The Minister of Regional Integration, Logistics and Transportation of Catamarca, Raúl Chico, affirmed that the reopening for vehicular traffic of the San Francisco International Pass, the border crossing that unites that province with Chile, configures the instance prior to “the construction of the corridor bioceanic railway that is going to change the productive matrix of Argentina”.
In dialogue with Télam Radio, he affirmed that this means that “the production that today leaves through the Atlantic can begin to leave through the Pacific with two significant advantages: lower freight costs and between 10 and 20 fewer days of navigation if we take into account that going out through the Atlantic first go down to the Beagle or go up to the Panama Canal, to start the trip to Asia”.
“This makes us competitive in the world, it means that our products will go out to the world at a lower price if they go out through the Pacific,” said Chico.and stressed that “we need fluidity to go to the Asia Pacific markets with our production, which is where the big markets are and where they are beginning to look more interested, more frequently to Argentina.”
In this sense, Chico stressed that it is a strategic project in which the president of the Nation, the governor of the Province, all the governors of the region and obviously the government of Chile agreeand explained that “the importance of opening the road has to do with not only the fact that land transport costs are greatly improved, but it is also the step prior to the construction of the bi-oceanic rail corridor.”
“The bi-oceanic rail corridor is really going to change the productive matrix of Argentina because the reduction in costs that we are going to have transporting our loads by train, any type of load, especially grains, is going to be very important,” he added.
In addition, he indicated that “the least benefited provinces will have a 4-point decrease in their costs and the most benefited, due to their proximity to Chile, will have a 30-35 point decrease in costs.”
The San Francisco International Pass is located in the northwestern sector of the province of Catamarca, born in the city of Tinogasta and runs a distance of 250 kilometers to culminate on the border with Chile.
“Just to compare, when it is said that withholdings on grain exports were raised by 2 points and some barbaric trouble is created. Imagine that when the rail corridor is working we will have at least 4 points of cost reduction. Those 2 points for which we always have differences become insignificant,” he argued.
The official also commented that It is a work that “costs around US$ 2,500 million, according to estimates we have”and added that “the executive project is being prepared to go out and look for financing.”
He also commented that “financing in 2015, 2016 we already had it from a Chinese company, financed by a Chinese bank, with the authorization of the Chinese government, with the consent of the Chilean government, but that the national management at that time considered it was a non-priority work for Argentina”.
The San Francisco International Pass is located in the northwestern sector of the province of Catamarca, it starts in the city of Tinogasta and runs a distance of 250 kilometers to culminate on the border with Chile, at 4,726 meters above sea level.
