brazil), Rondonia State (Brazil), Amazonas State (Brazil), the Andes Mountains (Peru), Puerto Chancai and its surrounding areas (Peru), and other regions.
It is also possible to build branch routes extending to countries such as Bolivia in the future. Once completed, it will have a huge influence on the trade map of South America and even the whole world.
Why do you say so? Because the surrounding areas of this railway and the possible future extension sections almost cover most of the regions of significant economic and trade value in South America.
For instance, the state of Minas Gerais mentioned above has the largest iron ore production area in Brazil, including the "Iron Quadrilateral" region and the Itabira mining area, which contribute 73% of the country's total iron ore output. The major mining enterprises include the renowned Brazilian Vale Corporation (CVRD) and the Brazilian United Mining Company (MBR).
Moreover, the iron ore in this state is renowned for its high grade and low impurities, and it is one of the best sources of raw materials for the international steel industry.
In addition, this state is rich in mineral resources such as gold, manganese and bauxite. It is one of the top three economic powerstates in Brazil in terms of GDP and holds a very important position in trade.
The states of Goias and Mato Grosso in Brazil are the most important agricultural product production areas in the country. A large amount of soybeans, corn, sugarcane and phosphate rock used for the production of fertilizers are produced here.
The states of Rondonia and the Amazon are rich in agricultural and mining products related to tropical rainforests, such as soybeans, coffee, bananas, pineapples, as well as wood resources, gold mines, bauxite, and so on.
As for the Andes Mountains within Peru, its most important resources are copper and gold mines.
Peru is the world's second-largest copper producer and also ranks among the top in gold production in South America. Among them, the Andes Mountains are the region in Peru that is most rich in copper and gold resources.
Historically, the Inca Empire in southern Peru used a large amount of gold for the decoration of temples, palaces and noble ornaments, and was known as the "City of Gold".
2. Significantly enhance the shipping hub status of Qiankai Port.
Qiankai Port should be quite familiar to everyone. It is one of the most important strategic projects in Peru in recent years and also one of the most significant achievements of the Belt and Road Initiative in Latin America.
As a "new gateway" for trade between South America and the Asia-Pacific region, the construction of Qiankai Port directly creates 13,000 jobs for the local area. After its operation, it will contribute approximately 0.3% to 0.9% of the national GDP.
This port is located on the Pacific coast of Peru and serves as the core hub for the South American continent to directly connect with the Asian market. After its official opening in November 2024, it has significantly reduced the transportation time from South America to Asia.
Its designed annual throughput reaches 1 to 1.5 million TEUs, capable of accommodating the world's largest container ships (18,000 TEUs), far exceeding the capacity of the Panama Canal (14,000 TEUs).
3. The advantages of the two Ocean railways compared to the Panama Canal.
Everyone should have some understanding of the problems of the Panama Canal to a greater or lesser extent.
Mainly affected by global warming, its water level has dropped significantly and its passage capacity has been greatly hindered. And in the foreseeable future, the difficulty of its passage will continue to increase significantly.
The passage cost, passage time and possible political cost (the US government has repeatedly threatened to regain control of the Panama Canal) have all brought increasing resistance to the passage of the Panama Canal.
At present, a single pass through the Panama Canal takes about 9 hours, and the waiting time in line can last for weeks or even months. It takes at least 35 days or more for goods from South America to be transported to Asia throughout the journey.
The characteristic of railway transportation is that it is very stable and not affected by seasons. The goods can be transported directly from Brazil to the Port of Chamkai in Peru via the Two-Ocean Railway, and then directly to Asia via the Pacific Ocean. The transportation time can be shortened to about 15 days.
And there is no need to pay the average passage fee of up to 250,000 US dollars for each cargo ship on the Panama Canal. The overall cost of railway transportation has been reduced by more than 30%, and it directly connects Brazil with the inland mineral, timber and agricultural product production areas of Peru, greatly improving the transportation efficiency.
Most importantly, this is a transportation system under our independent control and is not affected by external political factors
